Note 11 - Discontinued Operations

3 Months Ended

May 31, 2020

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

1

1

.

DISCONTINUED OPERATIONS

On

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash. The Company completed this transaction on

December 4, 2018.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations.

The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)
	May 31,			June 2,
	2020			2019
Net sales	$	-		$	-
Cost of sales		-			-
Gross profit		-			-
Selling, general and administrative expenses		-			136
Restructuring charges		20			33
Loss from discontinued operations		(20	)		(169	)
Other income		-			-
Loss from discontinued operations before income taxes		(20	)		(169	)
Income tax benefit		(5	)		(42	)
Net loss from discontinued operations	$	(15	)	$	(127	)

During the

2018

fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately

$74,

which the Company expects to incur primarily during the fiscal year ending

February 28, 2021.

The following table sets forth the charges and accruals related to the consolidation:

	Accrual March 1, 2020		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual May 31, 2020		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	432	$	13	$	(244	)	$	-	$	201	$	2,942	$	3,000
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		586		586
Other		-		7		(7	)		-		-		934		950
Total Restructuring Charges	$	432	$	20	$	(251	)	$	-	$	201	$	5,543	$	5,617