Discontinued Operations

3 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

11. Discontinued Operations:

In the fourth quarter of 2011, we began to pursue strategic alternatives for our Hearth reporting unit due to the prolonged uncertainty of the residential new construction market and our outlook for this reporting unit. The Hearth reporting unit is heavily dependent on the residential new construction market; more so than our other reporting units due to its product offerings: fireplaces, stoves and venting products. In the first quarter of 2012, management committed to a plan to sell the Hearth business. This planned sale of the Hearth reporting unit qualified as a discontinued operation in the first quarter of 2012 and was reported as assets and liabilities held for sale for all periods presented. The Hearth reporting unit was previously included in our Residential Heating & Cooling segment. We recorded a $6.3 million pre-tax charge in discontinued operations in the first quarter of 2012 to write-down the net assets to their estimated fair value.

A summary of net trade sales and pre-tax operating losses are detailed below (in millions):

	For the Three Months Ended March 31,
	2012			2011
Net trade sales	$	18.6		$	18.4
Pre-tax operating loss		(8.5	)		(5.7	)

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

	As of March 31,		As of December 31,
	2012		2011
Assets of discontinued operations:
Accounts receivable, net	$	8.5	$	7.3
Inventories, net		13.7		12.4
Deferred income taxes		9.6		9.1
Property, Plant and Equipment		—		5.4
Other assets		0.6		0.8
Liabilities of discontinued operations:
Accounts Payable	$	7.4	$	6.0
Accrued expenses		4.1		5.2
Pensions		3.5		—
Other Liabilities		0.4		0.4