Acquisitions, Divestitures and Discontinued Operations

6 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions, Divestitures and Discontinued Operations

Acquisitions

The Company acquired several businesses for approximately $98,018 and $33,047, net of cash acquired, during the six months ended June 30, 2021 and June 30, 2020, respectively. The measurement period is still open for certain businesses acquired in prior periods, but there have been no significant measurement period adjustments during the three and six months ended June 30, 2021.

Divestitures

The Company received cash proceeds from divestitures of businesses totaling $13,705 and $382,737 for the six months ended June 30, 2021 and June 30, 2020, respectively.

Discontinued Operations

Business Products Group

During 2020, the Company completed the divestiture of its Business Products Group as part of its long-term strategic initiative to streamline its operations and optimize its portfolio so that it can drive shareholder value by focusing on its global Automotive and Industrial Parts Groups. This divestiture represented a single plan to exit the Business Products Group segment and was considered a strategic shift that had a major effect on the Company’s operations and financial results. Therefore, the results of operations, financial position and cash flows for the Business Products Group are reported as discontinued operations for all prior periods presented.

The Company retains an investment in S.P. Richard's (“SPR”), a business that previously belonged to the Business Products Group, with a carrying value of $70,576, which is included within other assets on the condensed consolidated balance sheets, as of June 30, 2021. The Company maintains an allowance equal to the current expected credit loss based on a consideration of historical experience, current market conditions and reasonable and supportable forecasts related to this investment and other related assets of $17,000.

The Company also remains involved with SPR for a limited period of time through various lease, sublease, freight distribution and transition service agreements. The Company has concluded that SPR is a variable interest entity, but the Company is not the primary beneficiary and therefore the entity is not consolidated. Among other things, the Company does not have any voting rights and does not have the power to direct the activities that most significantly affect SPR's economic performance. For a limited period of time as SPR completes its transition away from the Company’s shared services platform, the Company continues to pay certain payables on SPR’s behalf and at SPR’s direction with full reimbursement from SPR under the terms of a transition services agreement.

The Company’s results of operations for discontinued operations were:


	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Net sales	$	379,938	$	846,944
Cost of goods sold	277,614		632,007
Gross profit	102,324		214,937
Operating expenses	89,385		179,461
Loss on disposal	216,133		220,318
Loss before income taxes	(203,194)		(184,842)
Income tax (benefit) expense	(2,323)		1,840
Net loss from discontinued operations	$	(200,871)	$	(186,682)