Assets Held for Sale

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

6. Assets Held for Sale:

During the third quarter of 2023, we obtained Board approval and reached agreements to sell our European commercial HVAC and refrigeration businesses as well as our European Process Cooling business, both of which are expected to close in the fourth quarter of 2023. All of these businesses are included in the Corporate and Other segment. We have reclassified the assets and liabilities associated with these businesses to assets and liabilities held for sale. The following table presents the assets and liabilities classified as held for sale as of September 30, 2023 (in millions).

Assets held for sale
Cash and cash equivalents	$	7.6
Accounts and notes receivable, net of allowances	51.8
Inventories, net	49.8
Other assets	16.4
Property, plant, and equipment, net of accumulated depreciation	3.2
Goodwill	2.3
Valuation allowance	(38.3)
Total assets held for sale as of September 30, 2023	$	92.8
Liabilities held for sale
Current liabilities	$	61.0
Non-current liabilities	8.7
Total liabilities held for sale as of September 30, 2023	$	69.7

Based on the expected fair value of the consideration to be received for these businesses, net of our costs to sell, we recorded an impairment on assets held for sale of $63.2 million related to the sale of our European commercial HVAC and refrigeration businesses. The consideration will be a combination of cash, a note receivable, and contingent consideration. The impairment consists of a $38.3 million valuation allowance for the difference between the consideration, net of our cost to sell and the carrying value of the net assets, including related amounts in Accumulated Other Comprehensive Loss, $22.6 million impairment of Property, plant, and equipment, and a $2.3 million impairment of goodwill. The operating profits and losses generated from these businesses are not material for any period presented.