Discontinued Operations (Notes)

12 Months Ended

Jan. 31, 2016

Discontinued operations [Abstract]

Discontinued operations

Note 4 - Discontinued operations

On January 29, 2016, the Company sold certain assets and liabilities of its TDC Filter business based in Bolingbrook, Illinois to the Industrial Air division of CLARCOR, a NYSE-listed company based in Franklin, Tennesse. On January 29, 2016, the Company also sold its Nordic Air Filtration, Denmark and Nordic Air Filtration, Middle East businesses to Hengst Holding GmbH. The purchase price of these Illinois and international filtration businesses was $22.0 million, including cash proceeds of $18.4 million, of which $1.9 million is held in escrow until July 2017. The remaining domestic fabric filter business, which is included in held for sale, is operational and selling product as of January 31, 2016. These businesses are reported as discontinued operations in the consolidated financial statements and the notes to consolidated financial statements have been revised to conform to the current year reporting. There was $0.1 million of tax expense for the period ended January 31, 2016 . Loss from discontinued operations net of tax was $6.0 million and $4.4 million for the years ended January 31, 2016 and 2015, respectively.

Impairment. The Company evaluates assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. In the fourth quarter, Filtration Product's recorded a $6.5 million impairment expense relating to the Virginia facility

Results of the discontinued operations were as follows:

	2015			2014
Net sales		$64,975			$68,110
Gain on disposal of discontinued operations		$8,099			$188
Impairment expense from discontinued operations	(6,480		)	—
Loss from discontinued operations	(7,569		)	(4,282		)
Loss from discontinued operations before income taxes	(5,950		)	(4,094		)
Income tax expense	94			324
Loss from discontinued operations, net of tax		($6,044	)		($4,418	)

Components of assets, and liabilities from discontinued operations consist of the following:

	January 31,
	2016		2015
Current assets
Cash and cash equivalents		$5		$608
Trade accounts receivable, net	5,720		7,516
Inventories, net	2,000		15,157
Other assets	349		2,003
Property, plant and equipment, net of accumulated depreciation	6,456		14,477
Non-current assets	1,203		1,715
Total assets from discontinued operations		$15,733		$41,476
Current liabilities
Trade accounts payable, accrued expenses and other		$7,514		$10,016
Current maturities of long-term debt	5,322		806
Long-term liabilities	2,629		10,557
Total liabilities from discontinued operations	15,465		21,379

Cashflows from discontinued operations:

	January 31,
	2016			2015
Net cash used in discontinued operating activities		($7,113	)		($2,629	)
Net cash provided by (used in) discontinued investing activities	17,026			(1,425		)
Net cash (used in) provided by discontinued financing activities	(3,025		)	4,219