Discontinued Operations (Tables)

3 Months Ended

Apr. 03, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontined Operations - Financial Statement Information

Income from discontinued operations, net of tax was as follows (in millions):

	Three Months Ended
	April 3, 2021		March 28, 2020
Net sales	$	200.1	$	257.7
Cost of sales	138.3		165.8
Gross profit	61.8		91.9
Operating expenses
Distribution	3.3		4.0
Research and development	13.4		13.6
Selling	7.4		7.3
Administration	18.2		6.5
Other operating expense (income)	(0.9)		1.1
Total operating expenses	41.4		32.5
Operating income	$	20.4	$	59.4
Interest expense, net	0.6		1.4
Other (income) expense, net	(1.5)		0.7
Income before income taxes	21.3		57.3
Income tax expense (benefit)	(14.0)		8.5
Income from discontinued operations, net of tax	$	35.3	$	48.8

During the three months ended April 3, 2021, we incurred $9.3 million of separation costs related to the sale of the RX business, which are recorded in administration expenses.

Select cash flow information related to discontinued operations was as follows (in millions):

	Three Months Ended
	April 3, 2021		March 28, 2020
Cash flows from discontinued operations operating activities:
Depreciation and amortization	$	15.3	$	24.0
Cash flows from discontinued operations investing activities:
Asset acquisitions	$	(69.7)	$	(0.1)
Additions to property, plant and equipment	$	(3.2)	$	(2.9)

The assets and liabilities classified as held for sale were as follows (in millions):

	April 3, 2021		December 31, 2020
Cash and cash equivalents	$	9.6	$	10.0
Accounts receivable, net of allowance for credit losses of $1.1 and $1.1, respectively	419.9		460.7
Inventories	136.8		140.8
Prepaid expenses and other current assets	29.7		55.4
Current assets held for sale*			666.9
Property, plant and equipment, net	126.4		131.4
Operating lease assets	29.6		31.3
Goodwill and indefinite-lived intangible assets	678.7		681.2
Definite-lived intangible assets, net	533.0		492.8
Deferred income taxes	3.0		3.6
Other non-current assets	22.4		23.7
Non-current assets held for sale*			1,364.0
Total assets held for sale	$	1,989.1	$	2,030.9
Accounts payable	$	101.1	$	92.2
Payroll and related taxes	16.7		22.3
Accrued customer programs	185.9		237.4
Other accrued liabilities	47.4		67.2
Current indebtedness	0.5		0.5
Current liabilities held for sale*			419.6
Long-term debt, less current portion	0.6		0.7
Deferred income taxes	2.9		3.1
Other non-current liabilities	94.9		104.5
Non-current liabilities held for sale*			108.3
Total liabilities held for sale	$	450.0	$	527.9

*As of April 3, 2021, the non-current assets and liabilities of the RX business have been reclassified to current assets and liabilities held for sale, respectively, due to the expected completion of the sale of the business in the third quarter of 2021, as discussed above