Assets and Liabilities Held-For-Sale

9 Months Ended

May 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

Assets and Liabilities Held-For-Sale

Note 5 – Assets and Liabilities Held-For-Sale

During the third quarter of fiscal 2018, the Company completed a portfolio review of business investments and has committed to a plan of divestiture of its filtration and pump systems businesses as well as a Company-owned irrigation dealership, all of which are reported in the Irrigation segment.  The Company has determined that the divestiture of these businesses does not meet the criteria for discontinued operations presentation as the commitment to divest these businesses does not represent a strategic shift that will have a major effect on its operations and financial results.  As a result of this classification, the assets and liabilities of these businesses are separately presented within the captions “Assets held-for-sale” and “Liabilities held-for-sale” in the condensed consolidated balance sheet as of May 31, 2018.  Assets and liabilities held-for-sale are recorded at their estimated selling price less costs to sell.  The Company has estimated that value for certain of these businesses to be less than their existing carrying value and has recorded an expense of $6.0 million included in general and administrative expense on the condensed consolidated statement of earnings in the fiscal quarter ended May 31, 2018.  Subsequent to the end of the fiscal quarter, the Company entered into a definitive agreement to sell its filtration and pump systems businesses with an anticipated closing date in the fourth fiscal quarter.  The Company expects the sale of the Company-owned irrigation dealership to close before the end of the current calendar year.

The carrying amounts of the major classes of assets and liabilities that were classified as held-for-sale at May 31, 2018, are as follows:

($ in thousands)	May 31, 2018
Receivables, net of allowance of $547	$	12,212
Inventories, net		11,210
Prepaid expenses		178
Other current assets		55
Property, plant, and equipment, net		10,693
Intangibles, net		10,827
Goodwill		6,341
Total assets		51,516
Accounts payable		7,522
Other current liabilities		6,243
Other noncurrent liabilities		510
Total liabilities		14,275
Net assets	$	37,241