Annual report pursuant to Section 13 and 15(d)

DISCONTINUED OPERATIONS

v3.22.1
DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

NOTE 9

DISCONTINUED OPERATIONS

 

The Company’s discontinued operations consist of all our subsidiaries included in our Industrial Segment which encompasses subsidiaries divested in 2011 and prior and three previously closed locations.

 

The Company incurred losses from discontinued operations of $421,000 (net of tax benefit of $139,000) and $412,000 (net of taxes of $0) for the years ended December 31, 2021 and 2020, respectively. The loss for the year ended 2021 included an increase of approximately $100,000 in remediation reserve for our PFSG subsidiary due to reassessment of the remediation reserve. The remaining loss for each of the periods noted above was primarily due to costs incurred in the administration and continued monitoring of our discontinued operations.

 

 

The following table presents the major class of assets of discontinued operations at December 31, 2021 and December 31, 2020. No assets and liabilities were held for sale at each of the periods noted.

 

                 
    December 31,     December 31,  
(Amounts in Thousands)   2021     2020  
Current assets                
Other assets   $ 15     $ 22  
Total current assets     15       22  
Long-term assets                
Property, plant and equipment, net (1)     81       81  
Total long-term assets     81       81  
Total assets   $ 96     $ 103  
Current liabilities                
Accounts payable   $ 3     $ 4  
Accrued expenses and other liabilities     154       150  
Environmental liabilities     349       744  
Total current liabilities     506       898  
Long-term liabilities                
Closure liabilities     150       142  
Environmental liabilities     527       110  
Total long-term liabilities     677       252  
Total liabilities   $ 1,183     $ 1,150  

 

(1) net of accumulated depreciation of $10,000 for each period presented.

 

Environmental Liabilities

 

The Company has three remediation projects, which are currently in progress relating to our PFD, PFM and PFSG (closed locations) subsidiaries, all within our discontinued operations. The Company divested PFD in 2008; however, the environmental liability of PFD was retained by the Company upon the divestiture of PFD. These remediation projects principally entail the removal/remediation of contaminated soil and, in most cases, the remediation of surrounding ground water. The remediation activities are closely reviewed and monitored by the applicable state regulators.

 

At December 31, 2021, the Company had total accrued environmental remediation liabilities of $876,000, an increase of $22,000 from the December 31, 2020 balance of $854,000. The net increase represents an increase of $100,000 made to the reserve at our PFSG subsidiary as discussed above and payments of approximately $78,000 for remediation projects for the three subsidiaries. At December 31, 2021, $349,000 of the total accrued environmental liabilities was recorded as current.

 

The current and long-term accrued environmental liabilities at December 31, 2021 are summarized as follows (in thousands).

 

    Current     Long-term      
    Accrual     Accrual     Total  
PFD   $ 8     $ 60     $ 68  
PFM     —       15       15  
PFSG     341       452       793  
Total liability   $ 349     $ 527     $ 876