XML 36 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Discontinued operations
 3 Months Ended
Mar. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued operations

Note 2—Discontinued operations:

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

 

     Three months ended  
     March 31, 2012  

Net sales

    $ 15,103   
  

 

 

  

Income from operations

    $ 1,326   
  

 

 

  

Income from discontinued operations:

   

Income before taxes

    $ 1,289   

Income tax expense

      (629 ) 
  

 

 

  

Income from discontinued operations, net of tax

      660   

Noncontrolling interest in income from discontinued operations, net of tax

      86   
  

 

 

  

Total discontinued operations, net of tax and noncontrolling interest

    $ 574   
  

 

 

  

In accordance with generally accepted accounting principles, the assets and liabilities relating to the Furniture Components business were eliminated from the 2012 Condensed Consolidated Balance Sheet at the date of sale. We have reclassified our March 31, 2012 Condensed Consolidated Statements of Operations to reflect the disposed operations as discontinued operations. We have not reclassified our March 31, 2012 Condensed Consolidated Statement of Cash Flows to reflect discontinued operations.

In conjunction with the sale of CompX’s Furniture Components business, the buyer was not interested in retaining certain undeveloped land located in Taiwan owned by CompX’s Taiwanese Furniture Component subsidiary. We had no additional use for the undeveloped land in Taiwan and therefore sold the land 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 such land was represented by a $3.0 million promissory note receivable at December 31, 2012, issued to CompX by its 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 the 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 of 2013 and the remaining $1.2 million received in April 2013. Such note receivable is classified as part of accounts receivable in our Condensed Consolidated Balance Sheets at December 31, 2012 and March 31, 2013, see Note 3.