JanOne Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Variable Interest Entity

Variable Interest Entity

12 Months Ended

Dec. 29, 2012

The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE. The financial position and results of operations for AAP are reported in our recycling segment.

The following table summarizes the assets and liabilities of AAP as of December 29, 2012, and December 31, 2011:



	December 29, 2012		December 31, 2011
Assets
Current assets	$	787	$	1,134
Property and equipment, net	9,109		9,419
Goodwill	—		1,082
Other assets	149		136
Total assets	$	10,045	$	11,771
Liabilities
Accounts payable	$	826	$	858
Accrued expenses	204		250
Current maturities of long-term debt obligations	635		593
Long-term debt obligations, net of current maturities	4,437		5,022
Other liabilities (a)	749		647
Total liabilities	$	6,851	$	7,370

(a) Other liabilities represent outstanding loans from ARCA and are eliminated in consolidation.

The following table summarizes the operating results of AAP for fiscal years 2012 and 2011:



	For the fiscal year ended
	December 29, 2012			December 31, 2011
Revenues	$	11,241		$	11,337
Gross profit	584			1,373
Operating income (loss) (b)	(847		)	869

(b) The operating loss reported in fiscal 2012 includes a $1,082 goodwill impairment charge.