Discontinued Operations

9 Months Ended

Sep. 28, 2014

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

On August 1, 2013, the Company completed the sale of all of the outstanding shares of an indirectly 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 does not have a substantial continuing involvement in Austroflex’s operations and cash flows, therefore Austroflex’s results of operations have been presented as discontinued operations and all periods presented have been adjusted in the consolidated interim financial statements to reflect Austroflex’s results as discontinued operations. Austroflex’s pretax loss included in discontinued operations for the three and nine months ended September 29, 2013 was $2.1 million and $2.4 million, respectively. Austroflex’s revenues reported in discontinued operations were $1.8 million and $9.5 million for the three and nine months ended September 29, 2013, respectively.