Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

16. Discontinued Operations

For the six months ended June 30, 2011, discontinued operations before income taxes was a loss of $591,000 while net income from discontinued operations equaled $403,000. Discontinued operations before income taxes relates to $591,000 ($384,000 net of tax) of legal and environmental charges primarily associated with the past operations of SL Surface Technologies, Inc. (“SurfTech”). Net income from discontinued operations relates to a settlement with a foreign tax authority which was recorded as part of discontinued operations. The settlement was associated with the Company’s Elektro-Metall Export GmbH subsidiary, which was sold in January 2003. As a result, during the second quarter of 2011, the Company recognized a previously unrecognized tax position related to the settlement in the amount of $787,000 ($619,000 tax and $168,000 interest).

For the six months ended June 30, 2010, total loss from discontinued operations was $1,946,000 ($1,199,000 net of tax). Loss from discontinued operations in 2010 relates to legal and environmental charges primarily associated with the past operations of SurfTech. During the second quarter of 2010, the Company increased the reserves at its Camden site by $1,273,000 ($784,000 net of tax) to provide for additional anticipated cost to remediate.