XML 50 R28.htm IDEA: XBRL DOCUMENT v2.4.1.9
Discontinued Operations
 12 Months Ended
Jan. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 20—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 $1.8 million was held in escrow following the closing date of the transaction and was received by Astro-Med in the first quarter of fiscal 2015.

 

As part of this transaction, a Transition Service Agreement (TSA) was entered into with the purchaser pursuant to which Astro-Med agreed to provide transition services and continue to manufacture Grass products for the purchaser for a period not to exceed twelve months following the sale closing date. The Company determined that cash flows from this activity were not significant and therefore Grass has been classified as a discontinued operation for the fiscal 2014 period presented. The TSA expired on January 31, 2014 and the Company is no longer reporting discontinued operations in fiscal 2015.

In accordance with the terms of the TSA, the purchaser was obligated to acquire the remaining Grass inventory upon expiration of the TSA and as such, the Company received $2,355,000 in the first quarter of fiscal 2015 from the purchaser of Grass related to the disposition of this inventory.

Any future services related to Grass since fiscal 2014 have not been, and are not expected to be material.

Results for discontinued operations are as follows:

 

     2014  
(In thousands)       

Net Sales

    $ 8,401   

Cost of Sales

    $ 7,353   

Gross Profit

    $ 1,048   

Operating Expenses

    $ 96   

Income from Discontinued Operations

    $ 952   

Gain on Sale of Assets of Discontinued Operations

    $ 1,800   

Income Tax Expense

    $ 777   

Income from Discontinued Operations

    $ 1,975