Asset Sales & Impairment Asset Impairment

12 Months Ended

Nov. 30, 2016

Impairment & Asset Sales

Asset Impairment

During the fourth quarter of 2016, due to changes in markets and expected lower capacity utilization at the Engineered Surfaces Minhang, China facility, the Company performed an impairment analysis of this asset group. Based on this analysis, it was determined that the fair value of the asset group was less than book value, and accordingly, the Company recognized an impairment charge of $5.4 million and reduced Property, Plant, and Equipment by $5.2 million and intangible assets by $0.2 million. Fair value was determined based on valuation techniques and third party appraisals, which represent level 3 inputs in the fair value hierarchy. The Engineered Surfaces Minhang facility also recognized $0.3 million of impairment charges during the first quarter of 2016 related to idled equipment.

During 2015, the Company recognized $19.4 million of asset impairments which included an impairment on the Company's non-core India business of $18.3 million in connection with its pending sale in February 2016, an impairment on land at the Company's former headquarters location of $0.6 million, and other asset impairments of $0.5 million on assets that were idled during 2015. In November 2015, the Company's management committed to a plan to sell the assets of the Performance Chemicals' India business. The Company recognized an impairment charge to write-down the net assets of this disposal group to its expected sales price after considering costs to sell. Additionally, as of November 30, 2015, the assets and liabilities of this business were considered as held for sale and were included in Other Current Assets and Other Current Liabilities, respectively. The Company utilized unobservable inputs in determining the magnitude of the non-recurring impairment representing level 3 inputs in the fair value hierarchy.

At November 30, 2015 the India operation comprised the following assets and liabilities.

Note C—Impairment & Asset Sales (Continued)



Assets classified as held for sale
(dollars in millions)	November 30, 2015
Cash	$	1.0
Accounts receivable	.2
Other current assets	.8
Inventories	.2
Total current assets	2.2

Deferred tax assets	2.8
Total assets	$	5.0

Liabilities classified as held for sale
(dollars in millions)
Short-term debt	$	1.5
Accounts payable	.8
Other payables	1.8
Total current liabilities	4.1

Deferred tax liabilities	3.0
Other non-current liabilities	0.3
Total liabilities	$	7.4

There were no asset impairments during 2014.

Asset Sales

On February 5, 2016, the Company completed the sale of its Performance Chemicals' India operations (through the sale of 100% of the equity outstanding of the Company's OMNOVA Solutions India Private Limited Subsidiary) to Apcotex Inc., a private industrial products manufacturer headquartered in India. The sale included all assets and liabilities, contracts and other assets associated with the Company’s production of rubber related products. Under terms of the sale, the Company received $5.2 million in cash. The sale price was equal to the net book value of these assets and liabilities and therefore, there was no gain or loss recognized on this transaction. The Company will continue to sell certain of its products within India through its other subsidiaries in the ordinary course of business.

Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block]

At November 30, 2015 the India operation comprised the following assets and liabilities.

Note C—Impairment & Asset Sales (Continued)



Assets classified as held for sale
(dollars in millions)	November 30, 2015
Cash	$	1.0
Accounts receivable	.2
Other current assets	.8
Inventories	.2
Total current assets	2.2

Deferred tax assets	2.8
Total assets	$	5.0

Liabilities classified as held for sale
(dollars in millions)
Short-term debt	$	1.5
Accounts payable	.8
Other payables	1.8
Total current liabilities	4.1

Deferred tax liabilities	3.0
Other non-current liabilities	0.3
Total liabilities	$	7.4