Note 4 - Discontinued Operations and Business Dispositions |
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| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
4. DISCONTINUED OPERATIONS AND BUSINESS DISPOSITIONS â€� Ìý
S
aLE of India-based do-it-Yourself consumer adhesives business
Ìý
On November 3, 2020, we completed the sale of the India-based DIY business to Pidilite Industries Ltd. and received cash of approximately $257 million.ÌýUnder the terms of the agreement, we may receive up to approximately $28 million of additional cash under an earnout provision if the business achieves within 18 months certain sales revenue targets in line with the DIY business' 2019 performance.ÌýThe performance criteria of the earnout provision were satisfied in the second quarter of 2021, and we received the full payment of $28 million. As a result, we recognized an additional pretax gain of $28 million in the second quarter, which was recorded in gain on sale of India-based DIY business in our condensed consolidated statements of operations. Ìý SaLE of VenatorÌýInterEST Ìý
On
December 23, 2020, we completed the sale of approximately
42.4 million ordinary shares of Venator Materials PLC (“Venatorâ€�)Ìýand received approximately
$99Ìýmillion in cash. Subsequent to this sale of ordinary shares, we
no longer account for our current remaining ownership interest in Venator as an equity method investment, but rather as an investment in equity securities that are marked to fair value with changes in fair value reported in earnings. Concurrently with the sale of ordinary shares, we entered into an option agreement, pursuant to which we granted an option to funds advised by SK Capital Partners, LP to purchase the remaining approximate
9.7 million ordinary shares we hold in Venator at
$2.15 per share. The option will expire on
June 23, 2023 and will
not be exercisable so long as such exercise would result in a default or an "Event of Default" under Venator’s Term Loan Credit Agreement and Revolving Credit Agreement.ÌýWe recordÌýthis optionÌýat fair value with changes in fair value reported in earnings.
Ìý
For the
three months ended
June 30, 2021 and 2020, we recorded a net (loss) gainÌýof $(
6) million and
$4Ìýmillion, respectively, and for the
six months endedÌý
June 30, 2021 and 2020, we recorded net lossesÌýofÌý
$25Ìýmillion and
$106Ìýmillion, respectively, toÌýrecord our investment in Venator and related option to sell our remaining Venator shares at fair value. These net (losses)ÌýgainsÌýwere recorded in “Fair value adjustments to Venator investmentâ€� on our condensed consolidated statements of operations.
Ìý
Summarized financial information of Venator for the
three and
six months ended
June 30, 2020 is as follows (in millions):
Ìý
Sale of Chemical Intermediates Businessesâ€� On January 3, 2020, we completed the sale of our chemical intermediates businesses, which includedÌýPO/MTBE, and our surfactants business (“Chemical Intermediates Businessesâ€�) to Indorama Ventures Holdings L.P. (“Indoramaâ€�) in a transaction valued at approximately $2 billion, comprised of a cash purchase price of approximately $1.92 billion and the transfer of approximately $72 million in net underfunded pension and other post-employment benefit liabilities. In connection with this sale, we recognized a net after-tax gain of $748 million in the first six months of 2020. Also, in connection with this sale, we entered into long-term supply agreements with Indorama to supply us withÌýcertain raw materials at market prices. Ìý The following table reconciles major line items constituting pretax income of discontinued operations to after-tax income of discontinued operations as presented in our condensed consolidated statements of operations (dollars in millions): Ìý
Ìý
�
Ìý â€� â€� â€� |
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