Discontinued Operations (Notes)

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On June 20, 2014, the Company completed the sale of the assets and associated liabilities of its wholly-owned subsidiaries WEK Industries, Inc. and Whiteridge Plastics LLC (collectively “WEK”) for approximately $20.7 million, which includes a working capital adjustment of approximately $0.8 million. Of the total proceeds from the sale of WEK, approximately $1.0 million are held in escrow to be received in December 2015. The Company recorded a gain on the sale of WEK of approximately $3.0 million, net of tax of $1.6 million. WEK is a premier blow molder of custom engineered plastic components for the heavy truck, recreational vehicle, marine, appliance and consumer products industries. WEK was previously reported as part of our former Engineered Products Segment.

During the second quarter of 2014, the Company’s Board of Directors approved the commencement of the sale process to divest its Lawn and Garden business to allow it to focus resources on its core growth platforms. The Lawn and Garden business serves the North American horticulture market with plastic products such as seedling trays, nursery products, hanging baskets, custom print containers as well as decorative resin planters. The business was sold February 17, 2015 to an entity controlled by Wingate Partners V, L.P., a private equity firm, for $110 million, subject to a working capital adjustment. The sale of the Lawn & Garden business includes manufacturing facilities and offices located in Twinsburg, Ohio, Middlefield, Ohio, Elyria, Ohio, Sparks, Nevada, Sebring, Florida, Brantford, Ontario, and Burlington, Ontario. The terms of the agreement include a $90 million cash payment and a $20 millionfive year note.

Since the second quarter of 2014, the Lawn and Garden business met the held-for-sale criteria under the requirements of ASC 360. Accordingly, at December 31, 2014 and 2013, the Company has classified and accounted for the assets and liabilities of the Lawn and Garden business and WEK, for periods prior to the sale, as held for sale in the accompanying Consolidated Statements of Financial Position and their operating results, net of tax, as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented. In addition, the Company performed a fair value assessment of the Lawn and Garden business. The fair value, determined as sales price less cost to sell the business, was less than its carrying value at December 31, 2014, resulting in an $18.9 million impairment charge reported as discontinued operations in the Consolidated Statements of Operations.

Summarized selected financial information for the Lawn and Garden business and WEK for the years ended December 31, 2014, 2013 and 2012 are presented in the following table:

	Year Ended
	December 31,
	2014*			2013			2012
Net sales	$	204,716		$	240,477		$	245,616
Income (loss) from discontinued operations before income taxes	$	(30,038	)	$	(394	)	5,145
Income tax expense (benefit)	(9,408		)	46			1,690
Income (loss) from discontinued operations	(20,630		)	(440		)	3,455
Net gain on sale of discontinued operations, net of tax of $1.6 million	2,988			—			—
Income (loss) from discontinued operations	$	(17,642	)	$	(440	)	3,455

* Includes WEK operating results through June 20, 2014.

The assets and liabilities of discontinued operations are stated separately as of December 31, 2014 and 2013, respectively, in the Consolidated Statements of Financial Position and are comprised of the following items:

	Year Ended December 31,
	2014				2013
Assets
Accounts receivable-net	$	29,794			$	37,527
Inventories	50,951				53,401
Prepaid expenses and other current assets	1,709				1,832
Goodwill	9,107				9,567
Patents and other intangible assets, net	6,030				6,860
Property, plant and equipment, net	38,168				51,028
Net asset impairment	(18,858		)	*	—
Other	874				353
Total Assets Held for Sale	$	117,775			$	160,568
Liabilities
Accounts payable	$	22,239			$	29,366
Accrued expenses and other liabilities	4,883				18,503
Total Liabilities Held for Sale	$	27,122			$	47,869

*Impairment includes $8.3 million of cumulative translation credit adjustment associated with the Lawn and Garden group.

The Lawn and Garden business restructuring plan, announced in July 2013, detailed the closure of two manufacturing plants: one in Brantford, Ontario and the second in Waco, Texas. The restructuring actions included closure, relocation and employee related costs. Through December 31, 2014, the Lawn and Garden business has incurred approximately$14.5 million of charges under its restructuring plan. Restructuring actions under the plan have been completed.

Restructuring charges related to discontinued operations for the year ended 2014, 2013 and 2012 are presented in the following table:

	Year Ended December 31,
	2014		2013*		2012*
Severance and personnel	$	1,743	$	2,614	$	487
Other exit costs	3,762		6,189		1,198
Total	$	5,505	$	8,803	$	1,685

*Includes WEK restructuring charges of $0.2 million and $1.2 million in 2013 and 2012, respectively.