Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations
12 Months Ended
Dec. 31, 2018
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 Perma-Fix of PFSG facility, which is currently in the process of undergoing closure, subject to regulatory approval of necessary plans and permits.


The Company incurred losses from discontinued operations of $667,000 and $592,000 for the years ended December 31, 2018 and 2017 (net of taxes of $0 for each period), respectively. The loss for the year ended 2018 included an increase of approximately $50,000 in remediation reserve for our Perma-Fix of Dayton (“PFD”) subsidiary due to reassessment of the remediation reserve. The remaining loss for each of the periods noted above were 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, 2018 and 2017. No assets and liabilities were held for sale at December 31, 2018 and 2017.


(Amounts in Thousands)   December 31, 2018     December 31, 2017  
Current assets                
Other assets   $ 107     $ 89  
Total current assets     107       89  
Long-term assets                
Property, plant and equipment, net (1)     81       81  
Other assets     118       195  
Total long-term assets     199       276  
Total assets   $ 306     $ 365  
Current liabilities                
Accounts payable   $ 10     $ 8  
Accrued expenses and other liabilities     296       265  
Environmental liabilities     50       632  
Total current liabilities     356       905  
Long-term liabilities                
Closure liabilities     126       120  
Environmental liabilities     837       239  
Total long-term liabilities     963       359  
Total liabilities   $ 1,319     $ 1,264  


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


The Company’s discontinued operations include a note receivable in the original amount of approximately $375,000 recorded in May 2016 resulting from the sale of property at our Perma-Fix of Michigan, Inc. (“PFMI”) subsidiary. This note requires 60 equal monthly installment payments by the buyer of approximately $7,250 (which includes interest). At December 31, 2018, the outstanding amount on this note receivable totaled approximately $202,000, of which approximately $84,000 is included in “Current assets related to discontinued operations” and approximately $118,000 is included in “Other assets related to discontinued operations” in the accompanying Consolidated Balance Sheets.


Environmental Liabilities


The Company has three remediation projects, which are currently in progress at our 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, 2018, we had total accrued environmental remediation liabilities of $887,000, of which $50,000 are recorded as a current liability, an increase of $16,000 from the December 31, 2017 balance of $871,000. The net increase presents an increase of approximately $50,000 made to the reserve at our PFD subsidiary due to reassessment of the remediation reserve and payments of approximately $34,000 on remediation projects for our PFD and PFSG subsidiaries.


The current and long-term accrued environmental liability at December 31, 2018 is summarized as follows (in thousands).


    Current     Long-term        
    Accrual     Accrual     Total  
PFD   $ 50     $ 60     $ 110  
PFM           15       15  
PFSG           762       762  
Total liability   $ 50     $ 837     $ 887