Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On November 4, 2013, the Company completed the sale of its tungsten materials business, which produces tungsten powder, tungsten heavy alloys, tungsten carbide materials, and carbide cutting tools. In 2013, the Company received cash proceeds, net of transaction costs, of $600.9 million on the sale of this business and recognized a $428.3 million pre-tax ($261.4 million after tax) gain which has been recorded in discontinued operations.

Also, during 2013, the Company completed a strategic review of its iron castings and fabricated components businesses. These businesses were not projected to meet the Company’s long-term profitable growth and return on capital employed expectations, resulting in the closure of the fabricated components business and planned divestiture of the iron casting business in 2013. In April 2014, the Company announced the closure of the iron castings business, as the divestiture of this business through a sale process on commercially acceptable terms was unlikely to be successful. The orderly wind-down of operations was completed by the end of the third quarter 2014. The closure of the iron castings business resulted in $1.8 million of cash exit costs in 2014, primarily related to severance benefits, of which $1.0 million was paid in 2014. Payment of the remaining cash exit costs for the iron casting business is expected to be completed within the next twelve months.

The operating results of the tungsten materials, iron castings and fabricated components businesses have been included in discontinued operations in the Company’s consolidated statements of income for all periods presented. Results of discontinued operations for 2014 include $1.8 million pre-tax of charges associated with the iron castings closure. Results of discontinued operations for 2013 include $19.5 million pre-tax ($11.9 million after-tax) of charges associated with the iron castings and fabricated components divestitures, including $18.6 million of pre-tax asset impairment charges. Results of discontinued operations for 2012 include a $13.0 million pre-tax ($8.8 million after-tax) charge to write down the value of the long-lived assets with the closing of the Alpena, MI iron casting facility.

The following table presents summarized results for these discontinued operations (in millions):

	2014			2013		2012
Sales	$	14.9		$	268.2	$	364.6
Income (loss) before income taxes	$	(0.9	)	$	414.2	$	11.7

Net liabilities of discontinued operations were $1.3 million at December 31, 2014 and were net assets of $4.2 million at December 31, 2013 and were reported as follows on the consolidated balance sheet (in millions):

	2014			2013
Prepaid expenses and other current assets	$	0.4		$	6.1
Other assets	1.4			3.7
Total Assets	1.8			9.8
Accrued liabilities	2.5			4.9
Other long-term liabilities	0.6			0.7
Total Liabilities	3.1			5.6
Net Assets (Liabilities)	$	(1.3	)	$	4.2