Divestitures and Assets and Liabilities Held for Sale

9 Months Ended

Sep. 29, 2023

Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]

Divestitures and Assets and Liabilities Held for Sale

DIVESTITURES AND ASSETS AND LIABILITIES HELD FOR SALE

Global Traffic Technologies

On April 14, 2023, the Company completed the sale of Global Traffic Technologies for $108.4 million. The Company finalized customary working capital adjustments during the three months ended September 29, 2023. As a result of the transaction, the Company recognized a gain of $0.3 million and $34.4 million during the three and nine months ended September 29, 2023, respectively, which are presented in Gain on sale of business in the Consolidated Condensed Statements of Earnings and Comprehensive Income. There is a transition services agreement (the “TSA”) in place between the Company and Global Traffic Technologies which sets forth the terms and conditions pursuant to which the Company will provide certain services to Global Traffic Technologies. Receipts related to the TSA were insignificant for the three and nine months ended September 29, 2023. The operations of Global Traffic Technologies did not meet the criteria to be presented as discontinued operations.

Coats (Hennessy)

During the three months ended July 1, 2022, the Company reached the strategic decision to exit its Coats (Hennessy) business. The Company determined that the associated assets and liabilities met the held for sale accounting criteria and Coats (Hennessy) was classified as Current assets held for sale and Current liabilities held for sale in the Consolidated Condensed Balance Sheets as of September 29, 2023. The operations of Coats (Hennessy) did not meet the criteria to be presented as discontinued operations.

The assets and liabilities were measured at the lower of fair value less costs to sell or the carrying value. The following table summarizes the carrying amounts of major classes of assets and liabilities of Coats (Hennessy) as of September 29, 2023 (in millions):

ASSETS
Accounts receivable, less allowance for credit losses	$	18.1
Inventories	12.8
Prepaid expenses and other current assets	0.7
Property, plant and equipment, net	4.5
Operating lease right-of-use assets	0.2
Goodwill	15.7
Total assets held for sale	$	52.0
LIABILITIES
Trade accounts payable	$	14.3
Current operating lease liabilities	0.2
Accrued expenses and other current liabilities	8.2
Other long-term liabilities	6.6
Total liabilities held for sale	$	29.3