Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

16. Discontinued Operations

For the three months ended September 30, 2011, total loss from discontinued operations before income taxes was $378,000 ($261,000 net of tax). The loss from discontinued operations relates to environmental remediation costs, consulting fees, and legal charges primarily associated with the past operations of the Company’s five sites.

For the nine months ended September 30, 2011, net income from discontinued operations, net of tax, equaled $142,000. Net income from discontinued operations relates to a settlement with a foreign tax authority which was recorded as part of discontinued operations. The settlement was associated with the Company’s Elektro-Metall Export GmbH subsidiary, which was sold in January 2003. As a result, during the second quarter of 2011, the Company recognized a previously unrecognized tax position related to the settlement in the amount of $787,000 ($619,000 tax and $168,000 interest). The above favorable settlement was primarily offset by $969,000 ($645,000 net of tax) of charges related to environmental remediation costs, consulting fees, and legal charges primarily associated with the past operations of the Company’s five sites.

For the three and nine months ended September 30, 2010, total loss from discontinued operations was $429,000 and $2,375,000 ($267,000 and $1,466,000 net of tax), respectively. Loss from discontinued operations in 2010 relates to legal and environmental charges primarily associated with the past operations of SurfTech. During the second quarter of 2010, the Company increased the reserves at its Camden site by $1,273,000 ($784,000 net of tax) to provide for additional anticipated cost to remediate.