SALE OF OBER-SCHMITTEN, GERMANY FACILITY

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

SALE OF OBER-SCHMITTEN, GERMANY FACILITY

In the third quarter of 2023, we sold our Composite Fibers’ Ober-Schmitten, Germany operations as part of the Company’s turnaround strategy that is aimed at improving financial performance of the Company’s overall business. The Company sold the facility for one euro and recognized a loss on the sale of $17.8 million during the three and nine months ended September 30, 2023. The loss on sale is recapped as follows:


In thousands
Cash	$	5,793
Accounts receivable	2,950
Inventory	5,039
Prepaids and other current assets	8,847
Property, plant and equipment	2,513
Accounts payable and accrued liabilities	(7,337)
Loss on sale	$	17,805

In connection with the sale, we entered into a transition services and distribution agreements with the purchaser pursuant to which we agreed to provide various back-office, information technology, commercial and operations support until the business is fully separated from us.

The Company had previously announced the planned closure of the facility after unsuccessfully attempting to sell the operations. In conjunction with the planned closure of the site, during the second quarter of 2023, the Company had recognized an expense of approximately $10.4 million in connection with expected employee severance and benefit costs associated with the termination of the employees at the Facility. In the third quarter of 2023, prior to the planned closure of the site, a buyer was identified and the facility was subsequently sold. As a result, the $10.4 million expense recognized in

“Cost of Goods Sold” in the second quarter of 2023 was reversed and reflected as a benefit in “Cost of Goods Sold” in the third quarter of 2023.DISCONTINUED OPERATIONS

For the three and nine months ended September 30, 2023, we recognized a loss in discontinued operations of $0.2 million and $0.9 million, respectively, primarily related to an insurance claim settlement and legal costs. For both the three and nine months ended September 30 2022, we recognized a loss in discontinued operations of $0.2 million and income of $0.1 million which primarily represents legal costs and the successful appeal of a sales and use tax audit partially offset by legal costs, respectively.

The following table sets forth a summary of cash flows from discontinued operations which is included in the condensed consolidated statements of cash flows:


	Nine months ended September 30,
In thousands	2023		2022
Net cash used by operating activities	$	(734)	$	45
Net cash used by investing activities	—		—
Net cash provided by financing activities	—		—
Change in cash and cash equivalents from discontinued operations	$	(734)	$	45