Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale and Discontinued Operations

Assets and liabilities associated with the Grace Disposal Group are presented in the Condensed Consolidated Balance Sheets as Assets held for sale and Liabilities associated with assets held for sale, respectively, and the results of operations are presented as discontinued operations in the Condensed Consolidated Statements of Operations and Cash Flows. While the ultimate outcome of the plan to dispose of the Grace Disposal Group is neither certain nor guaranteed, the Company intends to conduct the respective businesses in the ordinary course in substantially the same manner in which it previously has been conducted until a sale occurs.

The following table summarizes income (loss) from discontinued operations included in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022, (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

Revenue	$	59.9	$	48.1	$	169.6	$	124.5
Cost of sales1	(51.4)		(43.6)		(149.7)		(112.3)
Selling, general and administrative	(4.2)		(3.2)		(14.1)		(10.9)


Operating income (loss) from discontinued operations1	4.3		1.3		5.8		1.3
Income (loss) related to joint ventures	(0.3)		(0.4)		(1.5)		(0.5)

Interest and other income (expense), net	—		0.2		0.1		0.6
Interest expense	(0.1)		(0.1)		(0.5)		(0.1)
Income (loss) from discontinued operations before income taxes1	3.9		1.0		3.9		1.3
Income tax benefit (expense) attributable to discontinued operations	—		—		—		—
Income (loss) from discontinued operations1	3.9		1.0		3.9		1.3
Loss (income) attributable to discontinued noncontrolling interest	(1.3)		(0.4)		(2.9)		(1.2)
Income (loss) from discontinued operations attributable to A&B Shareholders1	$	2.6	$	0.6	$	1.0	$	0.1
1Includes $(0.1) million and $(0.1) million in costs associated with the resolution of liabilities from the Company’s former sugar operations for the three months ended September 30, 2023 and 2022, respectively, and zero and $(0.2) million for the nine months ended September 30, 2023 and 2022, respectively

The assets and liabilities held for sale included in the Condensed Consolidated Balance Sheets as of September 30, 2023 and 2022, were as follows (in millions):


	September 30, 2023		December 31, 2022

Cash and cash equivalents	$	3.4	$	0.1

Accounts receivable and retention, net of allowance for credit losses and allowance for doubtful accounts of $4.3 million and $0.4 million as of September 30, 2023 and December 31, 2022, respectively	37.5		30.8
Inventories	31.0		45.0
Other property, net	69.2		67.4
Operating lease right-of-use assets	29.7		31.3

Prepaid expenses and other assets	63.7		42.0
Less: Impairment recognized on classification as held for sale	(89.8)		(89.8)
Total Assets held for sale	$	144.7	$	126.8

Notes payable and other debt	$	4.7	$	14.1
Accounts payable	10.1		10.2
Operating lease liabilities	29.8		31.3

Accrued and other liabilities	26.7		25.4
Total Liabilities associated with assets held for sale	$	71.3	$	81.0

During the nine months ended September 30, 2023, the Company recorded no additional fair value adjustments related to assets and liabilities held for sale.

Related Party Transactions within Discontinued Operations and Held for Sale: The Company enters into contracts in the ordinary course of business, as a supplier, with affiliate entities that require accounting under the equity method due to the Company's financial interests in such entities and also with affiliate parties that are members in entities in which the Company also is a member and holds a controlling financial interest. Related to the periods during which such relationships existed, revenues earned from transactions with such affiliates were $5.1 million and $9.0 million for the three months ended September 30, 2023 and 2022, respectively, and $13.2 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. Expenses recognized from transactions with such affiliates were $0.9 million and $1.6 million for the three months ended September 30, 2023 and 2022, respectively, and $4.4 million and $4.0 million for the nine months ended September 30, 2023 and 2022, respectively. Receivables from these affiliates were $1.3 million and $6.9 million as of September 30, 2023 and December 31, 2022, respectively. Amounts due to these affiliates were $0.2 million and $0.4 million as of September 30, 2023 and December 31, 2022, respectively.