Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

2. Discontinued Operations

On October 27, 2011 we entered into a contract to sell the assets and liabilities of our Albany Door Systems business to Assa Abloy AB for $130 million. Closing of the transaction occurred on January 11, 2012.  Under the terms of the contract, Assa Abloy AB acquired our equity ownership of Albany Doors Systems GmbH in Germany, Albany Door Systems AB in Sweden, and other ADS affiliates in Germany, France, the Netherlands, Turkey, Poland, Belgium, New Zealand, and other countries, as well as the remaining ADS business assets, most of which are located in the United States, Australia, China, and Italy.

In July 2008, we closed on the sale of our Filtration Technologies business, the principal operations of which were in Gosford, Australia, and Zhangjiagang, China. At closing, we received approximately $45.0 million, which resulted in a pretax gain of $5.4 million. During 2009, the purchaser asserted that various working capital items included in the sale were improperly valued at the time of sale. As a result, without admitting liability, we returned a portion of the original $45.0 million purchase price, in exchange for a broad release of future claims under the purchase agreement or related to the business, including claims of breach of representations or warranties, related indemnity obligations, and certain other postclosing obligations related to the business. A charge of $10.0 million was recorded in 2009, which was the accounting period during which the likelihood of an unfavorable outcome became probable and estimable.

In accordance with the applicable accounting guidance for discontinued businesses, the associated results of operations and financial position are reported separately in the accompanying Consolidated Statements of Operations and Balance Sheets. Cash flows of the discontinued operations were combined with cash flows from continuing operations in the consolidated statements of cash flows.

The table below summarizes operating results of the discontinued operations:

(in thousands)	2011	2010	2009
Net sales	$184,142	$148,587	$133,423
Income/(Loss) from operations of discontinued business before tax	15,636	9,497	(2,061)
(Loss) on disposition of discontinued operations	-	-	(10,000)
Income tax expense/(benefit)	7,232	3,337	(64)

Income tax expense in 2011 includes a charge of $2.6 million pertaining to cash repatriations that will occur in 2012 as a result of the sale of the Albany Doors business.

The table below summarizes major categories of assets and liabilities for the discontinued Albany Doors business:

(in thousands)	2011	2010
Assets of Discontinued Operations:
Cash	$        13,545	$   4,376
Accounts receivable, net of allowance for doubtful accounts	35,120	28,202
Inventories	12,661	12,614
Property, plant and equipment, net	6,344	6,169
Goodwill and intangibles	39,227	41,024
Other current and noncurrent assets	5,114	5,056
Total assets of discontinued operation	$      112,011	$ 97,441
Liabilities of Discontinued Operations:
Accounts payable	$          8,300	$   8,492
Accrued liabilities	10,883	10,628
Other current liabilities	1,763	383
Liabilities for defined benefit pension plans	9,513	8,152
Other noncurrent liabilities	4,552	4,033
Total liabilities of discontinued operation	$        35,011	$ 31,688