Discontinued Operations

9 Months Ended

Sep. 30, 2020

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

6. 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 September 30					Nine months ended September 30
In thousands	2020		2019			2020			2019
Net sales	$	—	$	—		$	—		$	—
Energy and related sales, net		—		—			—			—
Total revenues		—		—			—			—
Costs of products sold		—		—			—			—
Gross profit		—		—			—			—
Selling, general and administrative expenses		—		(2,455	)		135			(2,684	)
Gains on dispositions of plant, equipment and timberlands, net		—		—			—			—
Operating income (loss)		—		2,455			(135	)		2,684
Non-operating income (expense)
Interest expense		—		—			—			—
Other, net		—		(1,393	)		—			(1,393	)
Impairment charge		—		—			—			—
Income (loss) before income taxes		-		1,062			(135	)		1,291
Income tax provision (benefit)		—		(2,519	)		—			(2,511	)
Income (loss) from discontinued operations	$	-	$	3,581		$	(135	)	$	3,802

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	2020			2019
Net cash used by operating activities	$	(1,108	)	$	(9,749	)
Net cash used by investing activities		—			(8,221	)
Net cash provided by financing activities		—			—
Change in cash and cash equivalents from discontinued operations	$	(1,108	)	$	(17,970	)