Discontinued Operations

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Effective June 28, 2017, the Company has suspended all operations associated with the Fuel Conversion business segment. The components of the net assets of the Fuel Conversion discontinued operations as of June 30, 2017 are Assets held for sale on the Consolidated Balance Sheets totaling $1,839 which consists of certain equipment of $485 and the Carbonite intangible asset of $1,354. The resulting amount in Assets held for sale was determined using management's assumptions based on a plan of sale and may not be able to realize as much value from the sale of the assets as we expect. In addition, accrued severance of $382 is included in the other accrued liabilities line of the Consolidated Balance Sheets. The Fuel Conversion business segment had no other assets or liabilities associated with it.

The Condensed Statement of Operations of the Fuel Conversion discontinued operations consisted of Research and Development for the three- and six-month periods ended June 30, 2017 of $1,269 and $1,999, respectively, and for the same periods in 2016 of $827 and $1,514, respectively. Research and Development for the three- and six-month periods ended June 30, 2017 include the severance charges associated with suspension of the Fuel Conversion business segment of $382. The Fuel Conversion business segment had no revenues associated with it.

The Company expects to incur $582,000 of severance costs relating to the suspension of the Fuel Conversion business segment, of which $402,000 will be paid in 2017, $120,000 will be paid in 2018 and $60,000 will be paid in 2019. The Company expects to incur storage fees and other disposal costs associated with certain property, plant and equipment and contractual termination payments or other miscellaneous expenses but an estimated amount or range of amounts has not yet been determined.