Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations

Discontinued Operations

(3) Discontinued Operations

        On August 1, 2013, the Company completed the sale of all of the outstanding shares of an indirect wholly-owned subsidiary, Watts Insulation GmbH (Austroflex), receiving net cash proceeds of $7.9 million. The loss after tax on disposal of the business was approximately $2.2 million. The Company did not have a substantial continuing involvement in Austroflex's operations and cash flows, and therefore Austroflex's results of operations have been presented as discontinued operations for the year ended December 31, 2013.

        Condensed operating statements for discontinued operations for the year ended December 31, 2013 is summarized below:

	(in millions)
Operating loss—Austroflex		(0.2	)
Loss on disposal—Austroflex		(2.2	)
Loss before income taxes		(2.4	)
Income tax benefit		0.1
Loss from discontinued operations, net of taxes	$	(2.3	)

        The Company did not recognize a tax benefit on the loss on the disposal of the Austroflex shares, as the Company does not believe it is more likely than not that a tax benefit would be realized. For the year ended December 31, 2013, $9.5 million of revenues related to Austroflex was reported in discontinued operations.