Discontinued Operations

6 Months Ended

Jun. 30, 2015

Discontinued Operations [Abstract]

Discontinued Operations

3.    Discontinued Operations

During the third quarter of 2014, we sold substantially all of the assets related to our Specialty Plastics business for a cash purchase price of $91.0 million. The transaction resulted in net proceeds of $88.3 million after expenses, and a gain of approximately $54.9 million. We have classified the Specialty Plastics operating results, net of income tax, as discontinued operations for the three and six months ended June 30, 2014.

During the second quarter of 2014, we commenced a process to market for sale all of the assets within our Polymer Additives business.  We determined that the criteria to classify these assets as held-for-sale under ASC Topic 360, Property, Plant and Equipment, have been met.  For purposes of applying the guidance within ASC 360, the assets have been categorized into two disposal groups: (1) our Europe-based Polymer Additives assets, including the Antwerp, Belgium dibenzoates manufacturing assets, and related Polymer Additives European headquarters and lab facilities and (2) the remainder of the Polymer Additives assets, our North America-based Polymer Additives business.  During the fourth quarter of 2014, we sold substantially all of the assets related to our North America-based Polymer Additives business for a cash purchase price of $153.5 million.  The transaction resulted in net proceeds of $149.5 million after expenses, and a gain of approximately $72.7 million.  We have classified the operating results, net of income tax, as discontinued operations for the three and six months ended June 30, 2014.  We have classified the Europe-based Polymer Additives assets and liabilities as held-for-sale in the accompanying condensed consolidated balance sheets and have classified the related operating results, net of income tax, as discontinued operations in the accompanying condensed consolidated statements of operations for all periods presented.

The table below summarizes results for Polymer Additives and Specialty Plastics, for the three and six months ended June 30, 2015 and 2014, which are reflected in our condensed consolidated statements of operations as discontinued operations.  Interest expense has been allocated to the discontinued operations based on the ratio of net assets of each business to consolidated net assets excluding debt.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
	(Dollars in thousands)
Net sales	$	7,837	$	111,465	$	19,736	$	222,474
Cost of sales		11,903		92,314		26,458		188,801
Gross (loss) profit		(4,066)		19,151		(6,722)		33,673
Selling, general and administrative expenses		1,009		6,438		2,228		12,645
Restructuring and impairment charges		—		14,362		—		14,364
Interest expense		206		1,533		319		2,905
Miscellaneous expense, net		365		30		333		136
(Loss) income from discontinued operations before income taxes		(5,646)		(3,212)		(9,602)		3,623
Income tax expense		—		308		—		559
(Loss) income from discontinued operations, net of taxes	$	(5,646)	$	(3,520)	$	(9,602)	$	3,064

The following table summarizes the assets and liabilities which are classified as held-for-sale at June 30, 2015, and December 31, 2014:

	June 30, 2015		December 31, 2014
	(Dollars in thousands)
Accounts receivable, net	$	6,129	$	5,959
Inventories		8,159		19,217
Other current assets		3,282		1,911
Current assets held-for-sale		17,570		27,087
Property, plant and equipment, net		32,374		18,174
Other non-current assets		518		563
Total assets held-for-sale		50,462		45,824
Accounts payable		5,602		8,181
Accrued expenses and other current liabilities		1,239		1,835
Current liabilities held-for-sale		6,841		10,016
Other non-current liabilities		2,168		2,304
Total liabilities held-for-sale	$	9,009	$	12,320

Included within noncurrent assets is a deferred tax asset of $12.9 million at June 30, 2015 and $14.1 million at December 31, 2014, which were completely reserved for at both periods.