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Divestitures | 9 Months Ended
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Sep. 30, 2022
Divestitures [Abstract] |
Business Held for Sale | DIVESTITURES Rubber Additives Divestiture On November 1, 2021, the Company and certain of its subsidiaries completed the sale of its rubber additives (including Crystex™ insoluble sulfur and Santoflex™ antidegradants) and other product lines and related assets and technology of the global tire additives business ("rubber additives") of its Additives & Functional Products ("AFP") segment. The sale did not include the Eastman Impera™ and other performance resins product lines of the tire additives business. The Company is providing certain business transition and post-closing services to the buyer on agreed terms. The business was not reported as a discontinued operation because the sale did not have a major effect on the Company's operations and financial results. The total estimated consideration, after estimates of contingent consideration and post-closing adjustments and ongoing agreements through October 2027, was $687 million. The additional amount of consideration of up to $75 million is to be paid based on performance of divested rubber additives through December 2023. The divestiture resulted in a $552 million loss (including cumulative translation adjustment liquidation of $23 million and certain costs to sell of $10 million). The major classes of divested assets and liabilities as of the date of the divestiture were as follows:
(Dollars in millions) |
Assets divested |
Trade receivables, net of allowance for doubtful accounts | $ | 107 |
Inventories | 94 |
Other assets | 26 |
Properties, net of accumulated depreciation | 300 |
Goodwill | 398 |
Intangible assets, net of accumulated amortization | 381 |
Assets divested | 1,306 |
Liabilities divested |
Payables and other liabilities | 48 |
Post-employment obligations | 34 |
Other liabilities | 18 |
Liabilities divested | 100 |
Disposal group, net | $ | 1,206 |
Separately, the Company recognized $4 million and $15 million of transaction costs for the divested business in first nine months 2022 and twelve months 2021, respectively. Transaction costs are expensed as incurred and are included in "Selling, general and administrative expenses" ("SG&A") in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Adhesives Resins Divestiture On April 1, 2022, the Company and certain of its subsidiaries completed the sale of its adhesives resins business, which included hydrocarbon resins (including Eastman Impera™ tire resins), pure monomer resins, polyolefin polymers, rosins and dispersions, and oleochemical and fatty-acid based resins product lines ("adhesives resins"), of its AFP segment. The business was not reported as a discontinued operation because the sale did not have a major effect on the Company's operations and financial results. Included in the adhesives resins divestiture was the 50 percent interest in a joint venture that has a manufacturing facility in Nanjing, China, which produces Eastotac™ hydrocarbon tackifying resins for pressure-sensitive adhesives, caulks, and sealants. The total estimated consideration, after estimates of post-closing adjustments, was $957 million. The divestiture resulted in a $5 million gain (including cumulative translation adjustment liquidation of $10 million and certain costs to sell of $10 million). The major classes of divested assets and liabilities as of the date of the divestiture were as follows:
(Dollars in millions) |
Assets divested |
Trade receivables, net of allowance for doubtful accounts | $ | 129 |
Inventories | 163 |
Other assets | 21 |
Properties, net of accumulated depreciation | 303 |
Goodwill | 399 |
Intangible assets, net of accumulated amortization | 14 |
Assets divested | 1,029 |
Liabilities divested |
Payables and other liabilities | 86 |
Deferred tax liability | 7 |
Other liabilities | 4 |
Liabilities divested | 97 |
Disposal group, net | $ | 932 |
The Company recognized $11 million and $3 million of transaction costs for the divested business in first nine months 2022 and twelve months 2021, respectively. Transaction costs are expensed as incurred and are included in SG&A in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings.

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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 https://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 https://asc.fasb.org/topic&trid=2303972 + Details
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