The following table presents the summarized components of loss from discontinued operations, net of income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Net sales |
|
$ |
1,210.2 |
|
|
$ |
1,703.4 |
|
|
$ |
1,849.4 |
|
Cost of sales |
|
|
1,060.2 |
|
|
|
1,493.3 |
|
|
|
1,604.5 |
|
Gross profit |
|
|
150.0 |
|
|
|
210.1 |
|
|
|
244.9 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
100.7 |
|
|
|
94.2 |
|
|
|
150.9 |
|
Research and development |
|
|
98.3 |
|
|
|
113.8 |
|
|
|
118.2 |
|
Amortization of purchased intangible assets |
|
|
83.4 |
|
|
|
103.0 |
|
|
|
103.0 |
|
Restructuring costs (credits), net |
|
|
6.0 |
|
|
|
(0.1 |
) |
|
|
6.8 |
|
Asset impairments |
|
|
469.2 |
|
|
|
— |
|
|
|
13.7 |
|
Total operating expenses |
|
|
757.6 |
|
|
|
310.9 |
|
|
|
392.6 |
|
Operating loss |
|
|
(607.6 |
) |
|
|
(100.8 |
) |
|
|
(147.7 |
) |
Other income, net |
|
|
1.0 |
|
|
|
0.5 |
|
|
|
2.5 |
|
Loss from discontinued operations before income taxes |
|
|
(606.6 |
) |
|
|
(100.3 |
) |
|
|
(145.2 |
) |
Loss on classification as held for sale |
|
|
(177.0 |
) |
|
|
— |
|
|
|
— |
|
Income tax (expense) benefit |
|
|
184.0 |
|
|
|
(1.9 |
) |
|
|
32.6 |
|
Loss from discontinued operations, net of income taxes |
|
$ |
(599.6 |
) |
|
$ |
(102.2 |
) |
|
$ |
(112.6 |
) |
The following table presents balance sheet information for assets and liabilities held for sale:
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|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash and cash equivalents |
|
$ |
— |
|
|
$ |
25.1 |
|
Accounts receivable, net |
|
|
253.6 |
|
|
|
345.5 |
|
Inventories, net |
|
|
118.4 |
|
|
|
212.1 |
|
Prepaid expenses and other |
|
|
23.9 |
|
|
|
39.1 |
|
Other assets |
|
|
59.7 |
|
|
|
— |
|
Total current assets |
|
|
455.6 |
|
|
|
621.8 |
|
Loss on classification of held for sale |
|
|
(177.0 |
) |
|
|
— |
|
Total current assets held for sale |
|
|
278.6 |
|
|
|
621.8 |
|
Property, plant, and equipment, net |
|
|
— |
|
|
|
8.6 |
|
Other intangible assets, net |
|
|
— |
|
|
|
558.5 |
|
Other noncurrent assets |
|
|
— |
|
|
|
33.7 |
|
Total noncurrent assets |
|
|
— |
|
|
|
600.8 |
|
Total assets held for sale |
|
$ |
278.6 |
|
|
$ |
1,222.6 |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
192.5 |
|
|
$ |
341.2 |
|
Accrued and other liabilities |
|
|
101.7 |
|
|
|
181.4 |
|
Other liabilities |
|
|
13.0 |
|
|
|
— |
|
Total current liabilities held for sale |
|
|
307.2 |
|
|
|
522.6 |
|
Deferred income taxes |
|
|
— |
|
|
|
58.0 |
|
Other noncurrent liabilities |
|
|
— |
|
|
|
24.6 |
|
Total noncurrent liabilities |
|
|
— |
|
|
|
82.6 |
|
Total liabilities held for sale |
|
$ |
307.2 |
|
|
$ |
605.2 |
|
The following table summarizes significant non-cash operating items and capital expenditures of the discontinued operation included in the Consolidated Statements of Cash Flows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
Significant non-cash operating items: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
94.3 |
|
|
$ |
116.5 |
|
|
$ |
121.9 |
|
Equity-based compensation |
|
|
3.7 |
|
|
|
5.8 |
|
|
|
8.8 |
|
Asset impairments (1) |
|
|
646.2 |
|
|
|
— |
|
|
|
13.7 |
|
Capital expenditures |
|
|
2.4 |
|
|
|
4.0 |
|
|
|
5.6 |
|
(1)Includes loss of $177.0 million on classification as held for sale and $469.2 million on impairment of long-lived assets. The loss on classification as held for sale of $177.0 million recorded in the fourth quarter of 2023 reduced the carrying value of the Home business disposal group, comprised of all the assets and liabilities of the Home business, to its fair value less cost to sell. The Company estimated the fair value of the disposal group using Company-specific inputs, including estimates of consideration to be exchanged upon the close of the divestiture. The determination of the loss on classification as held for sale was based on Level 3 valuation inputs. The Company also recorded a partial impairment of $469.2 million related to the Home segment's intangible assets during the third quarter of 2023. The Company estimated the fair value of the asset group using Company-specific inputs, including estimates of consideration to be received upon the impending divestiture, as well as other market participant assumptions. The determination of the impairment charge was based on Level 3 valuation inputs.
|