Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following tables summarize the major classes of assets and liabilities related to the discontinued operations of the TransCore, Zetec and CIVCO Radiotherapy businesses, as reported in the Condensed Consolidated Balance Sheets at December 31, 2021:

	December 31, 2021
Accounts receivable, net	$	74.7
Inventories, net	47.8
Unbilled receivables	158.2
Goodwill	405.5
Other intangible assets, net	31.0
Other current assets	71.4
Current assets held for sale	$	788.6
Accounts payable	$	40.3
Accrued compensation	27.0
Deferred taxes	29.5
Other current liabilities	62.3
Current liabilities held for sale	$	159.1

The following table summarizes the major classes of revenue and expenses constituting net income from discontinued operations attributable to the TransCore, Zetec and CIVCO Radiotherapy businesses:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenues	$	—	$	161.0	$	100.4	$	313.5
Cost of sales	—		94.2		71.2		188.9
Gross profit	—		66.8		29.2		124.6
Selling, general and administrative expenses (1)	—		30.3		19.9		62.2
Income from operations	—		36.5		9.3		62.4
Other income (expense), net	—		1.3		0.1		1.2
Earnings before income taxes (2)	—		37.8		9.4		63.6
Income taxes	—		4.5		(6.2)		11.2
Earnings from discontinued operations, net of tax	—		33.3		15.6		52.4
Gain / (loss) on disposition of discontinued operations, net of tax	(10.7)		—		1,706.6		—
Net earnings from discontinued operations	$	(10.7)	$	33.3	$	1,722.2	$	52.4

(1) Includes stock-based compensation expense of $0.5 for the three months ended June 30, 2021, and $0.9 and $1.8 for the six months ended June 30, 2022 and 2021, respectively. Stock-based compensation for discontinued operations was previously reported as a component of unallocated corporate general and administrative expenses. In connection with the sale of TransCore and Zetec, we recognized expense of $4.5 associated with accelerated vesting of share-based awards for the six months ended June 30, 2022. The charges associated with accelerated vesting were recorded as a component of “Gain/(loss) on disposition of discontinued operations, net of tax” within the Condensed Consolidated Statements of Earnings.

(2) During the three and six months ended June 30, 2022, there was no depreciation of property, plant and equipment or amortization of intangible assets given the asset classification as held for sale during the period. During the three and six months ended June 30, 2021 depreciation and amortization was $1.6 and $3.5, respectively.

The following tables summarize the major classes of assets and liabilities related to the discontinued operations of the Industrial Businesses, as reported in the Condensed Consolidated Balance Sheets:

	June 30, 2022 (1)		December 31, 2021
Accounts receivable, net	$	161.1	$	151.8
Inventories, net	133.1		106.9
Deferred taxes	48.5		—
Goodwill	597.0		—
Other intangible assets, net	72.8		—
Other current assets	98.8		30.7
Current assets held for sale	$	1,111.3	$	289.4
Goodwill	—		618.2
Other intangible assets, net	—		79.4
Deferred taxes	—		51.1
Other assets	—		56.2
Assets held for sale	$	—	$	804.9
Accounts payable	$	64.4	$	52.5
Accrued compensation	34.7		47.9
Deferred revenue	24.5		23.9
Deferred taxes	20.1		—
Income taxes payable	13.4		14.7
Operating lease liabilities	23.0		—
Other current liabilities	52.3		42.0
Current liabilities held for sale	$	232.4	$	181.0
Deferred taxes	$	—	$	13.3
Operating lease liabilities	—		24.1
Other liabilities	—		12.0
Liabilities held for sale	$	—	$	49.4

(1) All assets and liabilities held for sale were classified as current as it is probable the sale of the Industrial Businesses will be completed within one year.

The following table summarizes the major classes of revenue and expenses constituting net income from discontinued operations attributable to the Industrial Businesses:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenues	$	255.1	$	236.8	$	501.9	$	457.6
Cost of sales	121.4		108.7		235.3		209.8
Gross profit	133.7		128.1		266.6		247.8
Selling, general and administrative expenses (1)	66.8		62.8		134.5		125.5
Income from operations	66.9		65.3		132.1		122.3
Other income (expense), net	0.9		(0.2)		1.1		(0.5)
Earnings before income taxes (2)	67.8		65.1		133.2		121.8
Income taxes	13.3		16.5		27.5		26.3
Earnings from discontinued operations, net of tax	$	54.5	$	48.6	$	105.7	$	95.5

(1) Certain costs previously reported as a component of unallocated corporate general and administrative expenses have been reclassified to discontinued operations. These costs primarily include stock-based compensation expense of $2.6 and $3.4 for the three months ended June 30, 2022 and 2021, respectively, and $5.5 and $6.0 for the six months ended June 30, 2022 and 2021, respectively.

(2) Includes depreciation and amortization expense of $2.5 and $4.8 for the three months ended June 30, 2022 and 2021, respectively, and $6.4 and $9.8 for the six months ended June 30, 2022 and 2021, respectively.