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Note 3 - Discontinued Operations
 9 Months Ended
Dec. 29, 2018
Discontinued Operations [Member]  
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3
.
Discontinued Operations
 
 
On
July 13, 2018, 
the Company executed a nonbinding letter of intent with a perspective buyer of the Modesto facility. On
October 9, 2018,
the Company closed on the sale of the facility to this outside buyer with net proceeds of
$63,326,000.
Based on its magnitude of revenue to the Company (approximately
15%
) and because the Company was exiting the production of peaches, this sale represented a significant strategic shift that has a material effect on the Company’s operations and financial results. Accordingly, the Company has applied discontinued operations treatment for this sale as required by Accounting Standards Codification
210
-
05—
Discontinued Operations
. This business we are exiting is part of the Fruit and Vegetable segment.
 
 
The following table presents information related to the major classes of assets and liabilities of Modesto that are classified as Held For Sale-Discontinued Operations in the Company's Consolidated Condensed balance sheets (in thousands):
 
   
December 29
    
December 30
    
March 31
  
   
2018
    
2017
    
2018
  
Accounts Receivable
   $
1,441
     $
7,490
     $
12,586
  
Inventories
    
4,645
      
129,738
      
96,996
  
Other Current Assets
    
5,977
      
-
      
288
  
                         
Current Assets Held For Sale-Discontinued Operations
   $
12,063
     $
137,228
     $
109,870
  
                         
Other Assets
   $
1,739
     $
1,574
     $
1,616
  
Property, Plant and Equipment (net)
    
-
      
18,608
      
18,482
  
                         
Noncurrent Assets Held For Sale-Discontinued Operations
   $
1,739
     $
20,182
     $
20,098
  
                         
Accounts Payable and Accrued Expenses
   $
8,697
     $
18,338
     $
26,226
  
Long-Term Debt and Capital Leases Current Portion
    
-
      
2,309
      
2,347
  
Current Liabilities Held For Sale-Discontinued Operations
   $
8,697
     $
20,647
     $
28,573
  
                         
Long-Term Debt and Capital Lease Obligations
   $
-
     $
8,565
     $
7,964
  
Noncurrent Liabilities Held For Sale-Discontinued Operations
   $
-
     $
8,565
     $
7,964
  
 
The operating results of the discontinued operations that are reflected in the Unaudited Condensed Consolidated Statements of Net Earnings (Loss) from discontinued operations are as follows (in thousands): 
 
   
Three Months Ended
    
Nine Months Ended
  
   
December 29,
    
December 30,
    
December 29,
    
December 30,
  
   
2018
    
2017
    
2018
    
2017
  
                                 
Net Sales
   $
1,644
     $
37,547
     $
111,693
     $
123,629
  
                                 
Costs and Expenses:
                                
                                 
Cost of Product Sold
    
5,796
      
36,280
      
129,872
      
124,297
  
Selling, General and Administrative
    
137
      
910
      
1,135
      
2,446
  
Plant Restructuring Charge (a)
    
854
      
-
      
4,350
      
-
  
Interest (Income) Expense (b)
    
-
      
537
      
1,077
      
1,609
  
       Total cost and expenses    
6,787
      
37,727
      
136,434
      
128,352
  
Loss From Discontinued Operations Before Income Taxes
    
(5,143
 )    
(180
 )    
(24,741
 )    
(4,723
 )
Gain on the Sale of Assets Before Income Taxes (c) (d) (e)
    
(50,411
 )    
-
      
(80,677
 )    
-
  
Income Tax Expense (Benefit)
    
11,212
      
977
      
13,725
      
(814
 )
Net Earnings (Loss) From Discontinued Operations, Net of Tax
   $
34,056
     $
(1,157
 )   $
42,211
     $
(3,909
 )
 
(a)
Includes
$278,000
and
$3,579,000
of Modesto severance in the
three
and
nine
month periods of fiscal
2019,
respectively.
(b)
Includes interest on debt directly related to Modesto including the building mortgage and equipment leases and an allocation of the Company's line of credit facility.
(c)
Includes a
$24,211,000
gain as a result of LIFO layer liquidations from the disposal of the inventory for
nine
months.
(d)
Includes
$50,411,000
and
$51,491,000
gain on the sale of Modesto plant and equipment in the
three
and
nine
month periods of fiscal
2019,
respectively.
(e)
Includes a
$4,975,000
gain on the sale of bins for the
nine
months period.
 
Supplemental Information on Discontinued Operations (in thousands):
                                
Capital Expenditures
    
-
      
621
      
3,937
      
1,889
  
Depreciation
    
7
      
491
      
1,302
      
1,583