Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations

Discontinued Operations

Note 4.  Discontinued Operations

Sale of the Pictou Mill and the Woodlands

In March 2010, Neenah Canada sold the Woodlands to Northern Pulp for C$82.5 million ($78.6 million). The sale resulted in a pre-tax gain, net of fees and other transaction costs, of $74.1 million. The sale of the Woodlands resulted in the substantially complete liquidation of the Company's investment in Neenah Canada. In accordance with ASC Topic 830, $87.9 million of cumulative currency translation adjustments attributable to the Company's Canadian subsidiaries were reclassified into earnings and recognized as part of the gain on sale of the Woodlands. The sale of the Woodlands represented the cessation of the Company's operating activities in Canada; however, the Company will have certain continuing post-employment benefit obligations related to its Canadian operations. The transaction did not generate a cash tax liability because the tax basis for the Woodlands was approximately equal to the sale price.

In conjunction with the sale of the Pictou Mill, the Company entered into a stumpage agreement (the "Stumpage Agreement") which allowed Northern Pulp to harvest softwood timber from the Woodlands. The Stumpage Agreement was terminated in March 2010 in conjunction with the sale of the Woodlands. For the years ended December 31, 2010 and 2009, the Company recognized revenue of approximately $1.4 million and $3.7 million, respectively, related to timber sales pursuant to the Stumpage Agreement.

The following table presents the results of discontinued operations:

	Year Ended December 31,
	2011			2010		2009
Net sales, net of intersegment sales	$	—		$	1.4	$	3.7
Discontinued operations:
Income (loss) from operations	$	(0.3	)	$	1.0	$	2.8
Gain on disposal of the Woodlands		—			74.1		—
Reclassification of cumulative translation adjustments related to investments in Canada (a)		—			87.9		—
Loss on disposal — Pictou Mill		—			—		(0.3	)
Gain (loss) on disposal		—			162.0		(0.3	)
Income (loss) before income taxes		(0.3	)		163.0		2.5
Provision (benefit) for income taxes		(0.1	)		28.9		1.9
Income (loss) from discontinued operations, net of income taxes	$	(0.2	)	$	134.1	$	0.6

(a)

The reclassification of cumulative foreign currency translation gains had no tax consequences.