Discontinued Operations

4. DISCONTINUED OPERATIONS

On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787.5 million, subject to customary adjustments, and up to an additional $12.5 million in contingent payment had the Dental business achieved certain revenue targets in fiscal 2025. No amounts have been recorded or are expected to be recorded with respect to this contingent consideration. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the fiscal 2025 divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations have been classified as income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment through the date of sale on May 31, 2024. A majority of the proceeds received from the sale were utilized to pay off existing debt.

The following table summarizes the major line items constituting income (loss) of discontinued operations associated with the Dental segment for the years ended March 31, 2025, and 2024:


(in millions)
Years Ended March 31,	2025		2024
Revenues:
Product	$	63.9	$	407.0
Cost of revenues:
Product	35.1		226.9
Gross profit:	28.8		180.1
Operating expenses:
Selling, general, and administrative	13.5		199.5
Goodwill impairment loss	—		—
Research and development	0.4		3.0
Income (loss) from operations (1)	15.0		(22.4)
Non-operating expenses (income), net	—		—
Pre-tax loss on sale (2)	(14.0)		(206.4)
Income (loss) before income tax expense	1.0		(228.8)
Income tax benefit	(3.6)		(55.6)
Income (loss) from discontinued operations, net of income tax	$	4.5	$	(173.2)

(1) Income from operations for the year ended March 31, 2025 includes two months of operating results prior to the transaction close on May 31, 2024 and excludes depreciation and amortization of property, plant, equipment, and intangible assets subsequent to the held for sale classification as of March 2, 2024.

(2) Fiscal 2025 pre-tax loss on sale driven by sale price adjustments relating to working capital. Fiscal 2024 amount relates to accrued transaction costs and the estimated accrued loss included in held for sale as of March 31, 2024.

The effective income tax rates for the years ended March 31, 2025 and 2024 were (371.0)%, and 24.3%, respectively. Our fiscal 2025 tax rate was driven by favorable discrete items.

Significant non-cash operating items and capital expenditures related to discontinued operations are reflected in the statement of cash flows as follows:


(in millions)	2025		2024
Operating activities of discontinued operations:
Depreciation, depletion, and amortization (1)	$	—	$	115.2
Investing activities of discontinued operations:
Purchases of property, plant, equipment, and intangibles	$	(0.4)	$	(9.2)

(1) We concluded that the criteria to report assets held for sale was met on March 2, 2024, as such we did not depreciate or amortize related property, plant, equipment and intangible assets subsequent to this date.