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The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that are classified as held for sale in our condensed consolidated balance sheets (dollars in millions):
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|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2019 |
|
2018 |
Carrying amounts of major classes of assets held for sale: |
|
|
|
|
|
|
Accounts receivable |
|
$ |
73 |
|
$ |
89 |
Inventories |
|
|
107 |
|
|
134 |
Other current assets |
|
|
1 |
|
|
9 |
Total current assets |
|
|
|
|
|
232 |
Property, plant and equipment, net |
|
|
690 |
|
|
711 |
Operating lease right-of-use assets |
|
|
76 |
|
|
— |
Other noncurrent assets |
|
|
161 |
|
|
166 |
Total noncurrent assets |
|
|
|
|
|
877 |
Total assets held for sale(1) |
|
$ |
1,108 |
|
$ |
1,109 |
Carrying amounts of major classes of liabilities held for sale: |
|
|
|
|
|
|
Accounts payable |
|
$ |
142 |
|
$ |
168 |
Accrued liabilities |
|
|
47 |
|
|
57 |
Current operating lease liabilities |
|
|
21 |
|
|
— |
Total current liabilities |
|
|
|
|
|
225 |
Deferred income taxes |
|
|
171 |
|
|
159 |
Noncurrent operating lease liabilities |
|
|
57 |
|
|
— |
Other noncurrent liabilities |
|
|
148 |
|
|
124 |
Total noncurrent liabilities |
|
|
|
|
|
283 |
Total liabilities held for sale(1) |
|
$ |
586 |
|
$ |
508 |
| (1) |
The assets and liabilities held for sale are classified as current as of September 30, 2019 because it is probable that the sale of our Chemical Intermediates Businesses will close within a year. |
The following table reconciles major line items constituting pretax income of discontinued operations to after-tax income (loss) of discontinued operations as presented in our condensed consolidated statements of operations (dollars in millions):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
Nine months |
|
|
ended |
|
ended |
|
|
September 30, |
|
September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Major line items constituting pretax income of discontinued operations(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales, services and fees, net(2) |
|
$ |
400 |
|
$ |
1,015 |
|
$ |
1,183 |
|
$ |
3,156 |
Cost of goods sold(2) |
|
|
292 |
|
|
857 |
|
|
976 |
|
|
2,185 |
Other expense items, net that are not major |
|
|
15 |
|
|
134 |
|
|
37 |
|
|
269 |
Income from discontinued operations before income taxes |
|
|
93 |
|
|
24 |
|
|
170 |
|
|
702 |
Income tax (expense) benefit |
|
|
(25) |
|
|
41 |
|
|
(44) |
|
|
(95) |
Valuation allowance |
|
|
— |
|
|
(270) |
|
|
— |
|
|
(270) |
Income (loss) from discontinued operations, net of tax |
|
|
68 |
|
|
(205) |
|
|
126 |
|
|
337 |
Net income attributable to noncontrolling interests |
|
|
— |
|
|
(2) |
|
|
— |
|
|
(6) |
Net income (loss) attributable to discontinued operations |
|
$ |
68 |
|
$ |
(207) |
|
$ |
126 |
|
$ |
331 |
| (1) |
Discontinued operations include our Chemical Intermediates Businesses, our Australian styrenics operations and our North American polymers and base chemicals operations for all periods presented. In addition, the three and nine months ended September 30, 2018 also include the results of Venator. Beginning in the fourth quarter of 2018, Venator was no longer accounted for as discontinued operations. |
| (2) |
Includes eliminations of trade sales, services and fees, net and cost of sales between continuing operations and discontinued operations. |
|