Discontinued Operations

9 Months Ended

Sep. 25, 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 in the first nine months of 2022 and 2021 were as follows:


	Third Quarter				Year-to-date
In millions	2022		2021			2022		2021
Net sales	$	1.8	$	4.9		$	5.5	$	19.5
Cost of goods sold	(1.7)		(4.7)			(4.9)		(20.4)
Gross profit/(loss)	$	0.1	$	0.2		$	0.6	$	(0.9)
Selling, general and administrative expenses	(0.1)		(1.4)			(0.5)		(3.1)
Restructuring charges	—		—			(0.3)		—
Acquisition and disposal related costs	(0.7)		—			(0.9)		—
Operating loss	$	(0.7)	$	(1.2)		$	(1.1)	$	(4.0)
Tax credit	0.2		0.5			0.2		1.2
Net loss	$	(0.5)	$	(0.7)		$	(0.9)	$	(2.8)

10. Discontinued Operations (continued)

Our U.S. aluminum gas cylinder business was sold in March 2021 for $21.0 million. During 2021, $0.8 million of working capital adjustments were made, resulting in final proceeds of $20.2 million.

In the Third Quarter of 2021, the Company also recorded a $0.1 million loss on the sale of the Superform U.K business resulting in a total $0.5 million loss on disposition in the quarter and $6.6 million gain on disposition in the year.

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


Held-for-sale assets	September 25,		December 31,
In millions	2022		2021

Right-of-use-assets from operating leases	$	2.8	$	—
Inventory	3.0		2.7
Accounts and other receivables	2.1		2.1
Held-for-sale assets	$	7.9	$	4.8

Held-for-sale liabilities
Accounts payable	1.1		0.5
Accrued liabilities	0.5		0.1
Other liabilities	0.2		—
Lease Liabilities	3.1		0.8
Held-for-sale liabilities	$	4.9	$	1.4

Also included within assets held-for-sale in 2022 are land and buildings valued at $1.2 million, and an additional $3.7 million in 2021, within our Elektron Segment.

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


	Third Quarter				Year-to-date
In millions	2022		2021			2022		2021
Cash flows from discontinued operating activities:
Depreciation	$	—	$	0.1		$	—	$	0.4

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.