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Discontinued Operations | 9 Months Ended
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Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Note 2. Discontinued Operations On August 17, 2017, we completed the sale of our PBC business to Tsubaki Nakashima, Co, Ltd. for a base purchase price of $375.0 million in cash, subject to certain adjustments. We expect to finalize purchase price adjustments in accordance with the purchase agreement. The PBC business included all our facilities that were engaged in the production of precision steel balls, steel rollers, and metal retainers and automotive specialty products used primarily in the bearing industry. The sale of the PBC business furthers management’s long-term strategy to build a diversified industrial business with a comprehensive geographic footprint in attractive high-growth market segments. The PBC business represented all of the PBC reportable segment disclosed in our historical financial statements. Under the terms of a transition services agreement, we will provide certain support services for twelve months from the closing date of the sale. We received cash proceeds of $387.6 million and recorded an estimated after-tax gain on sale of $129.4 million, which is included in the “Income from discontinued operations, net of tax” line on the Condensed Consolidated Statements of Operations and Comprehensive Income for the three-month and nine-month periods ended September 30, 2017. The net amount of cash proceeds and gain are subject to change due to the finalization of working capital adjustments. The gain includes the effects of $9.3 million in cumulative foreign currency translation gain and non-controlling interest attributable to the PBC business as of August 17, 2017. In accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations, the operating results of PBC are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and gain on the disposition of the business, net of tax, as one line item on the Condensed Consolidated Statements of Operations and Comprehensive Income. All Condensed Consolidated Statements of Operations and Comprehensive Income presented have been revised to reflect this presentation. Accordingly, results of the PBC business have been excluded from continuing operations and segment results for all periods presented in the condensed consolidated financial statements and the accompanying notes unless otherwise stated. The following table summarizes the major line items included in the results of operations of the discontinued operations.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Net sales |  | $ | 31,600 |  |  | $ | 58,247 |  |  | $ | 168,287 |  |  | $ | 188,149 |
Cost of products sold (exclusive of depreciation and amortization shown separately below) |  |  | 26,070 |  |  |  | 45,353 |  |  |  | 130,554 |  |  |  | 145,426 |
Selling, general and administrative expense |  |  | 2,466 |  |  |  | 4,146 |  |  |  | 11,589 |  |  |  | 13,211 |
Depreciation and amortization |  |  | 1,611 |  |  |  | 2,956 |  |  |  | 7,723 |  |  |  | 8,766 |
Restructuring and integration expense |  |  | — |  |  |  | 50 |  |  |  | 427 |  |  |  | 2,390 |
Income from operations |  |  | 1,453 |  |  |  | 5,742 |  |  |  | 17,994 |  |  |  | 18,356 |
Gain on disposal of discontinued operations |  |  | 215,280 |  |  |  | — |  |  |  | 215,280 |  |  |  | — |
Other income (expense) |  |  | (59 | ) |  |  | (98 | ) |  |  | (265 | ) |  |  | (325 | )
Income (loss) from discontinued operations before provision (benefit) for income taxes |  |  | 216,674 |  |  |  | 5,644 |  |  |  | 233,009 |  |  |  | 18,031 |
Provision for income taxes |  |  | (80,849 | ) |  |  | (1,981 | ) |  |  | (86,430 | ) |  |  | (5,467 | )
Income (loss) from discontinued operations, net of tax |  |  | 135,825 |  |  |  | 3,663 |  |  |  | 146,579 |  |  |  | 12,564 |
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented.
|  | September 30, |  |  | December 31, |
|  | 2017 |  |  | 2016 |
Cash |  | $ | — |  |  | $ | 8,134 |
Accounts receivable, net |  |  | — |  |  |  | 46,114 |
Inventories |  |  | — |  |  |  | 47,714 |
Other current assets |  |  | — |  |  |  | 4,755 |
Total current assets of discontinued operations |  |  | — |  |  |  | 106,717 |
Property, plant and equipment, net |  |  | — |  |  |  | 92,373 |
Goodwill, net |  |  | — |  |  |  | 8,909 |
Intangible assets, net |  |  | — |  |  |  | 1,718 |
Other non-current assets |  |  | — |  |  |  | 290 |
Total non-current assets of discontinued operations |  |  | — |  |  |  | 103,290 |
Total assets of discontinued operations |  | $ | — |  |  | $ | 210,007 |
Accounts payable |  | $ | — |  |  | $ | 31,014 |
Accrued salaries, wages and benefits |  |  | — |  |  |  | 9,234 |
Income taxes payable |  |  | — |  |  |  | 2,997 |
Other current liabilities |  |  | — |  |  |  | 2,176 |
Total current liabilities of discontinued operations |  |  | — |  |  |  | 45,421 |
Deferred tax liabilities |  |  | — |  |  |  | 3,522 |
Accrued post-employment benefits |  |  | — |  |  |  | 4,707 |
Other non-current liabilities |  |  | — |  |  |  | 3,731 |
Total non-current liabilities of discontinued operations |  |  | — |  |  |  | 11,960 |
Total liabilities of discontinued operations |  | $ | — |  |  | $ | 57,381 |
The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations for each period presented.
|  | Nine Months Ended |
|  | September 30, |
|  | 2017 |  |  | 2016 |
Depreciation and amortization |  | $ | 7,723 |  |  | $ | 8,766 |
Acquisition of property, plant and equipment |  | $ | 10,024 |  |  | $ | 14,015 |

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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