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Discontinued Operations
 12 Months Ended
Jan. 31, 2014
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

Note 19—Discontinued Operations

On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass) which manufactured polysomnography and electroencephalography systems and related accessories and propriety electrodes for use in both research and clinical settings. The assets sold consisted primarily of working capital (exclusive of inventory and accounts payable related to manufacturing), the engineering, sales and support workforce, intellectual property and certain other related assets. The proceeds from the sale consisted of $18.6 million in cash, of which $16.8 million was recognized in fiscal 2013 and the remaining $1.8 million, which was held in escrow following the closing date of the transaction, was recognized in fiscal 2014.

As part of this transaction, Astro-Med entered into a Transition Service Agreement (TSA) with the purchaser in which the Company has provided transition services and continued to manufacture Grass products for the purchaser through January 31, 2014, at which time the purchaser was obligated to acquire the remaining inventory. The Company determined that cash flows from this activity were not and will not be material to its recurring operations. At January 31, 2014, the Company has completed its responsibility under the TSA, closed its Rockland facility which is in the process of being sold (as described below) and terminated substantially all employees related to Grass.

As a result of the above, the Company has classified the results of operations of the Grass Technologies Product Group as a discontinued operation for all periods presented.

Results for discontinued operations are as follows:

 

     2014      2013  
(In thousands)              

Net Sales

    $ 8,401       $ 19,195   

Cost of Sales

    $ 7,353       $ 9,072   

Gross Profit

    $ 1,048       $ 10,123   

Operating Expenses

    $ 96       $ 6,205   

Income from Discontinued Operations

    $ 952       $ 3,918   

Gain on Sale of Assets of Discontinued Operations

    $ 1,800       $ 10,162   

Income Tax Expense

    $ 777       $ 5,351   

Income from Discontinued Operations

    $ 1,975       $ 8,729   

Included in the above calculation of the Gain on Sale of Assets of Discontinued Operations for 2013 is a charge of $779,000 related to the impairment of the Grass Technologies Product Group facility located in Rockland, Massachusetts. The impairment charge was based on the fair value of the facility, less costs to sell, using market values for similar properties which is a Level 2 measurement in the fair value hierarchy discussed in Note 18. In February 2014, the Company entered into a purchase and sale agreement to sell the property to an independent buyer and this transaction is expected to close in April 2014. As a result, the property is currently disclosed at its fair market value and is classified as an asset held for sale in the accompanying balance sheet for the period ended January 31, 2014.