Discontinued Operations, Assets Held for Sale, and Business Divestiture

12 Months Ended

Sep. 30, 2014

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 has terminated operations in the first quarter of fiscal 2014. As of September 30, 2014 the Company retained the net working capital and the building. The Company expects to sell the building in first quarter of fiscal 2015.

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, 2014 and 2013.

The assets and liabilities were comprised of the following:

	September 30,
	2014		2013
Assets:
Receivables, net	$	91	$	1,067
Inventories, net	—		660
Deferred income taxes	15		317
Prepaid expenses and other current assets	22		15
Total current assets of business from discontinued operations	$	128	$	2,059
Current assets held for sale	$	264	$	278
Property, plant and equipment, net	—		840
Other assets	—		32
Total noncurrent assets of business from discontinued operations	$	—	$	872
Liabilities:
Accounts payable	$	23	$	278
Accrued liabilities	173		808
Total current liabilities of business from discontinued operations	$	196	$	1,086

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 in fiscal 2013 to write-down assets to their estimated fair value.

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

	Years Ended September 30,
	2014			2013			2012
Net sales	$	1,339		$	5,964		$	7,184
Loss before income tax provision	(808		)	(3,104		)	(1,142		)
Income tax provision (benefit)	(228		)	(1,061		)	(435		)
Income (loss) from discontinued operations, net of tax	$	(580	)	$	(2,043	)	$	(707	)

As the Company exited the Repair Group, the Company recognized $959 in workforce reduction costs of which $685 was incurred in fiscal 2013 and $6 was paid in fiscal 2013 and the remaining $274 was recognized and was paid in fiscal 2014.

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

	Years Ended 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