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