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Divestitures and Discontinued Operations | 6 Months Ended
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Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures and Discontinued Operations | Divestitures and Discontinued Operations 2021 Divestitures. In an effort to more strategically allocate the Company’s resources, the Company sold its Global Electric Motorcar (“GEM”) and Taylor-Dunn businesses on December 31, 2021. The sale resulted in a loss of $36.8 million. The 2021 financial results of these businesses are reflected in the Corporate segment. 2022 Divestitures. In June 2022, the Company entered into a definitive agreement to sell Transamerican Auto Parts (“TAP”), an aftermarket parts business. TAP is a vertically integrated manufacturer, distributor, retailer, and installer of off-road Jeep and truck parts and accessories. The transaction includes TAP’s full portfolio of operations, including all brands, product lines, manufacturing operations, distribution facilities, more than 100 4 Wheel Parts retail locations, and more than 1,700 TAP employees. The results of TAP have been presented as discontinued operations and the related assets and liabilities have been classified as held for sale for all periods presented. As a result, an impairment of $187.8 million was recorded to adjust TAP’s assets and liabilities to fair value less costs to sell. The impairment resulted in a $45.6 million income tax benefit (deferred tax asset). As of June 30, 2022, the fair value of the assets and liabilities held for sale were measured based on a purchase offer, which is considered a Level 3 input in the fair value hierarchy. TAP was historically included with in the Company’s Aftermarket segment; however, as a result of the planned divestiture the Company began management of its portfolio of businesses under a new basis as of June 30, 2022. The Aftermarket segment was eliminated and the results of the Company’s remaining aftermarket businesses historically included within the Aftermarket segment were reclassified to the Off-Road and On-Road segments. The comparative 2021 segment results were reclassified for comparability. Th e sale was completed on July 1, 2022 for a sales pr ice of $50.0 million, subject to customary post-closing purchase price adjustments. Results of discontinued operations were as follows (in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Sales | $ | 173.9 |  |  | $ | 206.2 |  |  | $ | 349.3 |  |  | $ | 399.4 |
Cost of sales | 131.0 |  |  | 152.2 |  |  | 262.9 |  |  | 296.7 |
Other costs and expenses | 48.5 |  |  | 49.9 |  |  | 97.5 |  |  | 97.4 |
Income (loss) from discontinued operations before income taxes | (5.6) |  |  | 4.1 |  |  | (11.1) |  |  | 5.3 |
Income tax expense (benefit) | (1.4) |  |  | 0.8 |  |  | (2.7) |  |  | 0.9 |
Income (loss) from discontinued operations, net of tax | (4.2) |  |  | 3.3 |  |  | (8.4) |  |  | 4.4 |
Impairment of discontinued operations | 187.8 |  |  | — |  |  | 187.8 |  |  | — |
Provision for income taxes | (45.6) |  |  | — |  |  | (45.6) |  |  | — |
Impairment of discontinued operations, net of tax | 142.2 |  |  | — |  |  | 142.2 |  |  | — |
Net income (loss) from discontinued operations | $ | (146.4) |  |  | $ | 3.3 |  |  | $ | (150.6) |  |  | $ | 4.4 |
The carrying amounts of major classes of assets and liabilities of discontinued operations were as follows (in millions):
|  | June 30, 2022 |  | December 31, 2021
Cash |  | $ | 9.5 |  |  | $ | 6.9 |
Trade receivables |  | 7.8 |  |  | 12.6 |
Inventories, net |  | 141.5 |  |  | 134.1 |
Other current assets |  | 9.4 |  |  | 9.6 |
Current assets held for sale |  | $ | 168.2 |  |  | $ | 163.2 |
Property and equipment, net |  | $ | 47.1 |  |  | $ | 47.7 |
Intangible assets, net |  | 98.5 |  |  | 102.3 |
Operating lease assets |  | 77.8 |  |  | 74.8 |
Other long-term assets |  | 1.7 |  |  | 1.2 |
Valuation allowance on disposal group classified as discontinued operations |  | $ | (187.8) |  |  | $ | — |
Long-term assets held for sale |  | $ | 37.3 |  |  | $ | 226.0 |
Accounts payable |  | $ | 16.4 |  |  | $ | 21.5 |
Accrued expenses and other current liabilities |  | 57.2 |  |  | 66.5 |
Current operating lease liabilities |  | 20.7 |  |  | 19.8 |
Current liabilities held for sale |  | $ | 94.3 |  |  | $ | 107.8 |
Long-term operating lease liabilities |  | $ | 59.3 |  |  | $ | 57.2 |
Other long-term liabilities |  | 8.9 |  |  | 8.9 |
Long-term liabilities held for sale |  | $ | 68.2 |  |  | $ | 66.1 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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