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Discontinued Operations | 12 Months Ended
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Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures and Assets Held for Sale | 16. DIVESTITURES Flexible Packaging Films On September 1, 2023, the Company entered into an agreement to sell Terphane, headquartered in Brazil, to Oben for net cash-free and debt-free base consideration of $116 million. On November 1, 2024, Tredegar completed the sale of Terphane to Oben. At closing, Tredegar received $60 million in cash, which is net of Terphane debt assumed by Oben of $20 million and estimated Terphane cash retained by Oben of $2 million. The cash proceeds received by Tredegar at closing are after deducting net working capital adjustments and closing indebtedness ($20.5 million), escrow funds ($19.8 million), projected Brazil withholding taxes ($10.8 million), and transaction expenses ($4.4 million). On February 28, 2025, the Company received $9.8 million from post-closing settlement of the transaction, which was $2.8 million higher than expected mainly due to higher cash held at Terphane in Brazil than estimated at closing. The proceeds from the sale of Terphane were required to be used to pay down debt outstanding under the ABL Facility. Upon completion of the sale, the Company recognized a pre-tax loss of $74.9 million for the year ended December 31, 2024, which includes the realization of other comprehensive losses on foreign currency translation adjustments, net of gains on derivative financial instruments of $102.3 million previously reflected in accumulated other comprehensive income (loss). The following table summarizes the financial results of discontinued operations reflected in the Consolidated Statements of Income (Loss) for the years ended December 31, 2024, 2023 and 2022:
| Years Ended December 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Revenue and other items |  |  |  |  |
Sales | $ | 118,382 |  |  | $ | 131,502 |  |  | $ | 176,579 |
Other income (expense), net | 8 |  |  | 2 |  |  | (51) |
| 118,390 |  |  | 131,504 |  |  | 176,528 |
Costs and expenses |  |  |  |  |
Cost of goods sold | 97,919 |  |  | 118,669 |  |  | 133,493 |
Freight | 5,598 |  |  | 5,177 |  |  | 8,440 |
Selling, general and administrative | 7,608 |  |  | 10,819 |  |  | 9,179 |
Research and development | 655 |  |  | 867 |  |  | 891 |
Amortization of intangibles | 78 |  |  | 139 |  |  | 396 |
Interest expense (a) | 7,532 |  |  | 5,291 |  |  | 849 |
Asset impairments and costs associated with exit and disposal activities, net of adjustments | — |  |  | 107 |  |  | — |
Loss on sale of business | 74,877 |  |  | — |  |  | — |
Total | 194,267 |  |  | 141,069 |  |  | 153,248 |
Income (loss) from discontinued operations before income tax | (75,877) |  |  | (9,565) |  |  | 23,280 |
Income tax expense (benefit) | (10,267) |  |  | (2,825) |  |  | 7,410 |
Income (loss) from discontinued operations, net of tax | $ | (65,610) |  |  | $ | (6,740) |  |  | $ | 15,870 |
(a) For the years ended December 31, 2024 and 2023, interest expense includes $1.9 million and $0.4 million, respectively, directly related to the $20 million of outstanding Terphane debt assumed by Oben.
Interest expense allocated to discontinued operations was determined by applying the ABL Facility weighted-average interest rate to the Terphane sale proceeds, as the sale proceeds were required to be used to pay down debt outstanding under the ABL Facility. The assets and liabilities of the discontinued operations reflected in the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively were as follows:
| December 31,
(In thousands) | 2024 |  | 2023
Assets |  |  |
Restricted cash | $ | — |  |  | $ | 404 |
Accounts and other receivables, net | — |  |  | 12,323 |
Inventories | — |  |  | 32,382 |
Prepaid expenses and other | — |  |  | 3,249 |
Total current assets | — |  |  | 48,358 |
Property, plant and equipment, net | — |  |  | 32,298 |
Right-of-use leased assets | — |  |  | 748 |
Identifiable intangible assets, net | — |  |  | 746 |
Deferred income taxes (a) | 126 |  |  | 1,880 |
Other assets | — |  |  | 436 |
Total non-current assets | 126 |  |  | 36,108 |
Total assets of discontinued operations | $ | 126 |  |  | $ | 84,466 |
Liabilities |  |  |
Accounts payable (a) | $ | 161 |  |  | $ | 25,695 |
Accrued expenses (a) | 580 |  |  | 5,836 |
Lease liability, short-term | — |  |  | 204 |
Income taxes payable | — |  |  | 1,027 |
Total current liabilities | 741 |  |  | 32,762 |
Lease liability long-term | — |  |  | 546 |
Long term debt | — |  |  | 20,000 |
Other non-current liabilities | — |  |  | 257 |
Total non-current liabilities | — |  |  | 20,803 |
Total liabilities of discontinued operations | $ | 741 |  |  | $ | 53,565 |
(a) The consolidated balance sheet of discontinued operations as of December 31, 2024 includes $0.1 million of deferred tax assets, $0.6 million of severance and $0.2 million of miscellaneous accrued expenses.
The following table provides significant operating, investing and financing cash flow information for discontinued operations:
| Year Ended December 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Operating activities: |  |  |  |  |
Depreciation and amortization | $ | 2,313 |  |  | $ | 2,865 |  |  | $ | 2,444 |
Loss on the sale of divested business | 74,877 |  |  | — |  |  | — |
Total | $ | 77,190 |  |  | $ | 2,865 |  |  | $ | 2,444 |
Investing activities: |  |  |  |  |
Net proceeds on sale of divested business | $ | 54,631 |  |  | $ | — |  |  | $ | — |
Capital expenditures | (2,489) |  |  | (4,323) |  |  | (8,151) |
Total | $ | 52,142 |  |  | $ | (4,323) |  |  | $ | (8,151) |
Financing activities |  |  |  |  |
Borrowings | $ | — |  |  | $ | 20,000 |  |  | $ | — |
Debt principal payments | — |  |  | — |  |  | — |
Total | $ | — |  |  | $ | 20,000 |  |  | $ | — |

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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 -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent Reference 2: 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 + Details
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