Discontinued operations
Fiscal 2013
During the fourth quarter of fiscal 2013, we decided to divest a small non-core business in the Airframe Products segment and reclassified it to discontinued operations.
During the second quarter of fiscal 2013, we decided to divest a small non-core business in the Forged Products segment and reclassified it to discontinued operations. The sale of the business was completed in the second quarter of fiscal 2013. The transaction resulted in a gain of approximately $2.3 million (net of tax) and cash proceeds of $6.0 million.
Fiscal 2012
During the fourth quarter of fiscal 2012, we decided to divest a small non-core business in the Airframe Products segment and reclassified it to discontinued operations. The sale of the business was completed in the first quarter of fiscal 2014.
Fiscal 2011
During the second quarter of fiscal 2011, we sold an automotive fastener business. The transaction resulted in a gain of approximately $6.4 million (net of tax).
During the first quarter of fiscal 2011, we decided to divest a small non-core business in the Airframe Products segment and reclassified it to discontinued operations. The sale of the business was completed in the second quarter of fiscal 2013. The transaction resulted in a loss of approximately $0.1 million (net of tax) and proceeds of $25.4 million in cash and an unsecured, subordinated, convertible promissory note in the principal amount of $17.6 million. The note is due on August 7, 2017 and pays interest quarterly based on the 5-year Treasury Note Constant Maturity Rate.
The components of discontinued operations for the periods presented are as follows:
|
| | | | | | | | | | | |
Fiscal | 2013 | | 2012 | | 2011 |
Net sales | $ | 84.9 |
| | $ | 76.3 |
| | $ | 58.5 |
|
Cost of goods sold | 75.8 |
| | 68.7 |
| | 53.0 |
|
Selling and administrative expenses | 14.5 |
| | 9.2 |
| | 6.6 |
|
Interest income, net | — |
| | — |
| | (0.1 | ) |
Net loss from operations before income taxes | (5.4 | ) | | (1.6 | ) | | (1.0 | ) |
Income tax benefit (expense) | 0.6 |
| | (2.9 | ) | | 0.7 |
|
Net loss from operations | (4.8 | ) | | (4.5 | ) | | (0.3 | ) |
(Loss) gain on disposal and other expenses, net of tax expense of $2.7, $0.9 and $2.6 | (0.6 | ) | | (1.0 | ) | | 5.4 |
|
Net (loss) income from discontinued operations | $ | (5.4 | ) | | $ | (5.5 | ) | | $ | 5.1 |
|
| | | | | |
Included in the Consolidated Balance Sheets are the following major classes of assets and liabilities associated with the discontinued operations:
|
| | | | | | | |
| March 31, 2013 | | April 1, 2012 |
Assets of discontinued operations: | | | |
Current assets | $ | 43.2 |
| | $ | 48.2 |
|
Net property, plant and equipment | 35.1 |
| | 55.7 |
|
Other assets | 8.9 |
| | 14.5 |
|
| $ | 87.2 |
| | $ | 118.4 |
|
Liabilities of discontinued operations: | | | |
Current liabilities | $ | 14.4 |
| | $ | 20.3 |
|
Other long-term liabilities | 10.6 |
| | 17.8 |
|
| $ | 25.0 |
| | $ | 38.1 |
|
| | | |
