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Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

2.  Discontinued Operations

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 $282 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 December 31, 2016, our accounts receivable included approximately $2.7 million relating to the sale of our Climate Control Business representing an indemnity escrow balance.  Additionally, our current and noncurrent accrued and other liabilities include approximately $5.5 million relating primarily to estimated contingent liabilities, costs associated with the TSA and severance agreements associated with the sale of the Climate Control Business.

2.  Discontinued Operations (continued)

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

 

 

Summarized results of discontinued operations are as follows for:

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(In Thousands)

 

Net sales

$

138,609

 

 

$

274,086

 

 

$

265,358

 

Cost of sales

 

 

93,178

 

 

 

190,426

 

 

 

182,949

 

Selling, general and administrative expense

 

 

32,719

 

 

 

62,728

 

 

 

59,548

 

Transaction costs

 

 

2,535

 

 

 

—

 

 

 

—

 

Interest expense

 

 

—

 

 

 

10

 

 

 

—

 

Other expense (income), net

 

 

175

 

 

 

608

 

 

 

219

 

Income from operations of discontinued operations

 

 

10,002

 

 

 

20,314

 

 

 

22,642

 

Gain on sale of discontinued operations

 

 

281,990

 

 

 

—

 

 

 

—

 

Provision for income taxes

 

 

91,691

 

 

 

8,933

 

 

 

8,095

 

Income from discontinued operations, net of taxes

 

$

200,301

 

 

$

11,381

 

 

$

14,547

 

 

 

Summarized condensed cash flow information of discontinued operations is as follows:

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(In Thousands)

 

Deferred income taxes

$

88,356

 

 

$

8,917

 

 

$

7,463

 

Depreciation and amortization of property, plant

   and equipment

 

$

1,607

 

 

$

4,566

 

 

$

4,677

 

Stock-based compensation

 

$

955

 

 

$

634

 

 

$

1,140

 

Expenditures for property, plant and equipment

 

$

273

 

 

$

863

 

 

$

2,357

 

Software and software development costs

 

$

675

 

 

$

2,466

 

 

$

360