Discontinued Operations

6 Months Ended

Jun. 27, 2021

Discontinued Operations and Disposal Groups [Abstract]

Our Superform aluminum superplastic forming business operating from sites in the U.S. and the U.K, and our U.S. aluminum gas cylinder business were historically included in the Gas Cylinders segment. As a result of our decision to exit non-strategic aluminum product lines, we have reflected the results of operations of these businesses as discontinued operations in the Condensed Consolidated Statements of Income for all periods presented. Our U.S. aluminum gas cylinder business was sold in March 2021 for $20.6 million and we expect the sales of our Superform businesses to occur in 2021.

The assets and liabilities of the Superform businesses have been presented within Current assets held-for-sale and Current liabilities held-for-sale in the consolidated balance sheets for 2021 and 2020 and our U.S. aluminum gas cylinders business in 2020. The Company has determined that the carrying value of the held-for-sale assets is recoverable and as a result no loss allowances have been recognized.

Results of discontinued operations were as follows:


	Second Quarter				Year-to-date
In millions	2021		2020			2021		2020
Net sales	$	4.9	$	12.9		$	14.6	$	28.3
Cost of goods sold	(5.6)		(12.1)			(15.7)		(27.1)
Gross (loss) / profit	$	(0.7)	$	0.8		$	(1.1)	$	1.2
Selling, general and administrative expenses	(0.3)		(1.3)			(1.7)		(2.7)
Operating loss	$	(1.0)	$	(0.5)		$	(2.8)	$	(1.5)
Tax credit	0.5		—			0.7		—
Net loss	$	(0.5)	$	(0.5)		$	(2.1)	$	(1.5)

In the First Quarter of 2021, the Company sold its U.S. aluminum gas cylinders business for $21.0 million which resulted in a gain on sale of $7.5 million, net of a $2.0 million tax charge which was recognized in the First Quarter of 2021.

In the Second Quarter of 2021, there was a $0.4 million working capital adjustment, reducing the purchase price to $20.6 million and the gain on disposal to $7.1 million.

The assets and liabilities classified as held-for-sale related to discontinued operations were as follows:


Held-for-sale assets	June 27,		December 31,
In millions	2021		2020
Property, plant and equipment	$	1.4	$	7.9
Right-of-use-assets from operating leases	2.6		3.1
Inventory	5.9		12.6
Accounts and other receivables	6.5		8.7
Held-for-sale assets	$	16.4	$	32.3

Held-for-sale liabilities
Accounts payable	2.3		4.3
Accrued liabilities	1.0		1.5
Other current liabilities	3.2		5.6
Held-for-sale liabilities	$	6.5	$	11.4

Also included within assets held-for-sale, but not disclosed as discontinued operations, in 2021 and 2020 is one building valued at $3.7 million, within our Elektron Segment.

The depreciation and amortization, capital expenditures and significant non-cash items were as follows:


	Second Quarter				Year-to-date
In millions	2021		2020			2021		2020
Cash flows from discontinued operations:
Depreciation	$	0.1	$	0.3		$	0.3	$	0.6

Cash balances are swept into the treasury entities at the end of each day, these sweeps are recorded within operating cash flows in the statements of cash flows.