Discontinued Operations (Tables)

9 Months Ended

Oct. 02, 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				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Net sales	$	0.5	$	210.7	$	405.1	$	738.8
Cost of sales	0.1		149.8		258.4		496.2
Gross profit	0.4		60.9		146.7		242.6
Operating expenses
Distribution	—		3.6		6.1		11.4
Research and development	0.2		11.9		30.8		42.1
Selling	0.1		7.6		16.3		22.3
Administration	4.9		8.7		35.6		23.2
Impairment charges	—		202.4		—		202.4
Restructuring	—		—		—		0.4
Other operating expense (income)	—		0.6		(0.4)		0.8
Total operating expenses	5.2		234.8		88.4		302.6
Operating income (loss)	(4.8)		(173.9)		58.3		(60.0)
Interest expense, net	—		0.7		0.8		3.2
Other (income) expense, net	(63.7)		1.5		(65.5)		(0.7)
Income before income taxes	58.9		(176.1)		123.0		(62.5)
Income tax expense (benefit)	63.9		4.9		38.5		21.5
Income (loss) from discontinued operations, net of tax	$	(5.0)	$	(181.0)	$	84.5	$	(84.0)

During the three and nine months ended October 2, 2021, we incurred $29.1 million and $40.8 million, respectively, of separation costs related to the sale of the RX business. The costs incurred during the three months ended October 2, 2021 included selling costs, which were reported in other (income) expense, net as part of the gain on sale of the RX business. Separation costs incurred in prior periods were included in administration expenses.

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

	Nine Months Ended
	October 2, 2021		September 26, 2020
Cash flows from discontinued operations operating activities:
Depreciation and amortization	$	15.3	$	72.4
Impairment charges	—		202.4
Loss (Gain) on sale of business	(63.9)		—
Cash flows from discontinued operations investing activities:
Asset acquisitions	$	(69.7)	$	(0.9)
Additions to property, plant and equipment	(6.6)		(10.0)
Net proceeds from sale of business	1,493.1		—

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

	December 31, 2020
Cash and cash equivalents	$	10.0
Accounts receivable, net of allowance for credit losses of $1.1	460.7
Inventories	140.8
Prepaid expenses and other current assets	55.4
Current assets held for sale	666.9
Property, plant and equipment, net	131.4
Operating lease assets	31.3
Goodwill and indefinite-lived intangible assets	681.2
Definite-lived intangible assets, net	492.8
Deferred income taxes	3.6
Other non-current assets	23.7
Non-current assets held for sale	1,364.0
Total assets held for sale	$	2,030.9
Accounts payable	$	92.2
Payroll and related taxes	22.3
Accrued customer programs	237.4
Other accrued liabilities	67.2
Current indebtedness	0.5
Current liabilities held for sale	419.6
Long-term debt, less current portion	0.7
Deferred income taxes	3.1
Other non-current liabilities	104.5
Non-current liabilities held for sale	108.3
Total liabilities held for sale	$	527.9