DISCONTINUED OPERATIONS

9 Months Ended

Apr. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On April 28, 2012, the Company entered into an asset purchase agreement (“APA”) to sell certain assets of its blood collection, filtration and processing product line (the “Product Line”) to Haemonetics Corporation (“Haemonetics”) for approximately $550,000. The transaction will involve the transfer of manufacturing facilities and equipment in Covina, California; Tijuana, Mexico; Ascoli, Italy and a portion of the Company’s operations in Fajardo, Puerto Rico. In addition to the manufacturing facilities and related equipment, the Company will transfer Product Line related inventory and intangible assets. Haemonetics will also assume certain employee-related liabilities. Upon closing, approximately 1,300 employees will transition to Haemonetics.

Separate from these manufacturing facilities, the Company will also transfer related blood media manufacturing capabilities and assets to Haemonetics. The transfer of the related media lines is expected to be completed by calendar year 2016. Until that time, the Company will provide these media products under a supply agreement. Under the terms of the APA, approximately $535,000 will be paid upon closing, with the balance of the purchase price payable upon the Company’s delivery of the aforementioned blood media manufacturing capability and related assets. Final determination of cash proceeds, gain on sale and tax impact are subject to working capital and certain other adjustments and final allocation of proceeds by jurisdiction. The transaction, which is expected to close at the beginning of the Company’s fiscal year 2013, is subject to certain closing conditions, regulatory approvals and labor-related notifications.

The Product Line, which was a component of the Company’s Life Sciences segment, met both the component and held for sale criteria during the third quarter of fiscal year 2012 and has been reported as a discontinued operation in the Company’s condensed consolidated financial statements. The Company did not allocate any portion of the Company’s interest expense to discontinued operations.

The key components of discontinued operations for the three and nine months ended April 30, 2012 were as follows:

	Three Months Ended				Nine Months Ended
	Apr 30, 2012		Apr 30, 2011		Apr 30, 2012		Apr 30, 2011
Net sales	$	57,180	$	56,016	$	169,493	$	162,038
Earnings from discontinued operations before income taxes	$	11,782	$	13,589	$	39,865	$	41,870
Provision for income taxes	3,802		4,278		11,999		12,778
Earnings from discontinued operations, net of income taxes	$	7,980	$	9,311	$	27,866	$	29,092

Included in earnings from discontinued operations before income taxes above are external costs of $3,336 and $3,993 for the three and nine months ended April 30, 2012, respectively, incurred in connection with the planned sale of the Product Line.

As of April 30, 2012 and July 31, 2011, the aggregate components of assets and liabilities classified as held for sale in the condensed consolidated balance sheet as of April 30, 2012 consisted of the following:

	Apr 30, 2012		Jul 31, 2011
Inventory	$	40,651	$	37,125
Prepaid expenses and other current assets	1,806		2,698
Total current assets	$	42,457	$	39,823
Property, plant and equipment	$	61,623	$	64,567
Goodwill	22,018		19,261
Intangible assets	567		683
Other non-current assets	72		174
Total non-current assets	$	84,280	$	84,685
Total assets	$	126,737	$	124,508
Total liabilities	$	1,557	$	1,817