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Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations

5.    Discontinued Operations

In 2015, we completed the sale of Waterloo for approximately $14 million in cash, subject to certain post-closing adjustments. We recorded a pre-tax loss of $16.7 million as the result of this sale. Transaction and other sale-related costs were approximately $2.8 million. The estimated tax benefit on the sale was $26.5 million with the after-tax gain of $7.0 million recorded within discontinued operations. The estimated tax benefit resulted primarily from a tax loss in excess of the financial reporting loss as a result of prior period nondeductible asset impairments. Waterloo is presented as a discontinued operation in our financial statements beginning January 1, 2013 and through the date of sale in accordance with ASC 205 requirements. Prior to classifying Waterloo as a discontinued operation, it was reported in the Security segment.

In addition, in August 2014, we entered into a stock purchase agreement to sell the Simonton business for $130 million in cash. The sale was completed in September 2014. Simonton is presented as a discontinued operation in the Company’s financial statements in accordance with ASC requirements. The 2014 income (loss) from discontinued operations, net of tax, included a loss on sale of the Simonton business of $111.2 million as well as $14.1 million of restructuring and impairment charges for Waterloo in order to remeasure this business at the estimated fair value less costs to sell. Simonton was previously reported in the Doors segment.

The following table summarizes the results of discontinued operations for the years ended December 31, 2015, 2014 and 2013. The year ended December 31, 2015 on a pre-tax basis consists of Waterloo only, however comparable periods in 2014 and 2013 include both Waterloo and Simonton.

 

       
(in millions)    2015      2014      2013  

Net sales

    $ 78.2       $ 369.4       $ 453.8   

(Loss) income from discontinued operations before income taxes

    $ (16.0 )     $ (90.8 )     $ 34.4   

Income tax (benefit) expense

      (25.0 )       23.5         12.5   

Income (loss) from discontinued operations, net of tax

    $ 9.0       $ (114.3 )     $ 21.9   

The following table summarizes the major classes of assets and liabilities of Waterloo, which is reflected as a discontinued operation on the consolidated balance sheet as of December 31, 2014:

 

   
(in millions)    2014    

Accounts receivable, net

    $ 40.1   

Inventories

      15.9   

Other current assets

      7.3   

Total current assets

      63.3   

Property, plant and equipment, net

      13.3   

Other non-current assets

      4.0   

Total assets

    $ 80.6   

Accounts payable

    $ 8.5   

Other current liabilities

      9.0   

Total current liabilities

      17.5   

Other non-current liabilities

      3.4   

Total liabilities

    $ 20.9