Discontinued operations

3 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Discontinued operations

(11) Discontinued operations. In August 2009 the Company sold its flatbed trucking company, SunBelt Transport, Inc. ("SunBelt"). Under the agreement, the Buyer purchased all of SunBelt’s tractors and trailers, leased the SunBelt terminal facilities in Jacksonville, Florida for 36 months at a rental of $5,000 per month and leased the terminal facilities in South Pittsburgh, Tennessee for 60 months at a rental of $5,000 per month with an option to purchase the Tennessee facilities at the end of the lease for payment of an additional $100,000. The South Pittsburgh lease was recorded as a sale under bargain purchase accounting. The purchase price received for the tractors and trailers and inventories was a $1 million cash payment and the delivery of a Promissory Note requiring 60 monthly payments of $130,000 each including interest at 7%, secured by the assets of the business conveyed. As of September 30, 2011 the note receivable has been fully paid and the option to purchase the South Pittsburg facility was exercised by the buyer. The Company retained all pre-closing receivables and liabilities.

SunBelt has been accounted for as discontinued operations in accordance with ASC Topic 205-20 Presentation of Financial Statements – Discontinued Operations. All periods presented have been restated accordingly.

In December 2010, a subsidiary of the Company, Florida Rock Properties, Inc., closed a bargain sale of approximately 1,777 acres of land in Caroline County, Virginia, to the Commonwealth of Virginia, Board of Game and Inland Fisheries. The purchase price for the property was $5,200,000, subject to certain deductions. The Company also donated $5,599,000 primarily for the value of minerals and aggregates and recognized a $2,126,000 permanent tax benefit. The $2,126,000 permanent tax benefit was recorded to income taxes receivable for $303,000 and offset to long-term deferred tax liabilities of $1,823,000. Actual realization of the $1,823,000 in deferred taxes will depend on taxable income, income tax rates, and income tax regulations over the 5 year carry forward period. The Company's book value of the property was $276,000.

A summary of discontinued operations is as follows (in thousands):

	Three Months ended
	December 31,
	2011	2010
Revenue	$    15	15
Operating expenses	16	14
Gain on sale before taxes	-	4,665
Income before income taxes	$    (1)	4,666
Provision for income taxes	-	261
Income from discontinued operations	$    (1)	4,927

The components of the balance sheet are as follows:

	December 31,	September 30,
	2011	2011
Accounts receivable	$         -	3
Deferred income taxes	4	4
Property and equipment, net	104	107
Assets of discontinued operations	$       108	114
Accounts payable	$         1	-
Accrued payroll and benefits	2	2
Accrued liabilities, other	-	3
Insurance liabilities	30	29
Liabilities of discontinued operations	$        33	34