Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

During the fourth quarter of 2020, the Company committed to a plan to dispose its Industrial business as a result of its portfolio management strategy to focus on participation in higher value and faster growing markets. The Industrial business, previously reported in the Company's Industrial and Infrastructure Products segment, has been classified as held for sale. Accordingly, the results of operations and financial position of the held for sale Industrial business have been presented as a discontinued operation in the Company's consolidated financial statements for all periods presented. The assets and liabilities of discontinued operations held for sale are presented as current respectively at December 31, 2020 as it is probable that the disposal by sale will occur and proceeds will be collected within one year.

The Company allocates interest to its discontinued operations in accordance with ASC Subtopic 205-20, “Presentation of Financial Statements – Discontinued Operations.” Interest was allocated based on the amount of net assets held by the discontinued operation in comparison to consolidated net assets.

The following carrying amounts of the major classes of assets and liabilities included in discontinued operations related to the Industrial business has been segregated from the Company's continuing operations and are reported

as assets and liabilities of discontinued operations held for sale. respectively, in the consolidated balance sheets at December 31, (in thousands):


	2020		2019
Assets
Accounts receivable, net	$	11,261	$	13,620
Inventories, net	13,041		16,519
Prepaid expenses and other current assets	21,310		789
Total current assets (1)	45,612		30,928
Property, plant, and equipment, net	16,999		17,257
Operating lease assets	6,470		6,461
Goodwill	22,475		22,350
Acquired intangibles	15,482		15,858
Loss recognized on classification as held for sale	(29,600)		—
Total noncurrent assets (1)	31,826		61,926
Total assets classified as held for sale	$	77,438	$	92,854

Liabilities
Accounts payable	$	10,708	$	10,508
Accrued expenses	9,274		11,866
Total current liabilities (1)	19,982		22,374
Deferred income taxes	24,657		4,930
Non-current operating lease liabilities	4,639		4,726
Other non-current liabilities	17		14
Total noncurrent liabilities (1)	29,313		9,670
Total liabilities classified as held for sale	$	49,295	$	32,044

(1) The assets and liabilities of the disposal group classified as held for sale are classified as current on the December 31, 2020 consolidated balance sheet because it is probable that the sale will occur and proceeds will be collected within one year.

Components of the (loss) income from discontinued operations before taxes, including the interest allocated to discontinued operations, for the years ended December 31 were as follows (in thousands):


	2020		2019		2018
Net sales	$	128,915	$	150,225	$	166,378
Operating expenses	115,822		143,335		151,924
Loss on classification as held for sale	29,600		—		—
Interest expense allocation	95		208		1,632
(Loss) income from discontinued operations before taxes	$	(16,602)	$	6,682	$	12,822