XML 34 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Summarized Financial Information of Discontinued Operations
The following table represents income from discontinued operations, net of tax:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Sales
$
43.0

 
$
37.8

 
$
120.6

 
$
109.3

Cost of sales
31.3

 
25.3

 
87.1

 
78.5

Selling, general and administrative expenses
6.8

 
8.6

 
21.4

 
25.5

Amortization expense
0.6

 
0.7

 
1.8

 
2.2

Operating income (1)
4.3

 
3.2

 
10.3

 
3.1

Other expenses (income), net
0.4

 
(0.1
)
 
0.6

 
(1.2
)
Income before income taxes
3.9

 
3.3

 
9.7

 
4.3

Income tax expense (2)
3.2

 
1.2

 
5.0

 
1.7

Income from discontinued operations, net of tax
$
0.7

 
$
2.1

 
$
4.7

 
$
2.6

_______________
(1) 
Includes depreciation expense of $0.4 for both the three months ended September 30, 2018 and 2017. Includes depreciation expense of $1.3 and $1.2 for the nine months ended September 30, 2018 and 2017, respectively.
(2) 
Income tax expense of $3.2 and $1.2 for the three months ended September 30, 2018 and 2017, respectively, represents taxes on both U.S. and foreign earnings at a combined effective income tax rate of 82.1% and 36.4%, respectively. Income tax expense of $5.0 and $1.7 in the nine months ended September 30, 2018 and 2017, respectively, represents taxes on both U.S. and foreign earnings at a combined effective income tax rate of 51.5% and 39.5%, respectively.
The effective income tax rate of 82.1% and 51.5% for the three and nine months ended September 30, 2018 differed from the U.S. federal statutory rate of 21% primarily due to the effect of U.S. and foreign tax costs directly related to the Divestiture.
The effective income tax rate of 36.4% and 39.5% for the three and nine months ended September 30, 2017 differed from the U.S. federal statutory rate of 35% primarily due to the effect of certain losses recorded in the UK for which no tax benefit is recorded.
The following table represents the assets and liabilities from discontinued operations:

September 30,
2018
 
December 31,
2017
Accounts receivable, net
$
30.4

 
$
26.3

Inventories, net
50.5

 
35.2

Unbilled contract revenue
0.7

 
0.5

Prepaid expenses
1.2

 
1.0

Other current assets
3.9

 
3.7

Current assets of discontinued operations
$
86.7

 
$
66.7

 
 
 
 
Property, plant, and equipment, net
$
13.0

 
$
12.6

Goodwill
9.1

 
9.1

Identifiable intangible assets, net
14.3

 
16.1

Other assets
0.3

 
0.4

Non-current assets of discontinued operations
$
36.7

 
$
38.2

 
 
 
 
Accounts payable
$
20.1

 
$
8.6

Customer advances and billings in excess of contract revenue
1.6

 
0.6

Accrued salaries, wages, and benefits
4.6

 
2.7

Current portion of warranty reserve
2.2

 
2.6

Other current liabilities
2.9

 
1.4

Current liabilities of discontinued operations
$
31.4

 
$
15.9

 
 
 
 
Long-term deferred tax liabilities
$
0.4

 
$
0.4

Other long-term liabilities
3.0

 
2.2

Non-current liabilities of discontinued operations
$
3.4

 
$
2.6