Discontinued Operations

6 Months Ended

Mar. 31, 2013

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

Julian Graves

        On July 2, 2012, in accordance with the provisions of the United Kingdom Insolvency Act of 1986 and pursuant to a resolution of the board of directors of Julian Graves Limited, a company organized under the laws of the United Kingdom and Wales (the "UK Debtor") and an indirect, wholly-owned subsidiary of the Company, representatives from Deloitte LLP (the "Administrators") were appointed as administrators in respect of the UK Debtor (the "UK Administration"). The UK Administration, which was limited to the UK Debtor, was initiated in response to continuing operating losses of the UK Debtor and their related impact on the Company's cash flows. The effect of the UK Debtor's entry into administration was to place the management, affairs, business and property of the UK Debtor under the direct control of the Administrators. The Administrators have wound the operations down and the final settlement is pending.

        The results of the Julian Graves business included in discontinued operations for the three and six months ended March 31, 2012 are summarized in the following table.

	Three Months Ended March 31, 2012			Six Months Ended March 31, 2012
Net sales	$	12,532		$	31,182
Operating (loss) income, before income taxes		(815	)		608
Income tax (benefit) expense		(285	)		213
Net (loss) income		(530	)		395

Le Naturiste

        On August 31, 2012, NBTY sold certain assets and liabilities of our subsidiary Le Naturiste, Inc. for a net sales price of $1,600. The results of the Le Naturiste business included in discontinued operations for the three and six months ended March 31, 2012 are summarized in the following table:

	Three Months Ended March 31, 2012			Six Months Ended March 31, 2012
Net sales	$	4,912		$	9,691
Operating loss, before income taxes		(238	)		(489	)
Income tax benefit		—			—
Net loss		(238	)		(489	)

        On March 6, 2013, NBTY received an initial notice of arbitration from the purchasers of the assets of Le Naturiste claiming damages for breach of certain representations and warranties included in the related asset purchase agreement. We are currently in the process of investigating these claims. The range of potential loss, if any, cannot be estimated, but any potential damages are not expected to have a material impact on our operating results, financial position or cash flows.