Discontinued Operations

12 Months Ended

Jun. 30, 2011

NOTE 5 – DISCONTINUED OPERATIONS

Effective June 30, 2009, we divested HSS from our Industrial segment as part of our continuing focus to shape our business portfolio and rationalize our manufacturing footprint. This divestiture was accounted for as discontinued operations. The net assets disposed of as a result of this transaction had a net book value of approximately $51 million and consisted primarily of inventory and equipment, as well as owned and leased facilities. Cash proceeds from this divestiture amounted to $28.5 million, the majority of which was received in 2010. We incurred pre-tax charges related to the divestiture of $2.3 million and $25.9 million during 2010 and 2009, respectively. The pre-tax charges as well as the related tax effects were recorded in discontinued operations. We do not expect to incur any additional pre-tax charges related to this divestiture.

The following represents the results of discontinued operations for the years ended June 30:


(in thousands)	2010			2009

Sales	$	-		$	80,630

Loss from discontinued operations before income taxes	$	(2,269	)	$	(25,923	)
Income tax expense (benefit)		(846	)		(8,583	)

Loss from discontinued operations	$	(1,423	)	$	(17,340	)