Note 10 - Other Gains and Losses

9 Months Ended

Aug. 25, 2018

Notes to Financial Statements

Other Gains and Losses [Text Block]

10.

Other Gains and Losses

Fiscal

2018

Gain on

Sale of Retail

Store

Location

In

May 2018

we sold the land and building occupied by our Spring, Texas retail store in connection with the eventual relocation of the store to another site in the Houston market. We received net cash proceeds of

$2,463

from the sale, resulting in a gain of

$165

recognized during the

nine

months ended

August 25, 2018

which is included in income from operations in our accompanying condensed consolidated statements of income.

Fiscal

2017

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 2017

we sold our interest for

$3,592

in cash, resulting in a gain of

$3,267

recognized for the

nine

months ended

August 26, 2017.

Gain on Sale of Retail Store Location

Selling, general and administrative expenses for the

three

and

nine

months ended

August 26, 2017

includes a gain of

$1,220

resulting from the sale of our retail store location in Las Vegas, Nevada for

$4,335

in cash. The store was closed in

August

of

2017

in preparation for its repositioning to a new location in the Las Vegas market.

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,

with 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 to date. We have also concluded that, absent a significant cash investment in the building, the likelihood of locating another tenant 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 that we were unlikely to renew the ground lease in

2020

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

$1,084

for the

nine

months ended

August 26, 2017

to write off the value of the building.