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Discontinued Operations | 12 Months Ended
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Dec. 31, 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. After working capital and other closing adjustments, the final cash purchase price was approximately $388.5 million. We received cash proceeds at closing of $387.6 million and recorded a $0.8 million receivable at December 31, 2017, for the balance. 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 are providing certain support services for twelve months from the closing date of the sale. We recorded an after-tax gain on sale of $127.7 million, which is included in the “Income from discontinued operations, net of tax” line on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2017. The gain includes the effects of reclassifying $9.3 million in cumulative foreign currency translation gain from accumulated comprehensive income and eliminating the 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 Consolidated Statements of Operations and Comprehensive Income (Loss). The Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods 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 consolidated financial statements and the accompanying notes unless otherwise stated. The Consolidated Statement of Cash Flows include cash flows of the PBC Business in each line item unless otherwise stated. The following table summarizes the major line items included in the results of operations of the discontinued operations.
|  | Year Ended December 31, |
|  | 2017(1) |  |  | 2016 |  |  | 2015 |
Net sales |  | $ | 168,287 |  |  | $ | 248,534 |  |  | $ | 261,837 |
Cost of products sold (exclusive of depreciation and amortization shown separately below) |  |  | 130,555 |  |  |  | 192,994 |  |  |  | 205,361 |
Selling, general and administrative expense |  |  | 11,818 |  |  |  | 16,992 |  |  |  | 17,468 |
Depreciation and amortization |  |  | 7,722 |  |  |  | 11,852 |  |  |  | 11,496 |
(Gain) loss on disposal of assets |  |  | — |  |  |  | 27 |  |  |  | — |
Restructuring and integration expense |  |  | 429 |  |  |  | 4,366 |  |  |  | 2,019 |
Income from operations |  |  | 17,763 |  |  |  | 22,303 |  |  |  | 25,493 |
Interest income (expense) |  |  | (181 | ) |  |  | (284 | ) |  |  | (317 | )
Interest and other income (expense) |  |  | (84 | ) |  |  | 503 |  |  |  | (654 | )
Income from discontinued operations before gain on disposal and provision for income taxes |  |  | 17,498 |  |  |  | 22,522 |  |  |  | 24,522 |
Provision for income taxes on discontinued operations |  |  | (7,461 | ) |  |  | (6,369 | ) |  |  | (6,633 | )
Income from discontinued operations before gain on disposal |  |  | 10,037 |  |  |  | 16,153 |  |  |  | 17,889 |
Gain on disposal of discontinued operations |  |  | 213,503 |  |  |  | — |  |  |  | — |
Provision for income taxes on gain on disposal |  |  | (85,852 | ) |  |  | — |  |  |  | — |
Income from discontinued operations, net of tax |  | $ | 137,688 |  |  | $ | 16,153 |  |  | $ | 17,889 |
(1) | Includes the results of operations of the PBC Business from January 1 to August 17, 2017.
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented.
|  | As of 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 |  |  | — |  |  |  | 8,909 |
Intangible assets, net |  |  | — |  |  |  | 1,718 |
Other non-current assets |  |  | — |  |  |  | 940 |
Total non-current assets of discontinued operations |  |  | — |  |  |  | 103,940 |
Total assets of discontinued operations |  | $ | — |  |  | $ | 210,657 |
Accounts payable |  | $ | — |  |  | $ | 31,014 |
Accrued salaries, wages and benefits |  |  | — |  |  |  | 9,234 |
Income taxes payable |  |  | — |  |  |  | 2,825 |
Other current liabilities |  |  | — |  |  |  | 2,176 |
Total current liabilities of discontinued operations |  |  | — |  |  |  | 45,249 |
Deferred tax liabilities |  |  | — |  |  |  | 4,173 |
Accrued post-employment benefits |  |  | — |  |  |  | 4,707 |
Other non-current liabilities |  |  | — |  |  |  | 3,731 |
Total non-current liabilities of discontinued operations |  |  | — |  |  |  | 12,611 |
Total liabilities of discontinued operations |  | $ | — |  |  | $ | 57,860 |
The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations for each period presented.
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Depreciation and amortization |  | $ | 7,722 |  |  | $ | 11,852 |  |  | $ | 11,496 |
Acquisition of property, plant and equipment |  | $ | 7,316 |  |  | $ | 11,926 |  |  | $ | 15,111 |

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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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