Divestitures and Held for Sale

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

The Company completed its previously announced ATP on December 31, 2019. As such, there were no businesses held for sale at June 30, 2020, nor income or loss from discontinued operations for the three and six months ended June 30, 2020. The following table provides a summary of amounts included in discontinued operations for the 2019 periods indicated (in millions):


	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Net sales	$	92	$	303
Cost of products sold	67		227
Gross profit	25		76
Selling, general and administrative expenses	13		38

Impairment of goodwill, intangibles and other assets	—		112
Operating income (loss)	12		(74)
Non-operating (income) expense, net	5		—
Income (loss) before income taxes	7		(74)
Income tax provision	40		36
Net loss	$	(33)	$	(110)

2019 Divestiture Activity

On May 1, 2019, the Company sold its Rexair business to investment funds affiliated with Rhône Capital for approximately $235 million, subject to customary working capital and other post-closing adjustments. As a result, during the three and six months ended June 30, 2019, the company recorded a pre-tax gain of $6 million, which is included in the net loss from discontinued operations.

On May 1, 2019, the Company sold its Process Solutions business to an affiliate of One Rock Capital Partners, LLC, for approximately $500 million, subject to customary working capital and other post-closing adjustments. As a result, during the three and six months ended June 30, 2019, the company recorded a pre-tax loss of $22 million, which is included in the net loss from discontinued operations.

On December 31, 2019, the Company sold its Playing Cards business to Cartamundi Inc. and Cartamundi España S.L. for approximately $220 million, subject to customary working capital and other post-closing adjustments.

During the six months ended June 30, 2019, the Company recorded impairment charges totaling $112 million, which is included in the loss from discontinued operations, related to the write-down of the carrying value of the net assets of certain held for sale businesses based on their estimated fair value.