Discontinued Operations

On August 17, 2017, we completed the sale of our global precision bearing components business (the “PBC Business”). The PBC Business included all our facilities that were engaged in the production of precision steel balls, steel rollers, and metal retainers and automotive specialty products used primarily in the bearing industry. The sale of the PBC Business furthers management’s long-term strategy to build a diversified industrial business with a comprehensive geographic footprint in attractive high-growth market segments. The PBC Business represented all of the Precision Bearing Components Group reportable segment disclosed in our historical financial statements.

In accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations, the operating results of the PBC Business for the six months ended June 30, 2017, are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations, net of tax, as one line item on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All historical Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) presented have been revised to reflect this presentation. Accordingly, results of the PBC Business have been excluded from continuing operations and group results for all periods presented in the condensed consolidated financial statements and the accompanying notes unless otherwise stated. The Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2017, includes cash flows of the PBC Business in each line item unless otherwise stated.

The following table summarizes the major line items included in the results of operations of the discontinued operations.



	Three Months Ended June 30, 2017		Six Months Ended June 30, 2017
Net sales	$	67,928	$	136,687
Cost of sales (exclusive of depreciation and amortization shown separately below)	51,526		104,485
Selling, general and administrative expense	4,768		9,121
Depreciation and amortization	3,102		6,111
Restructuring and integration expense	300		429

Income from operations	8,232		16,541
Interest expense (income)	71		188
Other expense (income), net	20		18

Income from discontinued operations before provision for income taxes	8,141		16,335
Provision for income taxes	2,905		5,581

Income from discontinued operations, net of tax	$	5,236	$	10,754

The following table presents the significant noncash items and cash paid for capital expenditures of discontinued operations.



	Six Months Ended June 30, 2017
Depreciation and amortization	$	6,111
Acquisition of property, plant and equipment	$	5,208