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ASSETS AND LIABILITIES HELD FOR SALE

6 Months Ended

Jun. 30, 2024

ASSETS AND LIABILITIES HELD FOR SALE

ASSETS AND LIABILITIES HELD FOR SALE

2. ASSETS AND LIABILITIES HELD FOR SALE

Assets and liabilities are classified as held for sale and presented separately on the balance sheet when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and transfer of the assets is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held-for-sale criteria are met. Gains are not recognized until the date of the sale. When the disposal group is classified as held for sale, depreciation and amortization for long-lived assets ceases and the Company tests the assets for impairment. Unless otherwise specified, the amounts and information in the notes presented do not include assets and liabilities that have been classified as held for sale as of June 30, 2024.

On April 27, 2024, the Company reached a definitive agreement to sell its global surgical solutions business for total consideration of $950 million in cash, subject to certain working capital and other purchase price adjustments. Accordingly, the global surgical solutions business has met the criteria to be classified as held for sale and the Company has aggregated and classified the assets and liabilities as held for sale in the Company’s Consolidated Balance Sheets as of June 30, 2024. The Company measured the assets and liabilities held for sale at the estimated fair value less costs to sell, which resulted in no impairment in the quarter. The Company expects to record an associated pre-tax gain within Special (Gains) and Charges in the Consolidated Statements of Income. On August 1, 2024, the Company completed the sale of its global surgical solutions business pursuant to the definitive agreement dated April 27, 2024.

The global surgical solutions business did not meet the criteria to be classified as a discontinued operation. As a result, the Company continued to report its operating results in the Global Healthcare & Life Sciences reportable segment as of June 30, 2024. The assets and liabilities of businesses held for sale were as follows:


		June 30
(millions)		2024

Assets held for sale
Cash and cash equivalents			$6.0
Accounts receivable, net			53.3
Inventories			83.6
Other current assets			6.5
Property, plant and equipment, net			64.9
Goodwill			305.0
Other intangible assets, net			22.4
Operating lease assets			8.5
Other assets			15.4
Total assets held for sale			$565.6

Liabilities held for sale
Accounts payable			$28.9
Compensation and benefits			5.4
Other current liabilities			15.8
Postretirement health care and pension benefits			6.6
Operating lease liabilities			5.8
Total liabilities held for sale			$62.5