XML 24 R7.htm IDEA: XBRL DOCUMENT v3.21.2
Business Held for Sale
6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Business Held for Sale BUSINESS HELD FOR SALE
On June 9, 2021, Eastman entered into a definitive agreement to sell rubber additives (including Crystex™ insoluble sulfur and Santoflex™ antidegradants) and other product lines and related assets and technology of the global tire additives business of its Additives & Functional Products ("AFP") segment. The sale does not include the Eastman Impera™ and other performance resins product lines of the tire additives business. The Company will provide certain rubber additives business transition and post-closing services on agreed terms.

The total sale price includes $725 million in cash at closing and an additional amount to be paid based on the performance of the rubber additives business post-closing through 2023. The final purchase price is subject to working capital and other adjustments at closing. The business being sold is not reported as a discontinued operation because the sale will not have a major effect on the Company's operations and financial results.
The sale, subject to regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in second half 2021. The agreement contains customary representations, warranties, and covenants of both parties including, among other things, that Eastman conduct the rubber additives business in the ordinary course consistent with past practice through the date of closing.

As of the definitive agreement date and until sale, the rubber additives business disposal group is classified as held for sale and was measured at its fair value less costs to sell resulting in a $495 million loss on the business held for sale (including a preliminary estimated total purchase price, anticipated liquidation of cumulative translation adjustment, and certain costs to sell). The fair value loss adjustment on the disposal group is reported as a component of "Assets held for sale" in the Unaudited Consolidated Statements of Financial Position.
The major classes of assets and liabilities of the business classified as held for sale as of June 30, 2021 were as follows:

June 30,
(Dollars in millions)2021
Assets held for sale
Trade receivables, net of allowance for doubtful accounts$98 
Inventories85 
Other assets11 
Properties, net of accumulated depreciation309 
Goodwill399 
Intangible assets, net of accumulated amortization381 
Assets held for sale1,283 
Liabilities held for sale
Payables and other liabilities48 
Post-employment obligations32 
Other liabilities17 
Liabilities held for sale97 
Disposal group, net$1,186 
Long-lived assets and definite-lived intangible assets are not depreciated or amortized while classified as held for sale.