Discontinued Operations

On August 17, 2017, we completed the sale of our global precision bearing components business (the “PBC Business”) and received cash proceeds at closing of $387.6 million and recorded a $0.8 million receivable, which was received in 2018. 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.

We recorded an after-tax gain on sale of $127.7 million, which is included in the “Income from discontinued operations, net of tax” line on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2017. The gain includes the effects of reclassifying $9.3 million in cumulative foreign currency translation gain from accumulated comprehensive income and eliminating the non-controlling interest attributable to the PBC Business as of August 17, 2017.

In accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations, the operating results of the PBC Business are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and gain on the disposition of the business, net of tax, as one line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). Accordingly, results of the PBC Business have been excluded from continuing operations and group results for all historical periods presented in the consolidated financial statements and the accompanying notes unless otherwise stated. The Consolidated Statements of Cash Flows for the years ended December 31, 2017 and 2016, include cash flows of the PBC Business in each line item unless otherwise stated. We had no discontinued operations in the year ended December 31, 2018.

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



	Year Ended December 31,
	2017 ⁽¹⁾			2016
Net sales	$	168,287		$	248,534
Cost of products sold (exclusive of depreciation and amortization shown separately below)	130,555			192,994
Selling, general and administrative expense	11,818			16,992
Depreciation and amortization	7,722			11,852
Loss on disposal of assets	—			27
Restructuring and integration expense	429			4,366
Income from operations	17,763			22,303
Interest expense	(181		)	(284		)
Other income (expense), net	(84		)	503
Income from discontinued operations before gain on disposal and provision for income taxes	17,498			22,522
Provision for income taxes on discontinued operations	(7,461		)	(6,369		)
Income from discontinued operations before gain on disposal	10,037			16,153
Gain on disposal of discontinued operations	213,503			—
Provision for income taxes on gain on disposal	(85,852		)	—
Income from discontinued operations, net of tax	$	137,688		$	16,153

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(1)	Includes the results of operations of the PBC Business from January 1, 2017 to the sale completion date of August 17, 2017.

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



	Year Ended December 31,
	2017		2016
Depreciation and amortization	$	7,722	$	11,852
Acquisition of property, plant and equipment	$	7,316	$	11,926