Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations

Note 3—Discontinued operations:

On December28, 2012, CompX completed the sale of its furniture components operations to a competitor of that business. Please refer to Note 3 to our 2012 Annual Report for a complete description of the transaction.

Selected financial data for the operations of the disposed furniture components business is presented below:

	Threemonthsended June30,2012		Sixmonthsended June30,2012
	(In millions)
Income statement:
Net sales	$	15.5	$	30.6
Operating income	$	1.8	$	3.1
Income from discontinued operations:
Income before taxes	$	1.7	$	3.0
Income tax expense		.9		1.5
Income from discontinued operations, net of tax		.8		1.5
Noncontrolling interest in income from discontinued operations		.2		.4
Total discontinued operations, net of tax and noncontrolling interest	$	.6	$	1.1

In accordance with generally accepted accounting principles, the assets and liabilities relating to the furniture components reporting unit were eliminated from the 2012 Consolidated Balance Sheet at the date of sale. We have reclassified our Condensed Consolidated Statements of Income for the interim periods ended June 30, 2012 to reflect the disposed operations as discontinued operations. We have not reclassified our June30, 2012 Condensed Consolidated Statement of Cash Flows to reflect discontinued operations.

In conjunction with the sale of CompX’s furniture components reporting unit, the buyer was not interested in retaining certain undeveloped land located in Taiwan owned by CompX’s Taiwanese Furniture Component subsidiary. We had no additional use for the undeveloped land in Taiwan and therefore expected the land to be sold to a third party with CompX receiving the net proceeds. Based on the legal form of how we completed the disposal transaction, our interest in such land was represented by a $3.0 million promissory note receivable at December31, 2012, issued to CompX by its former Taiwanese subsidiary which retained legal ownership in the land to facilitate the future sale of the land to a third party. The proceeds from a future sale of the land were required to be used to settle the note receivable. During the first quarter of 2013, an agreement was entered into with a third party to sell the land for $3.0 million, $1.8 million of which was received during the first quarter with the remaining $1.2 million received in the second quarter of 2013. Such note receivable is classified as part of other current assets in our Consolidated Balance Sheet at December31, 2012.