Discontinued Operations

3 Months Ended

Mar. 27, 2022

Discontinued Operations and Disposal Groups [Abstract]

Our Superform aluminum superplastic forming business operating in the U.S. was 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 this business as discontinued operations in the Condensed Consolidated Statements of Income for all periods presented. We expect the sale of our Superform business to occur in 2022.

The assets and liabilities of the Superform business have been presented within assets held-for-sale and liabilities held-for-sale in the consolidated balance sheets for 2022 and 2021.

In 2021, our Superform U.K. business was also disclosed within assets and liabilities held-for-sale. The business was sold in September 2021.

Results of discontinued operations were as follows:


	First Quarter
In millions	2022		2021
Net sales	$	1.7	$	9.7
Cost of goods sold	(1.6)		(10.1)
Gross profit / (loss)	$	0.1	$	(0.4)
Selling, general and administrative expenses	(0.2)		(1.4)

Operating loss	$	(0.1)	$	(1.8)
Tax credit	—		0.2
Net loss	$	(0.1)	$	(1.6)

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	March 27,		December 31,
In millions	2022		2021

Right-of-use-assets from operating leases	3.2		—
Inventory	2.7		2.7
Accounts and other receivables	1.8		2.1
Held-for-sale assets	$	7.7	$	4.8

Held-for-sale liabilities
Accounts payable	0.5		0.5
Accrued liabilities	0.1		0.1
Other liabilities	0.6		—

Lease liabilities	3.3		0.8
Held-for-sale liabilities	$	4.5	$	1.4

Also included within assets held-for-sale in 2022 and 2021 are land and buildings valued at $4.9 million and $3.7 million, respectively, within our Elektron Segment.

The significant non-cash items were as follows:


	First Quarter
In millions	2022		2021
Cash flows from discontinued operating activities:
Depreciation	$	—	$	0.2

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