Divestiture-related activities

9 Months Ended

Sep. 29, 2013

Divestiture-related activities

Note 17 — Divestiture-related activities

When dispositions occur in the normal course of business, gains or losses on the sale of such businesses or assets are recognized in the statement of income (loss) line item Gain on sales of businesses and assets. In the second quarter of 2012, the Company sold a building, with a net book value of zero, that had been classified as an asset held for sale and realized a gain of approximately $0.3 million.

Assets Held for Sale

The table below provides information regarding assets held for sale at September 29, 2013 and December 31, 2012. As of September 29, assets held for sale consisted of four buildings and certain other assets which the Company is actively marketing.

	September 29, 2013		December 31, 2012
	(Dollars in thousands)
Assets held for sale:
Property, plant and equipment	$	10,435	$	7,963
Total assets held for sale	$	10,435	$	7,963

Discontinued Operations

The Company has recorded $1.7 million of income during the nine month period ended September 29, 2013 and $0.9 million and $1.1 million of expense during the three and nine month periods ended September 30, 2012, respectively, associated with retained liabilities related to businesses that have been divested.

On August 26, 2012, the Company completed the sale of the orthopedic business of its OEM Segment to Tecomet Inc. for $45.2 million in cash and realized a loss of $39 thousand, net of tax, from the sale of the business.

The following table presents the operating results of the operations that have been treated as discontinued operations for the periods presented:

	Three Months Ended						Nine Months Ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
	(Dollars in thousands)
Net revenues	$	—		$	2,789		$	—		$	16,616
Costs and other expenses		38			3,582			(1,746	)		17,093
Goodwill impairment(1)		—			—			—			9,700
Gain (loss) on disposition(2)		—			(38	)		—			2,226
Income (loss) from discontinued operations before income taxes		38			(831	)		(1,746	)		(7,951	)
Provision for income taxes(3)		(991	)		1,690			(1,547	)		(1,668	)
Income (loss) from discontinued operations		1,029			(2,521	)		(199	)		(6,283	)
Less: Income from discontinued operations attributable to noncontrolling interest		—			—			—			—
Income (loss) from discontinued operations attributable to common shareholders	$	1,029		$	(2,521	)	$	(199	)	$	(6,283	)

(1) In the second quarter of 2012, the Company recognized a non-cash goodwill impairment charge of $9.7 million to adjust the carrying value of the orthopedic business to its estimated fair value.

(2) The $2.2 million pre-tax gain on disposition in 2012 reflects the gain recognized on a working capital purchase price adjustment in the second quarter related to the sale of the cargo systems and cargo container businesses.

(3) The provision for income taxes for the three months ended September 29, 2013 was impacted favorably by the realization of a tax benefit resulting from the expiration of statutes of limitation for a U.S. matter.