Discontinued Operations

On December 20, 2018, we closed the sale of our oxygen-related products business, which was formerly within our BioMedical segment prior to our strategic realignment in the third quarter of 2018 discussed in Note 4, “Segment and Geographic Information,” to NGK SPARK PLUG CO., LTD. for $133.5 (the “Divestiture”). The strategic decision to divest the oxygen-related products business reflects our strategy and capital allocation approach to focus on our core capabilities and offerings. We recorded a gain on the Divestiture of $34.3 for the year ended December 31, 2018.

As a result of the Divestiture, the asset group, which included our respiratory and on-site generation systems businesses, met the criteria to be held for sale in the balance sheet as of December 31, 2017. Furthermore, we determined that the assets held for sale qualified for discontinued operations for the years ended December 31, 2018, 2017 and 2016. As such, the financial results of the respiratory therapy and on-site generation systems businesses are reflected in our consolidated statements of income and consolidated statements of comprehensive income as discontinued operations for all periods presented. Interest expense of $3.2, $2.1 and $2.2 was allocated to discontinued operations for the years ended December 31, 2018, 2017 and 2016, respectively, based on the net assets of the discontinued operations as a percentage of the net assets of Chart. Current and non-current assets and liabilities of discontinued operations are reflected in the audited consolidated balance sheet as of December 31, 2017.

Summarized Financial Information of Discontinued Operations

The following table represents income from discontinued operations, net of tax:



	Year Ended December 31,
	2018		2017			2016
Sales	$	157.0	$	145.9		$	137.2
Cost of sales	115.8		105.4			80.5
Selling, general and administrative expenses	32.7		34.2			37.2
Amortization expense	2.3		2.8			3.1
Operating income ⁽¹⁾	6.2		3.5			16.4
Interest expense, net	3.2		2.1			2.2
Other expense (income), net	0.1		(1.1		)	(0.1		)
Income before income taxes	2.9		2.5			14.3
Income tax expense	2.8		0.7			3.1
Income from discontinued operations before gain on sale of business	0.1		1.8			11.2
Gain on sale of business, net of taxes of $2.6	34.3		—			—
Income from discontinued operations, net of tax	$	34.4	$	1.8		$	11.2

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⁽¹⁾	Includes depreciation expense of $1.7, $1.6, and $1.4 for the years ended December 31, 2018, 2017 and 2016, respectively.

The following table represents the assets and liabilities from discontinued operations:



	December 31, 2017
Accounts receivable, net	$	26.3
Inventories, net	35.2
Unbilled contract revenue	0.5
Prepaid expenses	1.0
Deferred income taxes	3.7
Current assets of discontinued operations	$	66.7

Property, plant, and equipment, net	12.6
Goodwill	9.1
Identifiable intangible assets, net	16.1
Other assets	0.4
Non-current assets of discontinued operations	$	38.2

Accounts payable	8.6
Customer advances and billings in excess of contract revenue	0.6
Accrued salaries, wages, and benefits	2.7
Current portion of warranty reserve	2.6
Other current liabilities	1.4
Current liabilities of discontinued operations	$	15.9

Long-term deferred tax liabilities	0.4
Other long-term liabilities	2.2
Non-current liabilities of discontinued operations	$	2.6