Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
 12 Months Ended
Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 2 – Discontinued Operations

On December 31, 2012, the Board of Directors authorized the Company to exit its Hatteras and Cabo boat businesses. As a result, these businesses, which were previously reported in the Company's Boat segment, are being reported as discontinued operations and are reported in separate lines in the Consolidated Statements of Operations for all periods presented. The assets and liabilities of these businesses to be sold at December 31, 2012 met the accounting criteria to be classified as held for sale and have been aggregated and reported on separate lines of the Consolidated Balance Sheets. Additionally, the Company concluded on December 31, 2012, that based on the performance of the Hatteras and Cabo boat businesses, proceeds from the sale would be less than its book value resulting in a non-cash impairment charge of $52.7 million, $53.2 million after-tax.

In August 2013, the Company completed the sale of its Hatteras and Cabo boat businesses resulting in an after-tax gain of $1.6 million.
  
The following table discloses the results of operations of the Hatteras and Cabo businesses, including the gain on the disposal, reported as discontinued operations for the years ended December 31, 2013, 2012 and 2011, respectively:
(in millions)
2013
 
2012
 
2011
Net sales
$
23.0

 
$
56.2

 
$
78.0

 
 
 
 
 
 
Loss from discontinued operations before income taxes
$
(7.0
)
 
$
(96.7
)
 
$
(21.4
)
Income tax provision (benefit)
0.6

 
0.7

 
(2.7
)
Loss from discontinued operations, net of tax (A)
(7.6
)
 
(97.4
)
 
(18.7
)
Gain on disposal of discontinued operations, net of tax (B)
1.6

 
—

 
—

Net loss from discontinued operations, net of tax
$
(6.0
)
 
$
(97.4
)
 
$
(18.7
)

(A) Loss from discontinued operations includes an asset impairment charge in 2012 of $52.7 million, $53.2 million after-tax, and other restructuring and impairment charges, net of tax of $14.5 million and $1.4 million in 2012 and 2011, respectively.

(B) The Gain on disposal of discontinued operations for 2013, includes a pre-tax loss of $1.4 million and a net tax benefit of $3.0 million.

There were no assets available for sale as of December 31, 2013. The following table reflects the summary of assets and liabilities held for sale as of December 31, 2012, for the Hatteras and Cabo businesses reported as discontinued operations:
(in millions)
December 31,
2012
Accounts and notes receivable, net
$
—

Net inventory
—

Current assets held for sale
—

 
 
Long-term assets held for sale
—

Assets held for sale (A)
$
—

 
 
Accounts payable
$
3.8

Accrued expenses
14.6

Current liabilities held for sale
18.4

 
 
Other liabilities
2.9

Long-term liabilities held for sale
2.9

Liabilities held for sale
$
21.3


(A) Assets held for sale at December 31, 2012, are shown net of reserves of $52.7 million.