Discontinued Operations, Assets Held for Sale, and Business Divestiture

12 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations, Assets Held for Sale, and Business Divestiture

Discontinued Operations, Assets Held for Sale, and Business Divestiture

As part of the Company's strategy to focus on the A&E market, the Company decided in the fourth quarter of fiscal 2013 to exit the Repair Group. The results of operations and cash flows from the Repair Group have been classified as discontinued operations for all periods presented. The Repair Group continued to manufacture the last remaining orders in order to complete the wind down of the business. The Company expects the wind down to be completed by the end of December 2013 and may retain the net working capital, the facility and certain assets. The net cash inflows expected to be received by the Company in fiscal 2014 is approximately $725.

As a result of the decision to exit the Repair Group, the assets and liabilities of the Repair Group have been classified as assets and liabilities from discontinued operations at September 30, 2013 and 2012.

The assets and liabilities were comprised of the following:

	September 30,
	2013		2012
Assets:
Receivables, net	$	1,067	$	1,365
Inventories, net	660		881
Deferred income taxes	317		329
Prepaid expenses and other current assets	15		6
Total current assets of business from discontinued operations	$	2,059	$	2,581
Property, plant and equipment, net	$	1,118	$	1,232
Non-current deferred tax assets	32		—
Total noncurrent assets of business from discontinued operations	$	1,150	$	1,232
Liabilities:
Accounts payable	$	278	$	120
Accrued liabilities	808		119
Total current liabilities of business from discontinued operations	$	1,086	$	239

As of September 30, 2013, certain assets are recorded at the lower of carrying value or fair value. The Company recognized within the Repair Group an impairment charge of $354 to write-down assets to their estimated fair value.

The financial results of Repair Group included in discontinued operations were as follows:

	September 30,
	2013			2012
Net sales	$	5,964		$	7,184
Loss before income tax provision	(3,104		)	(1,142		)
Income tax provision (benefit)	(1,061		)	(435		)
Income (loss) from discontinued operations, net of tax	$	(2,043	)	$	(707	)

As the Company exits the Repair Group, the company expects to recognize $959 in workforce reduction costs of which $685 was incurred at September 30, 2013 and $6 was paid in fiscal 2013. The Company expects to recognize the remaining $274 of cost in 2014 related to the exit of the Repair Group.

On December 10, 2012, the Company completed the divestiture of its ASC business segment. The Company received cash proceeds, net of certain transaction fees, of approximately $8,100 for this business and $980 was placed in escrow, pending expiration in June 2014 of indemnification holdback provisions under the sale agreement. The ASC business included its U.S. operations, headquartered in Cleveland, Ohio, and three European operations located in France, Sweden and the United Kingdom. ASC business developed, manufactured and sold selective plating products and provided contract services for low volume repair, refurbishment and OEM applications. The transaction resulted in a pre-tax gain of $3,980 in fiscal 2013. The results of operations and cash flows from ASC have been classified as discontinued operations for all periods presented.

The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at September 30, 2012.    

Assets:
Receivables, net	$	2,574
Inventories, net	1,224
Deferred income taxes	16
Prepaid expenses and other current assets	100
Total current assets of business held for sale	$	3,914
Property, plant and equipment, net	$	2,533
Other assets	43
Total noncurrent assets of business held for sale	$	2,576
Liabilities:
Current maturities of long-term debt	$	2
Accounts payable	546
Accrued liabilities	623
Total current liabilities of business held for sale	$	1,171
Deferred income taxes	$	846
Other long-term liabilities	1
Total noncurrent liabilities of business held for sale	$	847

The financial results of ASC Group included in discontinued operations were as follows:

	September 30,
	2013			2012
Net sales	$	2,727		$	15,022
Income before income tax provision	180			1,375
Income tax provision (benefit)	(11		)	427
Income (loss) from operations, net of tax	191			948
Gain (loss) on sale of discontinued operations, net of tax	2,328			—
Income (loss) from discontinued operations, net of tax	$	2,519		$	948