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Discontinued Operations | 6 Months Ended
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Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 4. Discontinued Operations On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations were reclassified to income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale as of March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. A majority of the proceeds received from the sale were utilized to pay off existing debt. The following table summarizes the major classes of assets and liabilities of the Dental business segment that were classified as held for sale in the Consolidated Balance Sheets as of March 31, 2024:
|  |  |  | March 31, 2024
Assets |  |  |  |
Assets held-for-sale: |  |  |  |
Accounts receivable, net |  |  |  | $ | 48,590 |
Inventories, net |  |  |  | 89,345 |
Property, plant, and equipment, net |  |  |  | 73,395 |
Lease right-of-use assets, net |  |  |  | 22,822 |
Intangibles, net |  |  |  | 770,731 |
Prepaid expenses and other assets |  |  |  | 2,953 |
Loss accrued on classification as held for sale |  |  |  | (202,932) |
Total assets held-for-sale |  |  |  | $ | 804,904 |
Liabilities |  |  |  |
Liabilities held-for-sale: |  |  |  |
Accounts payable |  |  |  | $ | 10,580 |
Accrued income taxes |  |  |  | 433 |
Accrued payroll and other related liabilities |  |  |  | 13,683 |
Lease obligations |  |  |  | 23,722 |
Accrued expenses and other |  |  |  | 15,594 |
Total liabilities held-for-sale |  |  |  | $ | 64,012 |
The following table summarizes the major line items constituting pre-tax income of discontinued operations associated with the Dental segment for the three and six months ending September 30, 2024 and 2023:
|  | Three Months Ended September 30, 2024 |  | Six Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenues: |  |  |  |  |  |  |  |
Product |  | $ | — |  |  | $ | 104,156 |  |  | $ | 63,936 |  |  | $ | 205,312 |
Cost of revenues: |  |  |  |  |  |  |  |
Product |  | — |  |  | 56,855 |  |  | 35,146 |  |  | 113,554 |
Gross profit: |  | — |  |  | 47,301 |  |  | 28,790 |  |  | 91,758 |
Operating expenses: |  |  |  |  |  |  |  |
Selling, general, and administrative |  | — |  |  | 52,221 |  |  | 13,466 |  |  | 104,749 |
Research and development |  | — |  |  | 776 |  |  | 369 |  |  | 1,584 |
(Loss) income from operations (1) |  | — |  |  | (5,696) |  |  | 14,955 |  |  | (14,575) |
Non-operating expenses (income), net |  | — |  |  | 2 |  |  | 1 |  |  | (10) |
Pre-tax loss on sale |  | (270) |  |  | — |  |  | (8,113) |  |  | — |
(Loss) income before income tax expense |  | (270) |  |  | (5,698) |  |  | 6,841 |  |  | (14,565) |
Income tax (benefit) expense |  | (57) |  |  | (1,247) |  |  | 1,462 |  |  | (3,323) |
(Loss) income from discontinued operations, net of income tax |  | (213) |  |  | (4,451) |  |  | 5,379 |  |  | (11,242) |
(1) Income from operations for the six month period ended September 30, 2024 includes two months of operating results prior to the transaction close on May 31, 2024 and excludes depreciation and amortization of property, plant, equipment, and intangible assets subsequent to the held for sale classification as of March 2, 2024. The effective income tax rates for the three month periods ending September 30, 2024 and 2023 from discontinued operations were 21.1% and 21.9%, respectively. The effective income tax rates for the six month periods ending September 30, 2024 and 2023 from discontinued operations were 21.4% and 22.8%, respectively. Significant non-cash operating items and capital expenditures related to discontinued operations are reflected in the statement of cash flows as follows:
|  | Six Months Ended September 30,
|  | 2024 |  | 2023
Operating activities of discontinued operations: |  |  |  |
Depreciation, depletion, and amortization |  | $ | — |  |  | $ | 60,837 |
Investing activities of discontinued operations: |  |  |  |
Purchases of property, plant, equipment, and intangibles, net |  | $ | (433) |  |  | $ | (2,720) |

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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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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