DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

On March 9, 2024, the Company entered into the Purchase Agreement with Endeavor Buyer LLC, an affiliate of Arsenal Capital Partners, pursuant to which Fortrea Inc. agreed to sell, and to cause its affiliates to sell, net assets relating to its Enabling Services Segment (the “Transaction”), specifically its Patient Access and Endpoint businesses, including the sale of equity interests of Fortrea Patient Access Inc. and its subsidiaries and Endpoint Clinical, Inc. and its subsidiaries. The final adjusted purchase price for the Transaction was $340.0, subject to customary purchase price adjustments, with $295.0 paid at closing and $45.0 to be paid upon achievement of certain transition-related milestones. The Transaction closed during the second quarter of 2024. The first milestone payment in the amount of $20.0 was received in the first quarter of 2025.

Financial Information of Discontinued Operations

The following table summarizes the significant line items included in income (loss) from discontinued operations, net of income tax in the condensed consolidated statements of operations for the three and six months ended June 30, 2024:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024		2024
Revenues	$	40.7	$	106.4
Costs and expenses:
Direct costs, exclusive of depreciation and amortization	25.0		66.4
Selling, general and administrative expenses, exclusive of depreciation and amortization	9.8		25.4
Depreciation and amortization	—		1.6
Long-lived and goodwill asset impairments	—		24.0
Restructuring and other charges	—		0.5
Total costs and expenses	34.8		117.9
Operating income (loss)	5.9		(11.5)
Other expense:

Foreign exchange gain (loss)	0.1		0.1
Loss on sale of a business	(23.2)		(23.2)
Other, net	0.1		0.1
Loss from discontinued operations before income taxes	(17.1)		(34.5)
Income tax expense	22.0		25.8
Loss from discontinued operations, net of tax	$	(39.1)	$	(60.3)


	Three Months Ended June 30,		Six Months Ended June 30,
	2024		2024
Loss from operations of discontinued component	$	(15.9)	$	(37.1)
Loss on disposal of discontinued operations	(23.2)		(23.2)
Loss on discontinued operations	$	(39.1)	$	(60.3)

In the first quarter of 2024, as a result of the negotiated sale price of the Patient Access and Endpoint businesses, the Company evaluated the Enabling Services Segment for impairment and determined that it was more likely than not that the carrying value of the assets exceeded its fair value. Accordingly, an impairment analysis was performed, which resulted in a goodwill impairment charge of $24.0.

The cash flows related to discontinued operations have not been segregated and are included in the condensed consolidated statements of cash flows. The following table summarizes depreciation and amortization, capital expenditures and the significant cash flow and noncash items from discontinued operations for the six months ended June 30, 2024:


	Six Months Ended June 30,
	2024
Depreciation and amortization	$	1.6
Goodwill impairment	24.0
Loss on sale of business	23.2
Capital expenditures	7.4

There were no significant operating or investing noncash items related to discontinued operations for the six months ended June 30, 2024.

Fortrea Holdings Inc. 10-Q