For the Years Ended December 31, 2013, 2012 and 2011
On December 31, 2012, the Company sold substantially all of the assets and liabilities of the Distribution segment's Canadian operations. As a result, the Company has reported the results of operations and consolidated financial position of this component as discontinued operations within the consolidated financial statements for all periods presented.
The following tables provide information regarding the results of discontinued operations:
|For the year ended December 31,|
|Net sales of discontinued operations||$ —||$ 20,117||$ 20,619|
|Income from discontinued operations||(20)||92||1,250|
|Other income (expense) from discontinued operations||—||(106)||(36)|
|Earnings from discontinued operations before income taxes||(20)||(14)||1,214|
|Provision for income taxes||1||(212)||—|
|Earnings from discontinued operations before gain on disposal||(19)||(226)||1,214|
|Gain on disposal of discontinued operations||—||2,645||—|
|Income tax benefit/(expense) on gain on disposal||420||(1,322)||—|
|Net gain on disposal||420||1,323||—|
|Earnings from discontinued operations||$ 401||$ 1,097||$ 1,214|
During the third quarter of 2013, the Company recorded a gain on disposal of discontinued operations due to a $0.4 million favorable tax result versus previous estimates and other activity related to the settlement of the closing balance sheet of the Distribution segment's former Canadian operations.
The Company's discontinued operations had tax net operating loss carryovers through 2011 for which the Company had recorded a full valuation allowance. The 2011 tax provision allocable to discontinued operations reflects the utilization of the net operating losses. The 2012 tax provision allocable to discontinued operations reflects the Canadian tax impact of a foreign exchange gain. The 2012 tax provision allocable to the net gain on disposal reflects the impact of nondeductible goodwill offset by a lower Canadian statutory tax rate and partial capital gain exemption, as well as a provision for U.S. income tax associated with the repatriation of the net sales proceeds.