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Discontinued Operations
 9 Months Ended
Jan. 24, 2015
Discontinued Operations  
Discontinued Operations

 

Note 3: Discontinued Operations

 

During the fourth quarter of fiscal 2014, we sold substantially all of the assets of our Bauhaus U.S.A. business unit to a group of investors and classified Lea Industries as held for sale while we marketed that business for sale. We were unable to find a buyer for our Lea Industries business, and instead we liquidated all the assets, consisting mostly of inventory, and ceased operations of Lea Industries during the third quarter of fiscal 2015.

 

The operating results of Bauhaus and Lea Industries are reported as discontinued operations for all periods presented. We had historically reported the results of our Bauhaus business unit as a component of our Upholstery segment and Lea Industries as a component of our Casegoods segment.

 

In the first quarter of fiscal 2015, we recorded $3.8 million of income in discontinued operations related to our previously owned subsidiary, American Furniture Company, Incorporated. We sold this subsidiary in fiscal 2007, and reported it as discontinued operations at that time. The income related to the Continued Dumping and Subsidy Offset Act of 2000, which provides for distribution of duties, collected by U.S. Customs and Border Protection from antidumping cases, to domestic producers that supported the antidumping petition related to wooden bedroom furniture imported from China. When we sold American Furniture Company, Incorporated, our contract provided that we would receive a portion of any such duties to which that entity was entitled. That entity subsequently filed for bankruptcy. The funds were distributed by U.S. Customs to the bankruptcy trustee and by the trustee to be held in trust for us during the first quarter of fiscal 2015 and were received by us early in the second quarter of fiscal 2015.

 

The results of our discontinued operations for the quarter and nine months ended January 24, 2015, and January 25, 2014, were as follows:

 

 

 

Quarter Ended

 

Nine Months Ended

 

(Amounts in thousands)

 

1/24/15

 

1/25/14

 

1/24/15

 

1/25/14

 

Net sales

 

$
1,075

 

$
12,951

 

$
7,863

 

$
40,494

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) from discontinued operations

 

$
186

 

$
(1,532

)

$
747

 

$
(2,175

)

Income from Continued Dumping and Subsidy Offset Act, net

 

—

 

—

 
3,763

 

—

 

Income tax (expense) benefit

 
(71

)
545

 
(1,613

)
782

 

Income (loss) from discontinued operations, net of tax

 

$
115

 

$
(987

)

$
2,897

 

$
(1,393

)

 

In our consolidated statement of cash flows, we included the activity of these discontinued operations along with our activity from continuing operations.