2. DISPOSITION OF CORNER BAKERY
In September 2005, we entered into an agreement to sell Corner Bakery. The decision to sell the brand was a result of our continued focus on maximizing returns on investment. The sale of the brand was completed in February 2006. We have reported the results of operations of Corner Bakery as discontinued operations which consist of the following (in thousands):
| 2006 | 2005 | 2004 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | $ | 108,932 | $ | 163,311 | $ | 166,481 | |||||
| Income (loss) before income tax (expense) benefit from discontinued operations |
$ | 13,061 | $ | 2,814 | $ | (2,039 | ) | ||||
| Income tax (expense) benefit | (4,911 | ) | (1,051 | ) | 774 | ||||||
| Net income (loss) from discontinued operations | 8,150 | 1,763 | (1,265 | ) | |||||||
| Loss on sale of Corner Bakery, net of taxes(a) | (9,705 | ) | — | — | |||||||
| (Loss) income from discontinued operations | $ | (1,555 | ) | $ | 1,763 | $ | (1,265 | ) | |||
| (a) |
The sale of Corner Bakery resulted in a taxable gain due to $11.0 million of goodwill not being deductible for tax purposes. The $9.7 million loss includes tax expense totaling $784,000. |