Net assets divested included working capital of $14,727, fixed assets, net of $8,545, and right-of-use assets and lease liabilities of $387 and $386, respectively. Working capital primarily included accounts receivables, net of $3,971, and inventory, net of $10,227. For consideration, the Company received cash of $18,388 and a note receivable of $7,300 payable in April 2026.

In fiscal 2023, the Company initiated plans to exit operations in Russia and that asset disposal group was recognized as assets held for sale. The Company recognized losses on those assets in fiscal 2023 as the Company did not expect to recover the value of its investment. The Company completed its exit in the first quarter of fiscal 2026 and recognized a loss on sale of business of $140.

Net assets divested included intangibles, net of $7,692, fixed assets, net of $2,063, working capital of $1,900, right of use assets and liabilities of $3,521 and $3,120 respectively, and allocated goodwill of $756. As part of the sale, the Company recognized additional tax expense of $3,946, which includes disallowed loss on the transaction of $1,101 and the write off of related deferred tax assets of $2,845.

In September 2025, the Company announced a strategic review that included the potential sale of its High-Density Polyethylene ("HDPE") pipe business. During the second quarter of 2026, the Company's Board of Directors approved the sale and a potential buyer was identified. As of March 27, 2026, all criteria under ASC 360-10-45-9 were met, and the Company's HDPE business (the "disposal group"), a component of the Electrical reportable segment, was classified as held for sale. The disposal group did not meet the criteria for classification as a discontinued operation under ASC 205-20, and accordingly, the results of operations of the HDPE business are included in the Company's results from continuing operations for all periods presented.

On April 7, 2026, the Company completed the sale of the HDPE business to Infra Pipes Solutions U.S Corp. Under the terms of the sale agreement, Atkore contributed its HDPE business, together with commitments to provide an additional approximately $28,000 of cash, in exchange for a retained 10% equity interest in the combined entity and contingent consideration.

The disposal group, consisting of the associated assets and liabilities, is measured at the lower of carrying value or fair value less costs to sell. Depreciation and amortization expense is not recorded for the period in which assets are classified as held for sale.

Goodwill of $6,500 associated with the HDPE business was determined to be fully impaired as of March 27, 2026, resulting in an impairment charge that is included in Asset impairments in the Condensed Consolidated Statements of Operations for the three and six months ended March 27, 2026.

After the impairment of the goodwill, the carrying value of the remaining net assets held for sale was greater than their fair value less costs to sell, resulting in a loss of $25,664 that is included in Other expense, net in the Condensed Consolidated Statements of Operations for the three and six months ended March 27, 2026.

The fair value less costs to sell of the disposal group was primarily determined using a discounted cash flows model but also considered information obtained through the bidding process. The discounted cash flows model includes significant unobservable inputs, and is therefore classified as a Level 3 fair value measurement. This fair value measurement is preliminary and subject to change as the Company finalizes its valuation analysis.


(in thousands)	Assets held for sale at March 27, 2026
Accounts receivable, net	15,957
Inventory, net	25,273
Other current assets	586
Property, plant and equipment, net	18,697
Intangibles, net	21,048
Deferred tax assets	8,135
Right of use assets	$	912
Preliminary assets held for sale	$	90,608
Less valuation allowance	$	(25,664)
Assets held for sale	$	64,944


(in thousands)	Liabilities held for sale at March 27, 2026
Accounts payable	$	12,668
Other accrued liabilities	3,573
Short term lease liabilities	1,546
Long term lease liabilities	3,416
Liabilities held for sale	$	21,203