Discontinued Operations and Disposal Groups (Tables)

9 Months Ended

Sep. 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 business divestiture:

(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	190
Amount held in escrow	15
Advance receipt for business to be transferred	(1)
Direct costs to sell	(5)
Proceeds attributable to supply agreement	(4)
Fair value of sale consideration	$	195

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	$	195
Direct costs to sell	5
Advance receipt for business to be transferred	1
Amount held in escrow	(15)
Cash transferred to the buyer	(1)
Net proceeds received from business divestiture	$	185

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

(DOLLARS IN MILLIONS)	August 1, 2023
Assets
Cash and cash equivalents	$	1
Trade receivables, net	13
Inventories	45
Property, plant and equipment, net	29
Goodwill	44
Other intangible assets, net	73
Other assets	10
Total assets	215
Liabilities
Accounts payable	(4)
Deferred tax liability	(1)
Other liabilities	(6)
Total liabilities	(11)
Equity
Accumulated other comprehensive income - currency translation adjustment	1
Total equity	1
Carrying value of net asset (adjusted for currency translation adjustment)	$	205

The following table summarizes the fair value of sale consideration received in connection with the business 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
Direct costs to sell	20
Receivable from the buyer	(30)
Cash transferred to the buyer (including restricted cash)	(19)
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 September 30, 2023 and December 31, 2022 are the following carrying amounts of the assets and liabilities held for sale:

(DOLLARS IN MILLIONS)	September 30, 2023		December 31, 2022(2)
Assets
Cash and cash equivalents	$	23	$	52
Trade receivables, net	15		85
Inventories	19		157
Property, plant and equipment, net	7		92
Goodwill	267		348
Other intangible assets, net	141		428
Operating lease right-of-use assets	8		13
Other assets	2		25
Total assets held-for-sale	$	482	$	1,200
Liabilities
Accounts payable	$	4	$	56
Deferred tax liability(1)	25		92
Other liabilities	20		64
Total liabilities held-for-sale	$	49	$	212

_______________________

(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 represent the carrying amounts of the portion of the Savory Solutions business and FSI business that were classified as held for sale. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. Refer to Note 3 for additional information.