Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations [Abstract]

Summary Of Discontinued Operations

4. Discontinued Operations

During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. We entered into a definitive agreement to sell our Tile Coatings business which has historically been a part of our Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented.

The table below summarizes results for the Tile Coatings business for the year ended December 31, 2019, 2018 and 2017 which are reflected in our consolidated statements of operations as discontinued operations. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt.

	2019		2018		2017
	(Dollars in thousands)
Net sales	$	487,584	$	530,185	$	400,360
Cost of sales		385,890		413,987		310,858
Gross profit		101,694		116,198		89,502
Selling, general and administrative expenses		71,471		58,619		48,128
Restructuring and impairment charges		44,378		6,179		2,886
Interest expense		11,556		12,835		9,293
Interest earned		(122)		(125)		(119)
Foreign currency losses (gains), net		(2,397)		1,852		3,114
Miscellaneous expense (income), net		2,127		3,896		(1,003)
Income (loss) from discontinued operations before income taxes		(25,319)		32,942		27,203
Income tax expense		2,658		8,916		6,337
Income (loss) from discontinued operations, net of income taxes		(27,977)		24,026		20,866
Less: Net income attributable to noncontrolling interests		290		2		10
Net income (loss) attributable to Tile Coatings business	$	(28,267)	$	24,024	$	20,856

The following table summarizes the assets and liabilities which are classified as held-for-sale at December 31, 2019 and 2018:

	December 31,		December 31,
	2019		2018
Cash and cash equivalents	$	8,200	$	8,200
Accounts receivable, net		160,174		151,975
Inventories		100,981		111,227
Other receivables		22,442		23,989
Other current assets		3,006		2,814
Current assets held-for-sale		294,803		298,205
Property, plant and equipment, net		99,429		105,802
Goodwill		3		43,511
Amortizable intangible assets, net		39,687		42,990
Deferred income taxes		14,425		14,962
Other non-current assets		5,455		2,306
Non-current assets held-for-sale		158,999		209,571
Total assets held-for-sale	$	453,802	$	507,776
Loans payable and current portion of long-term debt	$	3,678	$	5,838
Accounts payable		96,967		123,820
Accrued payrolls		4,838		3,396
Accrued expenses and other current liabilities		27,523		25,128
Current liabilities held-for-sale		133,006		158,182
Long-term debt, less current portion		25,805		54,173
Postretirement and pension liabilities		7,473		6,365
Other non-current liabilities		4,211		3,945
Non-current liabilities held-for-sale		37,489		64,483
Total liabilities held-for-sale	$	170,495	$	222,665

The following table summarizes cash flow data relating to discontinued operations for the years ended December 31, 2019, 2018 and 2017:

	2019		2018		2017
	(Dollars in thousands)
Depreciation	$	11,264	$	10,778	$	10,080
Amortization of intangible assets		3,192		3,219		3,019
Capital expenditures		(10,126)		(5,265)		(4,656)
Non-cash operating activities - fixed asset impairment		—		—		1,243
Non-cash operating activities - goodwill impairment		42,515		—		—
Non-cash operating activities - restructuring		127		—		1,868
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at year end		1,096		5,872		448