Discontinued Operations

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

On May 11, 2019, the Company entered into an Asset and Share Purchase Agreement ("Purchase Agreement") with OC Spartan Acquisition, Inc., pursuant to which the Company agreed to sell substantially all of the assets of the Company's blow molding business. On July 1, 2019, the Company completed the sale of substantially all of the blow molding business which generated cash proceeds of $51.9 million. The closings of the sales of the Mexico and India blow molding businesses were deferred and completed in the fourth quarter of 2019. This divestiture represents a strategic shift in Milacron's business and, in accordance with U.S. GAAP, qualifies as a discontinued operation. As a result, the operating results and cash flows related to the Company's blow molding business have been reflected as discontinued operations in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows for all periods presented, while the assets and liabilities that were sold or are expected to be sold have been reflected as assets and liabilities held for sale for the current and prior periods in the Condensed Consolidated Balance Sheets. The financial information reported for the Company's Advanced Plastic Processing Technologies reporting segment excludes the activity from the Company's blow molding business.

The assets and liabilities of the Company's blow molding business that have been classified as held for sale in the Condensed Consolidated Balance Sheets are comprised of the following:



	September 30, 2019		December 31, 2018
	(in millions)
Accounts receivable, net	$	0.5	$	6.5
Inventories, net	0.5		19.3
Prepaid and other current assets	—		1.5
Property and equipment, net	6.0		—
Current assets held for sale	$	7.0	$	27.3

Property and equipment, net	$	—	$	25.3
Goodwill	—		0.6
Intangible assets, net	—		1.1
Noncurrent assets held for sale	$	—	$	27.0

Accounts payable	$	—	$	6.1
Advanced billings and deposits	—		5.6
Accrued salaries, wages and other compensation	—		1.9
Other current liabilities	—		1.3
Current liabilities held for sale	$	—	$	14.9

As a result of the Company's decision to sell its blow molding business, the Company recognized an $8.5 million non-cash adjustment in the first quarter of 2019 to write-down the net book value of one its facilities located in Europe which is classified as held for sale as of September 30, 2019 and December 31, 2018. The facility was utilized in the Company's blow molding business; however, was not part of the transaction with OC Spartan Acquisition, Inc. The facility was written down to fair value less estimated costs to sell based on a quoted market price, a level two measurement under the fair value hierarchy. The facility's assets are recorded within the Company's Advanced Plastic Processing Technologies segment and the adjustment to net book value is recorded within loss on discontinued operations for the nine months ended September 30, 2019 within the Condensed Consolidated Statements of Operations. The value of the facility is classified within current assets held for sale in the Condensed Consolidated Balance Sheets at September 30, 2019.

The following table presents a consolidation of the captions within the Company's Condensed Consolidated Statements of Operations for the earnings (loss) from discontinued operations attributable to the Company's blow molding business for the three and nine months ended September 30, 2019 and 2018.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	(in millions)
Earnings (loss) from discontinued operations attributable to blow molding business
Net sales	$	0.6		$	25.5		$	42.7		$	71.6
Cost of sales	1.5			20.2			36.6			57.1
Selling, general and administrative expenses	0.2			3.8			6.7			11.7
Amortization expense	0.1			0.4			1.0			1.3
Loss (gain) on currency translation	0.7			(0.6		)	0.1			(0.2		)
Other expense	0.3			0.3			11.2			1.0
Operating (loss) earnings from discontinued operations	(2.2		)	1.4			(12.9		)	0.7
Gain on disposal of discontinued operations	24.8			—			24.8			—
Earnings from discontinued operations before income taxes	22.6			1.4			11.9			0.7
Income tax expense	0.8			0.3			1.0			1.2
Earnings (loss) from discontinued operations	$	21.8		$	1.1		$	10.9		$	(0.5	)