Note 2 - Discontinued Operations

6 Months Ended

Sep. 28, 2019

Discontinued Operations [Member]

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2. Discontinued Operations

On

July 13, 2018,

the Company executed a nonbinding letter of intent with a perspective buyer of the Modesto facility. On

October 9, 2018,

the Company closed on the sale of the facility to this outside buyer with net proceeds of

$63,326,000.

During the

second

quarter of fiscal

2019,

the Company ceased use of the Modesto facility. Based on its magnitude of revenue to the Company (approximately

15%

) and because the Company was exiting the production of peaches, this sale represented a significant strategic shift that has a material effect on the Company’s operations and financial results. Accordingly, the Company has applied discontinued operations treatment for this sale as required by Accounting Standards Codification

210

-

05—Discontinued

Operations. The business we exited is part of the Fruit and Vegetable segment.

The following table presents information related to the major classes of assets and liabilities of Modesto that are classified as Held For Sale-Discontinued Operations in the Company's Consolidated Balance Sheets (in thousands):

	September 28		September 29		March 31
	2019		2018		2019
Accounts Receivable	$	-	$	5,058	$	-
Inventories		-		18,632		-
Other Current Assets		98		-		98
Current Assets Held For Sale-Discontinued Operations	$	98	$	23,690	$	98
Other Assets	$	1,143	$	1,674	$	1,143
Property, Plant and Equipment (net)		-		18,967		-
Noncurrent Assets Held For Sale-Discontinued Operations	$	1,143	$	20,641	$	1,143
Accounts Payable and Accrued Expenses	$	3,649	$	16,178	$	4,285
Long-Term Debt and Capital Leases Current Portion		-		122		-
Current Liabilities Held For Sale-Discontinued Operations	$	3,649	$	16,300	$	4,285
Long-Term Debt and Capital Lease Obligations	$	-	$	552	$	-
Noncurrent Liabilities Held For Sale Discontinued Operations	$	-	$	552	$	-

The operating results of the discontinued operations that are reflected in the Unaudited Condensed Consolidated Statements of Net Earnings (Loss) from discontinued operations are as follows:

	Three Months Ended					Six Months Ended
	September 28		September 29			September 28		September 29
	2019		2018			2019		2018
Net Sales	$	-	$	10,750		$	-	$	110,049
Costs and Expenses:
Cost of Product Sold		-		13,887			-		124,076
Selling, General and Administrative		-		218			-		998
Plant Restructuring Charge (a)		-		1,714			-		3,496
Interest (Income) Expense (b)		-		453			-		1,077
Total cost and expenses		-		16,272			-		129,647
Loss From Discontinued Operations Before Income Taxes		-		(5,522	)		-		(19,598	)
Gain on the Sale of Assets Before Income Taxes (c) (d)		-		(24,628	)		-		(30,266	)
Income Tax Benefit		-		4,356			-		2,513
Net Loss From Discontinued Operations, Net of Tax	$	-	$	14,750		$	-	$	8,155
Supplemental Information on Discontinued Operations:
Capital Expenditures		-		-			-		3,937
Depreciation		-		618			-		1,295

(a)	Includes $1,653,000 and $1,648,000 of Modesto severance in the three and six month periods of prior year, respectively.
(b)	Includes interest on debt directly related to Modesto including the building mortgage and equipment capital leases and an allocation of the Company's line of credit facilty.
(c)	Includes a $24,211,000 gain from LIFO layer liquidations from the disposal of the inventory for both prior three and six months.
(d)	Includes a $4,975,000 gain on the sale of bins for the prior six months period.