Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

NOTE 2. Discontinued Operations

In 2007 and 2008, we completed the sale of the majority of our noncore businesses; however, we continue to incur legal fees, settlements and other expenses as purchasers of these businesses continue to seek adjustments to purchase price through provisions in the agreements.

For the quarter ended June 30, 2011, total income from discontinued operations net of income taxes was $0.9 million. This included $1.2 million for a reduction in anticipated claims related to workers’ compensation and product liability, partially offset by $0.3 million of legal fees and settlements for sold businesses. See Note 12 for a discussion of income taxes included in discontinued operations.

For the quarter ended June 30, 2010, total income from discontinued operations before income taxes was $6.0 million, which primarily relates to a non-cash curtailment gain of $6.6 million as a result of terminating post retirement benefits for a sold business, partially offset by $0.6 million of legal fees for the defense of claims by the purchaser of the Engine and Power Train Group and insurance costs.

For the six months ended June 30, 2011, total income from discontinued operations net of income taxes was $0.1 million. This included $0.9 million for a reduction in anticipated claims related to workers’ compensation and product liability, partially offset by $0.7 million of legal fees and settlements for sold businesses and a $0.1 million related to our Grafton facility for operating costs. See Note 12 for a discussion of income taxes included in discontinued operations.

For the six months ended June 30, 2010, total income from discontinued operations before income taxes was $5.1 million. This included $6.6 million of post-retirement benefit curtailment gains, partially offset by $1.0 million related to our Grafton facility (formerly of the Engine and Power Train Group) for environmental accruals ($0.4 million) and operating costs ($0.6 million). Legal expense of $0.5 million for defense of claims by the purchaser of the Engine and Power Train Group was also incurred in the first half of 2010.

Our Grafton facility, an asset held from our former Engine and Power Train Group, is classified as held for sale on our consolidated balance sheet under the caption “other current assets” in the amount of $0.5 million.