Discontinued Operations, Assets Held for Sale and Divestitures

6 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations, Assets Held for Sale and Divestitures

Restructuring and Discontinued Operations

In January 2014, Mueller Co. changed its approach to the production of certain sizes of iron gate valves. This change resulted in an impairment of the related production equipment of $1.5 million, which is reported as restructuring expense for the three and six month periods ended March 31, 2014. This charge was based on our internal projections of future cash flows associated with the production equipment.

In April 2014, Anvil sold the production equipment and certain inventory at its Bloomington, Minnesota location for an immaterial gain. Anvil also signed a supply agreement with the buyer and terminated the employment of all employees at that location, which resulted in the withdrawal from the only multi-employer pension plan in which the Company had participated. Accordingly, at March 31, 2014, we recorded a reserve for our estimated withdrawal liability of $1.0 million.

On April 1, 2012, we sold our former U.S. Pipe segment. During 2013, we received $4.5 million in cash for certain purchase price adjustments and reduced our loss on sale of discontinued operations accordingly.

Activity related to U.S. Pipe is presented as discontinued operations for the three and six months ended March 31, 2013. The table below represents a summary of the operating results for these discontinued operations.

	Three months			Six months
	(in millions)
Operating income (loss)	$	(1.6	)	$	5.6
Gain on sale of discontinued operations	0.2			5.0
Income (loss) from discontinued operations	$	(1.4	)	$	10.6

We retained certain assets, liabilities and activities previously associated with our former U.S. Pipe segment, including ownership of certain real property and retention of pension and workers compensation obligations to employees of U.S. Pipe. Cash flows associated with some of these items are anticipated to continue indefinitely, but they are not clearly and closely related to the future operations of U.S. Pipe under its new ownership.