(13) Discontinued Operations

On December 14, 2015, the Company entered into an Asset Purchase Agreement and related Real Estate Purchase Agreement (the “Purchase Agreements”) with Windy City Restaurant Holdings LLC and its affiliate (together, the “Purchaser”), pursuant to which the Company agreed to sell the assets comprising its seven Chicago, Illinois area Company-owned restaurants located in Addison, Algonquin, Bolingbrook, Evergreen Park, North Riverside, Orland Park and Oswego (collectively, “Purchased Restaurants”) to the Purchaser.

Pursuant to the terms of this agreement, the Company received a total purchase price of $1.15 million during the nine months ended October 2, 2016, plus approximately $315,000 for the purchase of inventory on hand on the closing date. The Purchaser also assumed specified liabilities of the Company, including the Company’s existing leases for the Purchased Restaurants located in Bolingbrook, North Riverside and Orland Park, Illinois.

As a result of this asset sale, the Company recognized a pretax $1.1 million gain during the nine months ended October 2, 2016, primarily due to the write-off of the remaining $1.3 million deferred rent liability associated with the leases assumed by the Purchaser, discussed above.

There were no assets or liabilities of the Purchased Restaurants remaining as of October 1, 2017 or January 1, 2017.

The operating results of the Purchased Restaurants for the three and nine months ended October 2, 2016 are summarized below. These results include costs directly attributable to the components of the businesses which were divested. There were no adjustments required to be made for the three and nine months ended October 1, 2017.


	Three Months Ended				Nine Months Ended
(in thousands)	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Revenue	$	—	$	—	$	—	$	2,365
Interest expense		—		—		—		32
Income tax expense		—		(7)		—		378
Income from discontinued operations		—		(23)		—		1,019
Income from discontinued operations, net of income taxes		—		(81)		—		627