Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

Accounts Receivable

Accounts receivable consist of the following (in millions):

	June 30, 2020		December 31, 2019
Accounts receivable	$	141.6	$	166.8
Allowances and doubtful accounts:
Doubtful accounts	(3.6)		(2.7)
Sales discounts	(0.2)		(0.3)
Accounts receivable, net	$	137.8	$	163.8

As of June 30, 2020 and December 31, 2019, accounts receivable included $30.4 million and $14.3 million, respectively, in other receivables that were primarily related to tax refunds receivable.

Inventories

Inventories at the lower of cost (determined on the LIFO/FIFO or weighted-average cost methods) or market consist of the following (in millions):

	June 30, 2020						December 31, 2019
	LIFO		Non- LIFO		Total		LIFO		Non- LIFO		Total
Raw materials	$	57.1	$	3.0	$	60.1	$	46.3	$	2.9	$	49.2
Work in process	27.4		0.5		27.9		30.4		0.5		30.9
Finished goods	62.0		25.9		87.9		49.5		21.7		71.2
Supplies and other	—		5.8		5.8		—		4.5		4.5
	146.5		35.2		181.7		126.2		29.6		155.8
Excess of FIFO or weighted-average cost over LIFO cost	(7.6)		—		(7.6)		(9.9)		—		(9.9)
Total	$	138.9	$	35.2	$	174.1	$	116.3	$	29.6	$	145.9

Property, Plant and Equipment

Property, plant and equipment consists of the following (in millions):

	June 30, 2020		December 31, 2019
Land	$	0.8	$	1.0
Buildings	45.7		48.3
Machinery and equipment	217.0		215.0
Construction in progress	22.3		18.9
	285.8		283.2
Less accumulated depreciation	(106.5)		(98.7)
Total	$	179.3	$	184.5

Depreciation expense was $5.9 million and $11.7 million for the three and six months ended June 30, 2020 compared to $3.7 million and $7.3 million for the three and six months ended June 30, 2019, respectively. Depreciation expense in the three and six months ended June 30, 2020 includes depreciation on $59.3 million of capital that was placed in service in late 2019 associated with (i) implementation of a new IT platform and (ii) post-divestiture network separation. We considered the effects of the ongoing COVID-19 pandemic on the recoverability of our fixed assets and concluded that, as of June 30, 2020, the events and circumstances did not indicate that the carrying value of any of our fixed assets were not recoverable.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows (in millions):

	Goodwill
Balance, December 31, 2019	$	800.9
Currency translation adjustment	(0.7)
Balance, June 30, 2020	$	800.2

We considered the effects of the ongoing COVID-19 pandemic on the fair value of our reporting unit and concluded that, as of June 30, 2020, the events and circumstances did not indicate that an interim period test for goodwill impairment was necessary.

Intangible assets subject to amortization consist of the following (in millions):

	June 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks	$	90.9	$	(59.0)	$	31.9	$	90.9	$	(56.7)	$	34.2
Patents and acquired technologies	281.1		(163.2)		117.9		281.1		(157.2)		123.9
Other	61.3		(36.5)		24.8		61.3		(35.1)		26.2
Total	$	433.3	$	(258.7)	$	174.6	$	433.3	$	(249.0)	$	184.3

Amortization expense for intangible assets was $4.9 million and $9.7 million for the three and six months ended June 30, 2020 compared to $4.8 million and $9.6 million for the three and six months ended June 30, 2019. We considered the effects of the ongoing COVID-19 pandemic on the recoverability of our intangible assets and concluded that, as of June 30, 2020, events and circumstances did not indicate that the carrying value of any of our intangible assets were not recoverable.

We estimate amortization expense for the remainder of 2020 and the following four years and beyond will be (in millions):

	Amount
Remainder of 2020	$	9.9
2021	17.0
2022	15.9
2023	15.3
2024	15.1
Thereafter	101.4
Total	$	174.6

Accrued Expenses

Accrued expenses consist of the following (in millions):

	June 30, 2020		December 31, 2019
Accrued rebates	$	24.4	$	51.1
Accrued salaries and wages	27.5		23.6
Accrued taxes	4.4		3.2
Other	28.5		36.9
Total	$	84.8	$	114.8

Accrued rebates represent amounts accrued for estimated incentives earned by customers.

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in millions):

	June 30, 2020		December 31, 2019
Taxes payable	$	0.4	$	0.4
Accrued compensation benefits	5.3		5.4
Other	5.3		5.4
Total	$	11.0	$	11.2