Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Roots™ Divestiture

On June 11, 2023, we signed a definitive agreement to divest our Roots™ (“Roots”) business, which we acquired as part of the Howden acquisition and is within the Specialty Products, Cryo Tank Solutions and Repair, Service & Leasing segments, to Ingersoll Rand Inc. (“buyer”). Pursuant to the Purchase Agreement and subject to the terms and conditions set forth therein, the business will be sold to the buyer for $300.0, subject to customary adjustments. The transaction, which is subject to customary closing conditions, is expected to close no later than August 18, 2023.

Our Roots business, met the criteria to be held for sale. Furthermore, we determined that the assets held for sale qualify for discontinued operations. As such, the financial results of the Roots business are reflected in our unaudited condensed consolidated statements of operations and comprehensive income (loss) as discontinued operations for our entire ownership period of March 17, 2023 through June 30, 2023. Furthermore, current and non-current assets and liabilities of discontinued operations are reflected in the unaudited condensed consolidated balance sheet at June 30, 2023.

Summarized Financial Information of Discontinued Operations

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

	June 30, 2023
Accounts receivable, less allowances	$	17.6
Inventories, net	40.0
Unbilled contract revenue	3.8
Prepaid expenses	0.3
Property, plant, and equipment, net	35.0
Goodwill	102.2
Identifiable intangible assets, net	108.5
Total assets of discontinued operations	$	307.4
Accounts payable	$	15.6
Customer advances and billings in excess of contract revenue	9.5
Accrued salaries, wages, and benefits	1.5
Current portion of warranty reserve	0.8
Short-term debt and current portion of long-term debt	0.2
Operating lease liabilities, current	0.3
Other current liabilities	0.3
Operating lease liabilities, non-current	1.8
Total liabilities of discontinued operations	$	30.0

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

	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Sales	$	34.9	$	41.3
Cost of sales	21.8		26.0
Gross profit	13.1		15.3
Selling, general, and administrative expenses	3.8		4.8
Operating expenses	3.8		4.8
Operating income	9.3		10.5
Other expenses:
Interest expense, net	5.9		5.9
Foreign currency loss	0.1		0.1
Other expense, net	6.0		6.0
Income before income taxes	3.3		4.5
Income tax expense	0.8		1.1
Total income from discontinued operations, net of tax	$	2.5	$	3.4

The following table represents a summary of cash flows related to discontinued operations:

Net cash provided by (used in):	Six Months Ended June 30, 2023
Operating activities	$	(5.5)
Investing activities	(2.1)
Net cash used in discontinued operations	$	(7.6)

There was no income or cash flows from discontinued operations for the three and six months ended June 30, 2022.