DISCONTINUED OPERATIONS

12 Months Ended

Jan. 01, 2016

DISCONTINUED OPERATIONS.

DISCONTINUED OPERATIONS

NOTE 11 — DISCONTINUED OPERATIONS

The Company follows the guidance in Accounting Standards Codification (ASC) 205-20, Discontinued Operations and, when appropriate, reclassifies operating units closed, sold or held for sale out of continuing operations and into discontinued operations for all periods presented. In 2013, the Company completed the sale of two Alabama locations, which operated in the VN segment.  The operations and gain on sale related to the Alabama operations were reclassified from continuing operations into discontinued operations for all periods presented.  The operations and any related gain on sale for these operations were reclassified from continuing operations into discontinued operations for all periods presented.  The effective tax rate for discontinued operations is high in 2013 due primarily to the impact of writing off non-deductible goodwill in addition to providing a valuation allowance for Alabama net operating loss carryforwards.  Unless otherwise noted, amounts in these Notes to Consolidated Financial Statements exclude amounts attributable to discontinued operations.