Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Summary Activity of Discontinued Operations

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

	Three Months Ended June 30, 2024
	CIT		CFT		Other		Total
Revenues	$	115.2	$	—	$	—	$	115.2
Cost of goods sold	83.7		—		—		83.7
Other operating expenses, net	11.9		—		—		11.9
Operating income	19.6		—		—		19.6
Other non-operating expense, net	0.1		1.2		0.3		1.6
Income (loss) from discontinued operations before income taxes and gain on sale	19.5		(1.2)		(0.3)		18.0
(Gain) loss on sale of discontinued operations	(462.3)		0.1		—		(462.2)
Income (loss) from discontinued operations before income taxes	481.8		(1.3)		(0.3)		480.2
Provision for (benefit from) income taxes	53.6		(0.4)		(0.2)		53.0
Income (loss) from discontinued operations	$	428.2	$	(0.9)	$	(0.1)	$	427.2

	Three Months Ended June 30, 2023
	CIT		CFT		Other		Total
Revenues	$	218.9	$	78.0	$	—	$	296.9
Cost of goods sold	165.9		44.6		—		210.5
Impairment(1)	—		24.8		—		24.8
Other operating expenses, net	34.1		18.5		—		52.6
Operating income (loss)	18.9		(9.9)		—		9.0
Other non-operating expense, net	0.8		0.5		1.1		2.4
Income (loss) from discontinued operations before income taxes and loss on sale	18.1		(10.4)		(1.1)		6.6
Loss on sale of discontinued operations(2)	—		50.8		—		50.8
Income (loss) from discontinued operations before income taxes	18.1		(61.2)		(1.1)		(44.2)
Provision for (benefit from) income taxes	3.3		(14.9)		(0.5)		(12.1)
Income (loss) from discontinued operations	$	14.8	$	(46.3)	$	(0.6)	$	(32.1)

(1)In the second quarter of 2023, as a result of the anticipated sale of the CFT reporting unit, the Company evaluated the reporting unit for impairment and determined that it was more likely than not that the carrying value of the reporting unit exceeded its fair value. Accordingly, an impairment analysis was performed which resulted in a goodwill impairment charge of $24.8 million.

(2)Includes expenses related to legal fees, stock-based compensation, and loss on valuation allowance that were related to the sale of CFT, which are incorporated into the (gain)/loss on sale of discontinued operations upon the close of the sale, but incurred prior to the close of the transaction.

	Six Months Ended June 30, 2024
	CIT		CFT		Other		Total
Revenues	$	328.6	$	—	$	—	$	328.6
Cost of goods sold	237.5		—		—		237.5
Other operating expenses, net	34.4		—		—		34.4
Operating income	56.7		—		—		56.7
Other non-operating (income) expense, net	(0.1)		7.6		1.5		9.0
Income (loss) from discontinued operations before income taxes and loss on sale	56.8		(7.6)		(1.5)		47.7
(Gain) loss on sale of discontinued operations	(454.7)		0.3		—		(454.4)
Income (loss) from discontinued operations before income taxes	511.5		(7.9)		(1.5)		502.1
Provision for (benefit from) income taxes	57.0		(2.7)		(0.8)		53.5
Income (loss) from discontinued operations	$	454.5	$	(5.2)	$	(0.7)	$	448.6

	Six Months Ended June 30, 2023
	CIT		CFT		Other		Total
Revenues	$	432.4	$	150.7	$	—	$	583.1
Cost of goods sold	334.2		87.1		—		421.3
Impairment(1)	—		24.8		—		24.8
Other operating expenses, net	69.4		38.3		—		107.7
Operating income	28.8		0.5		—		29.3
Other non-operating income, net	0.4		0.5		0.6		1.5
Income (loss) from discontinued operations before income taxes and loss from classification to held for sale	28.4		—		(0.6)		27.8
Loss on sale of discontinued operations(2)	—		50.8		—		50.8
Income (loss) from discontinued operations before income taxes	28.4		(50.8)		(0.6)		(23.0)
Provision for (benefit from) income taxes	5.4		(12.4)		(2.0)		(9.0)
Income (loss) from discontinued operations	$	23.0	$	(38.4)	$	1.4	$	(14.0)

(1)In the second quarter of 2023, as a result of the anticipated sale of the CFT reporting unit, the Company evaluated the reporting unit for impairment and determined that it was more likely than not that the carrying value of the reporting unit exceeded its fair value. Accordingly, an impairment analysis was performed which resulted in a goodwill impairment charge of $24.8 million.

(2)Includes expenses related to legal fees, stock-based compensation, and loss on valuation allowance that were related to the sale of CFT, which are incorporated into the (gain)/loss on sale of discontinued operations upon the close of the sale, but incurred prior to the close of the transaction.

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

(in millions)	December 31, 2023
ASSETS
Cash and cash equivalents	$	28.8
Receivables, net	145.5
Inventories	149.5
Contract assets	75.9
Prepaid other current assets	23.7
Property, plant, and equipment, net	183.4
Goodwill	838.0
Other intangible assets, net	259.3
Other long-term assets	21.5
Total assets of the disposal group classified as held for sale	$	1,725.6
LIABILITIES
Accounts payable	$	84.3
Contract liabilities	1.4
Accrued liabilities and other	52.4
Other long-term liabilities	80.7
Total liabilities of the disposal group classified as held for sale	$	218.8

A summary of cash flows from discontinued operations included in the Condensed Consolidated Statements of Cash Flows follows:

	Six Months Ended June 30, 2024
(in millions)	CIT		CFT		Other		Total
Net cash provided by (used in) operating activities	$	20.0	$	(5.2)	$	(0.7)	$	14.1
Net cash provided by investing activities	1,983.6		—		—		1,983.6
Net cash (used in) provided by financing activities(1)	(2,032.4)		5.2		0.7		(2,026.5)
Change in cash and cash equivalents from discontinued operations	(28.8)		—		—		(28.8)
Cash and cash equivalents from discontinued operations at beginning of period	28.8		—		—		28.8
Cash and cash equivalents from discontinued operations at end of period	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2023
(in millions)	CIT		CFT		Other		Total
Net cash provided by operating activities	$	61.2	$	36.3	$	1.4	$	98.9
Net cash used in investing activities	(12.6)		(0.5)		—		(13.1)
Net cash used in financing activities(1)	(42.4)		(37.9)		(1.4)		(81.7)
Change in cash and cash equivalents from discontinued operations	6.2		(2.1)		—		4.1
Cash and cash equivalents from discontinued operations at beginning of period	23.9		11.3		—		35.2
Cash and cash equivalents from discontinued operations at end of period	$	30.1	$	9.2	$	—	$	39.3

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