Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

The following business is classified as discontinued operations in the accompanying consolidated financial statements for 2013 and for the comparable period of 2012.

Continental Industries

In January 2013, the Company divested substantially all of the assets and existing operations of its Continental Industries business unit, a wholly-owned subsidiary of H&H, for a cash sales price totaling approximately $37.4 million less transaction fees, reflecting a working capital adjustment of approximately $0.1 million expected to be paid in the second quarter of 2013. Proceeds of $3.7 million are currently held in escrow pending resolution of certain indemnification provisions contained in the sales agreement. Located in the State of Oklahoma, Continental Industries manufactures plastic and steel fittings and connectors for natural gas, propane and water distribution service lines, along with exothermic welding products for electrical grounding, cathodic protection and lightning protection. It was part of the Company's Engineered Materials reporting segment.

The assets and liabilities of discontinued operations have been segregated in the accompanying consolidated balance sheet as of December 31, 2012, which were sold as of March 31, 2013.

	December 31,
(in thousands)	2012
Assets of Discontinued Operations:
Trade and other receivables	$	2,729
Inventories	2,765
Prepaid and other current assets	64
Property, plant and equipment, net	2,765
Goodwill	9,156
	$	17,479
Liabilities of Discontinued Operations	$	3,429

The net income from discontinued operations includes the following:

	Three Months Ended March 31,
(in thousands)	2013		2012
Net sales	$	1,249	$	7,423
Operating income	137		634
Income tax expense	54		257
Income from discontinued operations, net of tax	83		377
Gain on disposal of assets	20,157		—
Income tax expense	10,782		—
Net income from discontinued operations	$	9,458	$	377