Annual report pursuant to Section 13 and 15(d)

Divestiture Activities

v3.23.3
Divestiture Activities
 12 Months Ended
Aug. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 5. Discontinued Operations and Other Divestiture Activities
Discontinued Operations
On October 31, 2019, as part of our overall strategy to become a pure-play industrial tools and services company, the Company completed the sale of the businesses comprising its former EC&S segment. This divestiture was considered part of our strategic shift to become a pure-play industrial tools and services company, and therefore, the results of operations are recorded as a component of "Loss from discontinued operations, net of income taxes" in the Condensed Consolidated Statements of Earnings for all periods presented. All discontinued operations activity included within the Condensed Consolidated Statements of Earnings and the Condensed Consolidated Statements of Cash Flows for the periods presented relate to impacts from certain retained liabilities.
The following represents the detail of "Loss from discontinued operations, net of income taxes" within the Consolidated Statements of Earnings (in thousands):
Year Ended August 31,
2023 2022 2021
Selling, general and administrative expenses 10,069  4,842  1,456 
Impairment & divestiture benefit (1,530) —  — 
Operating loss (8,539) (4,842) (1,456)
Other income, net 372  —  — 
Loss before income tax benefit (8,911) (4,842) (1,456)
Income tax (benefit) loss (1,823) (937) 679 
Loss from discontinued operations, net of income taxes $ (7,088) $ (3,905) $ (2,135)
Other Divestiture Activities
On July 11, 2023, the Company completed the sale of the Cortland Industrial business, which had been included in the Other operating segment, for net cash proceeds of $20.1 million. In connection with the completion of the sale, the Company recorded a net gain of $6.2 million. The historical results of the Cortland Industrial business (which had net sales of $22.7 million, $26.2 million, and $23.7 million for the year ended August 31, 2023, 2022 and 2021, respectively) are not material to the consolidated financial results.