Discontinued Operations

12 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

12.Discontinued Operations

In the first quarter of fiscal 2012, the Company recorded a $957,000 loss from discontinued operations, net of $493,000 in taxes, that related to a settlement of a lawsuit filed in 2002 by Industries GDS, Inc., Bois Granval GDS Inc., and Centre de Preparation GDS, Inc. (collectively, “GDS”) on or about November 21, 2002 in the Superior Court of the Judicial District of Quebec, Canada against the Company, Carbotech, Inc. (“Carbotech”), and U.S. Natural Resources, Inc. (“USNR”), among others.  The suit alleged that the Company breached its contractual and warranty obligations as a manufacturer in connection with the sale and installation of three systems for trimming and edging wood products.involving the Company’s discontinued Forest Product Business Unit.The Company agreed to settle the suit for $2.0 million Canadian dollars (approximately $1.9 million using a September 30, 2011 exchange rate).The Company also had accruals related to this matter of approximately $500,000.The Company paid the litigation settlement in full for $2.0 million on October 28, 2011 and the Company incurred a foreign currency loss on the transaction of $52,000, net of $27,000 in taxes, in the second quarter of fiscal 2012.

During the fourth quarter of fiscal 2012, the Company decided to sell CBU. At June 30, 2012, the Company recorded a $1.6 million charge, or $1.1 million, net of taxes. This charge does not include the loss associated with CBU’s operations for fiscal 2012 of $1.1 million, net of taxes.The Company’s estimated charge is based upon management’s estimates and assumptions. Actual results could differ from that estimate.

Based on the foregoing, and in conformity with applicable accounting guidance, the CBU segment qualifies as a discontinued operation. Accordingly, financial results of CBU have been reported as discontinued operations in the accompanying consolidated statements of income for all periods presented. Information regarding revenue and operating results of CBU included in discontinued operations is as follows (in thousands):

	Fiscal Year ended June 30,
	2012		2011		2010
Net Sales	$	5,749	$	8,424	$	11,942
Operating loss	$	(1,638)	$	(1,242)	$	(1,321)

The operating loss reported for CBU above does not include corporate costs previously allocated between the Company’s operating segments, which remain with the Company.

Information regarding CBU’s assets and liabilities included in the accompanying consolidated balance sheets is as follows (in thousand):

	June 30,
	2012		2011
Accounts receivable	$	779	$	1,383
Inventory	$	192	$	1,088
Fixed assets	$	308	$	674
Other assets	$	86	$	336
Accounts payable and accrued liabilities	$	1,443	$	1,329

On August 30, 2012, the Company sold substantially all of the assets of CBU for approximately $838,000 in cash. The purchaser also assumed certain liabilities and obligations of CBU.The Company retained the CBU accounts receivable balance at August 30, 2012 of approximately $608,000.