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Discontinued Operations
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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| Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations | 12. DISCONTINUED OPERATIONS On March 10, 2011, the Company sold the stock of the United Steel Products business (USP) for cash proceeds of $59,029,000, inclusive of $1,029,000 related to a working capital adjustment received in June 2011. The divestiture of USP allowed the Company to allocate capital resources to businesses with strong market leadership positions and growth potential. The Company recognized a pre-tax gain of $14,022,000 from the transaction. On February 1, 2010, the Company sold the majority of the assets of the Processed Metal Products business. This transaction finalized the Company's exit from the steel processing business and established the Company solely as a manufacturer and distributor of products for building and industrial markets. The transactions to dispose of the remaining assets of this business were completed during the year ended December 31, 2011 which resulted in the recognition of additional gains and losses classified in discontinued operations. The results of operations for USP and the Processed Metal Products business have been classified as discontinued operations in the consolidated financial statements for all periods presented. The Company allocates interest to its discontinued operations in accordance with FASB ASC Subtopic 205-20, "Presentation of Financial Statements – Discontinued Operations". Components of the income (loss) from discontinued operations, including the interest allocated to discontinued operations, for the three months ended March 31 are as follows (in thousands):
For certain transactions, the Company has agreed to indemnify the buyer for various liabilities that may arise after the disposal date, subject to limits of time and amount. The Company is a party to certain claims made under these indemnification provisions. For the quarter ended March 31, 2012, management recorded a contingent liability for an environmental remediation related to a discontinued operation. Management does not believe that the outcome of this claim, or other claims, would significantly affect the Company's financial condition or results of operation. |