Assets Held For Sale

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets Held For Sale

BUSINESS DIVESTITURES

Fruit Preparation

During the second quarter of 2021, the Company entered into an agreement to divest its fruit preparation business, which is a part of the Nourish segment. The transaction closed on October 1, 2021, with the Company receiving cash proceeds of approximately $115 million in the third quarter of 2021, net of tax of approximately $12 million.

ASSETS HELD FOR SALE

Microbial Control

During the third quarter of 2021, the Company announced it had entered into an agreement to sell its Microbial Control business unit, which is a part of the Health & Biosciences segment. The Company acquired the Microbial Control business unit as part of the Merger with N&B.

The Company classifies assets as "held for sale" when, among other factors, management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. Pursuant to ASC 360, assets held for sale were recorded at the lower of carrying value or the fair market value, less costs to sell. The sale does not constitute a strategic shift of the Company’s operations and does not, and will not, have major effects on the Company’s operations and financial results; therefore, the transaction does not meet the discontinued operations criteria.

Based on the agreement to sell, it was determined that the assets and liabilities of the Microbial Control business unit met the criteria to be presented as “held for sale." As a result, as of December 31, 2021, such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets. The Company expects that the transaction will close for approximately $1.273 billion in the second quarter of 2022 and that the sale proceeds less costs to sell will exceed the carrying value of the net assets.

Included in the Company's Consolidated Balance Sheets as of December 31, 2021 are the following carrying amounts of the assets and liabilities held for sale:

(DOLLARS IN MILLIONS)	December 31, 2021
Assets
Trade receivables, net	$	63
Inventories	125
Property, plant and equipment, net	30
Goodwill	536
Other intangible assets, net	349
Operating lease right-of-use assets	5
Other assets	14
Total assets held-for-sale	$	1,122
Liabilities
Accounts payable	$	69
Deferred tax liability	24
Other liabilities	8
Total liabilities held-for-sale	$	101