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Discontinued operations
 6 Months Ended
Jun. 30, 2013
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued operations

Note 2 – Discontinued operations:

On December 28, 2012, we completed the sale of our Furniture Components segment to a competitor of that segment. Selected financial data for the operations of the disposed Furniture Components segment is presented below:

 

     Three months ended
June 30, 2012		     Six months ended
June 30, 2012		  
     (In thousands)  

Net sales

    $ 15,452      $ 30,554   
  

 

 

    

 

 

  

Operating income

    $ 1,771      $ 3,097   

Other income, net

      5        9   

Interest expense

      (29 )      (70 ) 
  

 

 

    

 

 

  

Income before income taxes

      1,747        3,036   

Income tax expense

      (858 )      (1,487 ) 
  

 

 

    

 

 

  

Net income

    $ 889      $ 1,549   
  

 

 

    

 

 

  

In accordance with generally accepted accounting principles, the assets and liabilities relating to the Furniture Components segment were eliminated from the 2012 Consolidated Balance Sheet at the date of sale. We have reclassified our Consolidated Statements of Income for the interim periods ended June 30, 2012 to reflect the disposed operations as discontinued operations. We have not reclassified our June 30, 2012 Consolidated Statements of Cash Flows to reflect discontinued operations.

In conjunction with the sale of our Furniture Components segment, the buyer was not interested in retaining certain undeveloped land located in Taiwan owned by our Taiwanese Furniture Component subsidiary. We had no additional use for the undeveloped land in Taiwan and therefore expected the land to be sold to a third party with CompX receiving the net proceeds. Based on the legal form of how we completed the disposal transaction, our interest in the land was represented by a $3.0 million promissory note receivable at December 31, 2012, issued to us by our former Taiwanese subsidiary which retained legal ownership in the land to facilitate the future sale of the land to a third party. The proceeds from a future sale of the land were required to be used to settle the note receivable. During the first quarter of 2013, an agreement was entered into with a third party to sell the land for $3.0 million, $1.8 million of which was received during the first quarter and the remaining $1.2 million was received in the second quarter 2013. Such note receivable was classified as part of prepaids and other current assets in our Consolidated Balance Sheet at December 31, 2012.