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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Preliminary Purchase Price Allocation
In millions			Weighted Average Amortization Period						Fair Value
Cash and cash equivalents									$	8.0
Accounts receivable									28.7
Inventories (1)									48.4
Prepaid and other current assets									2.0
Property, plant and equipment									43.1
Intangible assets (2)
Brands			10 years						15.0
Customer relationships			15 years						88.6
Developed technology			7 years						23.5
Goodwill (3)									109.8
Other assets, including operating leases									0.1
Total fair value of assets acquired									$	367.2
Accounts payable									13.9
Other liabilities									2.6
Total fair value of liabilities assumed									$	16.5
Less: Cash acquired									(8.0)
Plus: Amounts due from Seller									1.8
Total cash paid, less cash and restricted cash acquired									$	344.5

_______________

(1) Fair value of finished goods inventories acquired included a step-up in the value of $1.8 million, of which $0.9 million was expensed in the three months ended March 31, 2023. The expense is included within "Cost of sales" on the consolidated statement of operations. Inventories are accounted for on a FIFO basis of accounting.

(2) The aggregate amortization expense was $2.7 million for the three months ended March 31, 2023. Estimated amortization expense is as follows: $8.2 million for the remainder of 2023, 2024 - $10.9 million, 2025 - $10.7 million, 2026 - $10.0 million, and 2027 - $10.0 million.

(3) Goodwill largely consists of expected cost synergies and economies of scale resulting from the business combination. We expect the full amount to be deductible for income tax purposes. This acquired goodwill has been included within our Performance Chemicals reporting unit. See Note 7 for further information regarding our allocation of goodwill among our reporting units.

Schedule of Acquisition Costs

The following table summarizes the costs incurred associated with these combined activities.

			Three Months Ended March 31,
In millions			2023						2022
Legal and professional service fees			$	1.9					$	—
Acquisition-related costs			1.9						—
Inventory fair value step-up amortization (1)			0.8						—
Acquisition and other-related costs			$	2.7					$	—

_______________

(1) Included within "Cost of sales" on the consolidated statement of operations.

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- Definition

Schedule of Acquisition Costs

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- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472

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