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Note 3 - Discontinued Operations
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3
.
DISCONTINUED OPERATIONS
:
 
On
December
 
26,
2017,
the Company completed the sale of substantially all of the assets associated with the Company’s manufacturing facility in Atchison, Kansas (the “Atchison facility”), including all of the real and tangible personal property located at the site of that manufacturing facility. Total consideration of
$37.2
 million in cash was paid by the buyer, resulting in a nominal gain recognized on the sale. Of the proceeds received,
$0.75
 million was placed in escrow until February
2018
and approximately
$3.7
 million was placed in escrow for
twelve
months to secure the Company’s indemnification obligations under the agreement.
 
In accordance with applicable accounting guidance, the
related assets of the Company’s Atchison facility are classified as current Assets held for sale in the Consolidated Balance Sheets for periods presented prior to the sale, and the financial results of the Atchison facility are presented as discontinued operations in the Consolidated Statements of Operations for all periods. Cash flows from the Company’s discontinued operations are presented separately in the Consolidated Statements of Cash Flows. 
As the Atchison facility was the remaining Tubular Products
 business, the Company now operates in only
one
business segment, Water Transmission.
 
The table
below presents the components of the balance sheet accounts associated with the Atchison facility which were reported as current Assets held for sale on the Consolidated Balance Sheets (in thousands).
 
   
December 31,
  
   
201
7
    
201
6
  
Asset
s
  
 
 
 
  
 
 
 
Inventorie
s
   $
-
     $
392
  
Property and equipment, ne
t
    
-
      
36,430
  
Total assets
   $
-
     $
36,822
  
 
The table below presents the operating results for the Company
’s discontinued operations (in thousands).
 
   
Year Ended December 31,
  
   
201
7
    
201
6
    
201
5
  
                         
Net sales
   $
12
     $
6,869
     $
63,448
  
Cost of sales
    
1,792
      
9,777
      
76,679
  
Gross loss
    
(1,780
 )    
(2,908
 )    
(13,231
 )
Selling, general and administrative expense
    
(1
 )    
257
      
1,925
  
Gain on sale of facility
    
(6
 )    
-
      
-
  
Operating loss
    
(1,773
 )    
(3,165
 )    
(15,156
 )
Other income (expense)
    
-
      
(1
 )    
30
  
Interest income
    
-
      
-
      
172
  
Interest expense
    
-
      
(14
 )    
(50
 )
Loss before income taxes
    
(1,773
 )    
(3,180
 )    
(15,004
 )
Income tax benefit
    
(2
 )    
(658
 )    
(3,428
 )
Net loss
   $
(1,771
 )   $
(2,522
 )   $
(11,576
 )
 
In
April
 
2015,
the Company initiated a production curtailment at the Atchison facility. Severance related restructuring expenses associated with the production curtailment during the year ended
December 
31,
2015
were
$0.6
 million, of which
$0.5
 million was included in cost of sales and
$0.1
 million was included in selling, general and administrative expense in the table of operating results for discontinued operations above.