XML 20 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions with Honeywell
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions with Honeywell
Related Party Transactions with Honeywell
 
Prior to consummation of the Spin-Off, the Condensed Consolidated and Combined Financial Statements have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Honeywell.
 
During the three and six months ended June 30, 2016, AdvanSix was allocated $10,666 and $21,406, respectively, of general corporate expenses incurred by Honeywell for certain services, such as legal, accounting, information technology, human resources, other infrastructure support and shared facilities, on behalf of AdvanSix. These expenses were reflected within Costs of goods sold and Selling, general and administrative expenses in the Condensed Consolidated and Combined Statements of Operations.
 
Sales to Honeywell during the three and six months ended June 30, 2016 were $1,156 and $2,696, respectively. Of these sales, $1,077 and $2,602, respectively, were sold to Honeywell at zero margin. Costs of goods sold to Honeywell during the three and six months ended June 30, 2016 were $1,147 and $2,684, respectively. Purchases from Honeywell during the three and six months ended June 30, 2016 were $1,066 and $2,258, respectively. The total net effect of the settlement of these inter-company transactions was reflected in the Condensed Consolidated and Combined Statements of Cash Flows as a financing activity identified as Invested equity.

While we were owned by Honeywell, a centralized approach was used for cash management and financing of operations. Prior to consummation of the Spin-Off, the Company’s cash was transferred to Honeywell daily and Honeywell funded the Company’s operating and investing activities as needed.
 
Subsequent to the Spin-Off on October 1, 2016, transactions with Honeywell were not considered related party transactions. Accordingly, no related party transactions with Honeywell were recorded for the three and six months ended June 30, 2017.