Assets and Liabilities Held For Sale Discontinued Operations

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 (buildings and land only) 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 canned 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):

	September 29,		September 30,		March 31,
	2018		2017		2018
Accounts Receivable	$	5,058	$	14,813	$	12,586
Inventories		18,632		150,021		96,996
Other Current Assets		-		-		288

Current Assets Held For Sale-Discontinued Operations	$	23,690	$	164,834	$	109,870

Other Assets	$	1,674	$	1,517	$	1,616
Property, Plant and Equipment (net)		18,967		18,494		18,482

Noncurrent Assets Held For Sale-Discontinued Operations	$	20,641	$	20,011	$	20,098

Accounts Payable and Accrued Expenses	$	16,178	$	31,157	$	26,226
Long-Term Debt and Capital Leases Current Portion		122		2,242		2,347
Current Liabilities Held For Sale-Discontinued Operations	$	16,300	$	33,399	$	28,573

Long-Term Debt and Capital Lease Obligations	$	552	$	8,943	$	7,964
Noncurrent Liabilities Held For Sale-Discontinued Operations	$	552	$	8,943	$	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:

	Three Months Ended						Six Months Ended
	September 29,			September 30,			September 29,			September 30,
	2018			2017			2018			2017

Net Sales	$	10,750		$	46,595		$	110,049		$	86,082

Costs and Expenses:

Cost of Product Sold		13,887			49,319			124,076			88,017
Selling, General and Administrative		218			848			998			1,536
Plant Restructuring Charge (a)		1,714			-			3,496			-
Interest Expense (b)		453			533			1,077			1,072
Total cost and expenses		16,272			50,700			129,647			90,625
Loss From Discontinued Operations Before Income Taxes		(5,522	)		(4,105	)		(19,598	)		(4,543	)
Gain on the Sale of Assets and Other Income Before Income Taxes (c) (d)		(24,628	)		-			(30,266	)		-
Income Tax Expense (Benefit)		4,356			(1,562	)		2,513			(1,791	)
Net Earnings (Loss) From Discontinued Operations, Net of Tax	$	14,750		$	(2,543	)	$	8,155		$	(2,752	)

(a) Includes $1,653,000 and $1,648,000 of Modesto severance in the three and six month periods of fiscal 2019, 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 facility. (c) Includes a $24,211,000 gain as a result of LIFO layer liquidations from the disposal of the remaining inventory in the second quarter of 2019.

(d) Includes

$4,975,000

gain on the sale of bins for the

six

months period.


Supplemental Information on Discontinued Operations:
Capital Expenditures	-	542	3,937	1,268
Depreciation	618	499	1,295	1,092