Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Our Superform aluminum superplastic forming business, which operated 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 in 2020, we have reflected the results of operations of these businesses as discontinued operations in the Consolidated Statements of Income for all periods presented. We expect our Superform U.S. business to be sold within the next twelve months.

Our U.S. aluminum gas cylinder business was sold in March 2021 for $20.2 million, net of working capital adjustments. The Company recognized a gain on disposition, net of tax, of $7.1 million.

In September 2021, our Superform U.K. business was sold for $4.0 million, net of working capital adjustments. The Company recognized a loss on disposition, net of tax, of $0.5 million.

In 2022, the Company recognized impairment and disposal-related costs of $2.6 million and $2.0 million respectively, in relation to the previous dispositions which occurred in 2021.

The assets and liabilities of the above businesses have been presented within Current assets held-for-sale and Current liabilities held-for-sale in the Consolidated Balance Sheets at December 31, 2022, and December 31, 2021. In 2021, Company recognized a $1.5 million impairment charge relating to plant and equipment held in our Superform U.S. business reflecting updated expectations of fair market value.

7. Discontinued operations (continued)

Results of discontinued operations were as follows:


In millions	2022		2021		2020
Net sales	$	7.7	$	20.9	$	53.2
Cost of goods sold	(6.9)		(21.8)		(51.5)
Gross (loss) / profit	0.8		(0.9)		1.7
Selling, general and administrative expenses	(0.9)		(2.9)		(5.8)
Restructuring charges	(0.3)		(1.0)		(0.1)
Acquisition and disposal costs	(2.0)		—		—
Impairment charges	(2.6)		(1.5)		—
Other income	—		—		3.4


Net loss before income taxes	(5.0)		(6.3)		(0.8)
Provision for income taxes	(0.1)		(0.4)		—
Net loss	$	(5.1)	$	(6.7)	$	(0.8)

The assets and liabilities classified as held-for-sale were as follows:


In millions	December 31, 2022		December 31, 2021
Accounts and other receivables	$	2.7	$	2.1
Inventories	2.7		2.7

Current assets	5.4		4.8


Right-of-use assets	2.7		—

Total assets	$	8.1	$	4.8

Accounts payable	0.8		0.5
Accrued liabilities	0.2		0.1
Other current liabilities	4.0		0.8
Current liabilities	5.0		1.4


Total liabilities	$	5.0	$	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 operating non-cash items were as follows:


In millions	2022		2021		2020
Non-cash add-backs to cash flows from discontinued operating activities:
Depreciation	$	0.1	$	0.5	$	1.1
Impairment charges	—		1.5		—
Settlements from sale of businesses	1.0		—		—

Cash flows from discontinued investing activities:
Capital expenditures	$	0.1	$	0.1	$	0.3

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.