Quarterly report pursuant to Section 13 or 15(d)

CHANGES IN BUSINESS

v3.21.1
CHANGES IN BUSINESS
3 Months Ended
Mar. 31, 2021
CHANGES IN BUSINESS.  
CHANGES IN BUSINESS

NOTE 4—CHANGES IN BUSINESS

Discontinued Operations

Electrical Solutions

During the fourth quarter of 2017, the Company made the decision to exit and sell its Electrical Solutions segment (which was comprised solely of Koontz-Wagner Custom Controls Holdings LLC (“Koontz-Wagner”), a wholly owned subsidiary of the Company) in an effort to reduce the Company’s outstanding term debt. The Company determined that the decision to exit this segment met the definition of a discontinued operation. As a result, this segment has been presented as a discontinued operation for all periods presented.

On July 11, 2018, Koontz-Wagner filed a voluntary petition for relief under Chapter 7 of Title 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of Texas. The filing was for Koontz-Wagner only, not for the Company as a whole, and was completely separate and distinct from the Williams business and operations. As a result of the July 11, 2018 bankruptcy of Koontz-Wagner, the Company recorded a pension withdrawal liability of $2.9 million related to Koontz-Wagner’s International Brotherhood of Electrical Workers Local Union 1392 multi-employer pension plan. The pension liability is expected to be satisfied by annual cash payments of $0.3 million each, paid in quarterly installments, through 2038.

Mechanical Solutions

During the third quarter of 2017, the Company made the decision to exit and sell substantially all of the operating assets and liabilities of its Mechanical Solutions segment and determined that the decision to exit this segment met the definition of a discontinued operation. As a result, this segment has been presented as a discontinued operation for all periods presented.

As of March 31, 2021 and December 31, 2020, the Company did not have any assets related to its Electrical Solutions’ and Mechanical Solutions’ discontinued operations. The following table presents a reconciliation of the carrying amounts of major classes of liabilities of Electrical Solutions’ and Mechanical Solutions’ discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

  

March 31, 2021

 

December 31, 2020

Liabilities:

 

 

 

 

 

 

Other current liabilities

 

$

339

 

$

342

Current liabilities of discontinued operations

 

 

339

 

 

342

Liability for pension obligation

 

 

2,689

 

 

2,670

Liability for uncertain tax positions

 

 

1,810

 

 

1,796

Long-term liabilities of discontinued operations

 

 

4,499

 

 

4,466

Total liabilities of discontinued operations

 

$

4,838

 

$

4,808

 

The following table presents a reconciliation of the major classes of line items constituting the net income (loss) from discontinued operations. In accordance with GAAP, the amounts in the table below do not include an allocation of corporate overhead.

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(in thousands)

  

2021

  

2020

General and administrative expenses

 

$

28

 

$

 1

Interest expense

 

 

51

 

 

53

Loss from discontinued operations before income tax

 

 

(79)

 

 

(54)

Income tax expense

 

 

19

 

 

18

Loss from discontinued operations 

 

$

(98)

 

$

(72)