Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.3.0.15
Discontinued Operations
 12 Months Ended
Aug. 31, 2011
Discontinued Operations [Abstract]  
Discontinued Operations

Note 3.    Discontinued Operations

During the second quarter of fiscal 2010, the Company divested a portion of its European Electrical business (Electrical segment) for $7.5 million of cash proceeds, which resulted in a net pre-tax gain on disposal of $0.3 million. On February 28, 2011, the Company completed the sale of the remainder of the European Electrical business for total cash proceeds of $3.5 million, net of transaction costs. As a result of the sale transaction, the Company recognized a pre-tax loss on disposal of $15.8 million, including an $11.4 million charge to cover future lease payments on an unfavorable real estate lease of the divested business.

In addition, during the fourth quarter of fiscal 2009, the Company sold the Acme Aerospace (Engineered Solutions segment) and BH Electronics (Electrical segment) businesses in separate transactions for total cash proceeds of $38.5 million, net of transaction costs. As a result of the sale transactions, the Company recognized a net pre-tax gain of $17.8 million in the fourth quarter of fiscal 2009. The results of operations for the divested businesses have been reported as discontinued operations for all periods presented. The following table summarizes the results of discontinued operations (in thousands):

 

     Year Ended August 31,  
     2011     2010     2009  

Net sales

    $ 49,305      $ 105,661      $ 145,929   

Net (loss) gain on disposal

      (15,829 )      334        17,800   

Loss from operations of divested businesses(1)

      (1,157 )      (41,525 )      (33,933 ) 

Income tax benefit (expense)(2)

      4,049        (5,134 )      3,874   
  

 

 

    

 

 

    

 

 

  

Loss from discontinued operations, net of income tax

    $ (12,937 )    $ (46,325 )    $ (12,259 ) 
  

 

 

    

 

 

    

 

 

  

(1) Includes non-cash asset impairment charges of $36.1 million (European Electrical) and $27.0 million (BH Electronics) in fiscal 2010 and 2009, respectively—see Note 6, "Impairment Charges."
(2) Fiscal 2010 includes incremental tax expense of $4.3 million related to provision to return adjustments and the correction of prior period income tax amounts (correction amounts are immaterial to previously reported periods and the current year).