Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations [Abstract]

Discontinued Operations

Note 2 – Discontinued Operations

On August 1, 2013, the Company announced that it completed the sale of substantially all of the assets of its Imperial Group business to Imperial Group Manufacturing, Inc., a new company formed and capitalized by Wynnchurch Capital for total cash consideration of $30.0 million at closing, plus a contingent earn-out opportunity of up to $2.25 million.  The sale was effective as of July 31, 2013.  The sale resulted in recognition of a $12.0 million loss for the year ended December 31, 2013, which has been reclassified to discontinued operations.

Pursuant to the provisions of the purchase agreement, subject to certain limited exceptions, the purchaser purchased from Imperial all equipment, inventories, accounts receivable, deposits, prepaid expenses, intellectual property, contracts, real property interests, transferable permits and other intangibles related to the business and assumed Imperial's trade and vendor accounts payable and performance obligations under those contracts included in the purchased assets.  The real property interests acquired by the purchaser include ownership of three plants located in Decatur, Texas, Dublin, Virginia and Chehalis, Washington and a leasehold interest in a plant located in Denton, Texas.  Imperial retained ownership of its real property located in Portland, Tennessee and included a $2.5 million impairment charge for this property in the loss on sale.   The Company leased the Portland, Tennessee facility to the purchaser from the closing date of the transaction through October 31, 2014.  The future function of this facility is currently being evaluated.

In connection with these transactions, we have reclassified current and prior period operating results, including the gain/loss on the sale transactions, to discontinued operations.

The following table presents sales and income from operations attributable to Imperial, Fabco, Bostrom Seating and Brillion Farm.

	Year Ended December 31,
(In thousands)	2014			2013			2012
Net sales	$	—		$	70,965		$	135,137
Loss from operations		(42	)		(1,758	)		(4,061	)
Other income (expense)		(211	)		1,765			—
Income tax provision (benefit)		—			—			—
Loss on sale		—			(11,985	)		(571	)
Discontinued operations	$	(253	)	$	(11,978	)	$	(4,632	)

Theloss related to the sale of Imperial as of July 31, 2013 was as follows:

(In thousands)
Proceeds from sale	$	30,000
Accounts receivable		12,478
Inventories		10,692
Prepaid expenses and other current assets		63
Property plant and equipment		21,868
Accounts payable		(8,672	)
Net assets sold		36,429
Impairment of real estate		2,540
Other accrued fees and expenses		3,016
Net loss from sale	$	(11,985	)