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Note 16 - Non-Operating Income and Expense
 9 Months Ended
Aug. 25, 2012
Other Income and Other Expense Disclosure [Text Block]
16. Non-Operating Income and Expense

Income from the Continued Dumping & Subsidy Offset Act

During the nine months ended August 25, 2012,  the U.S. Customs and Border Protection (“Customs”) made a distribution to us of $9,010 representing our share of the final distribution of duties that have been withheld by Customs under the Continued Dumping and Subsidy Offset Act of 2000 (“CDSOA”). We have received annual distributions in past years under the CDSOA as a result of our support of an antidumping petition on imports of wooden bedroom furniture from China, such distributions having been recognized in income during the fourth quarter of each fiscal year when our annual share was determined. Certain manufacturers who did not support the antidumping petition (“Non-Supporting Producers”) filed actions in the United States Court of International Trade challenging the CDSOA's “support requirement” and seeking to share in the distributions. As a result, Customs held back a portion of those distributions (“the Holdback”) pending resolution of the Non-Supporting Producers' claims. The Court of International Trade dismissed all of the actions of the Non-Supporting Producers, who appealed to the United States Court of Appeals for the Federal Circuit (“the Court of Appeals”). While the Court of Appeals denied the Non-Supporting Producers request for an injunction to block the final distribution of the Holdback and allowed Customs to distribute the funds in April of 2012, the appeal is still pending before the court. Should the Court of Appeals reverse the decisions of the United States Court of International Trade which ordered the release of the final distribution, it is possible that Customs may seek to have us return all or a portion of our share of the distribution.

Gain on Sale of Affiliate

On May 2, 2011 we sold our 46.9% interest in International Home Furnishings Center, Inc. (“IHFC”) to International Market Centers, L.P. (“IMC”).  Consideration received, the balance of our investment in IHFC at the time of sale, and the resulting gain from the sale are as follows:

Gain on sale of affiliate:
       
Consideration received:
       
Cash received at and subsequent to closing (1)
  $
70,565
 
Indemnification escrow receivable (2)
   
4,695
 
Investment in IMC (3)
   
1,000
 
         
Total consideration received
  $
76,260
 
         
Investment in IHFC:
       
Distributions in excess of affiliate earnings
   
9,282
 
         
Gain on sale of affiliate
  $
85,542
 

 
(1)
$67,752 received at closing on May 2, 2011; additional consideration of $1,400 recognized as receivable at closing was received during the third quarter of 2011; and $1,413 of tax contingency escrowed at closing was released to us during the first quarter of fiscal 2012.

 
(2)
$2,348 included in other current assets in the accompanying condensed consolidated balance sheet at August 25, 2012, with the remainder included in other non-current assets.

 
(3)
Included in other non-current assets in the accompanying condensed consolidated balance sheet at August 25, 2012.

Other Income (Loss), Net

Other income (loss), net, for the three and nine months ended August 25, 2012 and August 27, 2011 consists of the following:

   
Quarter Ended
   
Nine Months Ended
 
   
August 25, 2012
   
August 27, 2011
   
August 25, 2012
   
August 27, 2011
 
                         
Write down for impairment of Fortress (Note 14)
  $ -     $ -     $ (806 )   $ -  
Income (loss) from unconsolidated affiliated companies, net (Note 7)
    23       (139 )     157       1,784  
Interest expense
    (72 )     (416 )     (228 )     (824 )
Loan and lease guarantee recovery (expense)
    23       141       (197 )     (1,315 )
Retail real estate impairment charges
    -       -       -       (3,953 )
Lease exit costs
    -       -       (74 )     (837 )
Gain on mortgage settlements (Note 8)
    -       869       -       1,305  
Other
    (289 )     (151 )     (1,091 )     (1,630 )
                                 
Other income (loss) net
  $ (315 )   $ 304     $ (2,239 )   $ (5,470 )

Loan and lease guarantee expense consists of adjustments to our reserves for the net amount of our estimated losses on loan and lease guarantees that we have entered into on behalf of our licensees. Income shown above for the three months ended August 25, 2012 and August 27, 2011 represents the net recovery of previous charges when the final settlement of a loan or lease guarantee obligation is less than the estimated amount. Charges shown above for the nine months ended August 25, 2012 and August 27, 2011 are to recognize expense reflecting the additional risk that we may have to assume the underlying obligations with respect to our guarantees, net of any recoveries.

Retail real estate impairment charges for the three and nine months ended August 27, 2011 include non-cash asset impairment charges of $2,106 to write down idle retail locations in Henderson, Nevada and Chesterfield, Virginia to appraised value and $1,847 to write off certain tenant improvements deemed to be unrecoverable.

During the nine months ended August 25, 2012, we incurred $74 of non-cash charges to reflect reduced estimates of recoverable lease costs at one idle retail location. Lease exit costs of $837 for the three and nine months ended August 27, 2011 consist of non-cash charges incurred during the third quarter of 2011 related to lease termination costs at three idle retail locations.