Assets held for sale and discontinued operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets held for sale and discontinued operations

3. Assets held for sale and discontinued operations

In November 2023, the Company entered into a sales agreement with SigmaRoc plc. to divest of its Lime operations in Europe for consideration of $1.1 billion. The transaction was structured in three phases. The first phase of the transaction, comprising the Company’s lime operations in Germany, Czech Republic and Ireland, was closed effective January 1, 2024 and the second and third phases comprising the operations of the United Kingdom and Poland, respectively, are expected to close in 2024. No impairment loss was recognized on the reclassification of the Lime operations as held for sale.

In December 2023, the Company entered into a sales agreement to dispose of certain of its cement and materials assets in Canada, which is expected to close in 2024. An impairment of $30 million has been recognized on the Canadian cement and materials assets in the fourth quarter of 2023 to reflect the reduction to fair value less costs to sell.

The assets associated with these transactions comprise part of the Company’s Europe Materials Solutions and Americas Materials Solutions segments, respectively, and the relevant assets and liabilities have accordingly been reclassified as assets and liabilities held for sale.

The major classes of assets and liabilities classified as held for sale at December 31, 2023 were:

in $ millions	2023
Assets
Cash and cash equivalents	49
Accounts receivable, net	70
Inventories	102
Property, plant and equipment, net	832
Goodwill	201
Operating lease right-of-use assets, net	6
Other assets	8
Assets held for sale	1,268
Liabilities
Accounts payable	59
Accrued expenses	17
Deferred income tax liabilities	148
Operating lease liabilities	6
Other liabilities	145
Liabilities held for sale	375

In April 2022, the Company completed the divestiture of its Building Envelope business, formerly part of the Americas Building Solutions segment. The Company analyzed the quantitative and qualitative factors relevant to the Building Envelope business and determined that the criteria for discontinued operations presentation were met during the year ended 2022. As a result, the operating results of the Building Envelope business were reported separately as discontinued operations, net of income tax expense, in the Consolidated Statements of Income for the periods ended December 31, 2022 and 2021, respectively.

The financial results for the Company’s discontinued operations for the years ended December 31 were:

in $ millions	2022	2021
Total revenues	645	1,775
Operating income	89	239
Gain on divestiture before income taxes	1,471	-
Income from discontinued operations before income tax expense	1,560	239
Income tax expense	(370)	(60)
Income from discontinued operations, net of income tax expense	1,190	179

The cash flows from discontinued operations included in the accompanying Consolidated Statements of Cash Flows for the years ended December 31 were:

in $ millions	2022	2021
Cash flows from discontinued operations
Net cash (used in) provided by operating activities (i)	(444)	208
Net cash provided by (used in) investing activities (ii)	3,446	(102)
Net cash provided by (used in) financing activities	3	(2)

(i)     Includes the corporation tax paid on the sale of discontinued operations.

(ii) Includes the proceeds from the divestiture of discontinued operations.