Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable

Accounts receivable consist of the following (in millions):


	September 30, 2020		December 31, 2019
Accounts receivable	$	186.5	$	166.8
Allowances and doubtful accounts:
Doubtful accounts	(3.9)		(2.7)
Sales discounts	(0.3)		(0.3)
Accounts receivable, net	$	182.3	$	163.8

As of September 30, 2020 and December 31, 2019, accounts receivable included $69.7 million and $14.3 million, respectively, in other receivables that were primarily related to tax refunds receivable. Additional information regarding the income tax receivable is included in “Accounting Policies” in Note 1 under “Income Taxes.”

Losses on receivables are estimated based on known troubled accounts and historical experience. Receivables are considered impaired and written off when it is probable that payments due will not be collected. Our provision for doubtful accounts was $0.3 million and $1.2 million in the three and nine months ended September 30, 2020, respectively.

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):


	September 30, 2020						December 31, 2019
	LIFO		Non- LIFO		Total		LIFO		Non- LIFO		Total
Raw materials	$	57.3	$	3.2	$	60.5	$	46.3	$	2.9	$	49.2
Work in process	31.6		0.6		32.2		30.4		0.5		30.9
Finished goods	75.0		18.0		93.0		49.5		21.7		71.2
Supplies and other	—		5.8		5.8		—		4.5		4.5
	163.9		27.6		191.5		126.2		29.6		155.8
Excess of FIFO or weighted-average cost over LIFO cost	(7.4)		—		(7.4)		(9.9)		—		(9.9)
Total	$	156.5	$	27.6	$	184.1	$	116.3	$	29.6	$	145.9

Property, Plant and Equipment

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


	September 30, 2020		December 31, 2019
Land	$	0.8	$	1.0
Buildings	46.9		48.3
Machinery and equipment	213.8		215.0
Construction in progress	22.9		18.9
	284.4		283.2
Less accumulated depreciation	(107.1)		(98.7)
Total	$	177.3	$	184.5

Depreciation expense was $5.8 million and $17.5 million for the three and nine months ended September 30, 2020 compared to $3.5 million and $10.8 million for the three and nine months ended September 30, 2019, respectively. Depreciation expense in the three and nine months ended September 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 continue to monitor the effects of the ongoing COVID-19 pandemic on the recoverability of our fixed assets.

Goodwill and Intangible Assets

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


	Goodwill
Balance, December 31, 2019	$	800.9
Purchase accounting adjustment	0.5
Currency translation adjustment	(0.2)
Balance, September 30, 2020	$	801.2

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


	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks	$	90.9	$	(60.1)	$	30.8	$	90.9	$	(56.7)	$	34.2
Patents and acquired technologies	281.6		(166.3)		115.3		281.1		(157.2)		123.9
Other	61.4		(37.4)		24.0		61.3		(35.1)		26.2
Total	$	433.9	$	(263.8)	$	170.1	$	433.3	$	(249.0)	$	184.3

Amortization expense for intangible assets was $4.9 million and $14.6 million for the three and nine months ended September 30, 2020 compared to $5.2 million and $14.8 million for the three and nine months ended September 30, 2019. We continue to monitor the effects of the ongoing COVID-19 pandemic on the recoverability of our intangible assets.

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


	Amount
Remainder of 2020	$	4.9
2021	17.0
2022	15.9
2023	15.3
2024	15.1
Thereafter	101.9
Total	$	170.1

Accrued Expenses

Accrued expenses consist of the following (in millions):


	September 30, 2020		December 31, 2019
Accrued rebates and customer incentives	$	23.3	$	51.1
Accrued salaries and wages	35.4		23.6
Accrued taxes	2.0		3.2
Other	27.2		36.9
Total	$	87.9	$	114.8

Other Long-Term Liabilities

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


	September 30, 2020		December 31, 2019
Taxes payable	$	0.4	$	0.4
Accrued compensation benefits	5.6		5.4
Other	5.4		5.4
Total	$	11.4	$	11.2