Note 10 - Other Gains and Losses

6 Months Ended

May 27, 2017

Notes to Financial Statements

Investment [Text Block]

1

0

.

Other Gains and Losses

Gain on Sale of Investment

In

1985,

we acquired a minority interest in a privately-held, start-up provider of property and casualty insurance for

$325.

We have accounted for this investment on the cost method and included it in other long-term assets in our condensed consolidated balance sheet. In

April

of

2017

we sold our interest for

$3,592

in cash, resulting in a gain of

$3,267

recognized for the

three

and

six

months ended

May 27, 2017.

Impairment of Investment

in

Real Estate

We own a building in Chesterfield County, Virginia that was formerly leased to a licensee for the operation of a BHF store. The building is subject to a ground lease that expires in

2020,

but which has additional renewal options. Since

2012,

we have leased the building to another party who is, as of recently, paying less than the full amount of the lease obligation, resulting in rental income insufficient to cover our ground lease obligation. Efforts to sell our interest in the building have been unsuccessful so far. We have also concluded that absent a significant cash investment in the building the likelihood of locating another tenant for the building at a rent that would provide positive cash flow in excess of the ground lease expense is remote. In addition, we obtained an appraisal during the quarter ended

May 27, 2017

which indicated that the value of the building had significantly decreased and was now minimal. Given these circumstances, we concluded in the current quarter that we are unlikely to renew the ground lease in

2020

and would therefore likely vacate the property at that time. Consequently, we recorded a non-cash impairment charge of

$1,084

for the

three

and

six

months ended

May 27, 2017

to write off the value of the building. The carrying value of the building at

November 26, 2016

of

$1,108

was included in other long-term assets in our condensed consolidated balance sheet.