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Discontinued Operations and Related Assets Held for Sale
 3 Months Ended
Mar. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Discontinued Operations and Related Assets Held for Sale
On February 26, 2016, the Company announced that it had initiated a strategic review of its Engineered Solutions business segment to better direct its resources and simplify its operations. Any potential sale of assets was prohibited by the Revolving Facility without approval of the requisite lenders thereunder. On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility (see Note 6 "Debt and Liquidity") which, among other things, permits the sale of assets with the restriction that the proceeds be utilized to pay down revolver borrowings. As of June 30, 2016, the Engineered Solutions segment qualified for reporting as discontinued operations as its divestiture represents a strategic shift for the Company.
During the second quarter of 2016, we evaluated the fair value of the Engineered Solutions business segment utilizing the market approach (Level 3 measure). As a result, we incurred an impairment charge to our Engineered Solutions business segment of $105.6 million to align the carrying value with estimated fair value. The analysis was updated as of December 31, 2016, resulting in an additional impairment charge of $14.3 million. During the first quarter of 2017, we further reduced the estimated fair value by $2.5 million based upon current information. The current estimate reflects Management’s view of the manner in which the Engineered Solutions business will be divested, including  assumptions as to if and how it will be split, given the lines of business and asset groups that constitute the Engineered Solutions segment. Amongst other things, the split into groups influences the computation of the impairment charge. These assumptions and estimates are subject to change until divestiture is completed and may be adjusted in the quarter that the information becomes available.
On November 30, 2016, we completed the sale of our Fiber Materials Inc. business, which was a business line within our former Engineered Solutions business. The sale resulted in cash proceeds of $15.9 million and a loss of $0.2 million. We have the ability to realize up to $8.5 million of additional proceeds based on the earnings of the Fiber Materials business over the 24 months following the transaction. We have elected to record this contingent consideration as it is realized and as such it is not recognized thus far on the transaction.
The following tables summarize the results of the Engineered Solutions business segment, reclassified as discontinued operations for the three months ended March 31, 2016 and 2017.
 
For the Three Months Ended March 31, 2016
 
For the Three Months Ended March 31, 2017
 
 
Net sales
$
29,089

 
$
31,765

Cost of sales
25,985

 
28,412

    Gross profit
3,104

 
3,353

Research and development
878

 
570

Selling and administrative expenses
4,455

 
3,693

Impairment
—

 
2,500

    Operating loss
(2,229
)
 
(3,410
)
Other expense
9

 
32

Interest expense
719

 
607

Loss from discontinued operations
    before income taxes
(2,957
)
 
(4,049
)
Provision for (benefit from) income
    taxes on discontinued operations
392

 
(17
)
Loss from discontinued operations
$
(2,565
)
 
$
(4,066
)
 
 
 
 
 
 
The significant components of our Statements of Cash Flows for the Engineered Solutions business segment held for sale are as follows:
 
For the Three Months Ended March 31, 2016
 
For the Three Months Ended March 31, 2017
 
 
 
 
Depreciation and amortization
$
1,947

 
$
1,768

Impairment
—

 
2,500

Deferred income taxes
(393
)
 
17

Capital expenditures
715

 
228

The following table summarizes the carrying value of the assets and liabilities of discontinued operations as of December 31, 2016 and March 31, 2017.
 
As of
December 31, 2016
 
As of
March 31, 2017
 
(dollars in thousands)
Assets of discontinued operations:
 
 
 
  Accounts receivable
$
17,094

 
$
18,899

  Inventories
71,816

 
66,209

  Prepaid expenses and other current assets
320

 
548

  Net property plant and equipment
79,048

 
78,699

  Other assets
12,608

 
11,864

     Total assets of discontinued operations prior to impairment
180,886

 
176,219

 
 
 
 
  Impairment
(119,907
)
 
(122,407
)
 
 
 
 
         Total assets of discontinued operations
$
60,979

 
$
53,812

 
 
 
 
Liabilities of discontinued operations:
 
 
 
  Accounts payable
$
7,253

 
$
7,316

  Accrued income and other taxes
2,326

 
1,834

  Other accrued liabilities
10,463

 
8,166

     Total current liabilities of discontinued operations
20,042

 
17,316

 
 
 
 
  Other long-term obligations
850

 
1,040

 
 
 
 
          Total liabilities of discontinued operations
$
20,892

 
$
18,356