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Assets and liabilities held for sale
12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Assets and liabilities held for sale Assets and liabilities held for sale
The Company has taken actions to realign its portfolio to focus on services it believes have the greatest opportunities for growth, and has deprioritized assets that no longer fit with its long-term strategy. As such, during 2022, the Company identified and divested a business (the “Business”) that is part of the Company's Consumer and Healthcare segment.
The transaction to divest the Business included the sale of 100% of the issued and outstanding shares of capital stock of an entity pursuant to a stock purchase agreement, which was completed in December 2022. It also included the transfer of certain assets and liabilities pursuant to an asset purchase agreement signed during the fourth quarter of 2022. The sale of assets pursuant to the asset purchase agreement was completed in February 2023.
As a result, during the year ended December 31, 2022, the Company, before recording an impairment charge, transferred to the purchasers under the asset purchase agreement certain assets and liabilities with carrying values of $7,198 and $5,252, respectively. Additionally, certain assets and liabilities amounting to $29,803 and $1,288, respectively, have been classified as held for sale, relating to the portion of the Business for which the sale was closed in February 2023.
The Company recorded an impairment charge of $32,575 to adjust the carrying amount of assets to their fair value. Of the total impairment charge, $26,171 pertains to intangible assets, $22 pertains to property, plant and equipment, $1,625 pertains to goodwill, $4,662 pertains to prepaid expense, contract cost assets and other assets and $95 pertains to accounts receivable. The impairment charge has been recorded in "other operating (income) expense, net" in the Company's consolidated statement of income. See Note 21 for additional information.
Pursuant to the stock purchase agreement related to the sale of the Business, the Company is entitled to a potential earn-out of up to $10,600, contingent upon the business signing contracts with certain clients and invoicing them during 2023. The Company determined that the likelihood of achieving these events is uncertain, and accordingly, the Company has opted to record the earn-out if and when the consideration is determined to be realizable.
Pursuant to the asset purchase agreement related to the sale of the Business, the Company now holds 1.5% fixed rate unsecured loan notes amounting to $18,001 issued by the purchasers. These notes and interest thereon become receivable by the Company upon future share sale, disposal or listing by the buyer group or early voluntary repayment of these notes at the discretion of the buyer group. The Company has deemed the likelihood of recovery of principal and interest on these notes as remote and not in the control of the Company. Accordingly, as of December 31, 2022, the Company has not recorded a value for these notes. The Company's obligation to transfer $18,001 to the purchasers in exchange for these notes was satisfied in February 2023 upon the closing of the transaction.
The net purchase consideration payable by the Company in connection with the sale of the Business amounted to $2,114. Of the total net purchase consideration payable, $17,769 was received by the Company pursuant to the stock purchase agreement and $19,883 (related to the unsecured loan notes and certain transaction costs) remains payable by the Company to the purchasers as part of the asset purchase agreement as of December 31, 2022.