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PowerPackages Exit Plan
9 Months Ended
Sep. 30, 2011
PowerPackages Exit Plan [Abstract] 
PowerPackages Exit Plan

6. PowerPackages Exit Plan

     On May 31, 2011, we adopted a plan to exit the business and sell the assets of PowerPackages, which operated a medium speed engine business in our Energy and Smart Grid Solutions segment that we started in 2009 through the acquisition of inventory and equipment necessary to enter the business. We adopted this plan of disposition after evaluating the prospects for the PowerPackages business, current market conditions and our opportunities to focus our time and resources in other areas which have a higher potential to deliver near and mid-term revenue and profit growth.

     We have initiated actions to exit the PowerPackages business. Our targeted and currently estimated exit date is December 31, 2011. During the three months ended June 30, 2011, we recorded pre-tax charges related to the PowerPackages exit plan in the amount of $2,075, which included a $1,692 inventory charge included in our cost of sales and a $383 loss from the write-down of long-lived assets associated with the business included in our general and administrative expenses, as proceeds from the disposition of the business are expected to be less than its carrying value. During the three months ended September 30, 2011, we received $1,644 cash proceeds and gross margin of $435 from the sale of a portion of the inventory of PowerPackages and we recorded $537 of operating expenses related to the wind-down of the operations, including $363 of employee severance and related expenses associated with contractual obligations incurred in connection with our exit plan. During the remainder of 2011, we expect to receive additional proceeds from the sale of the remaining inventory and we expect to incur additional facility and related expenses, and potentially additional inventory adjustments, as we dispose of the remaining assets of PowerPackages.

     The results of our PowerPackages operations, including the losses associated with the exit plan, will be reported in continuing operations in our consolidated financial statements until the dispositions of the business and assets is complete and operations cease, at which time it will be reclassified in to discontinued operations for all prior and subsequent periods.