Sale of Russian Proppant Business

12 Months Ended

Dec. 31, 2017

Discontinued Operations And Disposal Groups [Abstract]

17.	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 gross proceeds of $22,000 related to the sale. We expect to receive additional proceeds on the sale of approximately $4,000 related to net debt and net working capital purchase price adjustments. Although the Company remains in active discussions with the Purchasers regarding the purchase price adjustments, in January 2018, the Company filed a Notice of Arbitration related to this purchase price adjustment against the Purchasers. 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 $1,646 in expenses relating to the sale. Gain on the sale before consideration of the cumulative translation adjustment was approximately $6,599. 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 $26,747, presented as a separate line item within operating loss on the consolidated statement of operations.

As of December 31, 2017, the Company does not have a material net investment that is subject to foreign currency fluctuations.