Discontinued Operations

12 Months Ended

Aug. 31, 2012

Discontinued Operations

Note 18 — Discontinued Operations

The Company sold its Australia/New Zealand operations in fiscal 2010. At August 31, 2012, the remaining net assets of the Australia/New Zealand Operations consist of $0.1 million of cash and $0.8 million of other net assets, primarily a receivable from the purchaser of one of the Company’s Australian manufacturing facilities. Proceeds from the sale included $2.0 million in escrow, of which $1.2 million has been received. The remaining escrowed payment of $0.8 million is subject to the buyer’s right to make warranty claims under the sale contract. At August 31, 2012, no allowance relating to this $0.8 million receivable has been established. See Note 22.

The following table summarizes the financial information for discontinued operations related to the Australia/New Zealand Operations. Interest expense on debt directly attributable to the Australia/New Zealand Operations has been allocated to discontinued operations.

Year Ended August 31, 2010 (in thousands)
Sales	$	16,992
Loss from operations	$	(1,848	)
Reclassification of currency translation adjustments into earnings		13,420
Other income		245
Income from discontinued operations before taxes		11,817
Income tax benefit		(4,495	)
Income from discontinued operations, net of tax	$	16,312

The Company believes that it is more likely than not that the net deferred tax benefit of $11.0 million recorded for the Australian operations will not be realized. The Company’s discontinued Australian operations recorded a valuation allowance as of August 31, 2012 of $11.0 million against the entire Australian net deferred tax asset.