Sale of Russian Proppant Business

9 Months Ended

Sep. 30, 2017

Discontinued Operations And Disposal Groups [Abstract]

3.	Sale of Russian Proppant Business

On July 21, 2017, subsidiaries of the Company Carbo Ceramics (Mauritius) Inc. and Carbo LLC (together, the “Sellers”) entered into a Share Purchase Agreement with Petro Welt Technologies AG and PeWeTe Evolution Limited (together, the “Purchasers”) to sell the Company’s Russian proppant business. The adjusted purchase price is approximately $26,000 for all of the shares of CARBO Ceramics Cyprus Limited held by the Sellers. The transaction received local regulatory approval and closed on September 21, 2017.

During the third quarter of 2017, the Company received proceeds of $22,000 related to the sale. The Company expects to receive approximately $4,000 in additional proceeds related to net debt and net working capital purchase price adjustments. The net assets included in the calculation of the loss on the sale were $17,754, including cash and cash equivalents of $846, accounts receivable of $6,047, total inventory of $8,573, net PP&E of $2,763, other net assets of $670, and accrued expenses of $1,145. The Company incurred approximately $1,627 in expenses relating to the sale (of which $468 were paid during the third quarter of 2017, the remainder to be paid during the fourth quarter of 2017). Gain on the sale before consideration of the cumulative translation adjustment was approximately $6,619. However, as a result of the sale, the Company reclassified the foreign currency cumulative translation loss of $33,347 from accumulated other comprehensive loss within shareholders’ equity to net loss which offset the initial gain on the sale. As a result, the Company’s net loss on the sale was approximately $26,728, presented as a separate line item within operating loss on the consolidated statement of operations.