SALE OF TROLLEY BUSINESS

9 Months Ended

Sep. 24, 2016

SALE OF TROLLEY BUSINESS

SALE OF TROLLEY BUSINESS

NOTE 8 — SALE OF TROLLEY BUSINESS

On May 11, 2016, the Company entered into an Asset Purchase Agreement (the “Agreement”) for the sale of certain assets of the Company’s trolley business. Trolley products represented less than 1% of the Company’s consolidated net sales for the first nine months of 2016 and approximately 3% for the first nine months of 2015.  Additionally, the after-tax impact on consolidated operations for both periods was immaterial.  The divestiture allows the Company to utilize existing resources to advance its work-truck channel strategy.  Pursuant to the terms of the Agreement, the Company will sell the assets of the trolley business including: machinery and equipment, inventory, trademarks, engineering drawings, bills of materials, production data, and quality control records and procedures relating exclusively to the business.  In addition, the purchaser will assume certain warranty obligations.  The first stage of the transaction closed on June 30, 2016 and the final stage of the transaction is scheduled to close by the end of the year.  The Company received proceeds of $0.1 million and recognized a gain of $0.1 million at the first stage closing on June 30, 2016. The Company anticipates no material gain or loss will be recognized on the final stage of the sale.  The trolley business does not meet the criteria of the Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2014-8 (Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity) and will not be reported as discontinued operations.