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Note 3 - Discontinued Operations | 9 Months Ended
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Sep. 30, 2023
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3. DISCONTINUED OPERATIONS SaLE o f tEXTILE eFFECTS bUSINESS On February 28, 2023, we completed the sale of our textile chemicals and dyes business (“Textile Effects Business”) to Archroma, a portfolio company of SK Capital Partners (“Archroma”), for a purchase price of $593 million, which includes estimated adjustments to the purchase price for working capital plus the assumption of underfunded pension liabilities. The final purchase price is subject to customary post-closing adjustments. Upon the completion of the sale, we received net proceeds of $530 million, determined as the preliminary purchase price less $5 million for certain costs paid by Archroma on our behalf, $30 million of estimated net working capital adjustments and $28 million of cash that will be reimbursed to us as part of the final post-closing adjustments anticipated in 2023. In connection with the sale, we recognized a pre-tax gain of $154 million in the nine months ended September 30, 2023. Through the third quarter of 2023, we have paid cash taxes of approximately $24 million, and we expect to pay additional cash taxes of approximately $17 million. The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that are classified as held for sale in our condensed consolidated balance sheets (dollars in millions):
|  | December 31, |
|  | 2022 |
Carrying amounts of major classes of assets held for sale: |  |  |  |
Accounts receivable |  | $ | 133 |
Inventories |  |  | 151 |
Other current assets |  |  | 11 |
Property, plant and equipment, net |  |  | 134 |
Deferred income taxes |  |  | 13 |
Operating lease right-of-use assets |  |  | 15 |
Other noncurrent assets |  |  | 15 |
Total current assets held for sale(1) |  | $ | 472 |
Carrying amounts of major classes of liabilities held for sale: |  |  |  |
Accounts payable |  | $ | 63 |
Accrued liabilities |  |  | 47 |
Current operating lease liabilities |  |  | 2 |
Noncurrent operating lease liabilities |  |  | 17 |
Other noncurrent liabilities |  |  | 65 |
Total current liabilities held for sale(1) |  | $ | 194 |
(1) | Total assets and liabilities held for sale as of December 31, 2022 are classified as current because we completed the sale of our Textile Effects Business on February 28, 2023.
The following table reconciles major line items constituting pretax (loss) income of discontinued operations to after-tax (loss) income of discontinued operations, primarily related to our Textile Effects Business, as presented in our condensed consolidated statements of operations (dollars in millions):
|  | Three months |  |  | Nine months |
|  | ended |  |  | ended |
|  | September 30, |  |  | September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Major line items constituting pretax (loss) income of discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade sales, services and fees, net |  | $ | — |  |  | $ | 158 |  |  | $ | 88 |  |  | $ | 547 |
Cost of goods sold |  |  | — |  |  |  | 127 |  |  |  | 69 |  |  |  | 420 |
Gain on sale of our Textile Effects Business |  |  | 1 |  |  |  | — |  |  |  | 154 |  |  |  | — |
Other expense items, net |  |  | 3 |  |  |  | 25 |  |  |  | 39 |  |  |  | 83 |
(Loss) income from discontinued operations before income taxes |  |  | (2 | ) |  |  | 6 |  |  |  | 134 |  |  |  | 44 |
Income tax benefit (expense) |  |  | 2 |  |  |  | (7 | ) |  |  | (14 | ) |  |  | (14 | )
Net (loss) income attributable to discontinued operations |  | $ | — |  |  | $ | (1 | ) |  | $ | 120 |  |  | $ | 30 |

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