XML 34 R24.htm IDEA: XBRL DOCUMENT
v3.23.3

Discontinued Operations | 9 Months Ended
--- | ---
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations Upon entering into the Engineered Papers Offer agreement, the Engineered Papers business met the criteria set forth in Accounting Standards Codification 205-20, Presentation of Financial Statements – Discontinued Operations (“ASC 205-20”), as the sale represents a strategic shift that will have a major effect on the Company’s operations and financial results. As a result, the Company’s consolidated financial statements for all periods presented reflect the Engineered Papers business as a discontinued operation. The divested business was historically reported in the FBS reportable segment. The Engineered Papers business was tested for recoverability as of each balance sheet date since meeting the discontinued operations criteria and the Company concluded that there is no impairment expense to be recognized. Included within the unaudited condensed consolidated balance sheet are the following major classes of assets and liabilities, respectively, associated with the discontinued operations (in millions):
| September 30, 2023 |  | December 31, 2022
ASSETS |  |  |
Cash and cash equivalents | $ | 19.0 |  |  | $ | 23.3 |
Accounts receivable, net | 95.3 |  |  | 88.6 |
Inventories, net | 118.6 |  |  | 120.2 |
Income taxes receivable | 2.8 |  |  | 0.4 |
Other current assets | 2.6 |  |  | 1.3 |
Total current assets | 238.3 |  |  | 233.8 |
Property, plant and equipment, net | 177.5 |  |  | 183.5 |
Finance lease right-of-use assets | 0.2 |  |  | — |
Operating lease right-of-use assets | 4.6 |  |  | 5.2 |
Investment in equity affiliates | 55.8 |  |  | 59.1 |
Goodwill | 3.0 |  |  | 3.0 |
Other assets | 5.5 |  |  | 5.3 |
Total assets of discontinued operations | $ | 484.9 |  |  | $ | 489.9 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |
Current debt | $ | 0.1 |  |  | $ | 1.1 |
Finance lease liabilities | 0.1 |  |  | — |
Operating lease liabilities | 0.7 |  |  | 0.8 |
Accounts payable | 43.0 |  |  | 45.1 |
Income taxes payable | 1.4 |  |  | 1.2 |
Accrued expenses and other current liabilities | 44.4 |  |  | 55.2 |
Total current liabilities | 89.7 |  |  | 103.4 |
Long-term debt | 3.2 |  |  | 2.9 |
Finance lease liabilities, noncurrent | 0.1 |  |  | — |
Operating lease liabilities, noncurrent | 4.2 |  |  | 4.6 |
Long-term income tax payable | 0.6 |  |  | 0.6 |
Pension and other postretirement benefits | 20.8 |  |  | 21.3 |
Deferred income tax liabilities | 16.0 |  |  | 20.1 |
Other liabilities | 18.1 |  |  | 17.4 |
Total liabilities of discontinued operations | 152.7 |  |  | 170.3 |
Summary financial results of discontinued operations were as follows (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net sales | $ | 127.2 |  |  | $ | 122.6 |  |  | $ | 399.1 |  |  | $ | 394.8 |
Cost of products sold | 92.3 |  |  | 95.7 |  |  | 309.9 |  |  | 298.1 |
Gross profit | 34.9 |  |  | 26.9 |  |  | 89.2 |  |  | 96.7 |
Selling expense | 3.7 |  |  | 3.3 |  |  | 11.0 |  |  | 10.5 |
Research and development expense | 2.2 |  |  | 1.8 |  |  | 7.1 |  |  | 5.6 |
General expense | 3.7 |  |  | 4.3 |  |  | 10.9 |  |  | 13.6 |
Total nonmanufacturing expenses | 9.6 |  |  | 9.4 |  |  | 29.0 |  |  | 29.7 |
Restructuring and other impairment expense | 0.5 |  |  | — |  |  | 0.6 |  |  | 0.2 |
Operating income | 24.8 |  |  | 17.5 |  |  | 59.6 |  |  | 66.8 |
Interest expense(1) | (12.3) |  |  | (8.9) |  |  | (35.1) |  |  | (15.0) |
Other income, net | 1.4 |  |  | 1.3 |  |  | 8.3 |  |  | 10.0 |
Income from discontinued operations before income taxes | 13.9 |  |  | 9.9 |  |  | 32.8 |  |  | 61.8 |
Income tax expense | 4.8 |  |  | (0.4) |  |  | 6.3 |  |  | 9.6 |
Income (loss) from equity affiliates, net of income taxes | 0.2 |  |  | 1.2 |  |  | 0.4 |  |  | 5.1 |
Net income from discontinued operations | 9.3 |  |  | 11.5 |  |  | 26.9 |  |  | 57.3 |
(1) Upon the close of the transaction, the Company plans to use a portion of the net proceeds to repay a portion of its outstanding debt amounting to approximately $575 million. This debt repayment is based on the triggering of a financial covenant in the loan agreement and interest expense has been allocated to discontinued operations on a pro-rata basis within the Condensed Consolidated Statement of Income (Loss) and the Condensed Consolidated Statement of Cash Flows based on the outstanding loan balances.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration