Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Disposal Groups (Tables)

v3.21.2
Discontinued Operations and Disposal Groups (Tables)
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued operations
The following table summarizes the results of discontinued operations related to the Performance Materials divestiture:
Three Months Ended
June 30, 2020		 Six Months Ended
June 30, 2020
Sales $ 105,995  $ 173,886 
Cost of goods sold 76,818  128,405 
Selling, general and administrative expenses 8,342  17,627 
Other operating (income) expense, net (168) 12,706 
Operating income 21,003  15,148 
Interest expense, net (1)
3,784  8,916 
Other expense, net 1,077  165 
Income from discontinued operations before income tax 16,142  6,067 
Provision for income taxes 7,790  3,505 
Income from discontinued operations, net of tax $ 8,352  $ 2,562 
(1)The closing of the transaction triggered the Company’s obligation to provide partial repayment under its Amended and Restated Term Loan Credit Agreement, dated May 4, 2016 and its New Term Loan Credit Agreement, dated as of July 22, 2020. As such, interest expense has been allocated to discontinued operations on the basis of the Company’s mandatory repayment of $275,787 of the Senior Secured Term Loan Facility due February 2027 and its mandatory repayment of $188,722 of the new Senior Secured Term Loan Facility due February 2027.
The following table summarizes the results of discontinued operations related to Performance Chemicals for the periods presented:
Three months ended
June 30,		 Six months ended
June 30,
2021 2020 2021 2020
Sales $ 170,374  $ 140,034  $ 334,897  $ 311,218 
Cost of goods sold 118,785  111,245  244,638  247,838 
Selling, general and administrative expenses 11,490  9,998  23,206  21,731 
Other operating expense, net 11,850  8,462  29,330  14,079 
Impairment of assets held for sale 13,990  —  109,584  — 
Operating income (loss) 14,259  10,329  (71,861) 27,570 
Equity in net (income) from affiliated companies (48) (24) (86) (79)
Interest expense, net (1)
5,599  3,353  8,814  7,380 
Other (income) expense, net (840) 320  (6,363) (3,434)
Income (loss) income from discontinued operations before income tax 9,548  6,680  (74,226) 23,703 
Provision for income taxes 2,507  33,102  6,918  40,479 
Income (loss) income from discontinued operations, net of tax $ 7,041  $ (26,422) $ (81,144) $ (16,776)
(1)Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had mandatory repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363.
The following table summarizes the assets and liabilities of discontinued operations related to the Performance Chemicals divestiture as of June 30, 2021 and December 31, 2020.
June 30,
2021		 December 31,
2020
ASSETS
Cash and cash equivalents $ 17,603  $ 21,520 
Accounts receivables, net 93,413  86,961 
Inventories, net 69,697  74,647 
Prepaid and other current assets 18,500  20,879 
Current assets held for sale $ 199,213  $ 204,007 
Investments in affiliated companies $ 261  $ 324 
Property, plant and equipment, net 394,461  391,524 
Goodwill 250,626  326,173 
Other intangible assets, net 383,842  388,857 
Right-of-use lease assets 20,823  19,296 
Other long-term assets 19,984  23,269 
Valuation allowance (34,504) — 
Long-term assets held for sale $ 1,035,493  $ 1,149,443 
LIABILITIES
Accounts payable $ 65,749  $ 74,754 
Operating lease liabilities—current 6,544  8,479 
Accrued liabilities 22,043  28,336 
Current liabilities held for sale $ 94,336  $ 111,569 
Deferred income taxes $ 60,109  $ 50,232 
Operating lease liabilities—noncurrent 10,308  10,047 
Other long-term liabilities 56,698  95,271 
Long-term liabilities held for sale $ 127,115  $ 155,550