Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Divestiture Activities

v2.4.0.8
Discontinued Operations and Divestiture Activities
 9 Months Ended
May 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Divestiture Activities
Discontinued Operations and Divestiture Activities
The Electrical segment was primarily involved in the design, manufacture and distribution of a broad range of electrical products to the retail DIY, wholesale, OEM, solar, utility, marine and other harsh environment markets. On December 13, 2013, the Company completed the sale of the Electrical segment, which resulted in a pre-tax gain on disposal of $34.5 million. Remaining transaction costs and income taxes payable on the divestiture gain will result in cash outflows of approximately $6.0 million in future quarters, such that net cash proceeds on the sale will be approximately $225.0 million.

The following table summarizes the results of discontinued operations (in thousands):
 
Three Months Ended May 31,
 
Nine Months Ended May 31,
 
2014
 
2013
 
2014
 
2013
Net sales
$
—

 
$
74,834

 
$
72,139

 
$
214,175

 

 
 
 

 

Operating income (loss) (1)
—

 
11,903

 
(4,873
)
 
25,084

Impairment charge
—

 
(170,339
)
 
—

 
(170,339
)
Gain on disposal
—

 
—

 
34,459

 
—

Income tax expense (benefit)
—

 
19,376

 
(7,466
)
 
14,588

Income from discontinued operations, net of income taxes
$
—

 
$
(139,060
)
 
$
22,120

 
$
(130,667
)


(1) The operating loss for the nine months ended May 31, 2014 includes the operating results of the business through the sale date of December 13, 2013, certain divestiture costs and a non-cash charge for the accelerated vesting of equity compensation.

As part of its portfolio management process, the Company divested a minor manpower consulting product line of Viking in the third quarter of fiscal 2014 for cash proceeds of $0.4 million. Subsequent to May 31, 2014, the Company also completed the sale of the recreational vehicle (RV) product line (Engineered Solutions segment) for $35.5 million and expects to recognize a gain on this sale during the fourth quarter of fiscal 2014.