Discontinued Operations (Tables)

6 Months Ended

Jul. 03, 2021

Discontinued Operations, Disposed of by Sale | RX

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontined Operations - Financial Statement Information

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

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Net sales	$	204.5	$	270.4	$	404.5	$	528.1
Cost of sales	119.9		180.6		258.2		346.4
Gross profit	84.6		89.8		146.3		181.7
Operating expenses
Distribution	2.8		3.8		6.1		7.8
Research and development	17.3		16.4		30.6		30.1
Selling	8.8		7.4		16.2		14.7
Administration	12.4		8.1		30.6		14.5
Restructuring	—		0.4		—		0.4
Other operating expense (income)	0.5		(0.9)		(0.4)		0.2
Total operating expenses	41.8		35.2		83.1		67.7
Operating income (loss)	$	42.8	$	54.6	63.2		114.0
Interest expense, net	0.2		1.1		0.8		2.5
Other (income) expense, net	(0.2)		(2.9)		(1.7)		(2.1)
Income before income taxes	42.8		56.4		64.1		113.6
Income tax expense (benefit)	(11.4)		8.2		(25.4)		16.7
Income from discontinued operations, net of tax	$	54.2	$	48.2	$	89.5	$	96.9

During the three and six months ended July 3, 2021, we incurred $2.4 million and $11.7 million, respectively, 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):

	Six Months Ended
	July 3, 2021		June 27, 2020
Cash flows from discontinued operations operating activities:
Depreciation and amortization	$	15.3	$	48.2
Cash flows from discontinued operations investing activities:
Asset acquisitions	$	(69.7)	$	(0.1)
Additions to property, plant and equipment	$	(6.1)	$	(5.6)

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

	July 3, 2021		December 31, 2020
Cash and cash equivalents	$	9.3	$	10.0
Accounts receivable, net of allowance for credit losses of $1.0 and $1.1, respectively	496.4		460.7
Inventories	143.4		140.8
Prepaid expenses and other current assets	21.4		55.4
Current assets held for sale*			666.9
Property, plant and equipment, net	133.3		131.4
Operating lease assets	30.0		31.3
Goodwill and indefinite-lived intangible assets	680.0		681.2
Definite-lived intangible assets, net	532.9		492.8
Deferred income taxes	4.2		3.6
Other non-current assets	22.6		23.7
Non-current assets held for sale*			1,364.0
Total assets held for sale	$	2,073.5	$	2,030.9
Accounts payable	$	91.6	$	92.2
Payroll and related taxes	14.1		22.3
Accrued customer programs	235.6		237.4
Other accrued liabilities	27.4		67.2
Accrued income taxes	0.1		—
Current indebtedness	0.5		0.5
Current liabilities held for sale*			419.6
Long-term debt, less current portion	0.4		0.7
Deferred income taxes	3.2		3.1
Other non-current liabilities	64.6		104.5
Non-current liabilities held for sale*			108.3
Total liabilities held for sale	$	437.5	$	527.9

*The non-current assets and liabilities of the RX business have been reclassified to current assets and liabilities held for sale, respectively, and the sale was completed on July 6, 2021