Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued operations

Note 2 - Discontinued operations:

On December28, 2012, we completed the sale of CompX’s Furniture Components operations to a competitor of that business.  Selected financial data for the operations of the disposed Furniture Components operations is presented below:

	Threemonthsended September30,		Ninemonthsended September30,
	2012		2012
	(In thousands)
Net sales	$	15,828		$	46,382
Income from operations	$	2,710		$	5,807
Income from discontinued operations:
Income before taxes	$	2,693		$	5,729
Income tax expense		969			2,456
Income from discontinued operations, net of tax		1,724			3,273
Noncontrolling interest in income from discontinued operations, net of tax		225			426
Total discontinued operations, net of tax and noncontrolling interest	$	1,499		$	2,847

In accordance with generally accepted accounting principles, the assets and liabilities relating to the Furniture Components business were eliminated from the 2012 Condensed Consolidated Balance Sheet at the date of sale. We have reclassified our September30, 2012 Condensed Consolidated Statements of Operations to reflect the disposed operations as discontinued operations. We have not reclassified our September30, 2012 Condensed Consolidated Statement of Cash Flows to reflect discontinued operations.

In conjunction with the sale of CompX’s Furniture Components business, the buyer was not interested in retaining certain undeveloped land located in Taiwan owned by CompX’s Taiwanese Furniture Component subsidiary. We had no additional use for the undeveloped land in Taiwan and therefore expected the land to be sold to a third party with CompX receiving the net proceeds. Based on the legal form of how we completed the disposal transaction, our interest in such land was represented by a $3.0 million promissory note receivable at December31, 2012, issued to CompX by its former Taiwanese subsidiary which retained legal ownership in the land to facilitate the future sale of the land to a third party. The proceeds from the sale of the land were required to be used to settle the note receivable. During the first quarter of 2013, an agreement was entered into with a third party to sell the land for $3.0 million, $1.8 million of which was received during the first quarter of 2013 and the remaining $1.2 million was received in the second quarter 2013. Such note receivable is classified as part of accounts receivable in our Consolidated Balance Sheets at December31, 2012.  See Note 3.