Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations

Discontinued Operations:

In September 2012, the Company announced the planned sale of its Service Experts business. The Service Experts business had historically been included in the Company’s Service Experts segment. The planned sale of the Service Experts business qualified as a discontinued operation for the third quarter of 2012 and was reported as assets and liabilities held for sale for all periods presented.

A summary of net trade sales and pre-tax operating income (losses) for our Service Experts business is detailed below (in millions):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2012			2011		2012			2011
Net trade sales(1)	$	98.3		$	120.4	$	292.6		$	346.6
Pre-tax operating (loss) income(1)(2)	(26.8		)	0.1		(42.7		)	(8.3		)

(1) Excludes eliminations of intercompany sales and any associated profit.

(2) Pre-tax operating loss for the three and nine months ended September, 30 2012 includes a $20.5 million goodwill impairment loss (see Note 3).

The assets and liabilities of the Service Experts business are presented as follows in the accompanying Consolidated Balance Sheets (in millions):

	As of September 30, 2012		As of December 31, 2011
Assets of discontinued operations:
Accounts receivable, net	$	14.5	$	14.4
Inventories, net	6.3		6.3
Deferred income taxes	9.7		10.1
Property, Plant and Equipment	3.7		3.8
Goodwill and intangible assets, net	67.1		83.2
Other assets	7.4		7.7
Liabilities of discontinued operations:
Accounts payable	17.4		16.0
Accrued expenses	41.0		40.1
Deferred income taxes	3.7		3.7
Other Liabilities	0.1		0.2

In April 2012, the Company announced the sale of its Hearth business to Comvest Investment Partners IV in an all cash transaction. The Hearth business had historically been included in the Company’s Residential Heating & Cooling Segment. We sold the Hearth business for net proceeds of $10.1 million, which includes a $2.9 million working capital adjustment received in the third quarter of 2012 and excludes the transaction costs and cash transferred with the business. The net loss from the sale of the Hearth business was $0.9 million

A summary of net trade sales and pre-tax operating losses for our Hearth business is detailed below (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Net trade sales	$	—		$	19.8		$	23.5		$	61.1
Pre-tax operating loss (3)	(1.2		)	(2.3		)	(13.1		)	(9.7		)
Gain (loss) on sale	2.9			—			(0.9		)	—

(3) Pre-tax operating loss includes a $6.3 million first quarter 2012 pre-tax charge for the write-down of net assets to their estimated fair value and a $6.3 million settlement charge in the second quarter of 2012 related to actuarial losses recognized upon transition of a pension obligation to the acquirer of the Hearth business (See Note 8). Offsetting these charges was a $3.5 million gain in the second quarter of 2012 related to realized foreign currency translation adjustments.

The assets and liabilities of the Hearth business are presented as follows in the accompanying Consolidated Balance Sheets (in millions):

	As of September 30, 2012		As of December 31, 2011
Assets of discontinued operations:
Accounts receivable, net	$	—	$	7.3
Inventories, net	—		12.4
Deferred income taxes	—		9.1
Property, Plant and Equipment	—		5.4
Other assets	—		0.8
Liabilities of discontinued operations:
Accounts payable	—		6.0
Accrued expenses	—		5.2
Other Liabilities	—		0.4