• | We closed our final location that produced wire dishwasher racks, thereby discontinuing that line of business. This operation, which was previously in our Industrial Materials segment, was part of a restructuring plan that began in the fourth quarter of 2011 as discussed in Note D. We also incurred impairment charges related to these operations in 2011 and 2012 as discussed in Note C. Tax benefits related to this business were recorded in the second quarters of both 2012 and 2013. |
• | We divested the specialty trailers portion of the Commercial Vehicle Products (CVP) unit. This branch was previously part of the Specialized Products segment. No significant gains or losses were realized on the sale of this business. |
• | We closed a cotton-based erosion control products operation that was previously part of the Industrial Materials segment. Charges of $1.9 were recorded in the second quarter of 2013 to reflect estimates of fair value less costs to sell, including $1.5 of fixed asset impairments as discussed in Note C. |
Year Ended | |||||||||||
2013 | 2012 | 2011 | |||||||||
External sales: | |||||||||||
Industrial Materials: | |||||||||||
Wire dishwasher racks | $ | 4.1 | $ | 11.1 | $ | 11.5 | |||||
Cotton-based erosion control products | .1 | .1 | .1 | ||||||||
Specialized Products - the specialty trailers portion of the CVP unit | .5 | 3.5 | 5.5 | ||||||||
Total external sales | $ | 4.7 | $ | 14.7 | $ | 17.1 | |||||
Earnings (loss): | |||||||||||
Industrial Materials: | |||||||||||
Wire dishwasher racks | 1.0 | (.1 | ) | (25.3 | ) | ||||||
Cotton-based erosion control products | (3.1 | ) | (1.2 | ) | (1.8 | ) | |||||
Specialized Products - the specialty trailers portion of the CVP unit | (.7 | ) | (.8 | ) | (.4 | ) | |||||
Subsequent activity related to divestitures completed prior to 2011 (1) | .5 | 3.9 | — | ||||||||
(Loss) earnings before interest and income taxes | (2.3 | ) | 1.8 | (27.5 | ) | ||||||
Income tax benefit (2) | 9.2 | 5.4 | 10.1 | ||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 6.9 | $ | 7.2 | $ | (17.4 | ) | ||||
(1) | Subsequent activity for businesses divested in prior years has been reported as discontinued operations in the table above, including a cash litigation settlement received in 2012 associated with our former Prime Foam Products unit. This unit was sold in March 2007 and was previously part of the Residential Furnishings segment. |
(2) | 2013 and 2012 tax benefits are related to a worthless stock deduction and the excess outside tax basis of the subsidiary that produced wire dishwasher racks. |