Divestitures and Held for Sale

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

The Company completed its previously announced ATP on December 31, 2019. As such, there were no businesses held for sale at September 30, 2020, nor income or loss from discontinued operations for the three and nine months ended September 30, 2020. The following table provides a summary of amounts included in discontinued operations for the 2019 periods indicated (in millions):


	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Net sales	$	29	$	332
Cost of products sold	18		245
Gross profit	11		87
Selling, general and administrative expenses	4		42

Impairment of goodwill, intangibles and other assets	—		112
Operating income (loss)	7		(67)
Non-operating income, net	(2)		(2)
Income (loss) before income taxes	9		(65)
Income tax provision (benefit)	(6)		30
Net income (loss)	$	15	$	(95)

Divestiture Activity

On August 31, 2020, the Company divested the foam board product line in its Learning and Development segment. As a result, during the three and nine months ended September 30, 2020, the Company recorded a pretax loss of $8 million, which is included in the other expense, net in the Condensed Consolidated Statements of Operations.

On May 1, 2019, the Company sold its Rexair business to investment funds affiliated with Rhône Capital for approximately $235 million, subject to customary working capital and other post-closing adjustments. As a result, during the three and nine months ended September 30, 2019, the Company recorded a pretax loss of $4 million and net pretax gain of $2 million, respectively, which is included in the net income (loss) from discontinued operations.

On May 1, 2019, the Company sold its Process Solutions business to an affiliate of One Rock Capital Partners, LLC, for approximately $500 million, subject to customary working capital and other post-closing adjustments. As a result, during the three and nine months ended September 30, 2019, the company recorded a pretax gain of $13 million and net pretax loss of $9 million, respectively, which is included in the net income (loss) from discontinued operations.

On December 31, 2019, the Company sold its Playing Cards business to Cartamundi Inc. and Cartamundi España S.L. for approximately $220 million, subject to customary working capital and other post-closing adjustments.

During the nine months ended September 30, 2019, the Company recorded impairment charges totaling $112 million, which were included in the loss from discontinued operations, related to the write-down of the carrying value of the net assets of certain held for sale businesses based on their estimated fair value.