Discontinued Operations and Disposal Groups (Tables)

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table summarizes the fair value of sale consideration received in connection with the divestiture:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	840
Receivable from the buyer	30
Direct costs to sell	(20)
Fair value of sale consideration	$	850

The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities:

(DOLLARS IN MILLIONS)
Fair value of sale consideration	$	850
Receivable from the buyer	(30)
Cash transferred to the buyer (including restricted cash)	(19)
Direct costs to sell (to be paid in the quarter ending September 30, 2023)	20
Net proceeds received from business divestiture	$	821

The major classes of assets and liabilities sold consisted of the following:

(DOLLARS IN MILLIONS)	May 31, 2023
Assets
Cash and cash equivalents	$	15
Restricted cash	4
Trade receivables, net	69
Inventories	116
Property, plant and equipment, net	77
Goodwill	317
Other intangible assets, net	367
Right-of-use assets	20
Other assets	24
Total assets	1,009
Liabilities
Accounts payable	(44)
Deferred tax liability	(92)
Other liabilities	(54)
Total liabilities	(190)
Equity
Accumulated other comprehensive income - currency translation adjustment	42
Accumulated other comprehensive income - pension liability and postretirement	(1)
Total equity	41
Carrying value of net asset (adjusted for currency translation and pension adjustments)	$	860

Included in the Company’s Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 are the following carrying amounts of the assets and liabilities held for sale:

(DOLLARS IN MILLIONS)	June 30, 2023		December 31, 2022(2)
Assets
Cash and cash equivalents	$	3	$	52
Trade receivables, net	15		85
Inventories	47		157
Property, plant and equipment, net	28		92
Goodwill	44		348
Other intangible assets, net	73		428
Operating lease right-of-use assets	—		13
Other assets	2		25
Total assets held-for-sale	$	212	$	1,200
Liabilities
Accounts payable	$	9	$	56
Deferred tax liability(1)	—		92
Other liabilities	4		64
Total liabilities held-for-sale	$	13	$	212

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(1)The Company is currently analyzing the tax impact of the sale transaction and has included preliminary numbers for the deferred tax liability, which are subject to further updates.

(2)The amounts for December 31, 2022 also include the carrying amounts of the portion of the Savory Solutions business that was classified as held for sale. The Company completed the divestiture of the business on May 31, 2023. Refer to Note 3 for additional information.