Discontinued Operations

3 Months Ended

Mar. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

International Businesses

On December 29, 2023, the Company completed the European Divestiture for aggregate deal consideration of $575.0 million, adjusted for customary purchase price adjustments resulting in total cash consideration of $565.9 million (see Note 1 to the Consolidated Financial Statements). The European Divestiture excluded the Remaining International Businesses. This deal is the first of several transactions that will occur in 2024 as part of a Board-approved plan to sell all of our international businesses representing a strategic shift in our operations. Accordingly, the International Businesses are presented herein as discontinued operations for all periods presented.

In connection with the European Divestiture, the Company and the purchaser entered into a transition services agreement pursuant to which the purchaser will provide certain information technology and shared service center services to the Company for various periods. For the three months ended March 30, 2024, these services were not material.

The major components of Net income from discontinued operations, net of income taxes in the accompanying Consolidated Statement of Operations include the following:


	For the Three Months Ended
(in millions of U.S. dollars)	March 30, 2024		April 1, 2023
Revenue, net	$	79.1	$	134.0
Cost of sales	46.3		64.7
Gross profit	32.8		69.3
Selling, general and administrative expenses	23.7		68.9
Loss on disposal of property, plant and equipment, net	0.1		—
Acquisition and integration expenses	—		0.3
Operating income from discontinued operations	9.0		0.1
Other income, net	—		(6.0)
Loss on sale of discontinued operations	0.5		—
Interest expense, net	0.6		0.6
Income from discontinued operations, before income taxes	$	7.9	$	5.5
Income tax expense	1.6		2.9
Net income from discontinued operations, net of income taxes	$	6.3	$	2.6

Assets and liabilities of discontinued operations presented in the accompanying Consolidated Balance Sheets as of March 30, 2024 and December 30, 2023 include the following:


(in millions of U.S. dollars)	March 30, 2024		December 30, 2023
ASSETS
Cash and cash equivalents	$	27.0	$	22.6
Accounts receivable, net of allowance of $3.1 ($3.4 as of December 30, 2023)	59.4		67.4
Inventories	31.8		31.9
Prepaid expenses and other current assets	7.7		6.8
Current assets of discontinued operations	$	125.9	$	128.7
Property, plant and equipment, net	86.1		83.7
Operating lease right-of-use-assets	37.7		37.9
Goodwill	47.5		48.5
Intangible assets, net	60.5		61.5
Other long-term assets, net 1	(6.6)		(6.0)
Long-term assets of discontinued operations	$	225.2	$	225.6
LIABILITIES
Short-term borrowings	$	18.7	$	18.4
Current maturities of long-term debt	3.4		3.5
Accounts payable and accrued liabilities	75.3		83.4
Current operating lease obligations	4.7		4.6
Current liabilities of discontinued operations	$	102.1	$	109.9
Long-term debt	9.1		9.2
Operating lease obligations	32.1		33.6
Deferred tax liabilities	7.5		7.0
Other long-term liabilities	2.3		2.4
Long-term liabilities of discontinued operations	$	51.0	$	52.2

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1 Includes the impairment recorded to reduce the carrying value of the Remaining International Businesses to the fair value less costs to sell.