Discontinued Operations

12 Months Ended

Jul. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

The Company implemented a plan to divest its Asia Die-Cut business during the three months ended April 30, 2013, and incorporated its Balkhausen business into that plan during the three months ended July 31, 2013. As a result, the businesses have been classified as assets and liabilities held for sale as of July 31, 2013. The disposal groups have been recorded based on the estimated fair value less costs to sell, which resulted in a write down of $15,658, recorded in the three months ended April 30, 2013. The operating results have been reported as discontinued operations for the comparative periods ended July 31, 2013, 2012, and 2011, including the operating results of the following four previously divested businesses:

Divestitures	Segment	Date Completed
Etimark	ID Solutions	July 2012
Precision Converting, LLC (“Brady Medical”)	ID Solutions	August 2012
Teklynx	ID Solutions	December 2010
Varitronics	ID Solutions	October 2012

The following table summarizes the operating results of discontinued operations for the fiscal years ending July 31, 2013, 2012 and 2011:

	2013			2012			2011
Net sales	$	219,819		$	262,484		$	289,407
Earnings (loss) from operations of discontinued businesses (1)	7,154			(116,673		)	16,434
(Loss) on write-down of disposal group (2)	(15,658		)	—			—
Income tax expense (3)	(5,215		)	(3,709		)	(13,739		)
(Loss) earnings from discontinued operations, net of income tax	$	(13,719	)	$	(120,382	)	$	2,695

(1) The loss from operations of discontinued businesses in fiscal 2012 was primarily attributable to the $115.7 million goodwill impairment charge recorded during the three months ending January 31, 2012, which was related to the Asia Die-Cut disposal group.

(2) The $15.7 million loss relates to the write-down of the Asia Die-Cut disposal group to its estimated fair value less costs to sell and was recorded in the three months ending April 30, 2013.

(3) Fiscal 2013 income tax expense was significantly impacted by the fiscal 2013 losses in China and Sweden, which had no tax benefit, and the increase in valuation allowance related to Shenzhen, China.

The following table details assets and liabilities of the Asia Die-Cut & Balkhausen disposal groups classified as held for sale as of July 31, 2013:

	July 31, 2013
Accounts receivable—net	$	47,499
Total inventories	20,200
Prepaid expenses and other current assets	1,469
Total current assets	69,168
Other assets:
Goodwill	37,347
Other intangible assets	914
Other	1,937
Property, plant and equipment—net	26,156
Total assets	$	135,522
Current liabilities:
Accounts payable	$	29,769
Wages and amounts withheld from employees	3,143
Other current liabilities	1,671
Total current liabilities	34,583
Net assets of disposal group	100,939
Less: write-down on disposal group	(15,658		)
Net assets of disposal group at fair value	$	85,281

In accordance with authoritative literature, accumulated other comprehensive income will be reclassified to the statement of earnings upon liquidation or substantial liquidation of the disposal group.