Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

5. DISCONTINUED OPERATIONS

On October 31, 2018, we completed the previously announced sale of our Specialty Papers business 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 $210 million of pension liabilities relating to Specialty Papers’ employees and received approximately $274 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, which was completed in the third quarter of 2019.

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

	Three months ended March 31
In thousands	2020		2019
Net sales	$	—	$	—
Energy and related sales, net		—		—
Total revenues		—		—
Costs of products sold		—		—
Gross profit		—		—
Selling, general and administrative expenses		—		(714	)
Gains on dispositions of plant, equipment and timberlands, net		—		—
Operating income		—		714
Non-operating income (expense)
Interest expense		—		—
Other, net		—		—
Impairment charge		—		—
Income before income taxes		—		714
Income tax (provision)		—		31
Income from discontinued operations	$	—	$	683

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

	Three months ended March 31
In thousands	2020			2019
Net cash (provided) used by operating activities	$	(316	)	$	(8,931	)
Net cash (used) provided by investing activities		—			(1,434	)
Net cash provided by financing activities		—			—
Change in cash and cash equivalents from discontinued operations	$	(316	)	$	(10,365	)