Discontinued Operations

9 Months Ended

Sep. 30, 2017

Discontinued Operations And Disposal Groups [Abstract]

Note 2: Discontinued Operations

On July 1, 2016, LSB completed the sale of all the stock of Climate Control Group Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of the stock purchase agreement. Additionally, pursuant to the stock purchase agreement, we agreed to have a certain portion of the purchase price proceeds deposited in an indemnity escrow account. 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, which services have been completed. At September 30, 2017 and December 31, 2016, our accounts receivable includes approximately $2.7 million representing an indemnity escrow balance. Additionally, at September 30, 2017 and December 31, 2016, our current and noncurrent accrued and other liabilities include approximately $3.2 million and $5.5 million, respectively, relating primarily to estimated contingent liabilities, costs associated with the TSA and severance agreements associated with the sale of the Climate Control Business.

Summarized results of discontinued operations are as follows for:

	September 30,		September 30,
	Three Months Ended		Nine Months Ended
	2016		2016
	(In Thousands)
Net sales	$	—	$	138,609
Cost of sales		—		93,178
Selling, general and administrative expense		—		32,719
Transaction costs		—		2,535
Other expense (income), net		—		117
Income from operations of discontinued operations		—		10,060
Gain on sale of discontinued operation		281,590		281,590
Provision for income taxes		108,549		95,006
Income from discontinued operations, net of taxes	$	173,041	$	196,644

Summarized condensed cash flow information of discontinued operations is as follows for the nine months ended September 30, 2016 (in thousands):

Deferred income taxes	$	91,497
Depreciation and amortization of property, plant and equipment	$	1,607
Stock-based compensation	$	955
Expenditures for property, plant and equipment	$	273
Software and software development costs	$	675