Related-party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related-party Transactions

18. RELATED-PARTY TRANSACTIONS

Upon closing the transaction with Distrivet, S.A., Distrivet, our equity method investee, became a related party. See Note 5 - Divestitures and Equity Method Investments). During the year ended December 31, 2021 and 2020, we provided management services and corporate branding to Distrivet under our agreement, and we provided goods to Distrivet. During the year ended December 31, 2021, product sales to Distrivet were $1 million. For the year ended December 31, 2020 these services and product sales were not material.

As of December 31, 2021, CD&R beneficially owns 24.40%, or approximately 33.7 million shares of our outstanding common stock and are deemed a related party. As part of the terms of the Investment Agreement, CD&R had the right to designate two members to our Board of Directors, which resulted in increasing the number of directors serving on the board. CD&R's current designees on our Board of Directors are Ravi Sachdev (investor board member) and Sandra E. Peterson (advisor board member). CD&R’s right to representation on our board is directly related to their level of share ownership. Should CD&R's beneficial ownership decrease below 50% of its ownership as of May 19, 2020 or below approximately 16.8 million shares, then its right to designate an advisor board member terminates. Should CD&R's beneficial ownership decrease below 25% of its ownership as of May 19, 2020 or below approximately 8.4 million shares, then its right to designate an investor board member is also terminated.