DISCONTINUED OPERATIONS
In January 2012, the Company completed the sale of its integrated scanning system business (the Accu-Sort ("ASI") business) for a sale price of $132 million in cash. In addition, in February 2012, the Company completed the sale of its Kollmorgen Electro-Optical ("KEO") business for a sale price of $205 million in cash. These businesses were part of the Industrial Technologies segment. The businesses had combined annual revenues of $275 million in 2011. The Company recorded an aggregate after-tax gain on the sale of these businesses of $94 million or $0.13 per diluted share in its first quarter 2012 results.
In April 2011, the Company completed the divestiture of its Pacific Scientific Aerospace (“PSA”) business for a sale price of $680 million in cash. This business, which was part of the Industrial Technologies segment had annual revenues of $377 million in 2010. The Company recorded an after-tax gain on the sale of PSA of $202 million or $0.29 per diluted share in its second quarter 2011 results.
The Company has reported the ASI, KEO and PSA businesses as discontinued operations in its consolidated financial statements. Accordingly, the results of operations for all periods presented reflect these businesses as discontinued operations. The Company allocated a portion of the consolidated interest expense to discontinued operations based on the ratio of the discontinued businesses’ net assets to the Company’s consolidated net assets.
The key components of income from discontinued operations for the years ended December 31 were as follows ($ in millions):
|
| | | | | | | |
| 2012 | | 2011 |
Net sales | $ | 9.9 |
| | $ | 385.8 |
|
Operating expenses | (11.2 | ) | | (328.3 | ) |
Allocated interest expense | — |
| | (2.0 | ) |
(Loss) earnings before income taxes | (1.3 | ) | | 55.5 |
|
Income tax benefit (expense) | 0.5 |
| | (20.2 | ) |
(Loss) earnings from discontinued operations | (0.8 | ) | | 35.3 |
|
Gain on sale, net of $55.0 million and $126.0 million of related income taxes for the years ended December 31, 2012 and 2011, respectively | 93.7 |
| | 201.7 |
|
Earnings from discontinued operations, net of income taxes | $ | 92.9 |
| | $ | 237.0 |
|
