Discontinued Operations, Assets Held for Sale and Divestiture

3 Months Ended

Dec. 31, 2012

Discontinued Operations, Assets Held for Sale and Divestiture

12. Discontinued Operations, Assets Held for Sale, and Business Divestiture

On December 10, 2012, the Company completed the divestiture of its Applied Surface Concepts (“ASC Group”) business segment to Norman Hay plc, located in the United Kingdom. The Company received cash proceeds, net of certain transaction fees, of approximately $8,114 for this business and $994 was placed in escrow, pending the final working capital adjustment and/or indemnification holdback provisions under the sale agreement. The ASC Group business includes its U.S. operations, headquartered in Cleveland, Ohio, and three European operations located in France, Sweden and the United Kingdom. The ASC Group business develops, manufactures and sells selective plating products and provides contract services for low volume repair, refurbishment and OEM applications. The transaction resulted in a pre-tax gain of $4,014 in the first three months of fiscal 2013.

There were no assets or liabilities held for sale at December 31, 2012. 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		1,188
Deferred income taxes		47
Prepaid expenses and other current assets		99
Total current assets of business held for sale	$	3,908
Property, plant and equipment, net	$	2,533
Other assets		43
Total noncurrent assets of business held for sale	$	2,576
Liabilities:
Current maturities of debt	$	2
Accounts payable		546
Accrued liabilities		623
Total current liabilities of business held for sale	$	1,171
Deferred income taxes	$	388
Other long-term liabilities		2
Total noncurrent liabilities of business held for sale	$	390

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

	Three Months Ended December 31,
	2012		2011
Net sales	$	2,727	$	3,784
Income before income tax provision		180		517
Provision for income taxes on operations		48		164
Income from operations, net of tax		132		353
Gain on sale of discontinued operations		4,014		0
Provision for income taxes on gain on sale		1,652		0
Gain on sale of discontinued operations, net of tax		2,362		0
Income from discontinued operations, net of tax	$	2,494	$	353