XML 69 R10.htm IDEA: XBRL DOCUMENT v3.2.0.727
DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of a strategic portfolio review conducted in 2014, the Corporation identified certain businesses it considered non-core. The Corporation considers businesses non-core when the business’ products or services do not complement its existing businesses and where the long-term growth and profitability prospects are below the Corporation’s expectations. As part of this initiative, the Corporation divested one business in the first quarter of 2015 and one business in the second quarter of 2015 that were previously classified as held for sale. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings and prior year amounts have been restated to conform to the current year presentation.

Discontinued Operations

The aggregate financial results of all discontinued operations and assets classified as held for sale for the three and six months ended June 30, were as follows:

 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales
 
$
23,025

 
$
100,363

 
$
57,284

 
$
198,816

Earnings / (loss) from discontinued operations before income taxes (1)
 
153

 
(2,961
)
 
(39,959
)
 
(4,941
)
Income tax benefit / (expense)
 
(3,759
)
 
767

 
8,956

 
1,481

Gain / (loss) on sale of businesses (2)
 
(10,778
)
 
(4,424
)
 
(10,613
)
 
(4,424
)
Earnings / (loss) from discontinued operations
 
$
(14,384
)
 
$
(6,618
)
 
$
(41,616
)
 
$
(7,884
)


(1) Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015.

(2) Net of tax benefit for the three and six months ended June 30, 2015 of $3.1 million, respectively.


Assets held for sale

During the third quarter of 2014, the Corporation committed to a plan to sell two surface technology treatment facilities and its Engineered Packaging business. In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $13 million. As of June 30, 2015, these businesses continue to be classified as held for sale and their results of operations are presented as discontinued operations in the Condensed Consolidated Statement of Earnings.

The following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three and six months ended June 30.

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
926

 
$
1,157

 
$
2,036

 
$
2,485

Engineered Packaging
 
3,952

 
4,299

 
8,329

 
10,447

Total included in discontinued operations
 
$
4,878

 
$
5,456

 
$
10,365

 
$
12,932

 
 
 
 
 
 
 
 
 
Earnings / (loss) before income taxes
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
(434
)
 
$
(144
)
 
$
(396
)
 
$
21

Engineered Packaging
 
178

 
173

 
283

 
1,220

Total included in discontinued operations
 
$
(256
)
 
$
29

 
$
(113
)
 
$
1,241



Divestitures and facility closures

During the second quarter of 2015, the Corporation completed the divestiture of its Downstream oil and gas business for $19 million, net of transaction costs. The business had previously been classified within assets held for sale and had recorded impairment charges of $40 million during the first quarter. In connection with the second quarter sale, the Corporation realized an additional pre-tax loss on divestiture of $14 million.

On January 9, 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ($4 million).

During the year ended December 31, 2014, the Corporation disposed of four businesses aggregating to cash proceeds of $153 million. The divestitures resulted in aggregate pre-tax losses in excess of $29 million, and tax benefits of approximately $7 million. During 2014, the Corporation also closed three international manufacturing facilities in its Surface Technologies business.

Net sales and earnings/(loss) before income taxes attributable to divestitures and facility closures for the three and six months ended June 30 were as follows:

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
$
18,147

 
$
94,907

 
$
46,919

 
$
185,884

Earnings / (loss) before income taxes
 
409

 
(2,990
)
 
(39,846
)
 
(6,182
)