Discontinued Operations

12 Months Ended

Dec. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

5. Discontinued Operations

On December 14, 2022, the Company completed the Separation. 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. During 2023, we recognized expense of $1.0 million within Income (loss) from discontinued operations, net of tax.

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


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

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 cash flows of MasterBrand, which are reflected in the consolidated statements of cash flows:


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

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