Discontinued Operations (Notes)

9 Months Ended

Apr. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

The Company announced its plan to divest its Die-Cut business in fiscal 2013. As a result, the business has been classified as assets and liabilities held for sale in accordance with the authoritative literature as of April 30, 2014 and July 31, 2013. The disposal group has been recorded based on the estimated fair value less costs to sell, which resulted in a write down of $15,658, recorded in the third quarter of fiscal 2013. The operating results have been reported as discontinued operations for the three and nine month comparative periods ended April 30, 2014 and 2013, including the operating results of the following two previously divested businesses:

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

The following table summarizes the operating results of discontinued operations for the three and nine months ended April 30, 2014 and 2013:

	Three months ended April 30,					Nine months ended April 30,
	2014		2013			2014			2013
Net sales	$	46,246	$	48,849		$	161,862		$	168,688
Earnings (loss) from operations of discontinued businesses	3,629		(16,054		)	16,390			(11,201		)
Income tax benefit (expense)	275		(1,393		)	(784		)	(3,363		)
Earnings (loss) from discontinued operations, net of income tax	$	3,904	$	(17,447	)	$	15,606		$	(14,564	)

The following table details the assets and liabilities of the Die-Cut disposal group classified as held for sale as of April 30, 2014:

	April 30, 2014
Accounts receivable—net	$	39,667
Total inventories	16,451
Prepaid expenses and other current assets	922
Total current assets	57,040
Other assets:
Goodwill	37,032
Other intangible assets	914
Other	1,541
Property, plant and equipment—net	28,671
Total assets	$	125,198
Current liabilities:
Accounts payable	$	21,252
Wages and amounts withheld from employees	1,725
Other current liabilities	417
Total current liabilities	23,394
Other liabilities	1,142
Total liabilities	$	24,536
Net assets of disposal group	100,662
Less: write-down on disposal group	(15,658		)
Net assets of disposal group at fair value	$	85,004

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. As of April 30, 2014, the accumulated other comprehensive income attributable to the disposal group was approximately $31,000.

On February 24, 2014, Brady Corporation and LTI Flexible Products, Inc. (d/b/a Boyd Corporation) entered into a Share and Asset Purchase Agreement for the sale of the Company's Die-Cut Business. The first phase of the sale closed on May 1, 2014. Refer to Note N, "Subsequent Events," for additional information.