Discontinued Operations and Disposal Groups

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations

On August 17, 2021, the Company sold its Oxford business to an affiliate of H.I.G. Capital for $525.0 million. The gain on the sale was $218.6 million ($149.3 million net of income taxes). Income taxes of $111.7 million on the gain will be paid on December 15, 2021. The sale of the Oxford business allows for the redeployment of capital on acquisitions of businesses that enhance the Company's IT consulting capabilities and services.

As a result of the sale of the Oxford business, the financial results of that business are reported as discontinued operations in the accompanying statements of operations. The Company's reporting segments were changed for the effects of the sale, as described in Note 9. Segment Reporting.

The following table presents the major classes of assets and liabilities of the Oxford business at December 31, 2020 in the accompanying balance sheets (in millions).



Accounts receivable, net	$	75.9
Prepaid expenses and income taxes	0.8
Other current assets	0.7


Property and equipment, net	14.5
Operating lease right-of-use assets	11.9
Identifiable intangible assets, net	18.0
Goodwill	197.7
Other non-current assets	2.4
Total assets of discontinued operations	$	321.9

Accounts payable	$	1.5
Accrued payroll and contract professional pay	27.5
Operating lease liabilities	5.1
Other current liabilities	5.6


Operating lease liabilities, long-term	7.5
Other long-term liabilities	4.0
Total liabilities of discontinued operations	$	51.2

The following table summarizes the results of operations of the Oxford business that are reported as discontinued operations (in millions).


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenues	$	71.6	$	107.5	$	324.3	$	337.5
Costs of services	49.0		72.8		223.0		231.2
Gross profit	22.6		34.7		101.3		106.3
Selling, general and administrative expenses	27.5		27.1		89.9		85.2
Amortization of intangible assets	0.1		0.2		0.4		0.5


Income (loss) before income taxes	(5.0)		7.4		11.0		20.6
Provision (benefit) for income taxes	(1.4)		1.8		1.8		5.0

Gain on sale, net of income taxes	149.3		—		149.3		—
Income from discontinued operations, net of income taxes	$	145.7	$	5.6	$	158.5	$	15.6

Select cash flow information related to the Oxford business follows (in millions):


	Nine Months Ended
	September 30,
	2021		2020
Net cash provided by operating activities	$	8.2	$	42.5
Net cash provided by (used in) investing activities
Cash received from sale of discontinued operations	499.1		—
Other	(3.9)		(4.2)
	$	495.2	$	(4.2)