Assets and Liabilities Held for Sale

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

ASSETS AND LIABILITIES HELD FOR SALE

NOTE C – ASSETS AND LIABILITIES HELD FOR SALE

On December 1, 2020, we announced the execution of a definitive agreement pursuant to which we agreed to sell our Specialty Pharmaceuticals business to Stark International Lux S.A.R.L., and SERB SAS, affiliates of SERB, a European specialty pharmaceutical group, for a purchase price of $800 million, subject to certain adjustments including cash on hand at the closing of the transaction. The agreement includes the transfer of five facilities and approximately 280 employees globally. The transaction is expected to close during the first half of 2021, subject to customary closing conditions.

As of December 31, 2020, we have classified the assets and liabilities of our Specialty Pharmaceuticals business (disposal group) as held for sale within our consolidated balance sheets at their respective carrying values, which approximates fair value, less costs to sell. Assets within the disposal group are presented within Assets held for sale and liabilities are presented within Other current liabilities within our consolidated balance sheets. Refer to Note A – Significant Accounting Policies for additional information.

The carrying amounts of the major classes of assets and liabilities of the disposal group as of December 31, 2020 are presented below:

(in millions)	As of December 31, 2020
Cash	$	37
Trade accounts receivable, net	24
Inventories	79
Other current assets	17
Goodwill	175
Other intangible assets, net	758
Other long-term assets	45
Assets held for sale	$	1,133
Accrued expenses and other current liabilities	$	25
Other long-term liabilities	27
Deferred tax liability	148
Liabilities held for sale included in Other current liabilities	$	200

In addition, as of December 31, 2020, we had foreign currency translation adjustments of $107 million contained within Accumulated other comprehensive income (loss), net of tax attributable to the Specialty Pharmaceuticals business to be released upon the closing of the transaction.