Business Held for Sale

6 Months Ended

Jul. 02, 2022

Discontinued Operations and Disposal Groups [Abstract]

In July 2022, subsequent to the end of the second fiscal quarter, the Corporation closed on the sale of its Lamex business, which is a component of the workplace furnishings segment, for approximately $75 million, subject to standard post-closing adjustments. Based on an evaluation of the events leading up to the sale of this business, the Corporation determined Lamex's assets and liabilities met the criteria for held-for-sale presentation, as established in ASC 360, as of the end of the second quarter 2022.

The following table summarizes assets and liabilities held for sale in the "Condensed Consolidated Balance Sheets," by major class:


	As of July 2, 2022
Assets:
Cash and cash equivalents	$	6.2
Receivables	20.1
Allowance for doubtful accounts	(0.5)
Inventories, net	7.0
Prepaid expenses and other current assets	6.1
Buildings	6.3
Machinery and equipment	26.0
Accumulated depreciation	(17.0)
Right-of-use Operating Leases	6.0
Goodwill and Other Intangible Assets	10.9
Total Assets held for sale	$	71.2

Liabilities:
Accounts payable and accrued expenses	$	36.1
Current lease obligations - Operating	4.9
Deferred Income Taxes	0.1
Total Liabilities held for sale	$	41.1

In connection with the Lamex transaction, certain tax benefits were recognized in earnings in the second quarter due to valuation adjustments related to existing deferred tax assets, as well as basis differences. There were no other asset valuation adjustments recorded in the second quarter as a result of the held-for-sale accounting determination.