Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations
12 Months Ended
Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations





The Company’s discontinued operations consist of all our subsidiaries included in our Industrial Segment: (1) subsidiaries divested in 2011 and prior, (2) two previously closed locations, and (3) our PFSG facility, which is currently in the process of undergoing closure, subject to regulatory approval of necessary plans and permits.


The following table presents the major class of assets of discontinued operations at December 31, 2017 and 2016. The Company’s discontinued operations include a note receivable in the amount of approximately $375,000 recorded in May 2016 resulting from the sale of property at our Perma-Fix of Michigan, Inc. (“PFMI” – a closed location) subsidiary. This note requires 60 equal monthly installment payments by the buyer of approximately $7,250 (which includes interest). At December 31, 2017, receivables related to this transaction totaled approximately $268,000, of which approximately $73,000 is included in “Current assets related to discontinued operations” and approximately $195,000 is included in “Other assets related to discontinued operations” in the accompanying Consolidated Balance Sheets. No assets and liabilities were held for sale at December 31, 2017 and 2016.


(Amounts in Thousands)   December 31, 2017     December 31, 2016  
Current assets                
Other assets   $ 89     $ 85  
Total current assets     89       85  
Long-term assets                
Property, plant and equipment, net (1)     81       81  
Other assets     195       268  
Total long-term assets     276       349  
Total assets   $ 365     $ 434  
Current liabilities                
Accounts payable   $ 8     $ 13  
Accrued expenses and other liabilities     265       268  
Environmental liabilities     632       677  
Total current liabilities     905       958  
Long-term liabilities                
Closure liabilities     120       113  
Environmental liabilities     239       248  
Total long-term liabilities     359       361  
Total liabilities   $ 1,264     $ 1,319  


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


The Company incurred losses from discontinued operations of $592,000 and $730,000 for the years ended December 31, 2017 and 2016 (net of taxes of $0 for each period), respectively. Losses for the periods discussed above were primarily due to costs incurred in the administration and continued monitoring of our discontinued operations.


Environmental Liabilities


The Company has three remediation projects, which are currently in progress at our Perma-Fix of Dayton, Inc. (“PFD”), Perma-Fix of Memphis, Inc. (“PFM” – closed location), and PFSG (in closure status) subsidiaries. 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, 2017, we had total accrued environmental remediation liabilities of $871,000, of which $632,000 are recorded as a current liability, a decrease of $54,000 from the December 31, 2016 balance of $925,000. The net decrease of $54,000 represents payments on remediation projects at PFSG and PFD totaling approximately of $79,000 and an increase to the reserve of approximately $25,000 at PFD due to reassessment of the remediation reserve.


The current and long-term accrued environmental liability at December 31, 2017 is summarized as follows (in thousands).


PFD   $ 25     $ 60     $ 85  
PFM           15       15  
PFSG     607       164       771  
Total liability   $ 632     $ 239     $ 871