Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

5. Discontinued Operations

On December 14, 2022, the Company completed the Separation of MasterBrand. The consolidated statements of income and consolidated balance sheets for all prior periods have been adjusted to reflect the presentation of MasterBrand as discontinued operations.

The following table summarizes the results of the discontinued operations for the years ended December 31, 2022, 2021 and 2020.


(In millions, except per share amounts)	2022		2021		2020
NET SALES	$	3,199.7	$	2,855.0	$	2,469.0
Cost of products sold		2,279.3		2,068.5		1,768.7
Selling, general and administrative expense		619.7		485.3		433.8
Amortization of intangible asset		16.8		17.8		17.8
Asset impairment charges		46.4		—		9.5
Restructuring charges		25.1		4.2		5.5
DISCONTINUED OPERATING INCOME		212.4		279.2		233.7
Interest expense		0.2		0.1		0.1
Other expense, net		2.2		0.4		2.2
INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		210.0		278.7		231.4
Income taxes		63.2		66.0		57.8
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX		146.8		212.7		173.6

We incurred $63.2 million of transaction costs in connection with the Separation during the year ended December 31, 2022, which are included in the consolidated statements of operations as discontinued operations. These costs include legal, accounting and advisory fees, implementation and integration

costs, duplicative costs for subscriptions and information technology systems, employee and contract costs, and other incremental separation costs related to the Separation.

The following table summarizes the major classes of assets and liabilities of MasterBrand,

which are now reflected as discontinued operations in the consolidated balance sheet:


(In millions)	2021
ASSETS
Current assets
Cash and cash equivalents	$	45.9
Accounts receivable less allowances for discounts and credit losses		305.3
Inventories		304.3
Other current assets		58.5
TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS		714.0
Property, plant and equipment, net of accumulated depreciation		338.7
Operating lease assets		61.2
Goodwill		926.2
Other intangible assets, net of accumulated amortization		415.7
Other assets		33.9
TOTAL ASSETS OF DISCONTINUED OPERATIONS		2,489.7
LIABILITIES
Current liabilities
Accounts payable		203.9
Other current liabilities		159.8
TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS		363.7
Deferred income taxes		94.3
Accrued defined benefit plans		(1.2	)
Operating lease liabilities		50.0
Other non-current liabilities		5.8
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS	$	512.6

The following table summarizes the cash flows of MasterBrand, which are reflected in the consolidated statements of cash flows:


(In millions)	2022			2021			2020
Net cash provided by operating activities	$	213.0		$	162.7		$	232.9
Net cash used in investing activities		(55.8	)		(51.5	)		(26.7	)
Net cash used in financing activities		—			—			—
Effect of foreign exchange rate changes on cash		(0.2	)		0.1			0.8
Net increase (decrease) in cash and cash equivalents	$	157.0		$	111.3		$	207.0

MasterBrand depreciation for 2022, 2021 and 2020 was $43.6 million, $44.4 million and $48.0 million, respectively. MasterBrand amortization of intangibles for 2022, 2021 and 2020 was $16.8 million, $17.8 million and $17.8 million, respectively. MasterBrand capital expenditures for 2022, 2021 and 2020 were $55.8 million, $51.6 million and $27.3 million, respectively.