Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On August 16, 2021, the Company entered into a definitive agreement under which the Company sold the assets of the Company’s Rail Leasing business for a cash purchase price of approximately $543.1 million which resulted in a loss of $1.5 million. In conjunction with the sale of the Rail Leasing business, the Company announced its intent to divest the remaining pieces of the Rail Leasing business and the Rail Repair business.

In 2022, the Company finalized the definitive agreement to sell the Rail Repair business and divested substantially all of the remaining leases from the Rail Leasing business. The sale of the Rail Repair business for a purchase price of approximately $56.3 million, resulted in a pre-tax gain of approximately $27.1 million that was recorded in Other income, net in the table below.

As a result of the sale of the Rail Leasing business and the intent to divest the Rail Repair business in the third quarter of 2021, substantially all of the assets and liabilities of the former Rail segment was classified as held for sale in the accompanying Consolidated Balance Sheets. As a part of the definitive agreement to sell the Rail Repair business, the Company retained the working capital from the Rail Repair business along with a small group of right of use assets and lease liabilities from the Rail Leasing business that were not sold. These balances are included in continuing operations within the Consolidated Balance Sheet as of December 31, 2022.

The table below summarizes the results of the Rail Leasing business and the Rail Repair business for the years ended December 31, 2022, 2021 and 2020, which are reflected in the Consolidated Statements of Operations as Income from discontinued operations, net of income taxes:

	Year ended December 31,
(in thousands)	2022		2021		2020
Sales and merchandising revenues	$	25,121	$	116,787	$	143,816
Cost of sales and merchandising revenues	26,244		88,393		105,091
Gross profit (loss)	(1,123)		28,394		38,725
Operating, administrative and general expenses	3,968		12,350		21,512
Asset impairment	2,818		626		—
Interest expense, net	—		8,783		17,491
Other income, net	33,046		1,020		2,885
Income from discontinued operations before income taxes	25,137		7,655		2,607
Income tax provision from discontinued operations	13,112		3,331		651
Income from discontinued operations, net of income taxes	$	12,025	$	4,324	$	1,956

The following table summarizes the assets and liabilities which are classified as held-for-sale in the Consolidated Balance Sheets as of December 31, 2022 and 2021.

(in thousands)	December 31, 2022		December 31, 2021
Assets
Current assets:
Accounts receivable, net	$	—	$	12,643
Inventories	—		6,739
Other current assets	2,871		1,503
Current assets held-for-sale	2,871		20,885
Other assets:
Rail assets leased to others, net	—		458
Property, plant and equipment, net	—		17,280
Goodwill	—		4,167
Other intangible assets, net	—		24
Right of use assets, net	—		20,999
Other assets, net	—		241
Non-current assets held-for-sale	—		43,169
Total assets held-for-sale	$	2,871	$	64,054
Liabilities
Current liabilities:
Trade and other payables	$	—	$	2,546
Short-term lease liabilities	—		4,672
Accrued expenses and other current liabilities	—		6,161
Current liabilities held-for-sale	—		13,379
Long-term lease liabilities	—		16,119
Non-current liabilities held-for-sale	—		16,119
Total liabilities held-for-sale	$	—	$	29,498

The following table summarizes cash flow information relating to discontinued operations for the years ended December 31, 2022, 2021 and 2020, respectively:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Depreciation and amortization	$	—	$	21,760	$	35,573
Rail capital expenditures	(31,458)		(8,669)		(32,161)
Proceeds from sale of Rail assets	36,706		19,150		10,077
Loss (gain) on sale of discontinued operations	(27,091)		1,491		—
Non-cash operating activities - gain on sale of railcars	(5,463)		(5,603)		(649)
Non-cash operating activities - asset impairment	2,818		626		—
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end	—		—		491