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Divestiture-Related Activities | 12 Months Ended
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Dec. 31, 2011
Divestiture-Related Activities [Abstract] |
Divestiture-Related Activities | Note 18 — Divestiture-related activities As dispositions occur in the normal course of business, gains or losses on the sale of such businesses are recognized in the income statement line item Net gain on sales of businesses and assets. Net gain on sales of businesses and assets consists of the following for the years ended December 31:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (Dollars in thousands) |
Net gain on sales of businesses and assets |  | $ | 582 |  |  | $ | (341 | ) |  | $ | 0 |
During the fourth quarter of 2011, the Company sold a building that had been classified as held for sale. The company recognized net proceeds of $3.6 million and a loss on the sale of approximately $0.6 million. During 2010, the Company recognized the following:
| • |  | $0.2 million gain on the sale of its interest in an affiliate in India.
| • |  | $0.4 million gain on the disposal of an asset held for sale.
| • |  | $0.3 million loss on the sale of its interest in an affiliate in Japan.
Assets Held for Sale The table below provides information regarding assets held for sale at December 31, 2011 and 2010. At December 31, 2011, these assets consisted of four buildings which the Company is actively marketing.
|  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Assets held for sale: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | 7,902 |  |  | $ | 7,959 |
Total assets held for sale |  | $ | 7,902 |  |  | $ | 7,959 |
Discontinued Operations During 2011, the Company recognized additional litigation reserves of $17.1 million associated with retained liabilities related to businesses that have been divested. Of the $17.1 million recorded, $7.5 million was associated with recall costs related to defective products, which was a subject of pending litigation related to the Company's former Commercial Segment. During the third quarter of 2011, the Company settled the litigation as it related to the recall costs and, as part of the settlement, paid $7.6 million in September 2011. On December 2, 2011, the Company completed the sale of its business units that design, engineer and manufacture on-board baggage and cargo handling systems for widebody, narrowbody and regional aircraft and air cargo containers and pallets to a subsidiary of AAR CORP for $280.0 million in cash and realized a gain of $126.8 million, net of tax. These business units represented the sole remaining businesses in the Company's former Aerospace Segment. On March 22, 2011, the Company completed the sale of its marine business to an affiliate of H.I.G. Capital, LLC for $123.1 million (consisting of $100.9 million in cash, net of $1.5 million of cash included in the marine business as part of the net assets sold, plus a subordinated promissory note in the amount of $4.5 million and the assumption by the buyer of approximately $15.5 million in liabilities related to the marine business). The Company realized a gain of $57.3 million, net of tax benefits, from the sale of the business. As a result of the disposition, the Company realized accumulated losses from pension and postretirement obligations of approximately $8.4 million and cumulative translation gains of approximately $33.4 million as part of the gain on sale, resulting in a net change of approximately $25.0 million in accumulated other comprehensive income. The marine business consisted of the Company's businesses that were engaged in the design, manufacture and distribution of steering and throttle controls and engine and drive assemblies for the recreational marine market, heaters for commercial vehicles and burner units for military field feeding appliances. The marine business represented the sole remaining business in the Company's former Commercial Segment. On December 31, 2010, the Company completed the sale of the actuation business of its subsidiary Telair International Incorporated to TransDigm Group, Incorporated for approximately $94 million and realized a gain of $51.0 million, net of tax, from the sale of the business. On June 25 2010, the Company completed the sale of its rigging products and services business ("Heavy Lift"), a reporting unit within its Commercial Segment, to Houston Wire & Cable Company for $50 million and realized a gain of $17.0 million, net of tax, from the sale of the business. On March 2, 2010, the Company completed the sale of its SSI Surgical Services Inc. business to a privately-owned multi-service line healthcare company for approximately $25 million and realized a gain of $2.2 million, net of tax. During the third quarter of 2009, the Company completed the sale of its Power Systems operations to Fuel Systems Solutions, Inc. for $14.5 million and realized a loss of $3.3 million, net of tax. On March 20, 2009, the Company completed the sale of its 51 percent share of Airfoil Technologies International – Singapore Pte. Ltd. ("ATI Singapore") to GE Pacific Private Limited for $300 million in cash. ATI Singapore, which provides engine repair products and services for critical components of flight turbines, was part of a joint venture between General Electric Company ("GE") and the Company. In December 2009, the Company completed the transfer of its ownership interest in the remaining ATI business to GE. The results of the Company's discontinued operations for the years 2011, 2010 and 2009 were as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (Dollars in thousands) |
Net revenues |  | $ | 241,589 |  |  | $ | 429,944 |  |  | $ | 566,266 |
Costs and other expenses |  |  | 223,139 |  |  |  | 378,919 |  |  |  | 524,925 |
Goodwill impairment(1) |  |  | — |  |  |  | — |  |  |  | 25,145 |
Gain on disposition |  |  | 270,630 |  |  |  | 114,702 |  |  |  | 272,307 |
Income from discontinued operations before income taxes |  |  | 289,080 |  |  |  | 165,727 |  |  |  | 288,503 |
Taxes on income from discontinued operations |  |  | 85,816 |  |  |  | 52,962 |  |  |  | 101,081 |
Income from discontinued operations |  |  | 203,264 |  |  |  | 112,765 |  |  |  | 187,422 |
Less: Income from discontinued operations attributable to noncontrolling interest |  |  | 617 |  |  |  | 500 |  |  |  | 10,385 |
Income from discontinued operations attributable to common shareholders |  | $ | 202,647 |  |  | $ | 112,265 |  |  | $ | 177,037 |
(1) | During 2009, the Company recognized a non-cash, non-tax deductible goodwill impairment charge of $25.1 million to adjust the carrying value of Power Systems operations to its estimated fair value.
Net assets and liabilities of discontinued operations sold in 2011 are as follows:
|  | (Dollars in thousands) |
Net assets |  | $ | 231,844 |
Net liabilities |  |  | (82,679 | )
|  | $ | 149,165 |

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6390789&loc=d3e2443-110228 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 + Details
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