Discontinued Operations

9 Months Ended

Sep. 28, 2013

Discontinued Operations [Abstract]

Discontinued Operations

NOTE D – Discontinued Operations

On September 6, 2013, the Company completed the sale of its Cross Accessory Division to a newly-formed affiliate of Clarion Capital Partners, LLC (the "Purchaser"). In accordance with the agreement, dated July 13, 2013, the Purchaser assumed substantially all of the liabilities associated with the CAD Business, except those related to the U.S. defined benefit pension plan, certain pre-closing environmental matters and certain other liabilities, which were retained by the Company. Under the terms of the Asset Purchase Agreement the purchase price is subject to a post-closing adjustment for the final working capital sold.

The operating results of CAD, prior to the sale are reported within (loss) income from discontinued operations, net of tax, in the consolidated statement of income. The assets and liabilities sold with the business are listed below.

The following table sets forth summary information relating to Cross Accessory Division:

	THREE MONTHS ENDED				NINE MONTHS ENDED
(THOUSANDS OF DOLLARS)	SEPTEMBER 28,		SEPTEMBER 29,		SEPTEMBER 28,		SEPTEMBER 29,
	2013		2012		2013		2012
Net Sales	$	12,447	$	23,946	$	54,096	$	67,196
Operating (loss) income before income taxes		(3,295)		1,170		(3,605)		2,203
Loss on disposal of assets		(185)		-		(185)		-
Income tax provision on discontinued operations		6,584		28		7,077		218
(Loss) Income from Discontinued Operations	$	(10,064)	$	1,142	$	(10,867)	$	1,985

There was $2.9 million of cumulative translation losses which were reclassified from accumulated other comprehensive income to the income statement as part of the loss from discontinued operations.  

The CAD assets and liabilities that were sold represent those reported as the CAD segment of the Company’s financial statements and were as follows:  

(THOUSANDS OF DOLLARS)
Accounts Receivable	$	13,499
Inventory		29,982
PP&E		10,448
Other Assets		6,493
Accounts payable, accrued expenses and other		(14,495)
Other Liabilities		(988)
Net Assets	$	44,939