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DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS 11. DISCONTINUED OPERATIONS
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 was 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 were 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. 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 included the realization of other comprehensive losses on foreign currency translation adjustments, net of gains on derivative financial instruments of $102.3 million previously reflected in accumulated other comprehensive income (loss).
The following table summarizes the financial results of discontinued operations reflected in the Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
(In thousands)20252024
Revenue and other items
Sales$— $31,764 
Other income (expense), net— 2 
— 31,766 
Costs and expenses
Cost of goods sold— 26,936 
Freight— 1,652 
Selling, general and administrative227 1,724 
Research and development— 201 
Amortization of intangibles— 25 
Interest expense1
— 2,271 
(Gain) loss on sale of business(9,657)— 
Total(9,430)32,809 
Income (loss) from discontinued operations before income tax9,430 (1,043)
Income tax expense (benefit)2
— (1,727)
Income (loss) from discontinued operations, net of tax$9,430 $684 
1.For the three months ended March 31, 2024, interest expense includes $0.6 million directly related to the $20 million of outstanding Terphane debt assumed by Oben.
2.An inconsequential income tax expense (benefit) was recognized during the three months ended March 31, 2025 primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the period, which offset the tax liability on the income from discontinued operations.
Interest expense allocated to discontinued operations was determined by applying the ABL Facility weighted-average interest rate to the Terphane sale proceeds, as the sale proceeds were required to be used to pay down debt outstanding under the ABL Facility.
The assets and liabilities of the discontinued operations reflected in the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively were as follows:
(In thousands)March 31, 2025December 31, 2024
Assets
Deferred income taxes$— $126 
Total noncurrent assets of discontinued operations$— $126 
Liabilities1
Accounts payable$— $161 
Accrued expenses— 580 
Total current liabilities of discontinued operations$— $741 
1.The consolidated balance sheet of discontinued operations as of December 31, 2024 includes $0.6 million of severance and $0.2 million of miscellaneous accrued expenses.
The following table provides significant operating, investing and financing cash flow information for discontinued operations:
Three Months Ended March 31,
(In thousands)20252024
Operating activities:
Depreciation and amortization$— $751 
Gain (loss) on the sale of divested business(9,657)— 
Total$(9,657)$751 
Investing activities:
Proceeds from the sale of Terphane$9,835 $— 
Capital expenditures— 517 
Total$9,835 $517