Asset Divestiture

12 Months Ended

Dec. 31, 2019

Disposal Group, Including Discontinued Operation, Assets [Abstract]

Asset Divestiture

Asset Divestiture

In 2018, we completed the sale of our Ladysmith facility for net cash proceeds of approximately $71 million, resulting in a net gain of $24.0 million, which is recorded in "Other operating charges, net." The sale of the Ladysmith facility consisted of $26.8 million of property, plant and equipment and $3.4 million of inventory and did not qualify for discontinued operations treatment. Goodwill of $14.0 million and certain identifiable customer relationship intangibles of $0.9 million associated with the divested mill were written-off. The goodwill and intangible asset charges are discussed further in Note 5, “Goodwill and Intangible Assets."

As a result of this sale, we recorded an indemnity contingency of $1.4 million which is collateralized with restricted cash. As of December 31, 2019, this $1.4 million is included in "Restricted cash" on our Consolidated Balance Sheet. As of December 31, 2018, the $1.4 million was included in "Other assets, net" on our Consolidated Balance Sheet.