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Discontinued Operations, Assets Held for Sale and Divestitures
 12 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations, Assets Held for Sale and Divestitures
Restructuring and Discontinued Operations
In 2014, Mueller Co. changed its approach to the production of certain sizes of iron gate valves. This change resulted in an impairment of the related production equipment of $1.5 million, which is reported as restructuring expense. This charge was based on our internal projections of future cash flows associated with the production equipment.
In 2014, Anvil sold the production equipment and certain inventory at its Bloomington, Minnesota location for an immaterial gain. Anvil also signed a supply agreement with the buyer and terminated the employment of all employees at that location, which resulted in the withdrawal from the only multi-employer pension plan in which the Company had participated. At September 30, 2014, we maintained an accrual for our withdrawal liability of $0.9 million. Also in 2014, Anvil sold certain assets at this location for a gain of $2.5 million, which is included in selling, general and administrative expenses.
On April 1, 2012, we sold our former U.S. Pipe segment and received proceeds of $94.0 million in cash, subject to adjustments, and the agreement by the purchaser to reimburse us for expenditures to settle certain previously-existing liabilities estimated at $10.1 million at March 31, 2012. During 2013, we received $4.5 million in cash for certain purchase price adjustments and reduced our loss on sale of discontinued operations accordingly.
The table below represents a summary of the operating results for the U.S. Pipe discontinued operations. These operating results do not reflect what they would have been had U.S. Pipe not been classified as discontinued operations.
 
2013
 
2012
 
(in millions)
Net sales
$
—

 
$
197.0

Cost of sales
—

 
197.9

Gross loss
—

 
(0.9
)
Operating expenses (income)
(0.5
)
 
4.2

Operating income (loss)
0.5

 
(5.1
)
Interest expense
—

 
0.3

(Income) loss on sale of discontinued operations
(4.9
)
 
119.7

Income tax benefit
—

 
(21.9
)
Income (loss) from discontinued operations, net of tax
$
5.4

 
$
(103.2
)

We have retained certain assets, liabilities and activities previously associated with our former U.S. Pipe segment, including ownership of certain real property and retention of pension and workers compensation obligations. Cash flows associated with some of these items are anticipated to continue indefinitely, but they are not clearly and closely related to the future operations of U.S. Pipe under its new owners.