Discontinued Operations

12 Months Ended

Oct. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

NOTE 16:  Discontinued Operations

On September 3, 2014, the Company’s board of directors approved the plan to sell certain non-core business units including Eclipse Electronic Systems, Inc. (Eclipse), a manufacturer of embedded communication intercept receivers for signal intelligence applications; Wallop Defence Systems, Ltd. (Wallop), a manufacturer of flare countermeasure devices; Pacific Aerospace and Electronics Inc. (PA&E), a manufacturer of hermetically sealed electrical connectors; and a small distribution business. These businesses were not separate reporting units as defined under U.S. GAAP and no indicator of impairment existed at August 1, 2014, requiring an impairment test of their corresponding reporting units’ goodwill or these businesses’ long-lived assets.  For fiscal 2014, these businesses are reported as discontinued operations.  Based upon the estimated fair values, we incurred an estimated after-tax loss of $49.5 million in the fourth fiscal quarter of 2014 on the assets held for sale in discontinued operations.  Principle assumptions used in measuring the estimated after-tax loss included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market.

The Company recorded a liability related to environmental remediation at a previously sold business for which the Company provided indemnification of $0.8 million in fiscal 2014, and $2.0 million in fiscal 2013.  A loss of $0.5 million, net of tax, in fiscal 2014 and a loss of $1.3 million, net of tax, in fiscal 2013, are reflected in discontinued operations.

	Avionics &			Sensors &			Advanced
In Thousands	Controls			Systems			Materials			Other			Total
2014
Net Sales	$	33,749		$	22,479		$	25,886		$	-		$	82,114
Operating earnings (loss)		(7,082	)		(181	)		(11,637	)		(845	)		(19,745	)
Loss on net assets held for sale		(18,489	)		(12,675	)		(18,308	)		-			(49,472	)
Tax expense (benefit)		(2,493	)		(523	)		(2,316	)		(296	)		(5,628	)
Income (loss) from discontinued    operations	$	(23,078	)	$	(12,333	)	$	(27,629	)	$	(549	)	$	(63,589	)

	Avionics &			Sensors &		Advanced
In Thousands	Controls			Systems		Materials			Other			Total
2013
Net Sales	$	31,883		$	25,599	$	23,495		$	-		$	80,977
Operating earnings (loss)		(7,912	)		1,566		(2,420	)		(2,000	)		(10,766	)
Tax expense (benefit)		(3,180	)		689		(1,315	)		(700	)		(4,506	)
Income (loss) from discontinued    operations	$	(4,732	)	$	877	$	(1,105	)	$	(1,300	)	$	(6,260	)
	Avionics &			Sensors &		Advanced
In Thousands	Controls			Systems		Materials			Other			Total
2012
Net Sales	$	66,900		$	29,017	$	18,580		$	-		$	114,497
Operating earnings (loss)		9,842			1,387		(9,706	)		-			1,523
Tax expense (benefit)		3,391			385		(1,634	)		-			2,142
Income (loss) from discontinued    operations	$	6,451		$	1,002	$	(8,072	)	$	-		$	(619	)

Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 31, 2014, are comprised of the following:

	Avionics &		Sensors &			Advanced
In Thousands	Controls		Systems			Materials		Total
Accounts receivable, net	$	5,154	$	3,752		$	2,106	$	11,012
Inventories		12,646		7,972			5,258		25,876
Prepaid expenses		408		86			335		829
Deferred income tax benefits		671		680			-		1,351
Income tax refundable		-		-			2,378		2,378
Current Assets of Businesses Held for Sale	$	18,879	$	12,490		$	10,077	$	41,446
Net Property, plant and equipment	$	4,949	$	4,105		$	19,839	$	28,893
Intangibles, net		22,228		10,659			8,327		41,214
Deferred income tax benefits		-		(30	)		-		(30	)
Other assets		-		-			1,600		1,600
Non-Current Assets of Businesses Held for Sale	$	27,177	$	14,734		$	29,766	$	71,677
Accounts payable	$	2,194	$	873		$	6,326	$	9,393
Accrued liabilities		1,765		1,008			2,025		4,798
Current Liabilities of Businesses       Held for Sale	$	3,959	$	1,881		$	8,351	$	14,191
Deferred income tax liabilities	$	11,084	$	6,243		$	1,537	$	18,864
Other liabilities		-		-			12		12
Non-Current Liabilities of Businesses Held for Sale	$	11,084	$	6,243		$	1,549	$	18,876
Net Assets of Businesses Held for Sale	$	31,013	$	19,100		$	29,943	$	80,056