Annual report pursuant to Section 13 and 15(d)

Assets and Liabilities Held for Sale

v3.19.1
Assets and Liabilities Held for Sale
12 Months Ended
Mar. 31, 2019
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Assets and Liabilities Held for Sale

Note 3 – Assets and Liabilities Held for Sale

In March 2019, the Company's Board of Directors approved a plan to sell Energy Steel.  Energy Steel met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2019.  The potential disposal of Energy Steel does not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360):  Reporting Discontinued Operation And Disclosures of Disposals Of Components Of An Entity."  As part of the required assessment under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations was less than its carrying value and, as a result, an impairment loss totaling $6,449 was recorded in fiscal 2019.  (See Note 6 to the Consolidated Financial Statements for further discussion.)

The following table reconciles the major classes of assets and liabilities classified as held for sale in the Consolidated Balance Sheet:

 

 

 

March 31, 2019

 

 

 

 

 

 

Major classes of assets included as held for sale

 

 

 

 

Cash

 

$

552

 

Trade accounts receivable, net of allowances

 

 

1,921

 

Unbilled revenue

 

 

302

 

Inventories

 

 

1,809

 

Prepaid expenses and other current assets

 

 

130

 

Income taxes receivable

 

 

10

 

Deferred tax asset

 

 

126

 

Total major classes of assets included as held for sale

 

$

4,850

 

 

 

 

 

 

Major classes of liabilities included as held for sale

 

 

 

 

Accounts payable

 

$

520

 

Accrued compensation

 

 

326

 

Accrued expenses and other current liabilities

 

 

746

 

Customer deposits

 

 

1,933

 

Total major classes of liabilities included as held for sale

 

$

3,525

 

Subsequent to March 31, 2019, the Company received an offer for the purchase of Energy Steel.