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During the fiscal year ended March 31, 2002, the Company sold two Company-owned restaurants and a non-restaurant property for total proceeds of $3,348. The Company recognized a gain of $1,226 in connection with these sales. 

In May 2001, the Company completed the sale of a restaurant property for approximately $1,500 pursuant to an order of condem- nation by the State of Florida. Concurrent with the sale, the Company satisfied a related note payable of approximately $793 plus accrued interest. The Company appealed the value of this property and on November 19, 2001, an Order was entered by the Circuit Court of the 11th Judicial Circuit of Florida in and for Miami-Dade County pursuant to which the State of Florida Department of Transportation was ordered to pay to the Company, an aggregate value of $2,350, plus legal fees in the amount of $253 in connection with the condemnation by the State of Florida of the restaurant. The additional proceeds received by the Company of approximately $850 is recorded as a component of “investment and other income” in the accompanying consolidated statement of operations for the year ended March 31, 2002. 

## 2. Foodservice License Termination Within Home Depot Stores 

In August 2002, the Company received written notice from Home Depot U.S.A., Inc. (“Home Depot”) that Home Depot ter- minated seven License Agreements with the Company pursuant to which the Company operated Nathan's restaurants in certain Home Depot Improvement Centers. In accordance with the termination notices, the Company ceased its operations in all seven Home Depot locations during the fiscal year ended March 30, 2003. 

Pursuant to SFAS No. 144, the results of operations for all seven of these restaurants have been presented as discontinued operations in the accompanying consolidated statement of operations as the Company has no continuing involvement in the operations of these restaurants or cash flows relating to any of these restaurants. The Company revised the estimated useful lives of these assets to reflect the shortened useful lives and recorded additional depreciation expense of approximately $428 during the fiscal year ended March 30, 2003. Pursuant to the termination provisions of certain of the lease agree- ments with Home Depot, the Company received payments of $184. 

Following is a summary of the results of operations for these seven restaurants for the fiscal years ended March 30, 2003 and March 31, 2002: 

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(A) (Loss) income before income taxes for the fiscal year ended March 30, 2003 includes addi- tional depreciation expense of $428, as a result of revising the estimated useful lives of these restaurants. 

## 3. Discontinued Operations 

As described in Notes F-1 and F-2 above, the Company has classified the results of operations of eight restaurants as discontinued operations in accordance with SFAS No. 144. The following is a summary of the results of operations for these eight restaurants for the fiscal years ended March 30, 2003 and March 31, 2002: 

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( A) Loss before income taxes for the fiscal year ended March 30, 2003 includes additional depre- ciation expense of $428, as a result of revising the estimated useful lives of these restaurants. 

There were no restaurants that were classified as discontinued operations during fiscal 2004. 

## Note G—Accrued Expenses, Other Current Liabilities and Other Liabilities 

Accrued expenses and other current liabilities consist of the following: 

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Other liabilities consist of the following: 

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## Lease Reserve Termination Costs 

In connection with the Company’s acquisition of Miami Subs, Nathan’s planned to permanently close 18 underperforming Company-owned restaurants; Nathan’s expected to abandon or sell the related assets at amounts below the historical carrying amounts recorded by Miami Subs. In accordance with APB No. 16, “Business Combinations,” the write-down of these assets was reflected as part of the purchase price allocation. The Company has closed or sold all 18 units. As of March 28, 2004, the Company has recorded charges 

