Discontinued Operations

3 Months Ended

Mar. 31, 2017

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 2: Discontinued Operations

On July 1, 2016, LSB completed the sale of all the stock of Climate Control Group Inc. (an indirect subsidiary that conducted LSB’s Climate Control Business) pursuant to the terms of the stock purchase agreement. Additionally, pursuant to the stock purchase agreement, we agreed to have a certain portion of the purchase price proceeds deposited in an indemnity escrow account. In conjunction with the Climate Control Business sale, we entered into a transition services agreement (“TSA”), pursuant to which, among other things, we agreed to provide certain information technology, payroll, legal, tax and other general services for up to 18 months. At March 31, 2017 and December 31, 2016, our accounts receivable includes approximately $2.7 million representing an indemnity escrow balance. Additionally, at March 31, 2017 and December 31, 2016, our current and noncurrent accrued and other liabilities include approximately $4.2 million and $5.5 million, respectively, relating primarily to estimated contingent liabilities, costs associated with the TSA and severance agreements associated with the sale of the Climate Control Business.

Summarized results of discontinued operations are as follows for the three months ended March 31, 2016 (in thousands):

Net sales	$	66,627
Cost of sales		45,454
Selling, general and administrative expense		15,968
Other expense, net		143
Income from operations of discontinued operations		5,062
Provision for income taxes		4,238
Income from discontinued operations, net of taxes	$	824

Summarized condensed cash flow information of discontinued operations is as follows for the three months ended March 31, 2016 (in thousands):

Deferred income taxes	$	3,608
Depreciation and amortization of property, plant and    equipment	$	1,089
Stock-based compensation	$	230
Expenditures for property, plant and equipment	$	153
Software and software development costs	$	477