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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | Note 3 — DISCONTINUED OPERATIONS On August 11, 2022, Avient entered into a definitive asset purchase agreement (the "Purchase Agreement") with an affiliate of H.I.G. Capital, (the "Purchaser"), to sell its Distribution business. Pursuant to the terms of the Purchase Agreement, the Purchaser has agreed to acquire the Company's Distribution business for $950.0 million in cash, subject to a customary working capital adjustment. Avient has classified its Distribution business assets and liabilities as held-for-sale for all periods presented in the accompanying Condensed Consolidated Balance Sheets and has classified its operating results as discontinued operations in the accompanying Condensed Consolidated Statements of Income for all periods presented. Previously, the Distribution business was a separate reportable segment. The following table summarizes the major line items constituting pretax income of discontinued operations associated with the Distribution business segment for the three and nine months ended September 30, 2022 and 2021:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Sales | $ | 398.6 |  |  | $ | 401.8 |  |  | $ | 1,211.6 |  |  | $ | 1,108.9 |
Cost of sales | 355.4 |  |  | 362.0 |  |  | 1,085.9 |  |  | 989.6 |
Selling and administrative expense | 18.2 |  |  | 13.9 |  |  | 44.9 |  |  | 41.6 |
Other (expense) income | (0.9) |  |  | (0.2) |  |  | (1.0) |  |  | (0.3) |
Income before income taxes | 24.1 |  |  | 25.7 |  |  | 79.8 |  |  | 77.4 |
Income tax expense | (7.0) |  |  | (6.5) |  |  | (21.0) |  |  | (19.7) |
Income from discontinued operations, net of taxes | $ | 17.1 |  |  | 19.2 |  |  | 58.8 |  |  | 57.7 |
The effective tax rate for discontinued operations was 28.9% and 25.3% for the three months ended September 30, 2022 and 2021, respectively, and 26.3% and 25.5% for the nine months ended September 30, 2022 and 2021, respectively. The tax rate is above the US federal rate of 21% primarily due to state and local taxes along with the impacts of global intangible low-taxed income (GILTI) tax. The following table summarizes the major classes of assets and liabilities of the Distribution business that were classified as held for sale in the consolidated balance sheets as of September 30, 2022 and December 31, 2021:
(In millions) | September 30, 2022 |  |  | December 31, 2021
Assets held-for-sale: |  |  |  |
Accounts receivable, net | $ | 211.9 |  |  |  | $ | 202.4 |
Inventories, net | 132.4 |  |  |  | 155.3 |
Property, net | 3.5 |  |  |  | 3.9 |
Goodwill | 1.6 |  |  |  | 1.6 |
Other assets | 18.4 |  |  |  | 19.0 |
Total assets held-for-sale | $ | 367.8 |  |  |  | $ | 382.2 |
Liabilities held-for-sale: |  |  |  |
Accounts payable | $ | 145.3 |  |  |  | $ | 124.4 |
Other liabilities | 25.0 |  |  |  | 30.0 |
Total liabilities held-for-sale | $ | 170.3 |  |  |  | $ | 154.4 |
| September 30, 2022 |  |  | December 31, 2021
Assets held-for-sale: |  |  |  |
Current | $ | 367.8 |  |  |  | $ | 360.2 |
Non-current | $ | — |  |  |  | $ | 22.0 |
Liabilities held-for-sale: |  |  |  |
Current | $ | 170.3 |  |  |  | $ | 141.3 |
Non-current | $ | — |  |  |  | $ | 13.1 |
As of September 30, 2022, the Distribution business met the held for sale criteria, and the sale is expected to be completed in the fourth quarter of 2022. As a result, all assets and liabilities are reflected as current.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: 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 + Details
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