Discontinued Operations

12 Months Ended

Dec. 31, 2016

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 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 were as follows (dollars in thousands):

	Immediately preceding the spin-off on June 30, 2015
Assets
Current assets:
Cash and cash equivalents	$	17,050
Receivables, net	92,750
Inventories	125,750
Prepaid expenses and other current assets	6,520
Total current assets	242,070
Property and equipment, net	48,870
Goodwill	5,630
Other intangibles, net	61,400
Other assets	16,390
Total assets	$	374,360
Liabilities
Current liabilities:
Current maturities, long-term debt	$	17,940
Accounts payable	81,830
Accrued liabilities	44,190
Total current liabilities	143,960
Long-term debt	195,460
Deferred income taxes	4,860
Other long-term liabilities	27,900
Total liabilities	$	372,180

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 the Company's other discontinued operations, are summarized as follows (dollars in thousands):

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

Other Discontinued Operations

During 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 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 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.