DISCONTINUED OPERATIONS
Frozen Handhelds Operations
During fiscal 2011, we completed the sale of substantially all of the assets of our frozen handhelds operations for $8.8 million in cash. We recognized impairment and related charges totaling $21.7 million ($14.2 million after-tax) in fiscal 2011. We reflected the results of these operations as discontinued operations for all periods presented.
Gilroy Foods & Flavors™ Operations
During fiscal 2011, we completed the sale of substantially all of the assets of Gilroy Foods & Flavors™ dehydrated garlic, onion, capsicum and Controlled Moisture™, GardenFrost®, Redi-Made™, and fresh vegetable operations for $245.7 million in cash. We reflected the results of these operations as discontinued operations for all periods presented.
In connection with the sale of this business, we entered into agreements to purchase certain ingredients, at prices approximating market rates, from the divested business for a period of five years. The continuing cash flows related to these agreements are not significant, and, accordingly, are not deemed to be direct cash flows of the divested business.
The results of the aforementioned businesses which have been divested are included within discontinued operations. The summary comparative financial results of discontinued operations were as follows:
|
| | | | | | | |
| 2012 | | 2011 |
Net sales | $ | 0.5 |
| | $ | 92.4 |
|
Long-lived asset impairment charge | — |
| | (21.7 | ) |
Income (loss) from operations of discontinued operations before income taxes | 0.1 |
| | (18.6 | ) |
Income (loss) before income taxes | 0.1 |
| | (18.6 | ) |
Income tax benefit | — |
| | 7.1 |
|
Income (loss) from discontinued operations, net of tax | $ | 0.1 |
| | $ | (11.5 | ) |
