Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

A business is classified as held-for-sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value, and certain other criteria of ASC 360 are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less costs to sell, a loss is recognized and updated each reporting period as appropriate. A business held-for-sale is classified as discontinued operations if the disposal group is a component of an entity; the component of an entity meets the held-for-sale criteria of ASC 360; and disposal of the component of an entity represents a strategic shift that will have a major effect on the entity's operations and financial results.

During the fourth quarter of 2022, the Company determined that the Aluminum Products business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the held-for-sale assets and liabilities and the operating results of Aluminum Products in discontinued operations for all periods presented in this Annual Report. The Aluminum Products business was previously reported in the Company’s Assembly Components segment until meeting the discontinued operations criteria. See Note 9 for discussion of the entry into a memorandum of understanding (the “MOU”) related to the potential sale of this business.

	Year Ended December 31,
	2022		2021		2020
Net sales	$	210.4	$	161.0	$	143.1
Cost of sales	220.0		169.3		135.7
Selling, general and administrative	14.2		11.5		10.2
Restructuring and other special charges	3.9		4.0		—
Goodwill impairment	—		4.6		—
Operating loss	(27.7)		(28.4)		(2.8)
Interest expense1	(2.8)		(3.0)		(2.7)
Loss from operation of discontinued operations	(30.5)		(31.4)		(5.5)
Loss on classification as held-for-sale	(1.8)		—		—
Income tax benefit	8.0		5.5		1.2
Loss from discontinued operations, net of tax	$	(24.3)	$	(25.9)	$	(4.3)

(1) - Interest expense includes an allocation of interest that is not directly attributable to our Aluminum Products business, totaling $2.5 million, $2.6 million and $2.3 million in 2022, 2021 and 2020, respectively.

The following represents the details of assets and liabilities held-for-sale in each period:

	December 31, 2022		December 31, 2021
	(In millions, except share data)
ASSETS
Current assets:
Accounts receivable, net	$	24.9	$	31.7
Inventories, net	30.2		30.5
Other current assets	1.2		3.0
Current assets held-for-sale1	56.3		65.2
Property, plant and equipment, net	46.1		49.9
Operating lease right-of-use assets	4.8		7.0
Long-term assets held-for-sale1	50.9		56.9
Total assets held-for-sale	$	107.2	$	122.1
LIABILITIES
Current liabilities:
Trade accounts payable	$	22.8	$	15.7
Current portion of finance lease liabilities	2.4		4.4
Current portion of operating lease liabilities	2.3		2.2
Other accrued expenses	10.7		10.6
Current liabilities held-for-sale1	$	38.2	$	32.9
Long-term liabilities, less current portion:
Long-term finance lease liabilities	3.1		4.6
Long-term operating lease liabilities	2.5		4.8
Long-term liabilities held-for-sale1	5.6		9.4
Total liabilities held-for-sale	$	43.8	$	42.3

(1) - We reasonably expect to finalize the sale of the Aluminum Products business within one year from the December 31, 2022 balance sheet date, and therefore we have presented all assets and liabilities held-for-sale as current as of that date.