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DIVESTITURES
 6 Months Ended
Jul. 01, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DIVESTITURES DIVESTITURES
2023 DIVESTITURES

The Company did not complete any material divestitures in the first six months of 2023.

2022 DIVESTITURES

Oil & Gas business

On August 19, 2022, the Company completed the sale of its Oil & Gas business comprised of the pipeline services and equipment businesses to Pipeline Technique Limited and recognized a pre-tax loss of $8.6 million. This divestiture did not qualify for discontinued operations and therefore, its results were included in the Company's continuing operations within the Industrial segment through the date of sale. The pre-tax loss for this business was $0.9 million and $5.6 million for the three and six months ended July 2, 2022, respectively.

In addition, the Company recognized a $168.4 million pre-tax asset impairment charge to adjust the carrying amount of the long-lived assets of the Oil & Gas business to its fair value less the costs to sell during the second quarter of 2022.

Commercial Electronic Security and Healthcare businesses

On July 22, 2022, the Company completed the sale of its Convergent Security Solutions ("CSS") business comprised of the commercial electronic security and healthcare businesses to Securitas AB for net proceeds of approximately $3.1 billion and a pre-tax gain of $588 million.

As part of the purchase and sale agreement, the Company is providing transition services relating to certain administrative functions for Securitas AB for an initial period of one year or less, pending integration of these functions into their pre-existing business processes. A portion of the net proceeds received at closing was deferred to reimburse the Company for transition service costs expected to be incurred.

Mechanical Access Solutions business
On July 5, 2022, the Company completed the sale of its Mechanical Access Solutions ("MAS") business comprised of the automatic doors business to Allegion plc for net proceeds of $916.0 million and a pre-tax gain of $609 million.
As part of the purchase and sale agreement, the Company is providing transition services relating to certain administrative functions for Allegion plc for an initial period of two years or less, pending integration of these functions into their pre-existing business processes.
The CSS and MAS divestitures represented a single plan to exit the Security segment and were considered a strategic shift that had a major effect on the Company’s operations and financial results. As such, the 2022 operating results of CSS and MAS were reported as discontinued operations. These divestitures allowed the Company to invest in other areas that fit into its long-term strategy.

Summarized operating results of discontinued operations are presented in the following table for the three and six months ended July 1, 2023 and July 2, 2022:
Second QuarterYear-to-Date
(Millions of Dollars)2023202220232022
Net Sales$— $489.8 $— $978.1 
Cost of sales— 325.9 — 638.5 
Selling, general, and administrative(1)
— 139.6 — 277.8 
Other, net and restructuring charges— 17.9 — 33.2 
Loss on sale of discontinued operations$(0.8)$— $(0.8)$— 
(Loss) earnings from discontinued operations before income taxes$(0.8)$6.4 $(0.8)$28.6 
Income taxes on discontinued operations(0.3)(2.6)(0.3)(0.2)
Net (loss) earnings from discontinued operations$(0.5)$9.0 $(0.5)$28.8 
(1) Includes provision for credit losses.

The following table presents the significant non-cash items and capital expenditures for the discontinued operations with respect to CSS and MAS that are included in the Condensed Consolidated Statements of Cash Flows for the three and six months ended July 2, 2022:

(Millions of Dollars)Second Quarter 2022Year-to-Date 2022
Depreciation and amortization$— $0.4 
Capital expenditures$2.3 $6.3 
Stock-based compensation$9.2 $18.5