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Note 3 - Discontinued Operations
 9 Months Ended
Sep. 30, 2018
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,
$0.8
 million was placed in escrow until it was released in
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 financial results of the Atchison facility are presented as discontinued operations in the Condensed Consolidated Statements of Operations. Cash flows from the Company’s discontinued operations are presented separately in the Condensed 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 following table presents the operating results for the Company’s discontinued operations prior to the sale (in thousands):
 
   
Three Months Ended
September 30, 2017
   
Nine Months Ended
September 30, 2017
 
                 
Net sales
   $
-
     $
9
  
Cost of sales
    
457
      
1,469
  
Gross loss
    
(457
 )    
(1,460
 )
Selling, general and administrative expense
    
(1
 )    
(1
 )
Operating loss
    
(456
 )    
(1,459
 )
Interest expense
    
-
      
-
  
Loss before income taxes
    
(456
 )    
(1,459
 )
Income tax expense (benefit)
    
26
      
(4
 )
Net loss
   $
(482
 )   $
(1,455
 )