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v3.22.2.2
Discontinued Operations
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9 Months Ended |
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Discontinued Operations and Disposal Groups [Abstract] |
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Discontinued Operations |
Discontinued OperationsDuring the year ended December 31, 2021, the Company completed the Spin-Off Transaction of PMC. The operating results of PMC are reported as discontinued operations in the condensed consolidated statements of operations for all prior periods presented, as the Spin-Off Transaction of PMC represented a strategic shift that had a major impact on operations and financial results. The condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and September 30, 2021 have not been adjusted to separately disclose cash flows related to the discontinued operations. During the nine months ended September 30, 2022, the Company received $35.0 million from Regal Rexnord Corporation as a result of the final working capital and cash balances at closing exceeding the targets stipulated in the Spin-Off Transaction agreement. The major components of the Income from discontinued operations, net of tax presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and September 30, 2021, are as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, 2022 | | September 30, 2021 | | September 30, 2022 | | September 30, 2021 | Net sales | $ | — | | | $ | 327.5 | | | $ | — | | | $ | 973.0 | | Cost of sales | — | | | (204.5) | | | — | | | (598.5) | | Selling, general and administrative expenses | — | | | (61.0) | | | — | | | (184.2) | | Restructuring and other similar charges | — | | | (1.3) | | | — | | | (2.1) | | Amortization of intangible assets | — | | | (3.3) | | | — | | | (9.9) | | Interest expense, net | — | | | (1.1) | | | — | | | (4.1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other non-operating income, net | — | | | 3.9 | | | — | | | 5.3 | | Income from discontinued operations before income tax | — | | | 60.2 | | | — | | | 179.5 | | | | | | | | | | Income tax (provision) benefit | — | | | (12.2) | | | 0.8 | | | (39.0) | | Equity method investment income | — | | | — | | | — | | | 0.3 | | Non-controlling interest income | — | | | — | | | — | | | 0.2 | | Income from discontinued operations, net of tax | $ | — | | | $ | 48.0 | | | $ | 0.8 | | | $ | 140.6 | |
The condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and September 30, 2021 have not been adjusted to separately disclose cash flows related to discontinued operations. However, the significant investing and financing cash flows and other significant non-cash operating items associated with the discontinued operations were as follows (in millions): | | | | | | | | | | | | | | | | | Nine Months Ended | | | September 30, 2022 | | September 30, 2021 | Depreciation | | $ | — | | | $ | 34.9 | | Amortization of intangible assets | | — | | | 9.9 | | Gain on disposition of assets | | — | | | (10.1) | | Deferred income taxes | | — | | | 0.5 | | | | | | | Other non-cash charges | | — | | | (0.3) | | | | | | | Stock-based compensation | | — | | | 13.9 | | Expenditures for property, plant and equipment | | — | | | (17.5) | | | | | | | Proceeds from dispositions of long-lived assets | | — | | | 14.3 | | Proceeds associated with divestiture of discontinued operations | | 35.0 | | | 4.2 | | Repayments of debt | | — | | | (1.6) | | Proceeds from exercise of stock options | | — | | | 12.8 | | Taxes withheld and paid on employees' shared-based payment awards | | — | | | (0.5) | |
During the fiscal year ended March 31, 2019, the Company completed the sale of its VAG business, which was previously included in its Water Management platform. The sale agreement provided for contingent consideration based on Earn-out EBITDA, as defined in the sale agreement. During the three months ended September 30, 2021, the Company received a $4.2 million cash payment as a result of the VAG business performance in its fiscal year ended March 31, 2021, which represented the final period of the earn-out, which was recorded in income from discontinued operations, net of tax in the Company's condensed consolidated statements of operations.
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- DefinitionThe entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.
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