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RESTRUCTURING AND ASSETS HELD FOR SALE

3 Months Ended

Dec. 31, 2022

RESTRUCTURING AND ASSETS HELD FOR SALE

RESTRUCTURING AND ASSETS HELD FOR SALE

10.RESTRUCTURING AND ASSETS HELD FOR SALE

Restructuring

During June 2022, the Company approved and announced a plan to close its facility in Cumberland, Virginia (“Cumberland facility”) and to close and relocate its operations in Dublin, Virginia (“Dublin facility”) into its other existing facilities, as a part of the Company’s ongoing restructuring and site optimization plan. The Cumberland facility exit was also a part of the transfer plan settlement, as further described in Note 14 – Contingencies. The operations at both the Cumberland facility and the Dublin facility were within the RMS segment. The Cumberland facility exit was complete by September 2022. The Dublin facility transition was completed in November 2022.

For the three months ended December 31, 2022, the Company incurred immaterial expenses that qualify as exit and disposal costs under GAAP, and does not expect further material charges as a result of the closures of the Cumberland facility and Dublin facility. Exit and disposal costs were charged to other operating expense.

As of December 31, 2022, the liability balance for exit and disposal costs that qualify as employee-related exit and disposal costs is $571.

Assets Held for Sale

Prior to the Envigo acquisition, Envigo management signed a Stock Purchase Agreement dated October 6, 2021, to sell its ownership interest in its Israel RMS and Israel CRS businesses (the “Israeli Businesses”) to the management team of the Israel Businesses for $6,650. The sale includes the Company’s 100% ownership in Israel RMS and Israel RMS’s 62.5% ownership interest in Israel CRS. The management team currently owns the 37.5% non-controlling ownership position in Israel CRS. In October 2022, the Company’s Board of Directors approved the sale of the Israeli Businesses. As a result of this approval, and in consideration of the remaining assets held for sale criteria under ASC 360 – Property, Plant and Equipment, it was determined that the net assets and liabilities of the Israeli Businesses met the criteria for assets held for sale as of December 31, 2022. This sale is expected to close by the end of

the fiscal year ended September 30, 2023 and will be reflected in the RMS reportable segment. The combined loss before taxes of the Israeli Businesses for the three months ended December 31, 2022 was $1,904.

The assets and liabilities, and the resulting net assets held for sale, of the Israeli Businesses are as follows:

​

​	​	​	​
​	​	December 31,
​		2022
Assets	​	​	​
Current assets:	​	​	​
Cash and cash equivalents	​	$	1,097
Restricted cash	​	​	472
Trade receivables and contract assets, net of allowances for credit losses	​	​	3,095
Inventories, net	​		760
Prepaid expenses and other current assets	​		1,065
Total current assets	​	$	6,489
​	​	​	​
Property and equipment, net	​	​	1,071
Total assets	​	$	7,560
​	​	​	​
Liabilities	​	​	​
Current liabilities:	​	​	​
Accounts payable	​	$	317
Accrued expenses and other liabilities	​		1,902
Fees invoiced in advance	​		491
Total liabilities	​	$	2,710
​	​	​	​
Net assets held for sale	​	$	4,850

​

​

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- References

No definition available.

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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