Discontinued Operations

12 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

In July 2009, the Company sold Geesink to a third party for nominal cash consideration. Following reclassification of $92.0 million of cumulative translation adjustments out of equity, the Company recorded a pretax gain on the sale of $33.8 million, which was recognized in the fourth quarter of fiscal 2009. As a result of the sale, the historical results of Geesink, which were previously included in the Company’s commercial segment, have been reclassified and are now included in discontinued operations in the Company’s Consolidated Statements of Operations.

In October 2009, the Company sold its 75% ownership interest in BAI to BAI’s management team for nominal cash consideration. Following reclassification of $0.8 million of cumulative translation adjustments out of equity, the Company recorded a small after tax loss on the sale, which was recognized in the first quarter of fiscal 2010. BAI, a European fire apparatus manufacturer, was previously included in the Company’s fire & emergency segment.

The following amounts related to the operations of Geesink and BAI were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Consolidated Statements of Operations (in millions):

	Fiscal Year Ended September 30,
	2010			2009
Net sales	$	—		$	180.2
Cost of sales	—			169.4
Gross income	—			10.8
Operating expenses:
Selling, general and administrative	—			27.5
Amortization of purchased intangibles	—			0.4
Intangible asset impairment charges	—			9.6
Total operating expenses	—			37.5
Operating loss	—			(26.7		)
Other expense	—			(1.4		)
Loss before income taxes	—			(28.1		)
Benefit from income taxes	—			(61.6		)
Income from operations, net of tax	—			33.5
Gain (loss) on sale of discontinued operations	(2.9		)	33.8
Income (loss) from discontinued operations, net of tax	$	(2.9	)	$	67.3

The fiscal 2009 benefit from income taxes includes $61.0 million related to a worthless stock/bad debt deduction claimed by the Company related to discontinued operations. See Note 20 of the Notes to Consolidated Financial Statements for additional information.