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Acquisitions

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisitions

Acquisition

NAKANTM

On January 2, 2019, the Company acquired all of the outstanding equity interests in the parent entity of the NAKANTM global compounding solutions business. NAKAN's products are used in a wide-variety of applications, including in the automotive, building and construction, and medical industries.

The closing purchase price of $249 was paid with available cash on hand. The acquisition is being accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed and the results of operations of NAKAN are included in the Vinyls segment.

NAKAN's net sales and earnings since the acquisition date were not material to the Company's consolidated statement of operations for the year ended December 31, 2019. The acquisition-related costs recognized in the consolidated statement of operations for the year ended December 31, 2019 were not material. The pro forma impact of this acquisition has not been presented as it is not material to the Company's consolidated statements of operations for the years ended December 31, 2019 and 2018.

The following table summarizes the fair value of identified assets acquired and liabilities assumed at the date of acquisition. The allocation of consideration transferred is based on management's estimates, judgments and assumptions. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. Management estimated that consideration paid exceeded the fair value of the net assets acquired. Therefore, goodwill of $40 was recorded. The goodwill recognized is primarily attributable to the expected value to be achieved from the acquisition. The information below represents the purchase price allocation:

Cash						$	10
Accounts receivable						53
Inventories						40
Prepaid expenses and other current assets						7
Property, plant and equipment						75
Operating lease right-of-use assets						3
Intangible assets:
Customer relationships (weighted average lives of 17 years)						65
Technology (weighted average lives of 14 years)						40
Trade name (life of 15 years)						25
Other assets						12
Total assets acquired						330
Accounts payable						57
Accrued and other liabilities						18
Deferred income taxes						31
Pension and other post-retirement benefits						4
Operating lease liabilities						3
Other long-term liabilities						8
Total liabilities assumed						121
Total identifiable net assets acquired						209
Goodwill						40
Total purchase consideration						$	249

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- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-URI http://asc.fasb.org/topic&trid=2303972

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- References

No definition available.

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