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AQUISITIONS AND DISCONTINUED OPERATIONS | 6 Months Ended
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Jul. 03, 2021
Acquisitions and Discontinued Operations [Abstract] |
AQUISITIONS AND DISCONTINUED OPERATIONS | ACQUISITIONS AND DISCONTINUED OPERATIONS As indicated in Note 1, on September 2, 2020, November 11, 2020 and April 19, 2021, we completed the acquisitions of ULC, Sensors & Software and Sealite, respectively. The pro forma effects of these acquisitions are not material to the condensed consolidated results of operations for the three and six months ended June 27, 2020. Agreement to Sell Transformer Solutions Business As discussed in Note 1, on June 8, 2021, we entered into a definitive agreement to sell Transformer Solutions and, in connection with such, are reporting the business as a discontinued operation in the accompanying condensed consolidated financial statements. Major line items constituting pre-tax income and after-tax income of Transformer Solutions for the three and six months ended July 3, 2021 and June 27, 2020 are shown below:
| Three months ended |  | Six months ended
| July 3, 2021 |  | June 27, 2020 |  | July 3, 2021 |  | June 27, 2020
Revenues | $ | 108.5 |  |  | $ | 113.9 |  |  | $ | 219.1 |  |  | $ | 224.5 |
Costs and expenses: |  |  |  |  |  |  |
Cost of product sold | 87.3 |  |  | 88.5 |  |  | 176.7 |  |  | 175.1 |
Selling, general and administrative | 8.6 |  |  | 8.2 |  |  | 18.1 |  |  | 16.0 |
Other income, net | 0.2 |  |  | 0.4 |  |  | — |  |  | 0.7 |
Income before income tax | 12.8 |  |  | 17.6 |  |  | 24.3 |  |  | 34.1 |
Income tax (provision) benefit (1) | 29.9 |  |  | (4.1) |  |  | 27.0 |  |  | (7.8) |
Income from discontinued operations, net of tax | $ | 42.7 |  |  | $ | 13.5 |  |  | $ | 51.3 |  |  | $ | 26.3 |
___________________________ (1) During the three and six months ended July 3, 2021, we recorded tax benefits of $33.0 in “Income from discontinued operations, net of tax” including (i) $28.6 for the excess tax basis in the stock of Transformer Solutions and (ii) $4.4 for previously unrecognized state net operating losses, each as a result of the definitive agreement to sell the business. The assets and liabilities of Transformer Solutions have been classified as assets and liabilities of discontinued operations as of July 3, 2021 and December 31, 2020. The major line items constituting Transformer Solutions assets and liabilities as of July 3, 2021 and December 31, 2020 are shown below:
| July 3, 2021 |  | December 31, 2020
ASSETS |  |  |
Accounts receivable, net | $ | 49.3 |  |  | $ | 50.9 |
Contract assets | 45.1 |  |  | 48.6 |
Inventories, net | 21.0 |  |  | 18.9 |
Other current assets | 1.7 |  |  | 3.2 |
Property, plant and equipment: |  |  |
Land | 6.4 |  |  | 6.5 |
Buildings and leasehold improvements | 62.4 |  |  | 63.1 |
Machinery and equipment | 141.9 |  |  | 141.1 |
| 210.7 |  |  | 210.7 |
Accumulated depreciation | (134.3) |  |  | (131.0) |
Property, plant and equipment, net | 76.4 |  |  | 79.7 |
Goodwill | 131.3 |  |  | 131.3 |
Other assets | 8.1 |  |  | 8.1 |
Total assets - discontinued operations | $ | 332.9 |  |  | $ | 340.7 |
LIABILITIES |  |  |
Accounts payable | $ | 37.3 |  |  | $ | 34.1 |
Contract liabilities | 67.3 |  |  | 57.2 |
Accrued expenses | 24.2 |  |  | 24.5 |
Deferred and other income taxes | 21.9 |  |  | 21.6 |
Other long-term liabilities | 9.1 |  |  | 9.1 |
Total liabilities - discontinued operations | $ | 159.8 |  |  | $ | 146.5 |
Wind-Down of the Heat Transfer Business As discussed in Note 1, we completed the wind-down of Heat Transfer in the fourth quarter of 2020. As a result of completing the wind-down plan, we are reporting Heat Transfer as a discontinued operation for all prior periods presented. Major line items constituting pre-tax income (loss) and after-tax income (loss) of Heat Transfer for the three and six months ended June 27, 2020, are shown below:
| Three months ended |  | Six months ended
| June 27, 2020 |  | June 27, 2020
Revenues | $ | 1.3 |  |  | $ | 3.2 |
Cost of product sold | 1.0 |  |  | 2.5 |
Selling, general and administrative | 0.2 |  |  | 0.2 |
Special charges, net | 0.4 |  |  | 0.4 |
Income (loss) before income tax | (0.3) |  |  | 0.1 |
Income tax provision | — |  |  | — |
Income (loss) from discontinued operations, net of tax | $ | (0.3) |  |  | $ | 0.1 |
We recognized net gains of $4.1 and $3.3 during the three and six months ended July 3, 2021 and a net loss of $1.3 during the three and six months ended June 27, 2020 within “Gain (loss) on disposition of discontinued operations, net of tax” resulting primarily from revisions to liabilities, including income tax liabilities, retained in connection with prior businesses classified as discontinued operations.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: 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 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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