Divestitures (Tables)

12 Months Ended

May 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations Disclosure

The following table summarizes the financial results of discontinued operations:

	Year ended May 31,
(in thousands)	2019		2018
Net sales	$	88,850	$	82,630
Cost of sales (exclusive of amortization)	52,978		49,611
Gross profit	35,872		33,019
Operating expenses
Research and development	1,177		1,121
Sales and marketing	4,129		4,167
General and administrative	271		274
Amortization of intangibles	2,716		2,729
Total operating expenses	8,293		8,291
Operating income	27,579		24,728
Gain on divestiture	46,592		—
Income from discontinued operations before income taxes	74,171		24,728
Income tax expense	(1,685)		(2,166)
Income from discontinued operations	$	72,486	$	22,562

The table below provides a reconciliation of the gain recorded on the sale of the Fluid Management business:

(in thousands)
Proceeds received from Divestiture	$	169,242
Working capital adjustment	(612)
Fluid Management assets:
Inventories	11,029
Property, plant and equipment, net	16,624
Intangible assets, net	15,047
Goodwill	75,308
Total Fluid Management assets	118,008
Transaction costs for Divestiture (1)	4,030
Gain on sale of the Fluid Management business before income taxes	$	46,592

(1) Costs include advisory fees, legal fees and professional fees

Proceeds from the sale of Fluid Management have been presented in the Consolidated Statements of Cash Flows under investing activities for the fiscal year ended May 31, 2019.  Total operating and investing cash flows of discontinued operations for the fiscal year ended May 31, 2019 and 2018 are comprised of the following, which exclude the effect of income taxes:

(in thousands)	2019		2018
Net cash provided by operating activities	$	2,245	$	5,581
Net cash provided by investing activities	982		1,146