Assets Held For Sale

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Assets Held For Sale

ASSETS AND LIABILITIES 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” and such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets.

Included in the Company's Consolidated Balance Sheets as of June 30, 2022 are the following carrying amounts of the assets and liabilities held for sale:

(DOLLARS IN MILLIONS)	June 30, 2022
Assets
Cash and cash equivalents	$	49
Trade receivables, net	79
Inventories	134
Property, plant and equipment, net	31
Goodwill	525
Other intangible assets, net	342
Operating lease right-of-use assets	4
Deferred tax assets	3
Other assets	39
Total assets held-for-sale	$	1,206
Liabilities
Accounts payable	$	50
Deferred tax liability	9
Other liabilities	16
Total liabilities held-for-sale	$	75

In addition to these assets classified as held for sale, the Microbial Control business unit also includes an equity method investment with a carrying value of approximately $74 million, which was sold as part of the divestiture. The equity method investment is presented in Other assets on the Consolidated Balance Sheets as of June 30, 2022.