Divestitures and Discontinued Operations

12 Months Ended

Dec. 31, 2023

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. As a result of this divestiture, the Company eliminated its Global Adjacent Markets segment on January 1, 2022. All segment results were reclassified for comparability. The 2021 financial results of these businesses are reflected in Corporate.

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, net of post-closing purchase price adjustments, of $42.2 million. The results of TAP have been presented as discontinued operations. For the year ended December 31, 2022, a loss on sale of $187.6 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. All historical segment results were reclassified for comparability.

Results of discontinued operations were as follows (in millions):



	2022		2021
Sales	$	349.3	$	759.0
Cost of sales	262.9		567.3
Other costs and expenses	100.9		194.7
Loss from discontinued operations before income taxes	(14.5)		(3.0)
Income tax benefit	(1.3)		(0.7)
Loss from discontinued operations, net of tax	(13.2)		(2.3)

Loss from sale of discontinued operations	187.6		—
Provision for income taxes	(45.0)		—
Loss from sale of discontinued operations, net of tax	142.6		—

Net loss from discontinued operations	$	(155.8)	$	(2.3)