Assets and Liabilities Held for Sale - Discontinued Operations

9 Months Ended

Jun. 30, 2012

Assets And Liabilities Held For Sale - Discontinued Operations [Abstract]

ASSETS AND LIABILITIES HELD FOR SALE - DISCONTINUED OPERATIONS

12. ASSETS AND LIABILITIES HELD FOR SALE – DISCONTINUED OPERATIONS

In May 2012, our board of directors approved and we committed to a plan to sell our Aerospace Equipment segment, which is comprised of Ampac-ISP Corp. and its wholly-owned foreign subsidiaries (“AMPAC-ISP”). The divestiture is a strategic shift that allows us to place more focus on the growth and performance of our pharmaceutical-related product lines.

On June 4, 2012, we entered into an Asset Purchase Agreement with Moog Inc. (“Moog”) (the “Asset Purchase Agreement”), pursuant to which we sold to Moog substantially all of the assets of the Ampac-ISP Corp., including all of the equity interests in its foreign subsidiaries (collectively, the “Purchased Assets”). Additionally, Moog assumed certain liabilities related to the operations and the Purchased Assets. The transaction was completed effective August 1, 2012.

Under the terms of the Asset Purchase Agreement, the total consideration was approximately $46,000 (the “Purchase Price”) in cash. In addition, $4,000 of the Purchase Price (the “Escrow Amount”) will be held in an escrow account for 15 months following the closing of the transaction (the “Escrow Period”) and applied towards our indemnification obligations in favor of Moog, if any. The Asset Purchase Agreement provides that we, subject to certain limitations, indemnify Moog for damages and losses incurred or suffered by Moog as a result of, among other things, breaches of our respective representations, warranties and covenants contained in the Asset Purchase Agreement as well as any of the liabilities that we retain. The balance of the Escrow Amount remaining at the end of the Escrow Period shall be released to us.

Revenues and expenses associated with the operations of AMPAC-ISP are presented as discontinued operations for all periods presented. Summarized financial information for AMPAC-ISP is as follows:

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Revenues	$	12,368	$	10,105	$	40,207	$	35,929
Income(Loss) before Income Tax	$	(215)	$	645	$	86	$	2,739
Income Tax Provision (Benefit)		(38)		94		329		1,011
Income (Loss) from Discontinued
Operations, Net	$	(177)	$	551	$	(243)	$	1,728

The carrying amount of AMPAC-ISP’s assets and liabilities, which are reported as held for sale as of June 30, 2012, are comprised of the following:

	June 30,
	2012
Current Assets:
Accounts receivable	$	24,436
Inventories		5,122
Other		2,039
Total	$	31,597
Non-Current Assets:
Property, plant and equipment	$	3,915
Intangible assets		387
Goodwill		2,710
Other		491
Total	$	7,503
Current Liabilities:
Accounts payable	$	3,312
Accrued expenses		1,086
Deferred revenues and customer deposits		2,300
Other		444
Total	$	7,142
Non-Current Liabilities	$	9