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Discontinued Operations | 6 Months Ended
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Jun. 30, 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 during the first quarter of 2024, which are included in loss from discontinued operations, net of tax in the consolidated statements of (loss) income. The components of loss from discontinued operations, net of tax for the three and six months ended June 30, 2024 and 2023, consist of the following (in thousands):
|  | For the three months ended June 30, |  | For the six months ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Revenues |  | $ | — |  |  | $ | 67,039 |  |  | $ | 26,268 |  |  | $ | 133,885 |
Costs and operating expenses |  | — |  |  | 68,818 |  |  | 34,629 |  |  | 134,506 |
Loss from discontinued operations |  | — |  |  | (1,779) |  |  | (8,361) |  |  | (621) |
Other FDS impairment |  | — |  |  | — |  |  | 4,204 |  |  | — |
Loss on the sale of discontinued operations |  | — |  |  | — |  |  | 12,663 |  |  | — |
Total loss before income taxes |  | — |  |  | (1,779) |  |  | (25,228) |  |  | (621) |
Provision for income taxes |  | — |  |  | (545) |  |  | (6,517) |  |  | (384) |
Loss from discontinued operations, net of tax |  | $ | — |  |  | $ | (1,234) |  |  | $ | (18,711) |  |  | $ | (237) |
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 |
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 sheets during the first quarter of 2024. The reclassification related to our Alexandria, VA headquarters office space 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. During the second quarter of 2024, we vacated the headquarters office space and, as a result, wrote down the associated lease right-of-use asset and property and equipment. See Note (13) "Lease Abandonment and Other Restructuring Costs" for further information. The FDS sale resulted in the divestiture of certain government contracts requiring novation. Until the novation process is finalized, we continue to receive cash collections related to these contracts, which are due to the purchaser. As of June 30, 2024, we have recorded a $7.0 million liability for these collections within accrued expenses and other current liabilities on our consolidated balance sheets. Selected financial information related to cash flows from discontinued operations is as follows (in thousands):
|  | For the six months ended June 30,
|  | 2024 |  | 2023
Depreciation and amortization |  | $ | 150 |  |  | $ | 1,437 |
Purchases of property and equipment |  | $ | — |  |  | $ | 92 |
Stock-based compensation |  | $ | — |  |  | $ | 73 |

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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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