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Business Held for Sale | 6 Months Ended
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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 |
Inventories | 85 |
Other assets | 11 |
Properties, net of accumulated depreciation | 309 |
Goodwill | 399 |
Intangible assets, net of accumulated amortization | 381 |
Assets held for sale | 1,283 |
Liabilities held for sale |
Payables and other liabilities | 48 |
Post-employment obligations | 32 |
Other liabilities | 17 |
Liabilities held for sale | 97 |
Disposal group, net | $ | 1,186 |
Long-lived assets and definite-lived intangible assets are not depreciated or amortized while classified as held for sale.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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