Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In November 2019, the Company sold its Matane, Quebec pulp mill to Sappi Limited, a global diversified wood fiber company, for a gross purchase price of approximately $175 million. The mill produces approximately 270,000 metric tons of high-yield

pulp and sells the product globally for use in manufacturing paperboard, packaging, and printing and writing paper. The Matane mill was acquired by the Company as part of its acquisition of Tembec Inc. (“Tembec”) in November 2017 and was previously reported as part of the Company’s Pulp segment.

The following table presents the major classes of assets and liabilities of discontinued operations that are classified as held for sale as of December 31, 2018:

	December 31, 2018
Accounts receivable, net	$	23,093
Inventory	17,349
Prepaid and other current assets	2,058
Total current assets	42,500
Property, plant and equipment, net	17,482
Deferred tax assets	31,486
Other assets	2,239
Total assets	$	93,707
Accounts payable	$	11,035
Accrued and other current liabilities	3,786
Other current liabilities	1,415
Total current liabilities	16,236
Other long-term liabilities	5,548
Total liabilities	$	21,784

Income (loss) from discontinued operations is comprised of the following:

	Year Ended
	December 31, 2019			December 31, 2018			December 31, 2017
Revenues	$	127,561		$	177,419		$	20,917
Cost of sales	(106,572		)	(124,396		)	(18,618		)
Gross margin	20,989			53,023			2,299
Selling, general and administrative expenses and other	(1,536		)	(3,196		)	173
Operating income (loss)	19,453			49,827			2,472
Interest expense (a)	(3,957		)	(4,485		)	(482		)
Other non-operating income	321			377			45
Income from discontinued operations before income taxes	15,817			45,719			2,035
Income tax expense	(4,096		)	(16,754		)	(498		)
Income from discontinued operations, net of taxes	11,721			28,965			1,537
Gain from sale of discontinued operation, pre-tax	118,888			—			—
Income tax expense on gain	(34,451		)	—			—
Gain from sale of discontinued operations, net of tax	84,437			—			—
Income from Discontinued Operations	$	96,158		$	28,965		$	1,537

(a) The Company was required to repay $100 million of debt from proceeds received from the sale of Matane. As such, interest expense has been allocated to discontinued operations using the weighted-average interest rates in effect for each period presented based on the proportionate amounts required to be repaid.

Other discontinued operations information is as follows:    

	Year Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Depreciation and amortization	$	1,590	$	2,459	$	317
Capital expenditures	$	2,956	$	3,662	$	87