|
NOTE 4—DISCONTINUED OPERATIONS
On December 29, 2008, the Company sold all of its interests in Cinemex, which then operated 44 theatres with 493 screens primarily in the Mexico City Metropolitan Area, to Entretenimiento GM de Mexico S.A. de C.V. ("Entretenimiento"). The purchase price received at the date of the sale and in accordance with the Stock Purchase Agreement was $248,141,000. During the year ended April 1, 2010, the Company received payments of $4,315,000 for purchase price related to tax payments and refunds, and a working capital calculation and post closing adjustments. During the years ended March 29, 2012 and March 31, 2011, the Company received payments, net of legal fees, of $114,000 and $1,840,000, respectively, of the purchase price related to tax payments and refunds. Additionally as of March 29, 2012, the Company estimates that it is contractually entitled to receive an additional $6,602,000 of the purchase price related to tax payments and refunds. While the Company believes it is entitled to these amounts from Cinemex, the collection will require litigation, which was initiated by the Company on April 30, 2010. Resolution could take place over a prolonged period. In fiscal 2010, as a result of the litigation, the Company established an allowance for doubtful accounts related to this receivable and further directly charged off certain amounts as uncollectible with an offsetting charge of $8,861,000 recorded to loss on disposal included as a component of discontinued operations. The Company does not have any significant continuing involvement in the operations of the Cinemex theatres after the disposition. The results of operations of the Cinemex theatres have been classified as discontinued operations for all periods presented.
Components of amounts reflected as earnings (loss) from discontinued operations in the Company's Consolidated Statements of Operations are presented in the following table:
Statements of operations data:
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
52 Weeks
Ended
March 29,
2012 |
|
52 Weeks
Ended
March 31,
2011 |
|
52 Weeks
Ended
April 1,
2010 |
|
|
Operating Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on disposal |
|
$ |
25 |
|
$ |
(569 |
) |
$ |
7,534 |
|
| |
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
25 |
|
|
(569 |
) |
|
7,534 |
|
| |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
(25 |
) |
|
569 |
|
|
(7,534 |
) |
| |
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
(25 |
) |
|
569 |
|
|
(7,534 |
) |
|
Income tax provision |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
Net earnings (loss) from discontinued operations |
|
$ |
(25 |
) |
$ |
569 |
|
$ |
(7,534 |
) |
| |
|
|
|
|
|
|
|
|