Discontinued Operations

3 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

2. Discontinued Operations

On October 27, 2011 we entered into a contract to sell the assets and liabilities of our Albany Door Systems business to Assa Abloy AB for $130 million. Closing on the transaction occurred on January 11, 2012.  Under the terms of the contract, Assa Abloy AB acquired our equity ownership of Albany Doors Systems GmbH in Germany, Albany Door Systems AB in Sweden, and other ADS affiliates in Germany, France, the Netherlands, Turkey, Poland, Belgium, New Zealand, and other countries, as well as the remaining ADS business assets, most of which are located in the United States, Australia, China, and Italy. As of March 31, 2012, the purchaser had yet to complete certain legal registration activities in China and, as a result, certain business assets and liabilities have not yet been transferred to the purchaser.

The Company recorded a pre-tax gain of $58.0 million, including $17.4 million which was payable by the purchaser as of March 31, 2012. The initial purchase price of $130 million included $13 million to be paid in July 2013. We recorded the value of that consideration on a present value basis and, as of March 31, 2012, we have a receivable of $12.4 million included in Other assets. Additionally, in March 2012, we agreed with the purchaser on certain post-closing adjustments and, included in Accounts receivable, net is $5.0 million to reflect that agreement. We received that payment in April 2012.

In accordance with the applicable accounting guidance for discontinued businesses, the associated results of operations and financial position are reported separately in the accompanying Consolidated Statements of Operations and Balance Sheets. Cash flows of the discontinued operation were combined with cash flows from continuing operations in the consolidated statements of cash flows.

The table below summarizes operating results of the discontinued operations:

	January 1 to	Three months
	January 11,	ended
(in thousands)	2012	March 31, 2011
Net sales	$4,843	$45,128
Income from operations of discontinued business before tax	460	4,650
Gain on disposition of discontinued operations	57,968	-
Income tax expense	12,221	1,321

The table below summarizes major categories of assets and liabilities for the discontinued Albany Doors business:

	March 31,	December 31,
(in thousands)	2012	2011
Assets of Discontinued Operations:
Cash	$                 -	$       13,545
Accounts receivable, net of allowance for doubtful accounts	1,197	35,120
Inventories	1,309	12,661
Property, plant and equipment, net	279	6,344
Goodwill and intangibles	-	39,227
Other current and noncurrent assets	90	5,114
Total assets of discontinued operation	$          2,875	$      112,011
Liabilities of Discontinued Operations:
Accounts payable	$          2,638	$         8,300
Accrued liabilities	-	10,883
Other current liabilities	37	1,763
Liabilities for defined benefit pension plans	-	9,513
Other noncurrent liabilities	-	4,552
Total liabilities of discontinued operation	$          2,675	$       35,011