During the fiscal year ended March 28, 2004, the Company sold three Company-owned restaurants for total consideration of $1,083 and entered into two management agreements with fran- chisees to operate two Company-owned restaurants. As the Company expects to have a continuing stream of cash flows for all of these restaurants, the results of operations for these Company-operated restaurants are included as a component of continuing operations in the accompanying consolidated statements of operations. The assets associated with these restaurants that were sold were included in Assets held for sale in the March 30, 2003 consolidated balance sheet.  During the fiscal year ended March 30, 2003, the Company sold three Company-owned restaurants for total consideration of $591. In August 2002, an operating restaurant, which had been clas- sified as held for sale at March 30, 2003, was sold to a non-franchisee for $75. In October 2002, a non-operating restaurant, which had been classified as held for sale was sold to a non-franchisee for $466 and an operating restaurant was sold to a franchisee in exchange for a $50 note. As these restaurants were either classified as held-for-sale prior to the adoption of SFAS No. 144 or the Company has a con- tinuing stream of cash flows in the case of the franchised restaurant, the results of operations for these Company-operated restaurants that were sold are included as a component of continuing operations in the accompanying consolidated statements of operations for the fiscal years ended March 30, 2003 and March 31, 2002. In December 2002, the Company abandoned the operations of one Company-owned restaurant pursuant to a lease termination agreement with the land- lord. The results of operations for this restaurant have been classified as discontinued operations for all periods presented as the Company does not have any continuing involvement in the operations of this restaurant or a continuing stream of cash flows with this restaurant.  As discussed in Note F-2 below, during fiscal 2003, the Company also abandoned the operations of seven Company-operated restaurants located within certain Home Depot Home Improvement Centers. Pursuant to SFAS No. 144, the results of operations for all seven of these restaurants have been presented as discontinued opera- tions in the accompanying consolidated statement of operations for all periods presented, as the Company has no continuing involve- ment in the operations of these restaurants or cash flows relating to any of these restaurants. On April 1, 2002, the Company adopted the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS No. 144”). This statement supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of” and Account- ing Principles Board Opinion No. 30, “Reporting Results of Operations—Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions.” SFAS No. 144 retained the fundamental provisions of SFAS No. 121 for recognition and measurement of impairment, but amends the accounting and reporting standards for segments of a business to be disposed of. SFAS No. 144 has broadened the definition of discontinued operations to include components of an entity whose cash flows are clearly identifiable, as compared to a seg- ment of a business. SFAS No. 144 requires the Company to classify as discontinued operations any restaurant that it sells, abandons or otherwise disposes of where the Company will have no further involvement in such restaurant’s operations.  1. Sales of Restaurants Depreciation expense on property and equipment was $971, $1,907 and $1,661 for the fiscal years ended March 28, 2004, March 30, 2003 and March 31, 2002, respectively. Property and equipment consists of the following: Note F—Property and Equipment, Net March 28, March 30, 2004 2003 Construction-in-progress $ 103 $ 31 Land 1,281 1,665 Building and improvements 1,854 2,255 Machinery, equipment, furniture and fixtures 5,980 5,297 Leasehold improvements 4,123 4,042 13,341 13,290 Less: accumulated depreciation and amortization 8,247 7,027 $ 5,094 $ 6,263 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page twenty-six