4 Disposals, loss of control
Disposals and loss of control in 2023
In February 2023, the group entered into an agreement with a third party for the sale of four legal entities in Russia (AO Sulzer Pumps, Sulzer Pumps Rus LLC, Sulzer Turbo Services Rus LLC and Sulzer Chemtech LLC). From the date of the sales agreement, the group lost power over the relevant activities of these entities due to the contractual requirements and legal environment. Consequently, these four entities were deconsolidated in 2023, resulting in the derecognition of the assets and liabilities previously classified as held for sale. The deconsolidation resulted in a gain on deconsolidation amounting to CHF 8.0 million, of which CHF 11.2 million resulted from the reclassification of accumulated currency translation differences and CHF 0.6 million from the reclassification of cash flow hedge reserves, net of tax. The gain on deconsolidation is recorded in other operating income / (expenses), net. A loan with one of the former subsidiaries was measured at a fair value and recognized as a current financial asset at the time control was lost. The payment received on the financial asset exceeded the estimated fair value, the income from the impairment release was recorded in other financial income.
Including other minor disposals in 2023, a net gain on disposal (pre-tax) of CHF 7.2 million was recorded in other operating income / (expenses), net, of which CHF 10.9 million pertains to the reclassification of accumulated currency translation differences and CHF 0.6 million to the reclassification of cash flow hedge reserves, net of tax (see note 10).
The aggregated assets and liabilities derecognized in the year 2023 as part of the disposals are presented in the below table.
|
millions of CHF |
|
2023 1) |
|
Property, plant and equipment |
|
0.2 |
|
Deferred income tax assets |
|
0.6 |
|
Inventories and advance payments to suppliers |
|
0.1 |
|
Trade accounts receivable |
|
0.4 |
|
Cash and cash equivalents |
|
32.6 |
|
Non-current liabilities |
|
–0.3 |
|
Trade accounts payable |
|
–0.6 |
|
Contract liabilities |
|
–13.3 |
|
Current lease liabilities |
|
–0.2 |
|
Current provisions |
|
–0.4 |
|
Other current and accrued liabilities |
|
–10.7 |
|
Net assets derecognized |
|
8.5 |
1) Assets and liabilities classified as assets and liabilities of disposal groups held for sale prior to the disposal are presented as per their initial classification prior to the classification as held for sale.
Cash flow from divestments
|
millions of CHF |
|
2024 |
|
2023 |
|
Cash consideration received |
|
– |
|
5.8 |
|
Cash disposed of |
|
– |
|
–32.6 |
|
Cash consideration received for divestments in prior years |
|
– |
|
0.3 |
|
Total cash flow from divestitures, net of cash derecognized |
|
– |
|
–26.6 |