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Note 2 - Discontinued Operations
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
2
.
Discontinued Operations
 
The Company classifies assets as held for sale when all the following criteria are met: (i)
 management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; (ii) the asset or disposal group is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; (iv) the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale, within
one
year, with a few exceptions; and (v) the asset or disposal group is being actively marketed for sale at a price that is reasonable, in relation to its current fair value.
 
The Company is in the process of exploring the sale of its remaining Tubular Products business
and believes a sale is probable within the next
twelve
months. Accordingly, as of
September 
30,
2017,
the related assets of the Company’s Atchison facility were reclassified to Assets held for sale in the accompanying Condensed Consolidated Balance Sheets as of
September 
30,
2017
and
December 
31,
2016.
Assets are
no
longer depreciated once classified as held for sale. As the fair value less costs to sell of the disposal group exceeds the carrying value,
no
impairment charge has been recorded in the accompanying financial statements.
 
In accordance with applicable accounting guidance, the Company concluded that the
Atchison facility met the criteria for discontinued operations reporting as of
September 
30,
2017.
Accordingly, the Company reclassified the financial results of the Atchison facility as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. These financial results are presented as Loss from discontinued operations in the accompanying Condensed Consolidated Statements of Operations for the
three
and
nine
months ended
September 
30,
2017
and
2016.
Cash flows from the Company’s discontinued operations are included in the accompanying Condensed Consolidated Statements of Cash Flows.
 
The table below presents the components of the balance sheet accounts associated with the Atchison facility as of
September
 
30,
2017
and
December 
31,
2016
(in thousands). All assets held for sale as of
September 
30,
2017
and
December 
31,
2016
were reported as current on the Condensed Consolidated Balance Sheets.
 
   
September 30,
2017
    
December 31,
2016
  
Assets
  
 
 
 
  
 
 
 
Inventories
   $
388
     $
392
  
Property and equipment, net
    
36,051
      
36,430
  
Total assets
  $
36,439
     $
36,822
  
 
The table below presents the operating results for the Company
’s discontinued operations (in thousands).
 
 
   
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
   
2017
    
2016
    
2017
    
2016
  
                                 
Net sales
  $
-
     $
13
     $
9
     $
6,869
  
Cost of sales
   
457
      
829
      
1,469
      
8,262
  
Gross loss
   
(457
 )    
(816
 )    
(1,460
 )    
(1,393
 )
Selling, general and administrative expense
   
(1
 )    
(6
 )    
(1
 )    
257
  
Operating loss
   
(456
 )    
(810
 )    
(1,459
 )    
(1,650
 )
Interest expense
   
-
      
-
      
-
      
(3
 )
Loss before income taxes
   
(456
 )    
(810
 )    
(1,459
 )    
(1,653
 )
Income tax expense (benefit)
   
26
      
(117
 )    
(4
 )    
(124
 )
Net loss
  $
(482
 )   $
(693
 )   $
(1,455
 )   $
(1,529
 )