Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

Note 4.  Discontinued Operations

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 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.

In June 2008, Neenah Canada sold the Pictou Mill to Northern Pulp. 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 an average of approximately 400,000 metric tons of softwood timber annually from the Woodlands.  The Stumpage Agreement was terminated in March 2010 in conjunction with the sale of the Woodlands.  For the three months ended March 31, 2010, the Company recognized revenue of approximately $1.4 million related to timber sales pursuant to the Stumpage Agreement.

The following table summarizes the results of discontinued operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net sales (a)	$	—		$	—		$	—		$	1.4
Income (loss) from operations before income taxes	$	(0.1	)	$	(0.3	)	$	(0.2	)	$	1.1
Gain on disposal of the Woodlands	—			—			—			74.1
Reclassification of cumulative translation adjustments related to investments in Canada	—			—			—			87.9
Gain on disposal	—			—			—			162.0
Income (loss) before income taxes	(0.1		)	(0.3		)	(0.2		)	163.1
(Provision) benefit for income taxes	0.1			0.3			0.1			(28.5		)
Income (loss) from discontinued operations, net of income taxes	$	—		$	—		$	(0.1	)	$	134.6

(a)Represent timber sales pursuant to the Stumpage Agreement.