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Business Divestitures | 3 Months Ended
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Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Business Divestitures | BUSINESS DIVESTITURES Liquidation of a Business in Russia As part of the liquidation of a business in Russia for the sale of the portion of the Savory Solutions business, the Company recognized a pre-tax loss of approximately $10 million presented in the Other expense, net, and tax benefits of approximately $2 million presented in Provision for income taxes on the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the three months ended March 31, 2023. Divestiture of the Pharma Solutions Business On March 19, 2024, the Company announced the sale process and entered into an agreement to sell its Pharma Solutions business, for a value of up to $2.85 billion, that is primarily made up of businesses within the Company’s existing Pharma Solutions reportable operating segment, with some adjustments to the perimeter of the transaction designed to align customers, businesses and the manufacturing footprint. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2025. Divestiture of the Cosmetic Ingredients Business The Company completed the divestiture of its Cosmetic Ingredients business on April 2, 2024. Upon closing, the Company received gross cash proceeds of approximately $841 million from the buyer, adjusted for the preliminary estimates of certain closing adjustments. Finalization of such closing adjustments may result in additional cash receipt from or payment to the buyer. ASSETS AND LIABILITIES HELD FOR SALE During the third quarter of 2023, the Company announced the sale process of its Cosmetic Ingredients business within the Scent segment, and in the fourth quarter of 2023, the Company entered into an agreement to sell its Cosmetic Ingredients business. The transaction was closed on April 2, 2024. See Note 3 for additional information. The sale does not constitute a strategic shift of the Company’s operations and does not have major effects on the Company’s operations and financial results. Therefore, the transaction does not meet the discontinued operations criteria. The Company determined that the assets and liabilities of the business met the criteria to be presented as “held for sale.” As a result, as of March 31, 2024, such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets. The Company expects that the sale proceeds less costs to sell will exceed the preliminary estimate of the carrying value of the net assets for the business. Included in the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 are the following carrying amounts of the assets and liabilities held for sale:
(DOLLARS IN MILLIONS) | March 31, 2024 |  | December 31, 2023
Assets |  |  |
Cash and cash equivalents | $ | 32 |  |  | $ | 26 |
Trade receivables, net | 18 |  |  | 15 |
Inventories | 17 |  |  | 18 |
Property, plant and equipment, net | 7 |  |  | 7 |
Goodwill | 271 |  |  | 276 |
Other intangible assets, net | 144 |  |  | 146 |
Operating lease right-of-use assets | 10 |  |  | 9 |
Other assets | 10 |  |  | 9 |
Total assets held-for-sale | $ | 509 |  |  | $ | 506 |
Liabilities |  |  |
Accounts payable | $ | 5 |  |  | $ | 4 |
Deferred tax liability | 24 |  |  | 24 |
Other liabilities | 17 |  |  | 18 |
Total liabilities held-for-sale | $ | 46 |  |  | $ | 46 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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