XML 85 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Discontinued Operations
 12 Months Ended
Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
DISCONTINUED OPERATIONS

On February 6, 2014, the Company completed the sale of the Grains Noirs business in Europe. As result of the sale, a loss on disposal of $2,777 was recorded during the the fiscal year ended June 30, 2014. The operating results of Grains Noirs were not material to the Company’s consolidated financial statements.

During the third quarter of fiscal 2012, the Company made the decision to sell its private-label chilled ready meals (“CRM”) business in the United Kingdom, which was acquired in October 2011 as part of the acquisition of Daniels. The sale of the CRM business was completed on August 20, 2012. Additionally, during the fourth quarter of fiscal 2012, the Company made the decision to dispose of its sandwich business, including the Daily BreadTM brand name, in the United Kingdom. The disposal of the sandwich business was completed on November 1, 2012. Operating results for the CRM business, which have been included in the Company’s consolidated financial statements for the period subsequent to the October 2011 acquisition, and the sandwich business have been classified as discontinued operations for all periods presented.

Summarized results of our discontinued operations are as follows:
 
Fiscal Year ended June 30,
 
2014
 
2013
 
2012
Net sales
$
—

 
$
15,313

 
$
73,743

Impairment charges
$
—

 
$
—

 
$
(14,880
)
Operating loss
$
—

 
$
(1,176
)
 
$
(16,822
)
Loss on sale of business, net of tax
$
(1,629
)
 
$
(4,200
)
 
$
—

Loss from discontinued operations, net of tax
$
(1,629
)
 
$
(5,137
)
 
$
(14,989
)


(1) The loss on sale of business for the fiscal year ended June 30, 2014 includes a $2,777 loss related to the Grains Noirs disposal, offset partially by a $1,148 gain related to the finalization of a working capital adjustment on the sale of the CRM business.

In connection with the decisions to dispose of the CRM and sandwich businesses in fiscal 2012, the Company completed an impairment test and determined that certain long-lived assets related to the businesses were impaired. The Company also allocated a portion of the goodwill recorded in its United Kingdom reporting unit to the discontinued operations and tested that goodwill for impairment. The fair value calculations were based on offering prices to purchase the businesses and expectations about future cash flows. The following represents a summary of the impairment charges recorded during the fourth quarter of fiscal 2012 related to our discontinued operations.
Customer relationships
$
1,756

Tradenames
8,541

Goodwill
2,433

Cumulative currency translation adjustment recognized
2,150

Total impairment charges
$
14,880