Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
 3 Months Ended
Nov. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations

The Electrical segment is primarily involved in the design, manufacture and distribution of a broad range of electrical products to the retail DIY, wholesale, original equipment manufacturer (“OEM”), solar, utility, marine and other harsh environment markets. The results of operations for the Electrical segment have been reported as discontinued operations for all periods presented. The following table summarizes the results of discontinued operations (in thousands):
 
Three months ended November 30,
 
2013
 
2012
Net sales
$
63,012

 
$
69,439

 

 

Operating income
5,229

 
8,108

Income tax expense
(2,197
)
 
(2,316
)
Income from discontinued operations, net of taxes
$
3,032

 
$
5,792



During the third quarter of fiscal 2013, the Company committed to a plan to divest the entire Electrical segment. The divestiture will allow the Company to streamline its strategy and refocus on the remaining three segments in a way that better positions the Company to take advantage of its core competencies, current business model and global growth trends. As a result, the Company recognized an impairment charge during fiscal 2013 of $159.1 million, including a write-down of $137.8 million of goodwill and $21.3 million of indefinite lived intangible assets (tradename). The impairment charge represents the excess of the net book value of the held for sale assets over the estimated fair value, less selling costs. The following is a summary of the assets and liabilities of discontinued operations (in thousands):

 
 
November 30, 2013
 
August 31, 2013
Accounts receivable, net
 
$
36,781

 
$
41,247

Inventories, net
 
56,422

 
55,142

Property, plant & equipment, net
 
9,977

 
9,545

Goodwill
 
76,989

 
76,877

Other intangible assets, net
 
85,083

 
84,387

Other assets
 
4,854

 
5,408

Assets of discontinued operations
 
$
270,106

 
$
272,606


 

 
 
Trade accounts payable
 
$
19,192

 
$
19,824

Other current liabilities
 
13,770

 
12,984

Deferred income taxes
 
9,544

 
9,376

Other long-term liabilities
 
10,727

 
10,896

Liabilities of discontinued operations
 
$
53,233

 
$
53,080



On December 13, 2013, the Company completed the sale of the Electrical segment for $258 million of cash. The sale price is subject to a post-closing working capital adjustment. The Company expects the net proceeds, after payment of various transaction costs and income taxes to be approximately $225 million, which will be utilized to reduce net debt. The divestiture is expected to result in a net gain on disposal.