Divestitures

3 Months Ended

Mar. 31, 2022

2.	Divestitures

On June 30, 2020, the Company completed the sale of its inks product line. On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line. This sale also included an earnout based on future performance, which could result in additional cash consideration for the Company. On April 1, 2021, the Company completed the sale of its fragrances product line (excluding its essential oils product line) for $36.3 million of net cash.

The Company reports all costs associated with the divestitures in Corporate & Other. There were no costs associated with the divestitures for the three months ended March 31, 2022. The following table summarizes the divestiture & other related costs for the three months ended March 31, 2021:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate & Other		Total
Non-cash charges – Cost of products sold	$	-	$	34	$	(9	)	$	-	$	25
Other costs - Selling and administrative expenses⁽¹⁾		265		1,014		(107	)		375		1,547
Total	$	265	$	1,048	$	(116	)	$	375	$	1,572

(1)

Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs.

In March 2020, the Company was notified by the buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. Based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company, the Company recorded $0.3 million related to these obligations in Selling and Administrative Expenses during the three months ended March 31, 2021.