Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

On June 18, 2020, we completed the divestiture of our European logistics business, Movianto (the Divestiture), as well as certain support functions in our Dublin office, to Walden Group SAS (the Buyer) and EHDH (as Buyer’s guarantor) for cash consideration of $133 million. We concluded that the Movianto business met the criteria for discontinued operations through the Divestiture Date, as the intention to sell represented a strategic shift and the criteria for held-for-sale were met. Movianto was previously reported in the Global Solutions segment.

Accordingly, the results of operations from the Movianto business are reported in the accompanying consolidated statements of operations as Loss from discontinued operations, net of tax for the three and six months ended June 30, 2020.

The following table summarizes the financial results of our discontinued operations for the three and six months ended June 30, 2020:


	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Net revenue	$	104,417	$	226,759
Cost of goods sold	21,817		53,923
Gross margin	82,600		172,836
Distribution, selling, and administrative expenses	76,560		157,512
Loss on divestiture	56,392		65,472
Acquisition-related and exit and realignment charges	4,554		4,825
Other operating expenses (income), net	73		(388)
Operating loss	(54,979)		(54,585)
Interest expense, net	1,424		3,144
Loss from discontinued operations before income taxes	(56,403)		(57,729)
Income tax (benefit) provision from discontinued operations	(615)		474
Loss from discontinued operations, net of tax	$	(55,788)	$	(58,203)

We suspended depreciation and amortization on assets that are held-for-sale, including right-of-use assets recorded in accordance with ASU No. 2016-02, for the three and six months ended June 30, 2020.

No revenue or expense have been recorded in discontinued operations related to the disposal group subsequent to the Divestiture Date.

We have entered into transition services agreements with a subsidiary of the Buyer, pursuant to which we and a subsidiary of the Buyer will provide to each other various transitional services. Certain transition service arrangement costs and reimbursements were recorded during the three and six months ended June 30, 2021 and were immaterial for the periods presented. These arrangements were substantially completed as of June 30, 2021.

We had no assets and liabilities of the discontinued Movianto business reflected on the consolidated balance sheets at June 30, 2021 and December 31, 2020.

The following table provides operating and investing cash flow information for our discontinued operations:


	Six Months Ended June 30, 2020
Operating Activities:
Loss on divestiture	$	65,472
Investing Activities:
Capital expenditures	3,027