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Divestitures and Discontinued Operations
 9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures and Discontinued Operations Divestitures and Discontinued Operations
2021 Divestitures.
In an effort to more strategically allocate the Company’s resources, the Company sold its Global Electric Motorcar (“GEM”) and Taylor-Dunn businesses on December 31, 2021. The sale resulted in a loss of $36.8 million which was recorded in the fourth quarter of 2021. The 2021 financial results of these businesses are reflected in the Corporate segment.
2022 Divestitures.
On July 1, 2022, the Company completed the sale of its Transamerican Auto Parts (“TAP”) business, an aftermarket parts business, for a sales price of $50.0 million, subject to customary post-closing purchase price adjustments. TAP is a vertically integrated manufacturer, distributor, retailer, and installer of off-road Jeep and truck parts and accessories. The transaction included TAP’s full portfolio of operations, including all brands, product lines, manufacturing operations, distribution facilities, more than 100 4 Wheel Parts retail locations, and more than 1,700 TAP employees.
The results of TAP have been presented as discontinued operations and the related assets and liabilities have been classified as held for sale for all periods presented. As a result, for the year-to-date period an impairment and loss on sale of $187.8 million was recorded which resulted in a $45.0 million income tax benefit.
TAP was historically included within the Company’s Aftermarket segment; however, as a result of the divestiture, the Company began management of its portfolio of businesses under a new basis as of June 30, 2022. The Aftermarket segment was eliminated and the results of the Company’s remaining aftermarket businesses historically included within the Aftermarket segment were reclassified to the Off-Road and On-Road segments. The comparative 2021 segment results were reclassified for comparability.
Results of discontinued operations were as follows (in millions):
Three months ended September 30,Nine months ended September 30,
2022202120222021
Sales $— $181.8 $349.3 $581.2 
Cost of sales — 136.2 262.9 432.9 
Other costs and expenses2.0 48.7 99.5 146.1 
Income (loss) from discontinued operations before income taxes (2.0)(3.1)(13.1)2.2 
Income tax expense (benefit)1.5 (0.7)(1.2)0.2 
Income (loss) from discontinued operations, net of tax(3.5)(2.4)(11.9)2.0 
Impairment of discontinued operations— — 187.8 — 
Provision for income taxes0.6 — (45.0)— 
Loss from sale / impairment of discontinued operations, net of tax0.6 — 142.8 — 
Net income (loss) from discontinued operations$(4.1)$(2.4)$(154.7)$2.0 
The carrying amounts of major classes of assets and liabilities of discontinued operations were as follows (in millions):
December 31, 2021
Cash$6.9 
Trade receivables12.6 
Inventories, net134.1 
Other current assets9.6 
Current assets held for sale$163.2 
Property and equipment, net$47.7 
Intangible assets, net102.3 
Operating lease assets74.8 
Other long-term assets1.2 
Long-term assets held for sale$226.0 
Accounts payable$21.5 
Accrued expenses and other current liabilities66.5 
Current operating lease liabilities19.8 
Current liabilities held for sale$107.8 
Long-term operating lease liabilities$57.2 
Other long-term liabilities8.9 
Long-term liabilities held for sale$66.1