Discontinued Operations

12 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

On August 20, 2019, the Company announced plans to divest the product distribution businesses in Europe, the UK, Mexico, Colombia, Chile, Peru and the Miami-based export operations, (the "Divestitures"), as these businesses were performing below management's expectations. The Company continues to operate its digital business in these countries. Management determined that the Company did not have sufficient scale in these markets to maximize the value-added model for product distribution, leading the Company to focus and invest in its higher-growth, higher margin businesses. Results from the Divestitures were included within each reportable segment, which includes the Specialty Technology Solutions and Modern Communications & Cloud segments.

The Company signed an agreement on July 23, 2020 with Intcomex for its businesses located in Latin America, outside of Brazil. The Company finalized the sale of the Latin America businesses on October 30, 2020. The Company also finalized the sale of the Europe and UK businesses on November 12, 2020. Total cash received for the sale of the Divestitures was $39.2 million.

During the fiscal year ended June 30, 2021, the Company recorded a pre-tax loss on disposal group of $34.5 million, which was primarily attributable to a reduction in the net proceeds realized at closing for the Divestitures. The Company received cash for the sale of Divestitures totaling $34.4 million during the fiscal year ended June 30, 2021.

During the fiscal year ended June 30, 2022, the Company received a second payment of $3.1 million for its businesses in Latin America, outside of Brazil, related to working capital adjustments and in accordance with the Share Purchase Agreement between Intcomex and the Company. The receipt of payment resulted in a gain on disposal group of $0.1 million.

During the fiscal year ended June 30, 2023, the Company received a third payment related to a tax settlement of $1.7 million for its businesses in Latin America, outside of Brazil. The receipt of payment resulted in a gain on disposal group of $1.7 million.

Major components of net loss from discontinued operations for the years ended June 30, 2023, 2022 and 2021 were as follows:


	Fiscal Year Ended June 30,
	2023		2022		2021
	(in thousands)
Net sales	$	—	$	—	$	213,373
Cost of goods sold	—		—		198,512
Gross profit	—		—		14,861
Selling, general and administrative expenses	—		—		17,291



Operating loss	—		—		(2,430)
Interest expense, net	—		—		394
(Gain) loss on held for sale classification	(1,717)		(100)		34,597
Other expense, net	—		—		310
Income (loss) from discontinued operations before taxes	1,717		100		(37,731)
Income tax (benefit) expense	—		—		(3,137)
Net income (loss) from discontinued operations	$	1,717	$	100	$	(34,594)

Significant non-cash operating items and capital expenditures reflected in the cash flows from discontinued operations for the fiscal years ended June 30, 2023, 2022 and 2021 were as follows:



	Fiscal Year Ended June 30,
	2023		2022		2021
	(in thousands)
Loss on held for sale classification	$	—	$	—	$	34,597


Capital expenditures	—		—		(58)