Note 2 - Discontinued Operations

9 Months Ended

Dec. 28, 2019

Discontinued Operations [Member]

Notes to Financial Statements

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

2 . 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.

During the

second

quarter of fiscal

2019,

the Company ceased use of the Modesto facility. 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 28		December 29		March 31
	2019		2018		2019
Accounts Receivable	$	-	$	1,441	$	-
Inventories		-		4,645		-
Other Current Assets		98		5,977		98
Current Assets Held For Sale-Discontinued Operations	$	98	$	12,063	$	98
Other Assets	$	1,054	$	1,739	$	1,143
Noncurrent Assets Held For Sale-Discontinued Operations	$	1,054	$	1,739	$	1,143
Accounts Payable and Accrued Expenses	$	2,744	$	8,697	$	4,285
Current Liabilities Held For Sale-Discontinued Operations	$	2,744	$	8,697	$	4,285

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 28			December 29			December 28			December 29
	2019			2018			2019			2018
Net Sales	$	-		$	1,644		$	-		$	111,693
Costs and Expenses:
Cost of Product Sold		57			5,796			57			129,872
Selling, General and Administrative		-			137			-			1,135
Plant Restructuring (Credit) Charge (a)		(902	)		854			(902	)		4,350
Interest Expense (b)		-			-			-			1,077
Total cost and expenses		(845	)		6,787			(845	)		136,434
Loss From Discontinued Operations Before Income Taxes		845			(5,143	)		845			(24,741	)
Gain on the Sale of Assets Before Income Taxes (c) (d)		(430	)		(50,411	)		(430	)		(80,677	)
Income Tax Expense		320			11,212			320			13,725
Net Earnings From Discontinued Operations, Net of Tax	$	955		$	34,056		$	955		$	42,211
Supplemental Information on Discontinued Operations:
Capital Expenditures		-			-			-			3,937
Depreciation		-			7			-			1,302

(a)	Includes $902,000 credit for pension termination in both the three and nine month periods of the current year.
	Includes $278,000 and $3,579,000 of Modesto severance in the three and nine month periods of prior year, respectively.
(b)	Includes interest on debt directly related to Modesto including the building mortgage and equipment capital leases and an allocation of the Company's line of credit facilty.
(c)	Includes a $24,211,000 gain from LIFO layer liquidations from the disposal of the inventory for both prior three and nine months.
(d)	Includes a $4,975,000 gain on the sale of bins for the prior nine months period.