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Discontinued Operations | 6 Months Ended
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Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations |
5. | DISCONTINUED OPERATIONS
On October 31, 2018, we completed the previously announced sale of our Specialty Papers Business Unit on a cash free and debt free basis to Pixelle Specialty Solutions LLC, an affiliate of Lindsay Goldberg (the “Purchaser”) for $360 million. Cash proceeds from the sale were approximately $323 million in cash reflecting estimated purchase price adjustments as of the closing date and the assumption by the Purchaser of approximately $38 million in retiree healthcare liabilities. In addition, the Purchaser assumed approximately $210 million of pension liabilities relating to Specialty Papers’ employees and will receive approximately $280 million of related assets from the Company’s existing pension plan. In connection with the sale of Specialty Papers, we entered into a Transition Services Agreement with Purchaser pursuant to which we agreed to provide various back-office and information technology support until the business is fully separated from us. The following table sets forth a summary of discontinued operations included in the condensed consolidated statements of income:
|  | Three months ended June 30 |  |  | Six months ended June 30 |
In thousands |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Net sales |  | $ | — |  |  | $ | 190,031 |  |  | $ | — |  |  | $ | 389,469 |
Energy and related sales, net |  |  | — |  |  |  | 944 |  |  |  | — |  |  |  | 2,373 |
Total revenues |  |  | — |  |  |  | 190,975 |  |  |  | — |  |  |  | 391,842 |
Costs of products sold |  |  | — |  |  |  | 202,671 |  |  |  | — |  |  |  | 391,192 |
Gross profit (loss) |  |  | — |  |  |  | (11,696 | ) |  |  | — |  |  |  | 650 |
Selling, general and administrative expenses |  |  | 485 |  |  |  | 5,376 |  |  |  | (229 | ) |  |  | 12,508 |
Gains on dispositions of plant, equipment and timberlands, net |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | (443 | )
Operating income (loss) |  |  | (485 | ) |  |  | (17,067 | ) |  |  | 229 |  |  |  | (11,415 | )
Non-operating income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | — |  |  |  | (1,991 | ) |  |  | — |  |  |  | (3,736 | )
Other, net |  |  | — |  |  |  | 541 |  |  |  | — |  |  |  | 1,093 |
Income (loss) before income taxes |  |  | (485 | ) |  |  | (18,517 | ) |  |  | 229 |  |  |  | (14,058 | )
Income tax (provision) benefit |  |  | 23 |  |  |  | (9,838 | ) |  |  | (8 | ) |  |  | (8,831 | )
Income (loss) from discontinued operations |  | $ | (462 | ) |  | $ | (8,679 | ) |  | $ | 221 |  |  | $ | (5,227 | )
The amounts presented above are derived from the segment reporting for Specialty Papers adjusted to include certain retirement benefit costs and to exclude corporate shared services costs which are required to remain in continuing operations. Interest expense was allocated to discontinued operations based on borrowings under the revolving credit facility required to be repaid with proceeds from the sale of Specialty Papers. The following table sets forth a summary of cash flows from discontinued operations which is included in the condensed consolidated statements of cash flows:
|  | Six months ended June 30 |
In thousands |  | 2019 |  |  | 2018 |
Net cash provided (used) by operating activities |  | $ | (10,658 | ) |  | $ | 23,911 |
Net cash used by investing activities |  |  | (1,572 | ) |  |  | (10,427 | )
Net cash provided by financing activities |  |  | — |  |  |  | 125 |
Change in cash and cash equivalents from discontinued operations |  | $ | (12,230 | ) |  | $ | 13,609 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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