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DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS 10. DISCONTINUED OPERATIONS
Flexible Packaging Films
In September 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). In February 2025 and February 2026, the Company received $9.8 million and $0.6 million, respectively, 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 Company’s $125 million senior secured asset-based revolving credit facility (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, 2026 and 2025:
Three Months Ended March 31,
(In thousands)20262025
Costs and expenses
Selling, general and administrative(3)227 
(Gain) loss on sale of business(565)(9,657)
Total(568)(9,430)
Income (loss) from discontinued operations before income tax568 9,430 
Income tax expense (benefit)1
(23)— 
Income (loss) from discontinued operations, net of tax$591 $9,430 
1. An inconsequential income tax expense (benefit) was recognized during the three months ended March 31, 2025, primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the periods, which offset the tax liability on the income from discontinued operations.
The following table provides significant operating, investing and financing cash flow information for discontinued operations:
Three Months Ended March 31,
(In thousands)20262025
Operating activities:
Gain on the sale of divested business$(565)$(9,657)
Total$(565)$(9,657)
Investing activities:
Proceeds from the sale of Terphane$565 $9,835 
Total$565 $9,835