Discontinued Operations

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

In the three months ended September 30, 2016, the Company recorded a net gain from discontinued operations and disposal of $1.0 million, primarily related to adjustments of uncertain tax position reserves following the expiration of statute of limitations.

The Company recorded a net gain from discontinued operations and disposal of $3.9 million in the nine months ended September 30, 2016, primarily driven by the $4.0 million net gain on disposal of the Fire Rescue Group, which was discontinued in 2015, partially offset by the $0.6 million net loss that the Fire Rescue Group realized in its 2016 operations up to the January 29, 2016 sale completion date. The net gain on disposal includes a $1.5 million charge to recognize a liability in connection with a Latvian commercial dispute. Also contributing to the net gain in the nine months ended September 30, 2016 was a reduction in uncertain tax position reserves of approximately $1.0 million.

The following table presents the operating results of the Company’s discontinued Fire Rescue Group for the nine months ended September 30, 2016:

	Nine Months Ended   September 30, 2016 (a)
(in millions)
Net sales	$	4.2
Cost of sales	3.9
Gross profit	0.3
Selling, engineering, general and administrative expenses	1.1
Operating loss	(0.8		)
Other (income) expense, net	—
Loss before income taxes	(0.8		)
Income tax benefit	(0.2		)
Net loss from operations	$	(0.6	)

(a) Only includes activity in the period up to the completion of the sale on January 29, 2016.

Assets and liabilities of discontinued operations

The following table presents the assets and liabilities of the Company’s discontinued operations, which include the Fire Rescue Group, as well as other operations discontinued in prior periods, as of September 30, 2017 and December 31, 2016:

	September 30, 2017						December 31, 2016
(in millions)	Fire Rescue		Other		Total		Fire Rescue		Other		Total
Deferred tax assets	$	—	$	1.0	$	1.0	$	—	$	1.1	$	1.1
Long-term assets of discontinued operations	$	—	$	1.0	$	1.0	$	—	$	1.1	$	1.1
Accrued liabilities:
Other current liabilities	$	—	$	0.8	$	0.8	$	1.3	$	0.8	$	2.1
Current liabilities of discontinued operations	$	—	$	0.8	$	0.8	$	1.3	$	0.8	$	2.1
Other long-term liabilities	$	—	$	1.8	$	1.8	$	—	$	2.0	$	2.0
Long-term liabilities of discontinued operations	$	—	$	1.8	$	1.8	$	—	$	2.0	$	2.0

The Company retains certain liabilities for other operations discontinued in prior periods, primarily for environmental remediation and product liability. Included in liabilities of discontinued operations at September 30, 2017 and December 31, 2016 is $0.3 million and $0.6 million, respectively, related to environmental remediation at the Pearland, Texas facility, and $1.8 million and $1.8 million, respectively, relating to estimated product liability obligations of the discontinued North American refuse truck body business.