Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Notes)

v3.19.2
Discontinued Operations (Notes)
6 Months Ended
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
In the fourth quarter of 2018, concluding a comprehensive strategic assessment of the Company's development-stage industrial biotechnology business, REG Life Sciences, the Company's Board of Directors authorized it to pursue a plan to sell the REG Life Sciences core assets and business. The Company recorded an impairment loss, net of tax, of $11,226 on classifying the REG Life Sciences assets as held for sale reflecting the fair value of the estimated proceeds from the sale, net of costs to sell for the year ended December 31, 2018. This valuation technique was considered as Level 3 pricing category.
In May 2019, the Company entered into a sale and purchase agreement to sell REG Life Sciences core assets and business. The Company recorded a loss, net of tax, on sale of assets of $1,250.
REG Life Sciences' results for all periods and for the three and six months ended June 30, 2019 are classified as discontinued operations. There was no income tax impact from discontinued operations for all periods.

Loss on Discontinued Operations:

 
For the three months ended June 30,
 
For the six months ended June 30,
 
2019
 
2018
 
2019
 
2018
Other revenues
$

 
$
1,250

 
$
1,786

 
$
2,500

Other costs of goods sold

 
(1,143
)
 
(2,200
)
 
(2,281
)
Research and development expense
(3,205
)
 
(2,458
)
 
(4,803
)
 
(8,022
)
Other income (expense), net
(7
)
 
7,159

 
(12
)
 
9,157

Loss on sale of assets
(1,250
)
 

 
(1,250
)
 

Pre-tax income (loss) from discontinued operations
(4,462
)
 
4,808

 
(6,479
)
 
1,354

Income tax expense

 

 

 

Net income (loss) on discontinued operations
$
(4,462
)
 
$
4,808

 
$
(6,479
)
 
$
1,354



Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities Included in Assets and Liabilities Held for Sale:

 
June 30, 2019
 
December 31, 2018
Machinery and equipment, net
$

 
$
824

In-process research and development

 
13,652

Impairment recognized on assets classified as held for sale

 
(11,226
)
Total assets classified as held for sale
$

 
$
3,250