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Discontinued Operations
 12 Months Ended
Dec. 31, 2011
Discontinued Operations [Abstract]  
DISCONTINUED OPERATIONS

NOTE 13 — DISCONTINUED OPERATIONS

The following table presents the operating results of the Company’s discontinued operations for the three-year period ended December 31 ($ in millions):

 

                         
    Pauluhn (SSG Segment)   2011     2010     2009  

Net sales

   $   -       $   -       $ 17.3  

Costs and expenses

     -         -         (14.6 ) 
   

 

 

    

 

 

    

 

 

  

Income before income taxes

     -         -         2.7  

Income tax (expense)

     -         -         (0.9 ) 
   

 

 

    

 

 

    

 

 

  

Income from discontinued operations

   $ -       $ -       $ 1.8  
   

 

 

    

 

 

    

 

 

  

 

                         
    RAVO (ESG Segment)   2011     2010     2009  

Net sales

   $   -       $   -       $ 28.2  

Costs and expenses

     -         -         (27.4 ) 
   

 

 

    

 

 

    

 

 

  

Income before income taxes

     -         -         0.8  

Income tax expense

     -         -         -     
   

 

 

    

 

 

    

 

 

  

Income from discontinued operations

   $ -       $ -       $ 0.8  
   

 

 

    

 

 

    

 

 

  

 

                         
    E-ONE (Fire Rescue Segment)   2011     2010     2009  

Net sales

   $ -       $ -       $ -    

Costs and expenses

     -         -         -    
   

 

 

    

 

 

    

 

 

  

Loss before income taxes

     -         -         -    

Income tax expense

     -         -         (0.7 ) 
   

 

 

    

 

 

    

 

 

  

Loss from discontinued operations

   $ -       $ -       $ (0.7 ) 
   

 

 

    

 

 

    

 

 

  
       
    Financial Services   2011     2010     2009  

Net sales

   $ -       $ 0.1     $ 0.2  

Costs and expenses

     -         (0.1 )      (0.4 ) 

Other income

     -         -         -    
   

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

     -         -         (0.2 ) 

Income tax (expense) benefit

     -         -         0.1  
   

 

 

    

 

 

    

 

 

  

Income (loss) from discontinued operations

   $ -       $ -       $ (0.1 ) 
   

 

 

    

 

 

    

 

 

  
       
    Riverchase (SSG Segment)   2011     2010     2009  

Net sales

   $ -       $ -       $ 1.3  

Costs and expenses

     -         (1.3 )      (2.5 ) 
   

 

 

    

 

 

    

 

 

  

Loss before income taxes

     -         (1.3 )      (1.2 ) 

Income tax benefit

     -         -         0.4  
   

 

 

    

 

 

    

 

 

  

Loss from discontinued operations

   $ -       $ (1.3 )    $ (0.8 ) 
   

 

 

    

 

 

    

 

 

  
       
    China WOFE   2011     2010     2009  

Net sales

   $ 0.2     $ 1.5     $ 0.8  

Costs and expenses

     (0.5 )      (3.2 )      (1.7 ) 
   

 

 

    

 

 

    

 

 

  

Loss before income taxes

     (0.3 )      (1.7 )      (0.9 ) 

Income tax benefit

     -         -         -    
   

 

 

    

 

 

    

 

 

  

Loss from discontinued operations

   $ (0.3 )    $ (1.7 )    $ (0.9 ) 
   

 

 

    

 

 

    

 

 

  
       
    Refuse (ESG Segment)   2011     2010     2009  

Net sales

   $ -       $ -       $ -    

Other income

     -         -         -    
   

 

 

    

 

 

    

 

 

  

Income before income taxes

     -         -         -    

Income tax expense

     -         -         -    
   

 

 

    

 

 

    

 

 

  

Income from discontinued operations

   $ -       $ -       $ -    
   

 

 

    

 

 

    

 

 

  

In December 2010, the Company determined that its China WOFE business was no longer strategic. The results of the China WOFE operations previously were included within the Environmental Solutions and Safety and Security Systems Groups. The 2010 loss includes a write-down of $2.1 million to reflect the estimated fair value of the net assets and certain other costs associated with the dissolution of the business. The 2011 loss includes $0.5 million of costs associated with the wind down of the business.

On September 1, 2010, the Company sold its Riverchase business for $0.2 million, which had previously been reported as part of the Safety and Security Systems operating segment. The Company’s Riverchase business developed a suite of products that enables emergency response agencies to manage and communicate remotely with their fleets. The Company wrote down assets of the Riverchase business to net realizable value, resulting in a net loss of $2.1 million. The 2010 net loss included the write-off of $1.9 million of intangible assets.

On November 30, 2009, the Company sold 100% of the shares of Pauluhn, located in Pearland, Texas, for $35.0 million of which $3.2 million was received in 2010. The results of Pauluhn’s operations were previously included within the Safety and Security Systems Group. Pauluhn provided marine, offshore and industrial lighting products with innovative solutions for hazardous locations and corrosive environments. In association with the sale, the Company recognized a gain on disposal of discontinued operations of Pauluhn of $14.3 million at December 31, 2009, which included a gain of $1.8 million transferred from cumulative translation adjustments. The gain included costs associated with the sale of $1.1 million and the write-off of $18.3 million of goodwill of the Safety and Security Systems Group attributable to Pauluhn. Proceeds from the sale were used to pay down debt and fund core operations. For the years ended December 31, 2010 and 2009, the Company recorded a loss of $2.2 million and $0.7 million, respectively, related to an environmental remediation liability. In December 2010, the Company decided to sell the Pauluhn building after receiving a notice of termination of leasing agreement from the tenant. The net book value of the building was written down by $0.4 million to its estimated net realizable value.

On July 16, 2009, the Company sold 100% of the shares of its European sweeper business, Ravo Holdings B.V., (“Ravo”) located in the Netherlands for €8.5 million, or approximately $12.1 million. The Ravo businesses were classified as discontinued operations as of the second quarter of 2009. The results of Ravo’s operations were previously included within the Environmental Solutions Group. In association with this sale, the Company recognized a loss on disposal of discontinued operations of Ravo of $11.3 million at December 31, 2009. The loss includes a write-down of $4.9 million to reflect the fair value of the net assets sold, costs associated with the sale of $0.2 million, a gain of $0.3 million transferred from cumulative translation adjustments, and the write-off of $6.2 million of goodwill of the Environmental Solutions Group attributable to Ravo. Proceeds from the sale were used to pay down debt and fund core operations.

All of the Company’s E-ONE businesses were discontinued in 2008 leaving just the Company’s Bronto businesses within its Fire Rescue segment. For the years ended December 31, 2011 and 2010, the Company recorded a loss on discontinued operations associated with E-ONE of $0.2 million and $5.0 million, respectively, primarily related to a change in the estimate of workers compensation and product liability reserves.

The Company provided its domestic municipal customers with the opportunity to finance purchases through leasing arrangements with the Company. Following the sale of the E-ONE business, the Company elected to discontinue its financial services activities through divestiture of this leasing portfolio. In 2008, the Company sold its municipal leasing portfolio to Banc of America Public Capital Corp. In October, 2008, the Company discontinued entirely its practice of providing lease financing to its customers and all other financial service activities, principally its dealer floor planning.

In December 2005, the Company determined that its investment in the Refuse business operating under the Leach brand name was no longer strategic. The majority of the assets of the business have been sold since that time and the operation has been shut down. For the years ended December 31, 2011 and 2010, the Company recorded a gain of $0.4 million and $0.7 million, respectively, primarily related to a revision in the estimate of product liability reserves.

 

The following table shows an analysis of assets and liabilities of discontinued operations as of December 31:

 

                 
($ in millions)   2011     2010  

Current assets

   $ 0.6     $ -    

Properties and equipment

     0.5       0.7  

Long-term assets

     1.4       0.8  

Financial service assets, net

     1.0       1.6  
   

 

 

    

 

 

  

Total assets of discontinued operations

   $ 3.5     $ 3.1  
   

 

 

    

 

 

  

Current liabilities

   $ 4.0     $ 5.9  

Long-term liabilities

     7.4       10.8  

Financial service liabilities

     0.9       1.5  
   

 

 

    

 

 

  

Total liabilities of discontinued operations

   $ 12.3     $ 18.2  
   

 

 

    

 

 

  

Included in current liabilities at December 31, 2011 and 2010 is $2.2 million and $2.6 million, respectively, related to environment remediation at the Pearland, Texas facility, which was previously used by the Company’s discontinued Pauluhn business. Included in long-term liabilities at December 31, 2011 and 2010 is $5.1 million and $6.0 million, respectively, relating to estimated product liability obligations of the North American refuse truck body business.