Discontinued Operations and Disposal Groups

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations

On August 31, 2021, the Company completed the sale (the “Transaction”) of its European Tinplate business (the “Business”) to Kouti B.V., an affiliate of KPS Capital Partners LP. The Business comprised the Company’s European Food segment and its European Aerosol and Promotional Packaging reporting unit which was previously reported in the Company's other segments. The Company received pre-tax proceeds of approximately €1.9 billion ($2.3 billion) from the Transaction and retained a 20% minority interest in the Business. Proceeds from the Transaction are being used to fund capital projects, repurchase Company stock and to redeem certain of the Company's senior notes as further described in Note L.

The Company recorded a pre-tax loss of $89 upon disposal, which included the reclassification of a loss of $553 of currency translation adjustments from accumulated other comprehensive income. The Company also recorded income tax charges of $84 related to taxable gains on the sale of the Business.

Major components of net (loss) / income from discontinued operations were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Net sales	$	466	$	678	$	1,585	$	1,681
Cost of products sold, excluding depreciation and amortization	393		552		1,301		1,391
Depreciation and amortization	—		16		16		45
Selling and administrative expense	17		20		60		59
Restructuring and other	2		(1)		2		—
Other pension and postretirement	—		—		1		1
Interest expense	2		3		6		8
Foreign exchange	1		1		—		1
Loss on sale of discontinued businesses	19		—		89		—
Transaction costs	26		—		34		—
Income from discontinued operations before tax	6		87		76		176
Provision for income taxes	91		21		119		39
Net (loss) / income from discontinued operations	(85)		66		(43)		137
Net income from discontinued operations attributable to noncontrolling interests	—		—		1		—
Net (loss) / income from discontinued operations attributable to Crown Holdings	$	(85)	$	66	$	(44)	$	137

Major classes of assets and liabilities of the Business classified as held for sale at December 31, 2020 were as follows:


	December 31, 2020

Receivables, net	$	281
Inventories	410
Prepaid expenses and other current assets	30
Goodwill	1,447
Intangible assets, net	125
Property, plant and equipment, net	546
Operating lease right-of-use assets, net	43
Other non-current assets	17
Total assets held for sale	$	2,899

Short-term debt	$	17
Current portion of operating lease liabilities	12
Accounts payable	725
Accrued liabilities	227
Postretirement and pension liabilities	77
Non-current portion of operating lease liabilities	32
Other non-current liabilities	90
Total liabilities held for sale	$	1,180

The table above excludes assets held for sale unrelated to the Business that are not material for disclosure.

The capital expenditures of the Business were as follows:


	September 30, 2021		September 30, 2020

Capital expenditures	$	29	$	14

The Company will account for the retained minority interest in the Business under the equity method. The Company's share of income of the Business was $3 for the three and nine months ended September 30, 2021 and is reported in Equity earnings in affiliates in the Consolidated Statement of Operations.