Divestitures (Notes)

6 Months Ended

Jun. 30, 2017

Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4. Divestitures

We completed an evaluation of our lubricant operations and concluded that lubricants are not strategic to our core operations. We have taken steps to divest the remaining assets associated with our lubricant operations and have executed asset purchase agreements with third parties. On June 30, 2017, we sold our lubricant operations located in Arizona and Nevada for $14.7 million resulting in a gain on disposal of assets of $2.8 million. Due to provisions in our senior secured revolving credit facility agreement and 7.5% Senior Notes indenture, the proceeds received from the sale of our lubricant operations must be used in our business or as a prepayment of debt. Restricted cash reported in our Condensed Consolidated Balance Sheet at June 30, 2017, was $14.3 million. This cash is restricted through June 30, 2018. We anticipate completing a sale of the remaining assets during the third quarter of 2017.

In connection with the disposal of our lubricant operations, we reported employee severance costs of $0.4 million and $0.5 million within direct operating expenses and selling, general and administrative expenses in our Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2017, respectively. Assets held for sale in our Condensed Consolidated Balance Sheet at June 30, 2017 and December 31, 2016, respectively, include $1.1 million and $10.1 million in inventories and $2.4 million and $7.3 million in property, plant and equipment. These assets and associated results from operations are presented in our Wholesale segment.

During the second and third quarters of 2016, we disposed of certain assets related to our lubricant sales in California. In connection with this asset disposal, we reported employee severance costs of $0.4 million within direct operating expenses and selling, general and administrative expenses in our Condensed Consolidated Statement of Operations for the three months ended June 30, 2016. A gain of $0.6 million was included in gain on disposal of assets, net for the three and six months ended June 30, 2016 in the Condensed Consolidated Statements of Operations.