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Note 2 - Churchill Property
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3 Months Ended |
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Jul. 01, 2012
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| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
Note
2 – Churchill Property
During
the three-months ended July 1, 2007, the operations of
Churchill Weavers, Inc. (“Churchill”), a
wholly-owned subsidiary of the Company, ceased and all
employees were terminated. The Company has since
that time been actively marketing Churchill’s land and
building for sale and had, through April 1, 2012, recorded
the Churchill property at fair value, less cost to sell, had
classified the property as assets held for sale in the
Company’s consolidated balance sheets and had
classified the costs to maintain the property as discontinued
operations in the consolidated statements of income.
The
Company also recorded impairment charges associated with the
Churchill property during fiscal years 2009, 2010 and 2011,
as the Company made successive determinations that the fair
value of the property had fallen below its carrying
value. Although the Company continues to actively
market the property for sale and the property remains
dormant, accounting guidelines have required the Company,
effective as of April 2, 2012, to reclassify the property as
held and used in its consolidated balance sheet, to resume
periodic depreciation of the carrying value of the property
of $275,000 (less an allocation of $23,000 to land) on a
straight-line basis over 21 years, and to classify the costs
to maintain the property within continuing operations in the
accompanying condensed consolidated statements of income for
the three-month periods ended July 1, 2012 and July 3,
2011.
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