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AQUISITIONS AND DISCONTINUED OPERATIONS
 6 Months Ended
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 endedSix months ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Revenues$108.5 $113.9 $219.1 $224.5 
Costs and expenses:
Cost of product sold87.3 88.5 176.7 175.1 
Selling, general and administrative8.6 8.2 18.1 16.0 
Other income, net0.2 0.4 — 0.7 
Income before income tax12.8 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, 2021December 31, 2020
ASSETS
Accounts receivable, net$49.3 $50.9 
Contract assets45.1 48.6 
Inventories, net21.0 18.9 
Other current assets1.7 3.2 
Property, plant and equipment:
Land6.4 6.5 
Buildings and leasehold improvements62.4 63.1 
Machinery and equipment141.9 141.1 
210.7 210.7 
Accumulated depreciation(134.3)(131.0)
Property, plant and equipment, net76.4 79.7 
Goodwill131.3 131.3 
Other assets8.1 8.1 
Total assets - discontinued operations$332.9 $340.7 
LIABILITIES
Accounts payable$37.3 $34.1 
Contract liabilities67.3 57.2 
Accrued expenses24.2 24.5 
Deferred and other income taxes21.9 21.6 
Other long-term liabilities9.1 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 endedSix months ended
June 27, 2020June 27, 2020
Revenues$1.3 $3.2 
Cost of product sold1.0 2.5 
Selling, general and administrative0.2 0.2 
Special charges, net0.4 0.4 
Income (loss) before income tax(0.3)0.1 
Income tax provision— — 
Income (loss) from discontinued operations, net of tax$(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.