Divestitures And Discontinued Operations

9 Months Ended

Sep. 30, 2022

Divestitures and Discontinued Operations

Divestitures and Discontinued Operations

NOTE 4—DIVESTITURES AND DISCONTINUED OPERATIONS

On December 1, 2021, the Company completed the divestiture of its Synthetic Rubber business to Synthos S.A. and certain of its subsidiaries (together, “Synthos”) for a purchase price of $402.4 million, which reflected a reduction of approximately $41.6 million for the assumption of pension liabilities by Synthos and $47.0 million for net working capital (excluding inventory) retained by Trinseo. Refer to the Annual Report for further information. At closing, the Company and Synthos executed a long-term supply agreement, in which Trinseo will supply Synthos certain raw

materials used in the Synthetic Rubber business subsequent to the sale. For the three and nine months ended September 30, 2022, the Company recorded $13.8 million and $55.6 million, respectively, in net sales, and $14.5 million and $46.3 million, respectively, in cost of sales related to the supply agreement, which is recorded in continuing operations.

The following table summarizes the results of the Synthetic Rubber business for the three and nine months ended September 30, 2022 and 2021, which are reflected as discontinued operations in the Company’s condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net sales	$	—	$	122.3	$	0.1	$	382.2
Cost of sales		2.2		101.9		3.6		321.2
Gross profit (loss)		(2.2)		20.4		(3.5)		61.0
Selling, general and administrative expenses		—		4.9		(0.3)		16.7
Operating income (loss)		(2.2)		15.5		(3.2)		44.3
Gain on sale of businesses and other assets		—		—		1.2		—
Other expense, net		—		0.2		—		1.2
Income (loss) from discontinued operations before income taxes		(2.2)		15.3		(2.0)		43.1
Provision for (benefit from) income taxes		(0.3)		1.6		(0.1)		5.1
Net income (loss) from discontinued operations	$	(1.9)	$	13.7	$	(1.9)	$	38.0