Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

17. Discontinued Operations

On February 8, 2013 the Company completed the sale of substantially all the assets of its waterfront equipment manufacturing company, formerly included in the Company’s Manufacturing segment, for approximately $13.0 million in cash and received a working capital true up of approximately $2.4 million in June 2013. On November 30, 2012 the Company completed the sale of the assets of its wind tower manufacturing company and on February 29, 2012 the Company completed the sale of DMS Health Technologies, Inc. (DMS). Following are summary presentations of the results of discontinued operations for the three and six-month periods ended June 30, 2013 and 2012:

	For the Three Months Ended  June 30,						For the Six Months Ended  June 30,
(in thousands)	2013			2012			2013			2012
Operating Revenues	$	7		$	72,308		$	2,016		$	146,359
Operating Expenses		(161	)		65,650			2,546			139,095
Asset Impairment Charge		--			45,573			--			45,573
Operating Income (Loss)		168			(38,915	)		(530	)		(38,309	)
Interest Charges		--			5			--			174
Other Income		160			97			572			230
Income Tax Expense (Benefit)		131			(15,021	)		(74	)		(14,608	)
Net Income (Loss) from Operations		197			(23,802	)		116			(23,645	)
(Loss) Gain on Disposition Before Taxes		--			(490	)		216			(3,713	)
Income Tax (Benefit) Expense on Disposition		--			(35	)		6			(169	)
Net (Loss) Gain on Disposition		--			(455	)		210			(3,544	)
Net Income (Loss)	$	197		$	(24,257	)	$	326		$	(27,189	)

Following are summary presentations of the major components of assets and liabilities of discontinued operations as of June 30, 2013 and December 31, 2012:

(in thousands)	June 30, 2013		December 31, 2012
Current Assets	$	1,019	$	18,487
Investments		--		85
Net Plant		113		520
Assets of Discontinued Operations	$	1,132	$	19,092
Current Liabilities	$	5,332	$	11,156
Liabilities of Discontinued Operations	$	5,332	$	11,156

Included in current liabilities are warranty reserves. Details regarding the warranty reserves follow:

(in thousands)
Warranty Reserve Balance, December 31, 2012	$	5,027
Provision for Warranties Used During the Year		120
Less Settlements Made During the Year		(582	)
Decrease in Warranty Estimates for Prior Years		(663	)
Warranty Reserve Balance, June 30, 2013	$	3,902

The warranty reserve balance as of December 31, 2012 and June 30, 2013 relates entirely to products produced by the Company’s former wind tower and waterfront equipment manufacturing companies. Expenses associated with remediation activities of these companies could be substantial. Although the assets of these companies have been sold and their operating results are reported under discontinued operations in the Company’s consolidated statements of income, the Company retains responsibility for warranty claims related to the products they produced prior to the sales of these companies. For wind towers, the potential exists for multiple claims based on one defect repeated throughout the production process or for claims where the cost to repair or replace the defective part is highly disproportionate to the original cost of the part. For example, if the Company is required to cover remediation expenses in addition to regular warranty coverage, the Company could be required to accrue additional expenses and experience additional unplanned cash expenditures which could adversely affect the Company’s consolidated results of operations and financial condition.