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Discontinued Operations
 9 Months Ended
Jan. 23, 2016
Discontinued Operations  
Discontinued Operations

 

Note 4: Discontinued Operations

 

During fiscal 2015, we ceased operations and liquidated all the assets, consisting mostly of inventory, of Lea Industries, a division of La-Z-Boy Casegoods, Inc. (formerly La-Z-Boy Greensboro, Inc.). We reported Lea Industries’ operating results as discontinued operations for the period ended January 24, 2015. Historically, we had reported the results of 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 we recorded 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, were as follows:

 

 

 

Quarter Ended

 

Nine Months 
Ended

 

(Unaudited, amounts in thousands)

 

1/24/15

 

1/24/15

 

Net sales

 

$
1,075

 

$
7,863

 

 

 

 

 

 

 

Operating income from discontinued operations

 

$
186

 

$
747

 

Income from Continued Dumping and Subsidy Offset Act, net

 

—

 
3,763

 

Income tax expense

 
(71

)
(1,613

)

 

 

 

 

 

 

Income from discontinued operations, net of tax

 

$
115

 

$
2,897

 

 

 

 

 

 

 

 

 

 

We included the activity of these operating units in our consolidated statement of cash flows with our continuing operations for the nine months ended January 24, 2015.