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Profit on Disposal of Subsidiary
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Profit on Disposal of Subsidiary

Note 4.     Profit on Disposal of Subsidiary

 

On July 6, 2015 the Company divested its 100% equity interest in its Aroma Chemicals business, Innospec Widnes Limited, for cash consideration of $41.5 million after transaction costs.

 

(in millions)

       

Total consideration

    $ 41.5   

Net assets disposed

      (33.9 ) 

Other effects (1)

      (6.0 ) 
  

 

 

  

Net gain

    $ 1.6   
  

 

 

  

 

(1) Other effects include foreign exchange losses transferred to the income statement

 

During the twelve month period ended December 31, 2015 the Aroma Chemicals business generated pre-tax profits amounting to $2.6 million (2014 – $7.3 million). Under the guidance in ASU 2014-08, it was determined that the Aroma Chemicals business does not qualify as discontinued operations as of December 31, 2015. The disposal of the Aroma Chemicals business does not represent a strategic shift that has or will have a major impact on our operations or financial results.

 

The following table presents the aggregate carrying amount of the major classes of assets and liabilities related to the Aroma Chemicals business disposed on July 6, 2015:

 

(in millions)

       

Assets

   

Trade and other accounts receivable

    $ 9.5   

Inventories

      15.2   

Other current assets

      0.3   

Property, plant and equipment

      9.0   

Goodwill

      7.6   
  

 

 

  

Total assets

    $ 41.6   
  

 

 

  

Liabilities

   

Accounts payable and accrued liabilities

    $ 5.5   

Accrued income taxes

      1.6   

Plant closure provision

      0.3   

Other liabilities

      0.3   
  

 

 

  

Total liabilities

    $ 7.7