XML 31 R9.htm IDEA: XBRL DOCUMENT v2.4.1.9
Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

Note 2 – Discontinued operations:

In December 2012, we completed the sale of our Furniture Components segment for proceeds (net of expenses) of approximately $58.0 million in cash.  We recognized a pre-tax gain of approximately $29.6 million on the disposal of these operations ($27.6 million, net of income taxes of approximately $1.9 million).  Such pre-tax gain includes income of $12.7 million associated with the reclassification out of accumulated other comprehensive income related to foreign currency translation.  The income tax associated with the pre-tax gain on disposal is significantly less than the U.S. statutory income tax rate of 35% principally due to the utilization of foreign tax credits, the benefit of which had previously not been recognized in part because such benefit did not meet the “more-likely-than-not” recognition criteria and in part because we have not previously elected to claim a credit with respect to foreign income taxes paid because our tax elections are consistent with the elections of Contran and Contran had not previously elected to claim a credit.  

Selected financial data for the operations of the disposed Furniture Components segment for the year ended December 31, 2012 is presented below (in thousands):

 

 

  

 

 

Net sales

  

 

  

 

$

60,722

  

 

Operating income

  

 

  

 

$

7,364

  

Other income, net

  

 

  

 

 

25

  

Interest expense

  

 

 

 

 

(105

) 

Income before income taxes

  

 

  

 

 

7,284

  

 

Income tax expense

  

 

 

 

 

(3,484

) 

 

Net income

  

 

  

 

$

 3,800

  

We have reclassified our 2012 Consolidated Statement of Income to reflect the disposed operations as discontinued operations.  We have not reclassified our December 31, 2012 Consolidated Statement 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.  In 2013 an agreement was entered into with a third party to sell the land for $3.0 million, all of which was received during 2013.