Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On May 25, 2021, the Company signed a definitive agreement to sell CBF to certain direct and indirect wholly-owned subsidiaries of BRWS Parent LLC, a portfolio company of One Rock Capital Partners (“CentroMotion”), for gross proceeds of (i) $250 million cash at closing, subject to certain adjustments, and (ii) the right to receive up to an additional $125 million based on CBF's achievement of certain performance targets. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2021. The sale of CBF is consistent with the Company's optimization strategy, as laid out in Vision 2025.

A summary of the results from discontinued operations included in the Condensed Consolidated Statements of Income and Comprehensive Income follows:

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues	$	98.8	$	58.8	$	186.9	$	129.8
Cost of goods sold	76.1		47.8		147.4		109.8
Other operating expenses, net	11.8		12.1		23.8		25.6
Operating income (loss)	10.9		(1.1)		15.7		(5.6)
Other non-operating (income) expense, net	(0.1)		—		0.2		(0.4)
Income (loss) from discontinued operations before income taxes	11.0		(1.1)		15.5		(5.2)
Pre-close transaction expenses(1)	(4.7)		—		(4.7)		—
Provision for (benefit from) income taxes	1.1		(0.5)		2.5		(1.6)
Income (loss) from discontinued operations	$	5.2	$	(0.6)	$	8.3	$	(3.6)

(1)Includes legal fees and stock-compensation expense directly related to the sale incurred prior to the close of the transaction.

A summary of the carrying amounts of major assets and liabilities, which were classified as held for sale in the Condensed Consolidated Balance Sheets follows:

(in millions)	June 30, 2021		December 31, 2020
ASSETS
Cash and cash equivalents	$	12.0	$	5.1
Receivables, net	79.7		58.3
Inventories	72.3		70.8
Prepaid other current assets	10.4		10.4
Current assets	174.4		144.6
Long-term assets reclassified to current assets	275.5		—
Total current assets	449.9		144.6
Property, plant, and equipment, net	101.2		102.0
Goodwill, net	96.5		96.5
Other intangible assets, net	71.3		73.9
Other long-term assets	6.5		2.6
Long-term assets	275.5		275.0
Long-term assets reclassified to current assets	(275.5)		—
Total long-term assets	$	—	$	275.0
LIABILITIES
Accounts payable	$	44.8	$	33.1
Accrued liabilities and other	22.7		20.4
Current liabilities	67.5		53.5
Long-term liabilities reclassified to current liabilities	25.3		—
Total current liabilities	92.8		53.5
Other long-term liabilities	25.3		21.9
Long-term liabilities	25.3		21.9
Long-term liabilities reclassified to current liabilities	(25.3)		—
Total long-term liabilities	$	—	$	21.9

A summary of cash flows from discontinued operations included in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, follows:

(in millions)	2021		2020
Net cash provided by operating activities	$	10.8	$	15.4
Net cash used in investing activities	(5.6)		(5.0)
Net cash provided by (used in) financing activities(1)	1.8		(9.5)
Change in cash and cash equivalents from discontinued operations	$	7.0	$	0.9

(1)Represents borrowings or (repayments) from the Carlisle cash pool to fund working capital and capital expenditures