5.	DISCONTINUED OPERATIONS

On October 31, 2018, we completed the previously announced sale of our Specialty Papers Business Unit on a cash free and debt free basis to Pixelle Specialty Solutions LLC, an affiliate of Lindsay Goldberg (the “Purchaser”) for $360 million. Cash proceeds from the sale were approximately $323 million in cash reflecting estimated purchase price adjustments as of the closing date and the assumption by the Purchaser of approximately $38 million in retiree healthcare liabilities. In addition, the Purchaser assumed approximately $220 million of pension liabilities relating to Specialty Papers’ employees and will receive approximately $270 million of related assets from the Company’s existing pension plan.

In connection with the sale of Specialty Papers, we entered into a Transition Services Agreement with Purchaser pursuant to which we agreed to provide various back-office and information technology support until the business is fully separated from us.

The following table sets forth a summary of discontinued operations included in the condensed consolidated statements of income:

	Three months ended September 30						Nine months ended September 30
In thousands	2018			2017			2018			2017
Net sales	$	201,288		$	203,206		$	590,757		$	600,346
Energy and related sales, net		844			1,236			3,217			3,346
Total revenues		202,132			204,442			593,974			603,692
Costs of products sold		181,628			188,076			572,820			569,840
Gross profit		20,504			16,366			21,154			33,852
Selling, general and administrative expenses		6,058			5,997			18,566			17,971
(Gains) losses on dispositions of plant, equipment and timberlands, net		3			70			(440	)		118
Operating income		14,443			10,299			3,028			15,763
Non-operating income (expense)
Interest expense		(2,281	)		(1,221	)		(6,017	)		(3,005	)
Other, net		(1,174	)		583			(81	)		1,664
Impairment charge		(125,644	)		—			(125,644	)		—
Income (loss) before income taxes		(114,656	)		9,661			(128,714	)		14,422
Income tax provision (benefit)		(19,530	)		2,601			(28,361	)		5,515
Income (loss) from discontinued operations	$	(95,126	)	$	7,060		$	(100,353	)	$	8,907

The amounts presented above are derived from the segment reporting for Specialty Papers adjusted to include certain retirement benefit costs and to exclude corporate shared services costs which are required to remain in continuing operations. Interest expense was allocated to discontinued operations based on borrowings under the revolving credit facility required to be repaid with proceeds from the sale of Specialty Papers. The amounts set forth above include the recognition of a $1.8 million, pre-tax, pension curtailment charge related to the transfer and discontinuance of future service of Specialty Papers’ employees. We also recognized an impairment charge representing an estimate of the amount by which the carrying value of Specialty Papers’ net assets exceeded their fair value based on the estimated net proceeds to be received from the sale.

The following table sets forth the carrying amounts of Specialty Papers’ major asset and liabilities, which were classified as held for sale in the condensed consolidated balance sheets:

	September 30		December 31
In thousands	2018		2017
Assets
Accounts receivable, net	$	73,608	$	63,567
Inventories		105,311		115,858
Prepaid expenses and other current assets		9,403		10,527
Current assets held for sale	$	188,322	$	189,952

Plant, equipment and timberlands, net		210,891		350,560
Other assets		60,840		57,351
Noncurrent assets held for sale	$	271,731	$	407,911

Liabilities
Accounts payable	$	76,257	$	77,266
Other current liabilities		33,906		35,554
Current liabilities held for sale	$	110,163	$	112,820

Long-term liabilities held for sale	$	40,480	$	41,373

The following table sets forth a summary of cash flows from discontinued operations which is included in the condensed consolidated statements of cash flows:

	Nine months ended September 30
In thousands	2018			2017
Net cash provided by operating activities	$	33,721		$	32,295
Net cash used in investing activities		(14,018	)		(44,186	)
Net cash provided by financing activities		125		$	—
Change in cash and cash equivalents from discontinued operations	$	19,828		$	(11,891	)