Harris Teeter 2011 Annual Report Download - page 39

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2011 2010
Notes Payable $ 3,674 $ 6,785
Current Portion of Long-Term Debt and Capital Lease Obligations 469 1,260
Accounts Payable 17,400 17,873
Federal and State Income Taxes 973 816
Accrued Compensation 7,563 7,352
Deferred Income Taxes 548 781
Other Current Liabilities 6,900 6,567
Current Liabilities of Discontinued Operations $37,527 $41,434
Long-Term Debt and Capital Lease Obligations $ 318 $ 810
Deferred Income Taxes 3,711 488
Pension Liabilities 27,735 25,298
Other Long-Term Liabilities 2,280 1,956
Long-Term Liabilities of Discontinued Operations $34,044 $28,552
Accumulated Other Comprehensive Loss of Discontinued Operations $19,048 $18,444
Noncontrolling Interest of Discontinued Operations $ 5,807 $ 6,474
The following table sets forth the historical operating results of A&E for the 52 weeks of fiscal 2011, the 53 weeks of fiscal
2010 and the 52 weeks of fiscal 2009, which have been reclassified as discontinued operations (in thousands):
Fiscal 2011 Fiscal 2010 Fiscal 2009
Net Sales $320,876 $301,097 $250,817
Cost of Sales 241,539 228,685 202,901
Gross Profit 79,337 72,412 47,916
SG&A Expenses 52,351 51,297 51,288
Goodwill Impairment - - 7,654
Long-Lived Asset Impairments - - 2,237
Operating Profit (Loss) 26,986 21,115 (13,263)
Interest Expense 380 421 732
Interest Income (170) (66) (479)
Less Net Earnings Attributable to Noncontrolling Interest 698 1,067 594
Earnings (Loss) From Discontinued Operations 26,078 19,693 (14,110)
Income Tax Expense (Benefit) 9,816 6,304 (6,477)
Loss on Sale of Discontinued Operations, Net of $12,277 of
Income Tax Benefits (36,473) - -
Earnings (Loss) From Discontinued Operations, Net of Taxes $ (20,211) $ 13,389 $ (7,633)
As previously disclosed, A&E recorded non-cash impairment charges during fiscal 2009 totaling $9.9 million related to
its U.S. operating unit. Impairment charges included $7.7 million for the write-off of all of the goodwill associated with its U.S.
acquisitions previously made in 1995 and 1996, and $2.2 million for the write-down of long-lived assets.
6. LEASES
The Company leases certain equipment under agreements expiring during the next 3 years. Harris Teeter leases most of
its stores under leases that expire during the next 25 years. It is expected that such leases will be renewed by exercising options
or replaced by leases of other properties. Most store leases provide for additional rentals based on sales, and certain store facilities
are sublet under leases expiring during the next 10 years. Certain leases also contain rent escalation clauses (step rents) that
require additional rental amounts in the later years of the term. Rent expense for the last three fiscal years was as follows (in
thousands):
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
35