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Discontinued Operations
12 Months Ended
Oct. 01, 2011
Discontinued Operations [Abstract] 
Discontinued Operations

(10) Discontinued Operations

In April 2006, the Company decided to exit the industrial wire business with the closure of its Fredericksburg, Virginia facility which manufactured tire bead wire and other industrial wire for commercial and industrial applications. The Company’s decision was based on the weakening in the business outlook for the facility and the expected continuation of difficult market conditions and reduced operating levels. Manufacturing activities at the Virginia facility ceased in June 2006 and the Company liquidated the remaining assets of the business in 2010.

The results of operations and related non-recurring closure costs associated with the industrial wire business have been reported as discontinued operations for all prior periods presented. Additionally, the assets and liabilities of the discontinued operations have been segregated in the accompanying consolidated balance sheets.

 

The Company reviews its assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company recorded a $1.8 million impairment charge during the year ended October 3, 2009 to write down the carrying value of the real estate associated with the industrial wire business. During 2010 the Company sold the real estate for $2.5 million resulting in a $478,000 gain.

The results of discontinued operations are as follows:

 

                 
    Year Ended  
(In thousands)   October 2,
2010		     October 3,
2009		  

Earnings (loss) before income taxes

   $ 232     $ (1,875 ) 

Income taxes

     (217 )      729  
   

 

 

    

 

 

  

Net earnings (loss)

   $ 15     $ (1,146 ) 
   

 

 

    

 

 

  

Liabilities of discontinued operations are as follows:

 

         
(In thousands)   October 2,
2010		  

Liabilities:

        

Current liabilities:

        

Accounts payable

   $ —  

Accrued expenses

     210  
   

 

 

  

Total current liabilities

     210  

Other liabilities

     280  
   

 

 

  

Total liabilities

   $ 490  
   

 

 

  

At October 2, 2010 there was approximately $315,000, of accrued expenses and other liabilities related to ongoing lease obligations and closure-related liabilities incurred as a result of the Company’s exit from the industrial wire business.