Note 11 - Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations [Text Block]

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.

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 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. During the fourth quarter of 2014, the Company completed final liquidation of BWW. Included within the final liquidation was the settlement of outstanding receivables with a single customer associated with a larger fabrication project. The Company also incurred cash charges of $1.4 million related to certain professional fees incurred during dissolution as well as in connection with the settlement discussed above. This resulted in a recorded pre-tax charge of approximately $6.0 million within discontinued operations.

The discontinuation of BWW signified a triggering event for the Bayou reporting unit goodwill. The Company updated its analysis of the Bayou reporting unit as of the date of discontinuation. In its previous Bayou reporting unit analysis on October 1, 2012, the Company tested the Bayou reporting unit as a whole, which included the carrying value and future cash flows associated with the BWW business. In the updated analysis associated with this triggering event, the Company removed any carrying value associated with BWW (as it was tested separately) and updated its income projections to reflect the removal of BWW and the current future cash flows of the Bayou reporting unit. Additionally, the Company updated the data points associated with the market approach. In this analysis, it was determined that the Bayou reporting unit did not result in an impairment at the date of discontinuation.

Operating results for discontinued operations are summarized as follows for the years ended December 31 (in thousands):

	2014			2013			2012
Revenues	$	—		$	9,763		$	11,132
Gross profit (loss)	(67		)	(4,255		)	(645		)
Operating expenses	(5,941		)	1,973			2,038
Closure charges of welding business	—			5,019			—
Operating income (loss)	(6,008		)	(11,247		)	2,683
Other income (expense)	(74		)	—			—
Loss before tax benefits	(6,082		)	(10,731		)	(2,904		)
Tax benefits	2,235			4,270			1,191
Net loss	(3,847		)	(6,461		)	(1,713		)

Balance sheet data for discontinued operations was as follows at December 31 (in thousands):

	2014		2013
Restricted cash	$	—	$	1,193
Receivables, net	—		4,038
Prepaid expenses and other current assets	—		204
Property, plant and equipment, less accumulated depreciation	—		1,118
Deferred tax assets	—		1,803
Total assets	$	—	$	8,356
Accounts payable	$	—	$	2,050
Accrued expenses	—		20
Deferred tax liabilities	—		197
Total liabilities	$	—	$	2,267