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