DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

The following tables display summarized activity in our consolidated statements of income for discontinued operations during the three and nine months ended September 30, 2015 and 2014 related to our former Coating Resins (“Coatings”) business and other divestitures.

	Three Months Ended September 30,
	2015				2014
	Coatings		Total		Coatings			Distribution Product Line		Total
(Loss) gain on sale of discontinued operations	$	—	$	—	$	(0.1	)	$	0.2	$	0.1
Income tax expense on (loss) gain on sale	—		—		(0.3		)	—		(0.3		)
(Loss) earnings from discontinued operations, net of tax	$	—	$	—	$	(0.4	)	$	0.2	$	(0.2	)

	Nine Months Ended September 30,
	2015						2014
	Coatings			Total			Coatings			Distribution Product Line		Pre- Acquisition Umeco		Total
(Loss) gain on sale of discontinued operations	$	(2.3	)	$	(2.3	)	$	(3.6	)	$	0.2	$	3.6	$	0.2
Income tax benefit on (loss) gain on sale	0.8			0.8			10.8			—		—		10.8
(Loss) earnings from discontinued operations, net of tax	$	(1.5	)	$	(1.5	)	$	7.2		$	0.2	$	3.6	$	11.0

Discontinued operations

Coating Resins

On April 3, 2013, we completed the divestiture of our remaining Coatings business to Advent International (“Advent”), a global private equity firm. In connection with the sale of the business to Advent, we agreed to retain certain liabilities, including liabilities for U.S. pension and other postretirement benefits and certain tax liabilities related to taxable periods (or portions thereof) ending on or before April 3, 2013. For the nine months ended September 30, 2015, we recorded after-tax losses of $1.5 related to the sale of Coatings, of which $0.1 was for these tax liabilities and $1.4 of additional costs of exiting a former Coatings facility. During the three and nine months ended September 30, 2014, we recorded after-tax charges of $0.1 and $1.4, respectively, related to certain of these tax liabilities. For the three and nine months ended September 30, 2014, we also incurred after-tax charges of approximately $0.3 and $2.5, respectively, for purchase price and working capital adjustments related to the sale. Additionally, in the nine months ended September 30, 2014, we recorded tax benefits of $11.1 based on our best estimate of the purchase price allocation attributable to the Coatings business sold in various taxing jurisdictions. These after-tax losses and gains are included in Net (loss) gain on sale of discontinued operations, net of tax in the consolidated statements of income. The final price paid and loss on sale remains subject to final working capital and other customary adjustments.

As of September 30, 2015, the final working capital adjustment on the Coatings divestiture transaction is in dispute. We believe we will recover the net amount we have recorded with respect to the final working capital adjustment.

Other divestitures

Industrial Materials distribution product line

In the third quarter of 2014, we recorded an after-tax benefit of $0.2 related to final purchase price and settlement of final working capital adjustments from the sale of the Industrial Materials distribution product line in July 2013, which we acquired as part of the Umeco acquisition in 2012. These amounts are included in Net (loss) gain on sale of discontinued operations, net of tax in the consolidated statements of income.

Former Umeco entities divested prior to our acquisition

As part of our acquisition accounting for Umeco in 2012, we established reserves related to income tax and value added tax liabilities of an entity that had been divested by Umeco in 2011, for periods that were under audit prior to it its divestiture. We continued to accrue interest through the end of 2013. In the first quarter of 2014, we agreed to a settlement for audit periods through March 31, 2009, which resulted in a benefit of approximately $3.6. The benefit is included in Net (loss) gain on sale of discontinued operations, net of tax in the consolidated statement of income for the nine months ended September 30, 2014.