Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 2 – Discontinued Operations

In connection with continued weakness in the luxury sportfishing convertible and motoryacht boat market segments, the Company recorded $14.5 million of restructuring charges in 2012 associated with its Hatteras and Cabo boat brands primarily related to the determination that the carrying value of their long-lived assets was not expected to be recovered through future cash flows. On December 31, 2012, the Board of Directors authorized the Company to exit its Hatteras and Cabo boat businesses. As a result, these businesses, which were previously reported in the Company's Boat segment, are being reported as discontinued operations and are reported in separate lines in the Consolidated Statements of Operations for all periods presented. The assets and liabilities of these businesses to be sold meet the accounting criteria to be classified as held for sale and have been aggregated and reported on separate lines of the Consolidated Balance Sheets for all periods presented.

Based on the performance of the Hatteras and Cabo boat businesses, the Company has concluded that proceeds from the sale will be less than its book value. These conditions resulted in a non-cash asset impairment charge of $52.7 million, $53.2 million after-tax, in the fourth quarter of 2012.

The following table discloses the results of operations of the Hatteras and Cabo businesses reported as discontinued operations for years ended December 31, 2012, 2011 and 2010, respectively:
(in millions)
2012
 
2011
 
2010
Net sales
$
56.2

 
$
78.0

 
$
65.4

 
 
 
 
 
 
Loss from discontinued operations before income taxes
(96.7
)
 
(21.4
)
 
(46.6
)
Income tax provision (benefit)
0.7

 
(2.7
)
 
—

Net loss from discontinued operations (A)
$
(97.4
)
 
$
(18.7
)
 
$
(46.6
)

(A) Net loss from discontinued operations includes an asset impairment charge of $52.7 million, $53.2 million after-tax, in 2012 and other restructuring and impairment charges, net of tax of $14.5 million, $1.4 million and $8.1 million in 2012, 2011 and 2010, respectively.

The following table reflects the summary of assets and liabilities held for sale as of December 31, 2012 and December 31, 2011 for the Hatteras and Cabo businesses reported as discontinued operations:
(in millions)
December 31,
2012
 
December 31,
2011
Accounts and notes receivable, net
$
—

 
$
16.6

Net inventory
—

 
31.1

Prepaid expenses and other
—

 
0.4

Current assets held for sale
—

 
48.1

 
 
 
 
Net property
—

 
19.7

Other intangibles, net
—

 
5.6

Long-term assets held for sale
—

 
25.3

Assets held for sale (A)
$
—

 
$
73.4

 
 
 
 
Accounts payable
$
3.8

 
$
5.4

Accrued expenses
14.6

 
16.4

Current liabilities held for sale
18.4

 
21.8

 
 
 
 
Other liabilities
2.9

 
2.4

Long-term liabilities held for sale
2.9

 
2.4

Liabilities held for sale
$
21.3

 
$
24.2


(A) Assets held for sale at December 31, 2012, are shown net of reserves of $52.7 million.