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Discontinued Operations | 9 Months Ended
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Sep. 30, 2016
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations | Note 2: Discontinued Operations As discussed in Note 1, during the second quarter of 2016, we determined that our previously reported Climate Control Business met the criteria to be classified as a discontinued operation as a result of entering into a definitive agreement for the sale of substantially all of the common stock of the Climate Control Group. On July 1, 2016, LSB completed the sale of the Climate Control Group to NIBE pursuant to the terms of the Stock Purchase Agreement which, among other things, Consolidated sold all of the stock of the Climate Control Group for an aggregate purchase price of approximately $364 million, before the adjustments as set forth in the Stock Purchase Agreement. As a result, we recognized a pre-tax gain on the sale of $281.6 million. Additionally, pursuant to the Stock Purchase Agreement, we paid approximately $2.6 million of the cost of a representation and warranty insurance policy and excess directors’ and officers’ insurance policy and agreed to have a certain portion of the purchase price proceeds deposited in both an indemnity escrow and a working capital adjustment escrow account (collectively, the “Escrow Accounts”). In conjunction with the Climate Control Business sale, we entered into a transition services agreement (“TSA”), pursuant to which, among other things, we agreed to provide certain information technology, payroll, legal, tax and other general services for up to 18 months at an approximate total cost of $2.3 million. At September 30, 2016, our accounts receivable includes approximately $10.1 million relating to the purchase price, of which a total of $4.7 million is being held in the escrow accounts. Additionally, our current and noncurrent accrued and other liabilities include approximately $7.2 million relating primarily to estimated contingent liabilities, costs associated with the TSA and severance agreements associated with the sale of the Climate Control Business. At December 31, 2015, the carrying amounts of the assets and liabilities of the Climate Control Group are as follows:
|  | December 31, |
|  | 2015 |
|  | (In Thousands) |
Cash and cash equivalents |  | $ | 119 |
Accounts receivable, net |  |  | 43,001 |
Inventories, net |  |  | 28,780 |
Other current assets |  |  | 1,096 |
Property, plant and equipment, net |  |  | 26,779 |
Intangible and other, net |  |  | 7,002 |
Total assets classified as held for sale |  |  | 106,777 |
Less noncurrent assets classified as held for sale |  |  | 33,781 |
Current assets classified as held for sale |  | $ | 72,996 |
Accounts payable |  |  | 20,003 |
Current and noncurrent accrued and other liabilities |  |  | 24,659 |
Total liabilities classified as held for sale |  |  | 44,662 |
Less noncurrent liabilities classified as held for sale |  |  | 12,136 |
Current liabilities classified as held for sale |  | $ | 32,526 |
Note 2: Discontinued Operations (continued) Summarized results of discontinued operations are as follows for:
|  | September 30, |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (In Thousands) |
Net sales |  | $ | — |  |  | $ | 75,050 |  |  | $ | 138,609 |  |  | $ | 207,090 |
Cost of sales |  |  | — |  |  |  | 52,072 |  |  |  | 93,178 |  |  |  | 144,069 |
Selling, general and administrative expense |  |  | — |  |  |  | 15,520 |  |  |  | 32,719 |  |  |  | 46,720 |
Transaction costs |  |  | — |  |  |  | — |  |  |  | 2,535 |  |  |  | — |
Interest expense |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | 7 |
Other expense (income), net |  |  | — |  |  |  | 168 |  |  |  | 117 |  |  |  | 417 |
Income from operations of discontinued operations |  |  | — |  |  |  | 7,285 |  |  |  | 10,060 |  |  |  | 15,877 |
Gain on sale of discontinued operation |  |  | 281,590 |  |  |  | — |  |  |  | 281,590 |  |  |  | — |
Provision for income taxes |  |  | 108,549 |  |  |  | 4,627 |  |  |  | 95,006 |  |  |  | 7,516 |
Income from discontinued operations, including taxes |  | $ | 173,041 |  |  | $ | 2,658 |  |  | $ | 196,644 |  |  | $ | 8,361 |
Summarized condensed cash flow information of discontinued operations is as follows:
|  | Nine Months Ended |
|  | September 30, |
|  | 2016 |  |  | 2015 |
|  | (In Thousands) |
Deferred income taxes |  | $ | 91,497 |  |  | $ | 7,427 |
Depreciation and amortization of property, plant and equipment |  | $ | 1,607 |  |  | $ | 3,468 |
Stock-based compensation |  | $ | 955 |  |  | $ | 443 |
Expenditures for property, plant and equipment |  | $ | 273 |  |  | $ | 728 |
Software and software development costs |  | $ | 675 |  |  | $ | 1,603 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760 + Details
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