DIVESTITURES AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

North America Divestiture

On December 1, 2022, the Company completed the sale of our Communication Solutions business for cash proceeds of approximately $45.0 million. The transaction resulted in a divestiture gain of $15.6 million. In connection with the transaction, the Company entered into certain additional ancillary agreements including a TSA, for up to twelve months. The Company allocated and deferred $1.4 million of the proceeds, which will be recognized over the duration of the TSA period offsetting the expenses incurred to deliver TSA services not reimbursed by the buyer.

International Divestitures

On June 1, 2023, the Company exited its operations in the Republic of Korea, for cash proceeds of approximately $109.3 million. The transaction resulted in a second quarter divestiture pre-tax gain of $50.8 million, of which $2.7 million of gain relates to the reclassification of non-cash accumulated currency translation adjustments to earnings.

On May 24, 2023, the Company exited its operations in Australia and Singapore, for cash proceeds of approximately $2.9 million. The transaction resulted in a second quarter divestiture pre-tax loss of $7.3 million, of which $2.2 million of loss relates to the reclassification of non-cash accumulated currency translation adjustments to earnings.

On April 20, 2023, the Company exited its operations in Brazil for cash consideration to the acquirer of approximately $28.0 million. The transaction resulted in a second quarter divestiture pre-tax loss of $96.2 million, of which $70.1 million of loss relates to the reclassification of non-cash accumulated currency translation adjustments to earnings. In connection with the agreement, the Company entered into a TSA with the acquirer for a period of up to six months. The agreement provides for indemnifications to the acquirer against certain liabilities.

On January 19, 2023, the Company exited its International container manufacturing operations, for cash proceeds of approximately $2.2 million. The transaction resulted in a first quarter divestiture pre-tax loss of $5.0 million. In connection with the transaction, the Company entered into certain additional ancillary agreements, including an exclusive two-year supply agreement for containers.

In June 2023, the Company approved plans to divest its dental recycling business in the Netherlands and its SID joint venture in the UAE, resulting in second quarter pre-tax charges of $1.5 million.

In July 2023, the Company entered into a definitive agreement and completed the sale of the dental recycling business in Netherlands for nominal consideration.

Stericycle recognized the following pre-tax Divestiture losses (gains), net in the Condensed Consolidated Statements of (Loss) Income:


In millions
	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	(Gain) Loss - pre-cumulative currency translation		Cumulative currency translation (gain) loss realized		Total (Gain) Loss		(Gain) Loss - pre-cumulative currency translation		Cumulative currency translation (gain) loss realized		Total (Gain) Loss
Divestitures




International Segment
Republic of Korea Operations	$	(48.1)	$	(2.7)	$	(50.8)	$	(48.1)	$	(2.7)	$	(50.8)
Australia and Singapore Operations	5.1		2.2		7.3		5.1		2.2		7.3
Brazil Operations	26.1		70.1		96.2		26.1		70.1		96.2
International Container Manufacturing Operations	—		—		—		5.0		—		5.0
Other Businesses	1.5		—		1.5		1.5		—		1.5


Divestiture losses (gains), net	$	(15.4)	$	69.6	$	54.2	$	(10.4)	$	69.6	$	59.2

Revenues of the completed divestiture transactions in 2023, each individually contributed less than 1% or in aggregate approximately 2.9% of consolidated revenues in the year ended December 31, 2022.

Asset Impairments

On June 30, 2023, the Company recognized an impairment in COR of $3.4 million in International associated with certain long-lived assets, primarily property, plant and equipment, in Romania.