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Divestitures and Assets Held for Sale | 9 Months Ended
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Sep. 30, 2020
Restructuring Charges [Abstract] |
Mergers, Acquisitions and Dispositions Disclosures | Divestitures On August 24, 2020, the Company entered into a definitive agreement to sell its Personal Care business for an aggregate purchase price of approximately $60.5 million, subject to customary adjustments. The Company completed this divestiture at the end of October 2020. In connection with the execution of the definitive agreement and classification of the Personal Care business as discontinued operations, a non-cash impairment charge of $45.1 million was recognized during the three months ended September 30, 2020. In addition, the Company agreed to provide certain transition services related to finance, human resources and information technology. The Personal Care business was previously reported in the PE Films segment. The following table summarizes the financial results of discontinued operations reflected in the Consolidated Statements of Income for the three and nine months ended September 30, 2020 and 2019:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Revenues and other items: |  |  |  |  |  |  |
Sales | $ | 29,509 |  |  | $ | 37,249 |  |  | $ | 98,053 |  |  | $ | 111,920 |
Other income (expense), net | (37) |  |  | 6,362 |  |  | (298) |  |  | 6,332 |
| 29,472 |  |  | 43,611 |  |  | 97,755 |  |  | 118,252 |
Costs and expenses: |  |  |  |  |  |  |
Cost of goods sold | 25,481 |  |  | 31,576 |  |  | 83,408 |  |  | 96,479 |
Freight | 1,436 |  |  | 1,898 |  |  | 4,711 |  |  | 5,455 |
Selling, general and administrative | 6,502 |  |  | 3,977 |  |  | 13,649 |  |  | 12,607 |
Research and development | 3,138 |  |  | 2,933 |  |  | 8,451 |  |  | 8,926 |
Asset impairments and costs associated with exit and disposal activities, net of adjustments | 801 |  |  | 1,366 |  |  | 1,327 |  |  | 2,987 |
Held for sale impairment loss on divested assets | 45,054 |  |  | — |  |  | 45,054 |  |  | — |
Total | 82,412 |  |  | 41,750 |  |  | 156,600 |  |  | 126,454 |
Income (loss) from discontinued operations before income taxes | (52,940) |  |  | 1,861 |  |  | (58,845) |  |  | (8,202) |
Income tax expense (benefit) | (4,703) |  |  | (220) |  |  | (5,814) |  |  | (2,126) |
Income (loss) from discontinued operations, net of tax | $ | (48,237) |  |  | $ | 2,081 |  |  | $ | (53,031) |  |  | $ | (6,076) |
The assets and liabilities of the discontinued operations reflected in the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively were as follows:
| September 30, |  | December 31,
| 2020 |  | 2019
Assets |  |  |
Accounts and other receivables, net | $ | 15,455 |  |  | $ | 18,441 |
Income tax recoverable | 1,082 |  |  | 1,439 |
Inventories | 15,839 |  |  | 17,175 |
Prepaid expenses and other | 394 |  |  | 363 |
Total current assets (a) |  |  | 37,418 |
Property, plant and equipment, net | 57,068 |  |  | 69,334 |
Right-of-use leased assets | 342 |  |  | 728 |
Deferred income taxes | 679 |  |  | 694 |
Other assets | 150 |  |  | 105 |
Total non-current assets (a) |  |  | 70,861 |
Valuation allowance on assets held for sale | (45,054) |  |  | — |
Total assets of discontinued operations classified as held for sale | $ | 45,955 |  |  | $ | 108,279 |
Liabilities |  |  |
Accounts payable | $ | 13,844 |  |  | $ | 16,361 |
Accrued expenses | 7,058 |  |  | 6,344 |
Lease liability, short-term | 231 |  |  | 575 |
Income taxes payable | 87 |  |  | — |
Total current liabilities (a) |  |  | 23,280 |
Lease liability, long-term | 113 |  |  | 351 |
Deferred income taxes | — |  |  | — |
Total non-current liabilities (a) |  |  | 351 |
Total liabilities of discontinued operations classified as held for sale (b) | $ | 21,333 |  |  | $ | 23,631 |
(a) The assets and liabilities of the disposal group classified as held for sale are classified as current on the September 30, 2020 Consolidated Balance Sheet as it was probable that sale of the Personal Care business would occur and proceeds would be collected within one year of September 30, 2020. (b) Pension and other postretirement benefit liabilities related to the Personal Care business have been retained by the Company.
Additional information related to the amounts recognized in the discontinued operations balance sheet as of September 30, 2020 is summarized below:
| September 30,
(In thousands) | 2020
Total carrying value of assets of discontinued operations classified as held for sale before valuation allowances | $ | 91,009 |
Total liabilities of discontinued operations classified as held for sale | (21,333) |
Carrying value of net assets of discontinued operations classified as held for sale before valuation allowances | $ | 69,676 |
Valuation allowance to reflect net assets at fair value less cost to sell | (20,509) |
Estimated fair value less cost to sell of net assets of discontinued operations classified as held for sale | $ | 49,167 |
Valuation allowance for other comprehensive loss on foreign currency translation adjustments reflected in shareholder’s equity (“FCTA”) to be released into earnings along with the FCTA upon sale | (24,545) |
Net assets of discontinued operations classified as held for sale reflected in the Company’s consolidated balance sheets | $ | 24,622 |
The following table provides significant operating and investing cash flow information for discontinued operations:
| Nine Months Ended September 30,
(In thousands) | 2020 |  | 2019
Operating activities |  |  |
Depreciation and amortization | $ | 6,625 |  |  | $ | 6,362 |
Held for sale impairment loss on divested assets | 45,054 |  |  | — |
Total | 51,679 |  |  | 6,362 |
Investing activities |  |  |
Capital expenditures | $ | 2,989 |  |  | $ | 13,921 |
Assets Held For Sale In July 2019, the Company committed to a plan to close its manufacturing facility in Lake Zurich, Illinois, which historically was reported by the Company within the personal care component of its PE Films segment. In March 2020, this facility was shut down and the production of elastic materials it previously produced was transferred to Terre Haute, Indiana. As of September 30, 2020, the held for sale criteria was met since the Company expects the sale of the facility to be completed within one year. The disposal group carrying value of $4.6 million consists of land, building, and building improvements and is reported in "Prepaid expenses and other" in the Consolidated Balance Sheet. These assets were not included as part of the sale of the Personal Care business.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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