Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Disposal Groups (Tables)

v3.21.1
Discontinued Operations and Disposal Groups (Tables)
 3 Months Ended
Mar. 31, 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
March 31,
2020
Sales $ 67,891 
Cost of goods sold 51,587 
Selling, general and administrative expenses 9,285 
Other operating expense, net 12,874 
Operating loss (5,855)
Interest expense, net (1)
5,132 
Other income, net (912)
Loss from discontinued operations before income tax (10,075)
Benefit for income taxes (4,285)
Loss from discontinued operations, net of tax $ (5,790)

(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
March 31,
2021 2020
Sales $ 164,523  $ 171,184 
Cost of goods sold 125,853  136,593 
Selling, general and administrative expenses 11,716  11,733 
Other operating expense, net 17,480  5,617 
Impairment of assets held for sale 95,594  — 
Operating (loss) income (86,120) 17,241 
Equity in net income from affiliated companies (38) (55)
Interest expense, net (1)
3,215  4,026 
Other income, net (5,523) (3,753)
(Loss) income from discontinued operations before income tax (83,774) 17,023 
Provision for income taxes 4,411  7,377 
(Loss) income from discontinued operations, net of tax $ (88,185) $ 9,646 

(1)Upon the close of the transaction and finalization of net cash proceeds, the Company is required to use a portion of the proceeds to repay outstanding debt and is expected to restructure its debt, which is estimated to result in a debt reduction of $450,000 to $550,000. Certain debt requirements will be triggered that will result in 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 estimated mandatory repayment of $296,859 of the Senior Secured Term Loan Facility due February 2027 and its estimated mandatory repayment of $203,141 of the New Senior Secured Term Loan Facility due February 2027.
The following table summarizes the assets and liabilities of discontinued operations related to the Performance Chemicals divestiture as of March 31, 2021 and December 31, 2020.
March 31,
2021		 December 31,
2020
ASSETS
Cash and cash equivalents $ 16,579  $ 21,520 
Accounts receivables, net 91,265  86,961 
Inventories, net 68,907  74,647 
Prepaid and other current assets 14,629  20,879 
Current assets held for sale $ 191,380  $ 204,007 
Investments in affiliated companies $ 362  $ 324 
Property, plant and equipment, net 382,699  391,524 
Goodwill 248,736  326,173 
Other intangible assets, net 381,001  388,857 
Right-of-use lease assets 19,610  19,296 
Other long-term assets 23,524  23,269 
Valuation allowance (20,514) — 
Long-term assets held for sale $ 1,035,418  $ 1,149,443 
LIABILITIES
Accounts payable $ 63,918  $ 74,754 
Operating lease liabilities—current 8,105  8,479 
Accrued liabilities 24,064  28,336 
Current liabilities held for sale $ 96,087  $ 111,569 
Deferred income taxes $ 53,572  $ 50,232 
Operating lease liabilities—noncurrent 10,256  10,047 
Other long-term liabilities 59,217  95,271 
Long-term liabilities held for sale $ 123,045  $ 155,550