Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations

Discontinued Operations:

Service Experts

On March 22, 2013, the Company sold its Service Experts business to a majority-owned entity of American Capital, Ltd. in an all cash transaction for proceeds, excluding transaction costs, of $10.4 million. The proceeds included a determinable working capital adjustment of $3.8 million.

A summary of net trade sales, pre-tax operating losses and other supplemental information for our Service Experts business is detailed below (in millions):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
Net trade sales(1)	$	—		$	98.3		$	73.5		$	292.6
Pre-tax operating loss (1)(2)	(2.3		)	(26.8		)	(17.8		)	(42.7		)
Gain on sale of business	—			—			1.7			—

⁽¹⁾ Excludes eliminations of intercompany sales and any associated profit.

⁽²⁾ Pre-tax operating loss for the nine months ended September 30, 2013 included $2.3 million in retention bonus and severance costs and $0.2 million in stock-based compensation expense.

The assets and liabilities of the Service Experts business include the following in the accompanying Consolidated Balance Sheets (in millions):

	As of September 30, 2013		As of December 31, 2012
Assets of discontinued operations:
Accounts receivable, net	$	—	$	11.2
Inventories, net	—		4.8
Property, plant and equipment, net	—		3.6
Goodwill and intangible assets, net (1)	—		66.2
Deferred income taxes	—		5.5
Other assets	—		7.3
Liabilities of discontinued operations:
Accounts payable	$	—	$	16.7
Accrued expenses	—		38.5

⁽¹⁾ Includes goodwill of $66.0 million as of December 31, 2012. No goodwill impairments were recorded in 2013, and all goodwill was eliminated on March 22, 2013 as a result of the sale of the business.

Hearth

In April 2012, the Company sold its Hearth business to Comvest Investment Partners IV in an all cash transaction for net proceeds of $10.1 million, excluding the transaction costs and cash transferred with the business.

A summary of net trade sales and pre-tax operating losses for our Hearth business is detailed below (in millions):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2013		2012			2013		2012
Net trade sales(1)	$	—	$	—		$	—	$	23.5
Pre-tax operating income (loss)(1)	—		(1.2		)	0.5		(13.1		)
Loss on sale of business	—		2.9			—		(0.9		)

⁽¹⁾  Excludes eliminations of intercompany sales and any associated profit.

There were no assets and liabilities related to the Hearth business included in the accompanying Consolidated Balance Sheets as of September 30, 2013 or December 31, 2012.