Discontinued Operations (Notes)

12 Months Ended

Jan. 31, 2017

Discontinued operations [Abstract]

Discontinued operations

Note 4 - Discontinued operations

In January, 2016, the Company sold certain assets and liabilities of its TDC Filter business based in Bolingbrook, Illinois to the Industrial Air division of CLARCOR, Inc.. 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 aggregated sales price of these filtration businesses was $22.0 million, including cash proceeds of $18.4 million, of which $0.5 million is held in escrow until July, 2017.

In May, 2016, the Company completed the sale of its Bolingbrook Filtration manufacturing facility to a third party at a price of $7.1 million. The sale generated approximately $1.9 million in cash after expenses and mortgage payoffs.

In September, 2016, the Company completed the sale of its Cicero Filtration facility to a third party at a price of $0.5 million. The sale generated approximately $0.4 million in cash after expenses.

In October, 2016, the Company completed the sale of its Virginia Filtration facility to a third party at a price of $1.5 million. The sale generated approximately $1.4 million in cash after expenses.

The Filtration business segment is 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 tax expense of $1.0 million and $0.1 million for the years ended January31,2017 and 2016, respectively. Income from discontinued operations net of tax was $0.7 million in 2016 and a loss of $6.0 million in 2015.

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 of 2015, Filtration Products recorded a $6.5 million impairment expense relating to the Virginia facility.

Results of the discontinued operations were as follows:

	2016		2015
Net sales		$10,467		$64,975
Gain on disposal of discontinued operations		$209		$8,099
Impairment expense on discontinued operations	—		(6,480		)
Income (loss) from discontinued operations	1,522		(7,569		)
Income (loss) from discontinued operations before income taxes	1,731		(5,950		)
Income tax expense	1,043		94
Income (loss) from discontinued operations, net of tax		$688		($6,044	)

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

	January 31,
	2017		2016
Current assets
Cash and cash equivalents		$—		$5
Trade accounts receivable, net	25		5,720
Inventories, net	—		2,000
Other assets	—		60
Property, plant and equipment, net of accumulated depreciation	—		6,456
Total assets from discontinued operations		$25		$14,241
Current liabilities
Trade accounts payable, accrued expenses and other		$199		$7,514
Current maturities of long-term debt	—		5,322
Total liabilities from discontinued operations	199		12,836

Cashflows from discontinued operations:

	January 31,
	2017			2016
Net cash provided by (used in) discontinued operating activities		$1,133			($7,113	)
Net cash provided by discontinued investing activities	9,606			17,026
Net cash used in discontinued financing activities	(10,739		)	(3,025		)