Discontinued Operations, Assets Held for Sale and Sale of Assets

6 Months Ended

Jun. 28, 2014

Discontinued Operations, Assets Held for Sale and Sale of Assets

Discontinued Operations, Assets Held for Sale and Sale of Assets

Note 2.  Discontinued Operations, Assets Held for Sale and Sale of Assets

Discontinued Operations

In July 2013, we completed the sale of our former OCP and DES businesses and entered into an amendment to the purchase agreement, which, among other things, increased the target net working capital amount and amended provisions related to employee matters and indemnification.  We continue to be subject to certain indemnification provisions under the terms of the purchase agreement.  In addition, the tax liability associated with the sale is subject to completion of tax return filings in the jurisdictions in which the OCP and DES businesses operated.

The results of these discontinued operations and loss on sale were as follows:

	Three Months Ended						Six Months Ended
(In millions)	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Net sales	$	–		$	218.7		$	–		$	380.6
Loss before taxes, including divestiture-related and restructuring costs	$	–		$	(4.1	)	$	–		$	(14.7	)
Benefit from income taxes	–			2.1			–			3.7
Loss from discontinued operations, net of tax before loss on sale	–			(2.0		)	–			(11.0		)
Loss on sale before taxes	(1.9		)	–			(2.6		)	–
Tax benefit from loss on sale	–			–			.3			–
Loss from discontinued operations, net of tax	$	(1.9	)	$	(2.0	)	$	(2.3	)	$	(11.0	)

Loss from discontinued operations, net of tax, in both the second quarter and first six months of 2014 included costs related to the resolution of certain post-closing adjustments.

Loss from discontinued operations, net of tax, in both the second quarter and first six months of 2013 included curtailment and settlement losses associated with certain U.S. pension plans.  Refer to Note 6, “Pension and Other Postretirement Benefits,” for further information.

Net sales from continuing operations to discontinued operations were $24.4 million and $44 million for the three and six months ended June 29, 2013, respectively. These sales have been included in “Net sales” in the unaudited Consolidated Statements of Income.

Assets Held for Sale and Sale of Assets

We classified certain properties and equipment that we are in the process of selling as “held for sale” in the unaudited Condensed Consolidated Balance Sheets at June 28, 2014 and December 28, 2013.

In April 2013, we sold the property and equipment of our former corporate headquarters in Pasadena, California for approximately $20 million and recognized a pre-tax gain of $10.9 million in “Other expense (income), net” in the unaudited Consolidated Statements of Income.