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DISCONTINUED OPERATIONS | 12 Months Ended
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Dec. 31, 2020
DISCONTINUED OPERATIONS. |
DISCONTINUED OPERATIONS | 5. Discontinued Operations ​ On June 3, 2020, the Company effected the split-off of ChampionX through an offer to exchange (the “Exchange Offer”) all shares of ChampionX common stock owned by Ecolab for outstanding shares of Ecolab common stock. In the Exchange Offer, which was oversubscribed, the Company accepted approximately 5.0 million shares of Ecolab common stock in exchange for approximately 122.2 million shares of ChampionX common stock. In the Merger, each outstanding share of ChampionX common stock was converted into the right to receive one share of Apergy common stock, and ChampionX survived the Merger as a wholly owned subsidiary of ChampionX Corporation. In connection with and in accordance with the terms of the Transaction, prior to the consummation of the Exchange Offer and the Merger, ChampionX distributed $527.4 million in cash to Ecolab. ​ The following is a summary of the assets and liabilities transferred to ChampionX as part of the separation: ​
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
(millions) | ​ | ​ | ​ | ​
Assets: | ​ |  | ​ | ​
Cash and cash equivalent | ​ |  | $60.6 | ​
Current assets | ​ |  | 810.5 | ​
Non-current assets | ​ |  | 3,222.3 | ​
​ | ​ | ​ | 4,093.4 | ​
Liabilities: | ​ | ​ | ​ | ​
Current liabilities | ​ | ​ | 313.0 | ​
Non-current liabilities | ​ | ​ | 293.7 | ​
​ | ​ | ​ | 606.7 | ​
​ | ​ | ​ | ​ | ​
Net assets distributed to ChampionX | ​ | ​ | ($3,486.7) | ​
Fair value of shares exchanged | ​ | ​ | 1,051.4 | ​
Cash received from ChampionX | ​ | ​ | 527.4 | ​
Consideration received less net assets | ​ | ​ | (1,907.9) | ​
​ | ​ | ​ | ​ | ​
ChampionX cumulative translation adjustment ("CTA") write-off | ​ | ​ | (229.9) | ​
Loss on separation | ​ | ​ | ($2,137.8) | ​
​ | ​ | ​ | ​ | ​
​ The Company accounted for this transaction as a sale and recognized a loss based on ChampionX net assets exceeding the effective proceeds. ​ As the sale of this business represented a strategic shift in the operations of the Company that had a major effect on the Company’s operations and results, the discontinued operations criteria were met for the ChampionX business. The historical financial results of the ChampionX business are reflected in the Company’s consolidated financial statements as discontinued operations, for all periods presented, and assets and liabilities were retrospectively reclassified as assets and liabilities of discontinued operations. ​ Summarized results of the Company’s discontinued operations are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) | ​ | 2020 | ​ | 2019 | ​ | 2018
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Product and equipment sales | ​ | ​ | $858.9 | ​ | ​ | ​ | $2,109.9 | ​ | ​ | $2,225.0
Service and lease sales | ​ | ​ | 99.6 | ​ | ​ | ​ | 234.4 | ​ | ​ | 221.1
Net sales | ​ | ​ | 958.5 | ​ | ​ | ​ | 2,344.3 | ​ | ​ | 2,446.1
Product and equipment cost of sales | ​ | ​ | 621.7 | ​ | ​ | ​ | 1,488.9 | ​ | ​ | 1,567.9
Service and lease cost of sales | ​ | ​ | 80.4 | ​ | ​ | ​ | 188.7 | ​ | ​ | 182.7
Cost of sales (including special charges) | ​ | ​ | 702.1 | ​ | ​ | ​ | 1,677.6 | ​ | ​ | 1,750.6
Selling, general and administrative expenses | ​ | ​ | 180.5 | ​ | ​ | ​ | 406.7 | ​ | ​ | 462.8
Special (gains) and charges | ​ | ​ | 2,221.7 | ​ | ​ | ​ | 91.4 | ​ | ​ | 14.0
Operating (loss) income | ​ | ​ | (2,145.8) | ​ | ​ |  | 168.6 | ​ |  | 218.7
Other (income) expense | ​ | ​ | 0.3 | ​ | ​ | ​ | 0.7 | ​ | ​ | -
Interest expense (income), net | ​ | ​ | 0.2 | ​ | ​ | ​ | 0.5 | ​ | ​ | 1.2
(Loss) income before income taxes | ​ | ​ | (2,146.3) | ​ | ​ |  | 167.4 | ​ |  | 217.5
Provision for income taxes | ​ | ​ | 24.0 | ​ | ​ | ​ | 34.1 | ​ | ​ | 43.1
Net (loss) income including noncontrolling interest | ​ | ​ | (2,170.3) | ​ | ​ |  | 133.3 | ​ |  | 174.4
Net (loss) income attributable to noncontrolling interest | ​ | ​ | 2.2 | ​ | ​ | ​ | - | ​ | ​ | (4.4)
Net (loss) income from discontinued operations, net of tax | ​ | ​ | ($2,172.5) | ​ | ​ | ​ | $133.3 | ​ | ​ | $178.8
​ Special (gains) and charges of $2,221.7 million, $91.4 million and $18.8 million in 2020, 2019 and 2018, respectively, primarily relate to the loss on sale, professional fees incurred to support the Transaction and restructuring charges specifically related to the ChampionX business. These charges have been included as a component of both cost of sales and special (gains) and charges in discontinued operations. ​ ​ Assets and liabilities of discontinued operations are summarized below: ​
​ | ​ | ​ | ​ | ​
​ | ​ | December 31 | ​
(millions) |  | 2019 | ​
​ | ​ | ​ | ​ | ​
ASSETS | ​ | ​ | ​ | ​
Current assets | ​ | ​ | ​ | ​
Cash and cash equivalents | ​ | ​ | $67.6 | ​
Accounts receivable, net |  | ​ | 414.5 | ​
Inventories |  | ​ | 424.0 | ​
Other current assets | ​ | ​ | 44.7 | ​
Total current assets |  | ​ | 950.8 | ​
Property, plant and equipment, net |  | ​ | 726.6 | ​
Goodwill |  | ​ | 1,682.6 | ​
Other intangible assets, net |  | ​ | 745.0 | ​
Operating lease assets | ​ | ​ | 110.8 | ​
Other assets | ​ | ​ | 67.8 | ​
Total assets | ​ | ​ | $4,283.6 | ​
​ | ​ | ​ | ​ | ​
LIABILITIES AND EQUITY | ​ | ​ | ​ | ​
Current liabilities | ​ | ​ | ​ | ​
Short-term debt | ​ | ​ | $0.1 | ​
Accounts payable |  | ​ | 209.0 | ​
Compensation and benefits |  | ​ | 33.8 | ​
Income taxes |  | ​ | 5.9 | ​
Other current liabilities | ​ | ​ | 112.7 | ​
Total current liabilities |  | ​ | 361.5 | ​
Long-term debt |  | ​ | 0.4 | ​
Postretirement health care and pension benefits |  | ​ | 3.6 | ​
Deferred income taxes | ​ | ​ | 203.1 | ​
Operating lease liabilities | ​ | ​ | 79.2 | ​
Other liabilities | ​ | ​ | 15.8 | ​
Total liabilities |  | ​ | $663.6 | ​
​ As of December 31, 2020, there were no assets or liabilities classified as discontinued operations. ​ In connection with the Transaction, the Company entered into agreements with ChampionX and Apergy to effect the separation and to provide a framework for the relationship following the separation, which included a Separation and Distribution Agreement, an Intellectual Property Matters Agreement, an Employee Matters Agreement, a Transition Services Agreement, and a Tax Matters Agreement. Transition services primarily involve the Company providing certain services to ChampionX related to general and administrative services for terms of up to 18 months following the separation. The amounts billed for transition services provided under the above agreements were $14.3 million during 2020. ​ The Company also entered into a Master Cross Supply and Product Transfer agreement with ChampionX to provide, receive or transfer certain products for a period up to 36 months. Sales of product to ChampionX under this agreement are recorded in product and equipment sales in the Corporate segment along with the related cost of sales, while purchases from ChampionX are recorded in inventory. Sales of product to ChampionX post-separation for 2020 were $99.7 million. ​

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- Definition The 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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