Discontinued Operations and Disposal Groups

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations

On November 1, 2024, we completed the sale of our tissue business to Sofidel America Corp. The purchase price was $1.06 billion in cash, subject to adjustments for working capital, indebtedness and transaction expenses. We recorded a gain on sale of $307.2 million. The gain and cash proceeds are subject to customary working capital adjustments during a specified period following the close of the sale. We have estimated the preliminary non-cash working capital adjustment of $13.1 million, which is excluded from "Proceeds from business divestiture" within Investing Activities on the Consolidated Statement of Cash Flows for the year ended December 31, 2024.

Below is a reconciliation of line items constituting pre-tax income from discontinued operations to the after-tax income from discontinued operations as reported on our Consolidated Statement of Operations:


	For The Years Ended December 31,
	2024		2023		2022
Net sales	$	870.3	$	1,023.4	$	950.2
Cost of sales	733.0		892.6		906.0
Selling, general and administrative expenses	26.2		29.4		23.0
Other operating charges, net	14.4		2.4		6.6
Income from discontinued operations	96.7		99.1		14.6

Non-operating expense	(23.4)		(20.5)		(23.4)
Income (loss) from discontinued operations before income taxes	73.3		78.6		(8.8)

The major components of “Other operating charges, net” included in discontinued operations for the years ended December 31, 2024, 2023 and 2022 are reflected in the table below. These items are considered outside of our core discontinued operations.


	For The Years Ended December 31,
	2024		2023		2022
Divestiture related costs	$	12.7	$	—	$	—
Costs associated with mill closure	—		—		0.3
Loss on sale or impairment associated with assets	0.4		2.4		4.7
Business improvement and other expenses	1.3		—		1.6
	$	14.4	$	2.4	$	6.6

The carrying amounts of major components of assets and liabilities included as part of discontinued operations are as follows:


	December 31, 2023
Assets of discontinued operations:
Receivables, net of allowance for current expected credit losses	$	88.4
Inventories, net	158.6
Other current assets	0.5
Property, plant and equipment, net	629.4
Other assets, net	28.5
Total assets of discontinued operations	905.4
Liabilities of discontinued operations:
Current portion of long-term debt	0.8
Accounts payable and accrued liabilities	89.6
Long-term debt	22.4
Liability for pension and other postretirement employee benefits	1.2
Deferred tax liabilities and other long-term obligations	114.5
Total liabilities of discontinued operations	228.6
Net assets of discontinued operations	$	676.8

Operating and investing cash flows of the discontinued operation are presented in the following table:


	Twelve Months Ended December 31,
	2024		2023		2022
Net cash provided by operating activities of discontinued operations	$	143.7	$	121.3	$	68.9
Net cash used in investing activities of discontinued operations	(11.4)		(18.8)		(8.0)

In connection with the divestiture, we entered into a Lease Agreement to lease the portion of the land and building on

which our tissue business operated at the Lewiston, Idaho facility. The lease term shall be five years with certain renewal rights for a maximum of ten years. The lease was determined to be at below market rates and correspondingly a portion of the gain was deferred and will be amortized over the expected lease period (see Note 6). Additionally, we entered into a Services and Use Agreement which we will provide certain services in connection with the ongoing operations at the buyer's manufacturing facilities located in Lewiston, Idaho. We are operating under a Transition Services Agreement with the buyer to provide certain back office services (accounting and IT support) until October 31, 2025. Included in the Consolidated Balance Sheet at December 31, 2024 are $2.7 million in accounts receivable.