Discontinued Operations Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On December 20, 2019, the Company completed the sale of Lamons to two wholly-owned subsidiaries of an investment fund sponsored by First Reserve, pursuant to an Asset and Stock Purchase Agreement dated as of November 1, 2019 (the “Purchase Agreement”), for a purchase price of $135 million, subject to certain adjustments as set forth in the Purchase Agreement which the Company expects to be finalized in the first quarter of 2020.

The Company recognized net cash proceeds of approximately $110.9 million, which represents the purchase price, less estimated tax payments of approximately $20.9 million and transaction costs of approximately $3.2 million. The Company recorded a pre-tax gain on sale of approximately $38.9 million, which includes the recognition of previously deferred non-cash foreign currency translation losses of approximately $12.4 million.

The Company determined that Lamons met the criteria to be classified as a discontinued operation. As a result, the historical results for Lamons are shown in the accompanying consolidated statement of income as a discontinued operation and the assets and liabilities have been retrospectively reclassified to assets and liabilities of discontinued operations in the consolidated balance sheet.

The carrying value of the assets and liabilities of Lamons held in discontinued operations were as follows:

	December 31, 2018
Assets
Current assets:
Receivables, net	$	25,940
Inventories	45,960
Prepaid expenses and other current assets	530
Total current assets	72,430
Property and equipment, net	15,850
Other intangibles, net	6,640
Other assets	450
Total assets	$	95,370
Liabilities
Current liabilities:
Accounts payable	$	26,010
Accrued liabilities	4,410
Total current liabilities	30,420
Deferred income taxes	2,230
Total liabilities	$	32,650

Results of discontinued operations are summarized as follows (dollars in thousands):

	Year ended December 31,
	2019			2018			2017
Net sales	$	182,590		$	172,110		$	161,580
Cost of sales	(138,100		)	(128,100		)	(131,470		)
Gross profit	44,490			44,010			30,110
Selling, general and administrative expenses	(32,920		)	(30,590		)	(29,240		)
Net gain (loss) on dispositions of assets	38,900			(160		)	(4,420		)
Operating profit (loss)	50,470			13,260			(3,550		)
Interest expense	—			—			(10		)
Other income (expense), net	(30		)	360			(110		)
Other income (expense), net	(30		)	360			(120		)
Income (loss) from discontinued operations, before income taxes	50,440			13,620			(3,670		)
Income tax expense	(13,760		)	(4,030		)	(1,330		)
Income (loss) from discontinued operations, net of tax	$	36,680		$	9,590		$	(5,000	)