Note 9 - Discontinued Operations

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

During the second quarter of 2013, the Company’s Board of Directors approved a plan of liquidation for its BWW business in an effort to improve the Company’s overall financial performance and align the operations with its long-term strategic initiatives. BWW provided specialty welding and fabrication services from its facility in New Iberia, Louisiana. Financial results for BWW were part of the Company’s Energy and Mining segment for financial reporting purposes.

BWW ceased bidding new work and substantially completed all ongoing projects during the second quarter of 2013. As a result of the closure of BWW, Aegion recognized a pre-tax, non-cash charge of approximately $3.9 million ($2.4 million after-tax, or $0.06 per diluted share) to reflect the impairment of goodwill and intangible assets. The Company also recognized additional non-cash impairment charges for equipment and other assets of approximately $1.1 million on a pre-tax basis ($0.7 million on an after-tax basis, or $0.02 per diluted share), which also was recorded in the second quarter of 2013. The Company expects the cash liquidation value to approximate net asset value as shown in the table below. Net asset value is determined using recorded amounts for assets and liabilities, which are based on Level 3 inputs as defined in Note 10 of this report. The Company also incurred cash charges to exit the business of approximately $0.1 million on a pre-tax and post-tax basis, which included property, equipment and vehicle lease termination and buyout costs, employee termination benefits and retention incentives, among other ancillary shut-down expenses. Final liquidation of BWW’s assets is expected to occur by the end of 2014.

Operating results for discontinued operations are summarized as follows (in thousands):

	Quarters Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Revenues	$	—		$	2,444		$	—		$	8,120
Gross loss	(46		)	(2,161		)	(67		)	(3,240		)
Operating expenses	200			1,159			402			1,618
Closure charges of welding business	—			5,019			—			5,019
Operating loss	(246		)	(8,339		)	(469		)	(9,877		)
Other income (expense)	(73		)	211			(73		)	182
Loss before income tax	(319		)	(8,128		)	(542		)	(9,695		)
Tax (expense) benefit	(45		)	3,151			46			3,797
Net loss	(364		)	(4,977		)	(496		)	(5,898		)

Balance sheet data for discontinued operations was as follows (in thousands):

	June 30, 2014		December 31, 2013
Restricted cash	$	1,193	$	1,193
Receivables, net	3,484		4,038
Prepaid expenses and other current assets	222		204
Property, plant and equipment, less accumulated depreciation	955		1,118
Deferred tax assets	1,596		1,803
Total assets	$	7,450	$	8,356
Accounts payable	$	1,566	$	2,050
Accrued expenses	216		20
Deferred tax liabilities	238		197
Total liabilities	$	2,020	$	2,267