Note 6.    Impairment Charges

During the fourth quarter of fiscal 2010, the Company committed to a plan to divest its European Electrical business, which designed, manufactured and marketed electrical sockets, switches and other tools and consumables predominately in the European DIY retail market. This planned divestiture was part of the Company's portfolio management process to focus on businesses that create the most shareholder value. Weak economic conditions throughout Europe and reduced demand in the retail DIY markets, combined with the decision to divest the business, caused the Company to reduce the projected sales, operating profit and cash flows of the business, which resulted in a $36.1 million non-cash asset impairment charge to adjust the carrying value of this business to fair value. This impairment charge was recognized in the fourth quarter of fiscal 2010 and consisted of the write-down of $24.5 million of goodwill, $2.3 million of intangible assets and $9.3 million of property, plant and equipment and other assets. As discussed in Note 3, "Discontinued Operations," the Company subsequently divested the business in the second quarter of fiscal 2011.

During the third quarter of fiscal 2009, the Company recorded a $31.7 million non-cash asset impairment charge related to the goodwill, indefinite lived intangibles and long-lived assets of the harsh environment electrical business (Electrical segment). Approximately $27.0 million of the impairment charge is included in the Loss from Discontinued Operations. Poor economic conditions, low consumer confidence, increased unemployment and tight credit markets have negatively impacted consumer discretionary spending, resulting in a substantial reduction in recreational boating industry sales. OEM boat builders responded to the sharp drop in demand and high levels of finished goods inventory by suspending operations as well as eliminating brands and permanently closing facilities. These actions caused the Company to significantly reduce its projections for sales, operating profits and cash flows for the harsh environment electrical business, which resulted in a $14.4 million goodwill impairment charge, a $15.7 million impairment of intangible assets and a $1.6 million impairment of fixed assets. As discussed in Note 3, "Discontinued Operations," the Company subsequently divested the marine OEM business, BH Electronics, in the fourth quarter of fiscal 2009.

Significant adverse developments in the recreational vehicle ("RV") market in the first quarter of fiscal 2009 had a dramatic effect on the Company's RV business (Engineered Solutions segment). Its financial results were negatively impacted by lower wholesale motorhome shipments by OEM's, decreased consumer confidence and the lack of financing as a result of the global credit crisis. These factors caused the Company to significantly reduce its projections for sales, operating profits and cash flows of the RV business, and resulted in the recognition of a $26.6 million non-cash asset impairment charge. The asset impairment charge included a $22.2 million write-off of all remaining goodwill of the RV business, a $0.8 million impairment of indefinite lived intangibles (tradename) and a $3.6 million impairment of fixed assets and amortizable intangible assets.