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v3.20.2

Acquisitions and Dispositions (Tables) | 6 Months Ended
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Jun. 30, 2020
Business Combinations [Abstract] |
Summary of assets acquired and liabilities assumed | The preliminary fair value recorded for the assets acquired and liabilities assumed for ESOL is as follows:
|  | Preliminary Valuation |  |  |  |
(In millions) |  | April 6 2020 |  | Measurement Period Adjustments |  | June 30 2020
Cash and cash equivalents |  | $ | 0.4 |  |  | $ | — |  |  | $ | 0.4 |
Trade accounts receivable |  | 124.1 |  |  | — |  |  | 124.1 |
Inventory |  | 5.0 |  |  | — |  |  | 5.0 |
Other current assets |  | 0.7 |  |  | — |  |  | 0.7 |
Property, plant and equipment |  | 105.3 |  |  | — |  |  | 105.3 |
Right-of-use assets |  | 56.0 |  |  | — |  |  | 56.0 |
Goodwill |  | 152.0 |  |  | — |  |  | 152.0 |
Intangible assets |  | 161.0 |  |  | — |  |  | 161.0 |
Other assets |  | 0.2 |  |  | — |  |  | 0.2 |
Accounts payable |  | (48.6) |  |  | — |  |  | (48.6) |
Accrued expenses |  | (17.5) |  |  | — |  |  | (17.5) |
Current portion of operating lease liabilities |  | (16.6) |  |  | — |  |  | (16.6) |
Other current liabilities |  | (6.4) |  |  | — |  |  | (6.4) |
Environmental liabilities |  | (24.4) |  |  | — |  |  | (24.4) |
Deferred income taxes |  | (15.5) |  |  | — |  |  | (15.5) |
Operating lease liabilities |  | (39.4) |  |  | — |  |  | (39.4) |
Total identifiable net assets of ESOL |  | 436.3 |  |  | — |  |  | 436.3 |
Non-compete agreement |  | 2.5 |  |  | — |  |  | 2.5 |
Total identifiable net assets of ESOL |  | $ | 438.8 |  |  | $ | — |  |  | $ | 438.8 |
The fair value recorded for the assets acquired and liabilities assumed for Clean Earth is as follows:
|  | Final |  |  |  |
(In millions) |  | June 28, 2019 |  | Measurement Period Adjustments (a) |  | June 30 2020
Cash and cash equivalents (b) |  | $ | 42.8 |  |  | $ | (39.2) |  |  | $ | 3.6 |
Trade accounts receivable, net |  | 63.7 |  |  | (1.2) |  |  | 62.5 |
Other receivables |  | 0.8 |  |  | 1.3 |  |  | 2.1 |
Other current assets |  | 8.7 |  |  | (1.4) |  |  | 7.3 |
Property, plant and equipment |  | 75.6 |  |  | 1.4 |  |  | 77.0 |
Right-of-use assets |  | 14.4 |  |  | 11.4 |  |  | 25.8 |
Goodwill |  | 313.8 |  |  | 16.8 |  |  | 330.6 |
Intangible assets |  | 261.1 |  |  | (18.9) |  |  | 242.2 |
Other assets |  | 4.0 |  |  | (2.8) |  |  | 1.2 |
Accounts payable |  | (23.0) |  |  | (0.1) |  |  | (23.1) |
Acquisition consideration payable (b) |  | (39.2) |  |  | 39.2 |  |  | — |
Other current liabilities |  | (18.0) |  |  | (1.7) |  |  | (19.7) |
Net deferred taxes liabilities |  | (51.2) |  |  | 5.5 |  |  | (45.7) |
Operating lease liabilities |  | (11.1) |  |  | (8.4) |  |  | (19.5) |
Other liabilities |  | (6.5) |  |  | (2.1) |  |  | (8.6) |
Total identifiable net assets of Clean Earth |  | $ | 635.9 |  |  | $ | (0.2) |  |  | $ | 635.7 |
(a) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (b) Acquisition consideration payable represents a portion of the cash consideration not paid out until July 2019.
Preliminary valuation of identifiable intangible assets and amortization periods | The following table details the preliminary valuation of identifiable intangible assets and amortization periods for ESOL and the non-compete entered into by the Company upon acquisition of ESOL:
|  |  |  | Preliminary Valuation |  |  |  |
(Dollars in millions) |  | Weighted-Average Amortization Period |  | April 6 2020 |  | Measurement Period Adjustments (a) |  | June 30 2020
Permits and rights |  | 22 years |  | $ | 138.0 |  |  | $ | 0.0 |  |  | $ | 138.0 |
Customer relationships |  | 10 years |  | 23.0 |  |  | 0.0 |  |  | 23.0 |
Total identifiable intangible assets of ESOL |  |  |  | 161.0 |  |  | 0.0 |  |  | 161.0 |
Non-compete agreement |  | 4 years |  | 2.5 |  |  | 0.0 |  |  | 2.5 |
Total identifiable intangible assets acquired |  |  |  | $ | 163.5 |  |  | $ | 0.0 |  |  | $ | 163.5 |
The following table details the preliminary valuation of identifiable intangible assets and amortization periods for Clean Earth:
|  |  |  | Final |  |  |  |
(Dollars in millions) |  | Weighted-Average Amortization Period |  | Preliminary Valuation June 28, 2019 |  | Measurement Period Adjustments (c) |  | June 30 2020
Permits |  | 18 years |  | $ | 176.1 |  |  | $ | (6.0) |  |  | $ | 170.1 |
Customer relationships |  | 8 years |  | 33.4 |  |  | (12.9) |  |  | 20.5 |
Air rights |  | Usage based (d) |  | 25.6 |  |  | — |  |  | 25.6 |
Trade names |  | 12 years |  | 26.0 |  |  | — |  |  | 26.0 |
Total identifiable intangible assets of Clean Earth |  |  |  | $ | 261.1 |  |  | $ | (18.9) |  |  | $ | 242.2 |
(c) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (d) The Company estimates that based on current usage that the expected useful life would be 27 years.
Pro forma information |
|  | Three Months Ended |  |  |  | Six Months Ended |  |
|  | June 30 |  |  |  | June 30 |  |
(In millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Pro forma revenues |  | $ | 447.3 |  |  | $ | 564.4 |  |  | $ | 976.8 |  |  | $ | 1,078.1 |
Pro forma net income (including discontinued operations) |  | 2.0 |  |  | 23.5 |  |  | 2.7 |  |  | 12.8 |
Balance sheet positions and financial information included in net income from discontinued operations and statements of cash flows | Certain key selected financial information included in net income from discontinued operations for the former Harsco Industrial Segment is as follows:
|  | Three Months Ended |  |  |  | Six Months Ended |  |
|  | June 30 |  |  |  | June 30 |  |
(In millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Amounts directly attributable to the former Harsco Industrial Segment: |  |  |  |  |  |  |  |
Total revenues |  | $ | — |  |  | $ | 116,796 |  |  | $ | 10,203 |  |  | $ | 234,182 |
Cost of products sold |  | — |  |  | 85,319 |  |  | 8,082 |  |  | 173,014 |
Income from discontinued business |  | (95) |  |  | 9,882 |  |  | 123 |  |  | 24,074 |
Additional amounts allocated to the former Harsco Industrial Segment: |  |  |  |  |  |  |  |
Selling, general and administrative expenses (e) |  | $ | (77) |  |  | $ | 3,527 |  |  | $ | 1,189 |  |  | $ | 3,527 |
Interest expense (f) |  | — |  |  | 7,005 |  |  | — |  |  | 11,237 |
(e) The Company has allocated directly attributable transaction costs to discontinued operations. (f) The Company has allocated interest expense, including a portion of the amount reclassified into income for the Company's interest rate swaps and amortization of deferred financing costs resulting from the AXC disposal, as part of discontinued operations. The following is selected financial information included on the Company's Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Industrial Segment:
|  | Six Months Ended |  |
|  | June 30 |  |
(In millions) |  | 2020 |  | 2019
Non-cash operating items |  |  |  |
Depreciation and amortization |  | $ | — |  |  | $ | 3,301 |
Cash flows from investing activities |  |  |  |
Purchases of property, plant and equipment |  | 106 |  |  | 5,221 |

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