Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

As disclosed in Note 1, on August 1, 2023, the Company completed the sale of AeroTech to the Purchaser in exchange for cash consideration of $808.2 million (the "Transaction") and recognized a gain on the Transaction of $443.7 million, net of $131.4 million of income taxes.

In connection with the Transaction, the Company and the Purchaser entered into a Transition Services Agreement (the "TSA") for the provision of information technology related services for 12 months and of other services for up to 6 months to support the transition of the AeroTech business, subject to the terms and conditions set forth therein. In addition, the TSA provided the Purchaser options to extend the term for information technology related services for up to another 6 months. Services under the TSA are expected to be completed and the TSA effectively concluded in the third quarter of 2024. TSA income is recognized as services are performed, and the income earned is recorded in Selling, general and administrative expense within the Condensed Consolidated Statements of Income to offset the costs incurred to support the TSA. During the six months ended June 30, 2024, the Company's cash inflows from the Purchaser related to the TSA was $3.9 million.

Summarized Discontinued Operations Financial Information

The following table summarizes the results of operations classified as discontinued operations, net of taxes, in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023.


(In millions)	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Revenue	$	164.3	$	305.3
Operating expenses:
Cost of sales	135.1		248.4
Selling, general and administrative expense	19.9		33.8
Operating income	9.3		23.1
Interest expense	0.8		1.6
Income from discontinued operations before income taxes	8.5		21.5
Income tax provision	4.2		7.1
Income from discontinued operations, net of taxes	$	4.3	$	14.4

In accordance with ASC 205-20, Allocation of Interest to Discontinued Operations, the Company elected to allocate interest expense to discontinued operations for the Company's debt that was not directly attributed to the AeroTech business. Interest expense was allocated based on a ratio of net assets of discontinued operations to the sum of consolidated net assets and consolidated debt.