Annual report pursuant to Section 13 and 15(d)

Discontinued Operations and Divestitures

v3.3.0.814
Discontinued Operations and Divestitures
 12 Months Ended
Aug. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations and Divestitures
On June 13, 2014, the Company completed the divestiture of its Recreational Vehicle ("RV") business for $36.5 million in cash. This product line divestiture resulted in a $13.5 million pre-tax gain on sale ($2.8 million net of tax). The results of the RV business (which had sales of $22.0 million in fiscal 2014) are not material to the consolidated financial results and are included in continuing operations.
The former Electrical segment designed, manufactured and distributed a broad range of electrical products to the retail DIY, wholesale, OEM, solar, utility and marine markets. The Company committed to a plan to divest the former Electrical segment during fiscal 2013, and recognized a non-cash impairment charge of $159.1 million, including a write-down of $137.8 million of goodwill and $21.3 million of indefinite lived intangible assets (tradenames). The impairment charge represented the excess of the net book value of the assets held for sale over the estimated fair value, less selling costs. On December 13, 2013, the Company completed the sale of the Electrical segment for net cash proceeds of $252.4 million, which resulted in a pre-tax gain on disposal of $34.5 million ($26.3 million net of tax).
The following table summarizes the results of the Electrical segment, which is reported as a discontinued operation, for the years ended August 31, 2014 and 2013 (in thousands):
 
 
 
2014
 
2013
Net sales
$
72,139

 
$
286,308

 
 
 
 
Operating profit (loss) 
(4,873
)
 
34,536

Impairment charge
—

 
(159,104
)
Gain on disposal
34,459

 
—

Income tax benefit (expense)
(7,466
)
 
7,039

Income (loss) from discontinued operations, net of taxes
$
22,120

 
$
(117,529
)