Discontinued Operations

9 Months Ended

Sep. 29, 2024

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 the next twelve months.

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 2024 and 2023.

Results of discontinued operations in the third quarter and first nine months of 2024 and 2023 were as follows:


	Third Quarter				Year-to-date
In millions	2024		2023			2024		2023
Net sales	$	1.6	$	1.9		$	4.7	$	6.1
Cost of goods sold	(1.1)		(1.4)			(3.6)		(5.0)
Gross profit	0.5		0.5			1.1		1.1
Selling, general and administrative expenses	(0.3)		(0.3)			(1.1)		(1.0)
Restructuring charge	—		0.1			(0.1)		(0.1)

Operating income / (loss)	0.2		0.3			(0.1)		—
Tax (charge) / credit	(0.1)		(0.1)			—		—
Net income / (loss)	$	0.1	$	0.2		$	(0.1)	$	—

11. Discontinued Operations (continued)

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


Held-for-sale assets	September 29,		December 31,
In millions	2024		2023
Inventory	$	4.1	$	3.3
Accounts and other receivables	2.1		2.3
Current assets	6.2		5.6


Right-of-use-assets	1.6		2.1
Held-for-sale assets	$	7.8	$	7.7

Held-for-sale liabilities
Accounts payable	$	0.7	$	0.9
Accrued liabilities	0.4		0.4
Other liabilities	2.2		2.6

Held-for-sale liabilities	$	3.3	$	3.9

There was $0.1m and $0.2m of capital expenditure in the third quarter and first nine months of 2024 respectively (2023: none), there was no depreciation and amortization or any other significant non-cash items.

Held-for-sale assets and liabilities

The total assets and liabilities classified as held-for-sale, including those that qualify as discontinued operations are as follows:


Held-for-sale assets	September 29,		December 31,
In millions	2024		2023
Inventory	$	12.1	$	3.3
Accounts and other receivables	8.2		2.3
Current assets	20.3		5.6

Property, plant and equipment	0.2		1.2
Right-of-use-assets	1.6		2.1
Non-current assets	1.8		3.3

Total held-for-sale assets	$	22.1	$	8.9

Held-for-sale liabilities
Accounts payable	2.1		0.9
Accrued liabilities	1.8		0.4
Other liabilities	3.3		2.6
Held-for-sale liabilities	$	7.2	$	3.9

As a result of the Company’s strategic review process announced in October 2023, the Company concluded that its Graphic Arts business no longer aligns with the Company’s overall business and value proposition. In 2024, the Company initiated a sale process for its Graphic Arts business with the intention of divesting this business in 2024.

In the first nine months of 2024, the company recognized a $7.5 million loss on held-for-sale asset group recognized in continuing operations, relating to our Graphic Arts segment to reflect the the fair value of Graphic Arts. A $1.4 million accrual, also recognized within acquisition and disposal related costs in the Income Statement, has been recognized for expected costs in relation to professional fees in relation to the planned divestiture of the Graphic Arts segment.

In accordance with ASC 205-20 and ASC 360-10, our Graphic Arts business is classified as held-for-sale at September 29, 2024, however the business does not meet the criteria to be classified as a discontinued operation.

12. Held-for-sale assets and liabilities (continued)

In the third quarter and first nine months of 2024, the Company recognized a $6.1m gain on disposal of assets in relation to the sale of previously disclosed held-for-sale land and buildings in our Elektron division, net consideration of $7.3 million was received in the fourth quarter of 2024.