ASSETS AND LIABILITIES HELD FOR SALE

9 Months Ended

Sep. 30, 2024

ASSETS AND LIABILITIES HELD FOR SALE

ASSETS AND LIABILITIES HELD FOR SALE

2. ASSETS AND LIABILITIES HELD FOR SALE

Assets and liabilities are classified as held for sale and presented separately on the balance sheet when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and transfer of the assets is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held-for-sale criteria are met. Gains are not recognized until the date of the sale. When the disposal group is classified as held for sale, depreciation and amortization for long-lived assets ceases and the Company tests the assets for impairment.

On April 27, 2024, the Company entered into an agreement to sell its global surgical solutions business for total consideration of $950 million, subject to certain working capital and other purchase price adjustments. On August 1, 2024, the Company closed the sale and received $926 million in cash, after deducting for defined working capital and other purchase price adjustments. For the quarter ended September 30, 2024, the Company recorded an associated pre-tax gain within Special (Gains) and Charges in the Consolidated Statements of Income of $365.3 million ($264.2 million after tax) or $0.92 per diluted share, which includes $56.4 million of transaction costs and other adjustments.

The global surgical solutions business did not meet the criteria to be classified as a discontinued operation. As a result, the Company continued to report its operating results in the Global Healthcare & Life Sciences reportable segment through the closing of transaction on August 1, 2024.

The global surgical solutions business was included in the Company’s continuing operations and classified as current assets and current liabilities held for sale on the Company’s consolidated balance sheets through the closing of the transaction on August 1, 2024. As a result of closing the transaction, the Company derecognized $504.6 million of net assets, the principal components of which were as follows:

	August 1
(millions)	2024
Assets held for sale
Cash and cash equivalents		$36.6
Accounts receivable, net		55.0
Inventories		89.0
Other current assets		7.6
Property, plant and equipment, net		65.1
Goodwill		305.9
Other intangible assets, net		22.4
Operating lease assets		8.2
Other assets		43.0
Total assets held for sale		$632.8
Liabilities held for sale
Accounts payable		$38.6
Compensation and benefits		5.9
Other current liabilities		40.6
Postretirement health care and pension benefits		6.7
Operating lease liabilities		5.6
Other liabilities		30.8
Total liabilities held for sale		$128.2