Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

In May 2013, the Company announced its decision to close the construction contract division of TDI in the Ready-Mixed Concrete Business segment and put the property, plant and equipment of the division up for sale. The decision to close the division, which produced precast/hollowcore products, was driven primarily as a result of incurring significant operating losses in each of the last three years.

On July 12, 2013, the Company signed a definitive agreement to sell the property, plant and equipment of TDI's ready-mixed concrete division known as Arrow Concrete Company (Arrow) and subsequently ceased operations of the division at the end of the same business day. Arrow's assets have been completely transferred. TDI's construction contract division closure was completed by the end of the fourth quarter 2013 and the subsidiary ceased primary operations. TDI's operating results, reported in discontinued operations, for March 31, 2014 and March 31, 2013 are as follows:

(in millions)	2014			2013
Sales	$	—		$	5.2
Pretax loss	(0.1		)	(2.1		)

Prior period financial statements reflect the operations of TDI as a discontinued operation. Costs incurred related to the closure and associated exit or disposal activities are not expected to be material.

In November 2013, the Company decided to lease the remaining assets of TDI and as a result the assets were reclassified from held-for-sale to held-for-use. Later in the quarter TDI consummated a lease purchase agreement for its remaining assets. These assets, which have a net book value of $2.7 million, are presented under the caption "Other Assets" in the accompanying Condensed Consolidated Balance Sheet at March 31, 2014. The assets consist solely of property, plant and equipment. As of December 31, 2013 the remaining TDI assets were tested for recoverability and their fair value less cost to sell exceeded their carrying amount; accordingly no impairment loss was recognized. After review, the Company does not consider these assets to be impaired at March 31, 2014.

In December 2013, the Company announced its decision to close Beaver Lake Concrete, Inc. (BLC), another subsidiary in the Ready-Mixed Concrete Business segment, and lease the related property, plant and equipment effective January 1, 2014. The Company retained BLC's cement transport trucks and effective January 1, 2014 began hauling cement for third parties. The decision to close the subsidiary was driven primarily as a result of incurring operating losses in the last several years. BLC's operating results, reported in discontinued operations, for the March 31, 2014 and March 31, 2013 are as follows:

(in millions)	2014			2013
Sales	$	0.2		$	1.4
Pretax loss	(0.1		)	(0.2		)

Prior period financial statements reflect the operations of BLC as a discontinued operation. Costs incurred related to the closure and associated exit or disposal activities are not expected to be material.

BLC has a lease agreement for its assets which have a net book value of $0.8 million. These assets, consisting solely of property, plant and equipment, are presented under the caption "Other Assets" in the accompanying Condensed Consolidated Balance Sheet at March 31, 2014. As of December 31, 2013 the remaining BLC assets were tested for recoverability and their fair value less cost to sell exceeded their carrying amount; accordingly no impairment loss was recognized. After review, the Company does not consider these assets to be impaired at March 31, 2014.