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Discontinued Operations | 3 Months Ended
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Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations In February 2024, we entered into two separate agreements to sell substantially all the Federal and Defense segment's operational assets ("FDS Sale") for a cash consideration of $44.0 million, including amounts in escrow, subject to post-closing adjustments. The FDS Sale is consistent with our long-term strategic growth strategy focused on higher margin and higher growth aftermarket parts distribution and MRO businesses. We recorded a pre-tax loss on the FDS sale of $12.7 million and transaction fees of $2.5 million for the three months ended March 31, 2024, which are included in (loss) income from discontinued operations, net of tax in the consolidated statements of (loss) income. The components of (loss) income from discontinued operations, net of tax for the three months ended March 31, 2024 and 2023, consist of the following (in thousands):
|  |  |  | For the three months ended March 31,
|  |  |  |  |  | 2024 |  | 2023
Revenues |  |  |  |  |  | $ | 26,268 |  |  | $ | 66,846 |
Costs and operating expenses |  |  |  |  |  | 34,629 |  |  | 65,689 |
(Loss) income from discontinued operations |  |  |  |  |  | (8,361) |  |  | 1,158 |
Other FDS impairment |  |  |  |  |  | 4,204 |  |  | — |
Loss on the sale of discontinued operations |  |  |  |  |  | 12,663 |  |  | — |
Total (loss) income before income taxes |  |  |  |  |  | (25,228) |  |  | 1,158 |
Provision for income taxes |  |  |  |  |  | (6,517) |  |  | 160 |
(Loss) income from discontinued operations, net of tax |  |  |  |  |  | $ | (18,711) |  |  | $ | 997 |
Certain assets and liabilities previously reported as held-for-sale were excluded from the FDS sale and were reclassified as held and used, at their respective fair values, on the consolidated balance sheet as of March 31, 2024. The reclassification primarily related to our Alexandria, VA headquarters and consisted of an operating lease right-of-use-asset of $7.1 million, property and equipment of $2.6 million and an operating lease obligation of $11.0 million. The assets and liabilities reported as held-for-sale consist of the following (in thousands):
|  |  |  | December 31,
|  |  | 2023
Assets |  |  |
| Cash and cash equivalents |  |  | $ | 162 |
| Receivables, net |  |  | 10,805 |
| Contract assets |  |  | 25,109 |
| Inventories |  |  | 472 |
| Other current assets |  |  | 6,154 |
| Property and equipment, net |  |  | 6,102 |
| Intangible assets, net |  |  | 3,505 |
| Goodwill |  |  | 31,575 |
| Operating lease right-of-use assets |  |  | 9,097 |
| Other assets |  |  | 21 |
| Total assets held-for-sale |  |  | $ | 93,002 |
Liabilities |  |  |
| Accounts payable |  |  | $ | 20,893 |
| Accrued expenses and other current liabilities |  |  | 19,537 |
| Long-term operating lease obligations |  |  | 8,942 |
| Deferred tax liabilities |  |  | 4,019 |
| Total liabilities held-for-sale |  |  | $ | 53,391 |
Selected financial information related to cash flows from discontinued operations is as follows (in thousands):
|  | For the three months ended March 31,
|  | 2024 |  | 2023
Depreciation and amortization |  | $ | 150 |  |  | $ | 794 |
Purchases of property and equipment |  | $ | — |  |  | $ | 25 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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