Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Spin-off of the Cequent businesses

On June 30, 2015, the Company completed the spin-off of its Cequent businesses (comprised of the former Cequent Americas and Cequent Asia Pacific Europe Africa ("Cequent APEA") reportable segments), creating a new independent publicly traded company, Horizon, through the distribution of 100% of the Company's interest in Horizon to holders of the Company's common stock. On June 30, 2015, each of the Company's shareholders of record as of the close of business on the record date of June 25, 2015, received two shares of Horizon common stock for every five shares of TriMas common stock held. In addition, on June 30, 2015, immediately prior to the effective time of the spin-off, Horizon entered into a new debt financing arrangement and used the proceeds to make a cash distribution of $214.5 million to the Company.

The Cequent businesses are presented as discontinued operations in the Company's consolidated balance sheet, the consolidated statements of operations and cash flows for all periods presented.

The carrying value of the assets and liabilities immediately preceding the spin-off of the Cequent businesses on June 30, 2015, and as of December 31, 2014 were as follows:

	Immediately preceding the spin-off on June 30, 2015		December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	17,050	$	—
Receivables, net	92,750		63,520
Inventories	125,750		123,370
Prepaid expenses and other current assets	6,520		5,690
Total current assets	242,070		192,580
Property and equipment, net	48,870		55,180
Goodwill	5,630		6,580
Other intangibles, net	61,400		66,510
Other assets	16,390		12,410
Total assets	$	374,360	$	333,260
Liabilities
Current liabilities:
Current maturities, long-term debt	$	17,940	$	460
Accounts payable	81,830		81,500
Accrued liabilities	44,190		37,940
Total current liabilities	143,960		119,900
Long-term debt	195,460		300
Deferred income taxes	4,860		4,610
Other long-term liabilities	27,900		25,990
Total liabilities	$	372,180	$	150,800

Following the spin-off, there were no assets or liabilities remaining from the Cequent operations.

Results of discontinued operations, including the discontinued Cequent businesses and NI Industries, are summarized as follows:

	Year ended December 31,
	2015			2014			2013
	(dollars in thousands)
Net sales	$	300,900		$	615,260		$	595,160
Cost of sales	(227,860		)	(468,060		)	(467,800		)
Gross profit	73,040			147,200			127,360
Selling, general and administrative expenses	(72,360		)	(111,900		)	(104,040		)
Operating profit	680			35,300			23,320
Interest expense	(2,540		)	(5,430		)	(3,060		)
Other expense, net	(1,970		)	4,170			2,370
Other expense, net	(4,510		)	(1,260		)	(690		)
Income (loss) from discontinued operations, before income taxes	(3,830		)	34,040			22,630
Income tax expense	(910		)	(11,650		)	(1,800		)
Income (loss) from discontinued operations, net of tax	$	(4,740	)	$	22,390		$	20,830

Other Discontinued Operations

During the third quarter of 2014, the Company ceased operations of its former NI Industries business. NI Industries manufactured cartridge cases for the defense industry and was party to a U.S. Government facility maintenance contract. The Company received approximately $6.7 million for the sale of certain intellectual property and related inventory and tooling. This amount is included in income from discontinued operations in the accompanying consolidated statement of operations.

During the fourth quarter of 2011, the Company sold its precision tool cutting and specialty fittings lines of business, both of which were part of the Engineered Components reportable segment. The purchase agreement included up to $2.5 million of contingent consideration, based on achievement of certain levels of financial performance in 2012 and 2013. During the second quarter of 2013, the Company received approximately $1.0 million of a possible $1.3 million as payout for the 2012 financial performance criteria. This amount is included in income from discontinued operations in the accompanying consolidated statement of operations. No payout was received in 2014, as the 2013 financial performance criteria were not met.

During the first quarter of 2009, the Company completed the sale of certain assets within its specialty laminates, jacketings and insulation tapes line of business, which was part of the Packaging reportable segment. The Company's manufacturing facility is subject to a lease agreement expiring in 2024 that was not assumed by the purchaser of the business. During the fourth quarter of 2014, the Company re-evaluated its estimate of unrecoverable future obligations initially recorded in 2009 and recorded an additional charge of approximately $1.8 million, based on further deterioration of real estate values and market comparables for this facility.

The results of the aforementioned businesses are reported as discontinued operations for all periods presented.