Discontinued and Disposed Operations

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

4. Discontinued and Disposed Operations

Discontinued Operations

On October 8, 2024, the Company completed the sale of the ESG business, an operating company within the Engineered Products segment, to Terex Corporation for total preliminary consideration, net of cash transferred, of $2.0 billion, subject to post-closing adjustments. The ESG sale qualifies for discontinued operations reporting because its disposal represented a strategic shift with a major effect on the Company's operations and financial results. As a result, the Company has classified the results of operations as discontinued operations in the condensed consolidated statements of earnings and the condensed consolidated statements of cash flows for the six months ended June 30, 2024. During the six months ended June 30, 2025, net working capital adjustments of $9,796 ($7,739 after-tax) and other post-closing adjustments of $2,197 ($1,747 after-tax) were recorded resulting in a loss from discontinued operations, net of $9,486 in the condensed consolidated statements of earnings. During the three months ended June 30, 2025, other post-closing adjustments of $1,335 ($1,066 after-tax) were recorded resulting in a loss from discontinued operations in the condensed consolidated statements of earnings.

In June 2025, a jury returned a verdict against the ESG business for approximately $58.9 million in connection with litigation involving alleged breach of contract and inducement of breach of fiduciary duty claims arising from certain product development efforts. ESG expects to file post-trial motions and, if necessary, an appeal with the U.S. Court of Appeals for the Seventh Circuit. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable.

Summarized results of the Company's discontinued operations are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024			2025		2024
Revenue	$	—	$	229,480		$	—	$	439,702
Cost of goods and services	—		160,436			—		310,590
Gross profit	—		69,044			—		129,112
Selling, general and administrative expenses	—		23,138			—		43,281

Operating earnings	—		45,906			—		85,831
Loss on disposition	1,335		—			11,993		—

Other (income) expense, net	—		(25)			—		697
(Loss) earnings from discontinued operations before provision for income taxes	(1,335)		45,931			(11,993)		85,134
(Benefit) provision for income taxes	(269)		10,696			(2,507)		19,780
(Loss) earnings from discontinued operations, net	$	(1,066)	$	35,235		$	(9,486)	$	65,354

2025 Dispositions

There were no material dispositions in 2025.

2024 Disposition

On March 31, 2024, the Company completed the sale of the De-Sta-Co business, an operating company within the Engineered Products segment, for total consideration, net of cash transferred, of $674,727. Of the total consideration, $63,000 was received upon finalization of closing activities in India and China, which occurred during the second quarter of 2024. This sale resulted in a preliminary pre-tax gain on disposition of $529,280 ($414,451 after-tax) included within the condensed consolidated statements of earnings for the six months ended June 30, 2024. The sale did not meet the criteria to be classified as a discontinued operation, as it did not represent a strategic shift that would have a major effect on operations and financial results.