Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

2.            Discontinued Operations

During the second quarter of 2012, the Company committed to a plan to enhance profit margins through the expected sale of a component. On September 18, 2012, Queen Cutlery Company (QCC), a wholly owned subsidiary of Servotronics Inc., completed the disposition of substantially all of its assets for cash consideration of $650,000. QCC is accounted for as a discontinued operation in the accompanying consolidated financial statements. During the twelve months ended December 31, 2013 there was no loss from discontinued operations related to QCC. A loss before income taxes of approximately $793,000 that included a pre-tax loss on disposal related to a write-down of certain assets to a lower of cost or market of $406,000 from discontinued operations was reported for the same twelve month period in 2012.

On July 23, 2012, Aero Metal Products, Inc. (“AMP”), a wholly owned subsidiary of Servotronics, Inc., gave notice of termination of a personal property capital lease for machinery and equipment previously reported under a $588,000 capital lease with a related party. Due to the termination, beginning in July 2012, this lease is accounted for as an operating lease rather than a capital lease for the remaining term and the related assets and liabilities were removed from the consolidated balance sheet. In the third quarter of 2012, AMP ceased all manufacturing operations and in the fourth quarter of 2012, the Company surrendered all assets under the personal property and real property lease to the lessor, Aero Inc., a previously reported related party. During the twelve months ended December 31, 2013, there was no loss from discontinued operations related to AMP. A loss before income taxes of approximately $1,153,000 from discontinued operations was reported for the same twelve month period in 2012.

The following is a summary of discontinued operations:

	Years Ended
	December 31,
	2013		2012
	($000’s omitted)
Discontinued operations:
Revenue of QCC and AMP	$	-	$	1,002
Loss from operations of QCC and AMP	$	-		(948	)
Income tax benefit		-		301
Net loss from operations of QCC and AMP		-		(647	)
Loss on disposal of QCC and AMP		-		(998	)
Income tax benefit		-		318
Net loss on disposal of QCC and AMP		-		(680	)
Loss from discontinued operations	$	-	$	(1,327	)