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DIVESTITURES | 12 Months Ended
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Jan. 01, 2022
Discontinued Operations and Disposal Groups [Abstract] |
DIVESTITURES | DIVESTITURES PENDING DIVESTITURE Commercial Electronic Security and Healthcare businesses In December 2021, the Company announced that it had reached a definitive agreement for the sale of most of its Security assets to Securitas AB ("Purchaser") for approximately $3.2 billion in cash. The proposed transaction includes the Company's Convergent Security Solutions ("CSS") business comprising of commercial electronic security and healthcare businesses. The transaction does not include the Company's automatic doors business. The sale is subject to regulatory approvals and other customary closing conditions, and is expected to close in the first half of 2022. As part of the purchase and sale agreement, the Company will perform transition services relating to certain administrative functions for Purchaser primarily for a period of one year or less, pending Purchaser's integration of these functions into their pre-existing business processes. A portion of the $3.2 billion received at closing reimburses the Company for transition service costs expected to be incurred. In December 2021, upon announcing it reached a definitive agreement for the sale of most of its Security assets, the assets and liabilities related to CSS were classified as held for sale on the Company's Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021. In addition, the sale of CSS represents a strategic shift and has a major effect on the Company's operations and financial results. As such, the operating results of the CSS are reported as discontinued operations, in accordance with ASC 205. Amounts previously reported have been reclassified to conform to this presentation to allow for meaningful comparison of continuing operations. Summarized operating results of discontinued operations are presented in the following table for each fiscal year ended:
(Millions of Dollars) | 2021 |  | 2020 |  | 2019
Net Sales | $ | 1,635.5 |  |  | $ | 1,476.9 |  |  | $ | 1,529.3 |
Cost of sales | 1,024.8 |  |  | 914.3 |  |  | 957.2 |
Selling, general, and administrative(1) | 481.8 |  |  | 461.1 |  |  | 472.7 |
Other, net and restructuring charges | 58.7 |  |  | 54.3 |  |  | 63.8 |
Earnings from discontinued operations before income taxes | $ | 70.2 |  |  | $ | 47.2 |  |  | $ | 35.6 |
Income taxes on discontinued operations | (18.7) |  |  | (1.6) |  |  | 34.0 |
Net earnings from discontinued operations | $ | 88.9 |  |  | $ | 48.8 |  |  | $ | 1.6 |
(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 that are included in the Consolidated Statements of Cash Flows (in millions) for each fiscal year ended:
(Millions of Dollars) | 2021 |  | 2020 |  | 2019
Depreciation and amortization | $ | 60.5 |  |  | $ | 63.9 |  |  | $ | 64.1 |
Capital expenditures | $ | 17.9 |  |  | $ | 15.6 |  |  | $ | 30.1 |
Stock-based compensation | $ | 6.0 |  |  | $ | 5.3 |  |  | $ | 3.2 |
The carrying amounts of the assets and liabilities that were aggregated in assets held for sale and liabilities held for sale as of January 1, 2022 and January 2, 2021 are presented in the following table:
(Millions of Dollars) | 2021 |  | 2020
Cash and cash equivalents | $ | 144.9 |  |  | $ | 139.1 |
Accounts and notes receivable, net | 434.8 |  |  | 347.7 |
Inventories, net | 142.5 |  |  | 98.5 |
Other current assets | 41.0 |  |  | 44.0 |
Property, plant and equipment, net | 74.0 |  |  | 80.7 |
Goodwill and other intangibles, net | 2,072.3 |  |  | 2,169.3 |
Other assets | 273.9 |  |  | 268.8 |
Total assets | $ | 3,183.4 |  |  | $ | 3,148.1 |
Accounts payable and accrued expenses | $ | 388.3 |  |  | $ | 390.6 |
Other long-term liabilities | 130.4 |  |  | 162.9 |
Total liabilities | $ | 518.7 |  |  | $ | 553.5 |
2020 DIVESTITURES On November 2, 2020, the Company sold its commercial electronic security businesses in five countries in Europe and emerging markets within the Security segment, which resulted in net proceeds of $60.9 million. The Company also sold a product line within Oil & Gas in the Industrial segment during the fourth quarter of 2020. As a result of these sales, the Company recognized a net pre-tax loss of $13.5 million in 2020, consisting of a $17.7 million loss on the sale of a product line within Oil & Gas partially offset by a $4.2 million gain on the sale of the commercial electronic security businesses. During the first quarter of 2021, the Company recognized a pre-tax loss of $1.0 million as a result of the finalization of the purchase price for the commercial electronic security divestiture. These divestitures allow the Company to invest in other areas of the Company that fit into its long-term growth strategy. These disposals do not qualify as discontinued operations and are included in the Company's Consolidated Statements of Operations for all periods presented through their respective dates of sale in 2020. Pre-tax income for these businesses totaled $4.1 million and $3.0 million for the years ended January 2, 2021, and December 28, 2019, respectively. 2019 DIVESTITURE On May 30, 2019, the Company sold its Sargent & Greenleaf mechanical locks business within the Security segment, which resulted in net proceeds of $79.0 million and a pre-tax gain of $17.0 million. This divestiture did not qualify as a discontinued operation and is included in the Company's Consolidated Statements of Operations through the date of sale in 2019. Pre-tax income for this business was $4.6 million for the year ended December 28, 2019.

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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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