25. Discontinued Operations and Assets Held for Sale
Audited information- Index
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In 2019 Clariant announced its intention to sell the Business Units Pigments and Masterbatches and the Business Line Healthcare Packaging, which operated as a part of the Business Unit Masterbatches. As a result these activities were reclassified to discontinued operations in June 2019. Income and expenses of the activities concerned have been reclassified to »Discontinued operations« in the consolidated income statement and the assets and liabilities pertaining to these activities have been reclassified as »assets held for sale« and »Liabilities directly associated with assets held for sale« in the consolidated balance sheet, according to IFRS 5, Non-current assets held for sale and discontinued operations.
On 31 October 2019, Clariant sold its Healthcare Packaging business to Arsenal Capital Partners, a private equity firm located in New York, USA. The final total consideration of the sale amounted to CHF 310 million and the after tax gain to CHF 51 million.
In December 2019 a contract was signed with the US-based PolyOne Corporation to sell the Business Unit Masterbatches.
Clariant considers it highly probable that the Business Unit Pigments will be sold within the next twelve months.
For a description of the Business Units please refer to note 1.25.
Other assets held for sale
An amount of CHF 7 million relates to plant and equipment held for sale in Italy and in China (2018: CHF 15 million).
Plastics & Coatings (discontinued)1 |
Corporate |
Total discontinued operations |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
||||||||
|
||||||||||||||
Sales |
2 127 |
2 219 |
— |
— |
2 127 |
2 219 |
||||||||
Operating expenses |
–1 978 |
–2 033 |
–92 |
–33 |
–2 070 |
–2 066 |
||||||||
Income from associates and joint ventures |
19 |
45 |
— |
— |
19 |
45 |
||||||||
Operating result |
168 |
231 |
–92 |
–33 |
76 |
198 |
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|
|
|
|
|
|
|
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Financial result |
|
|
|
|
–17 |
–14 |
||||||||
Result from discontinued operations before taxes |
|
|
|
|
59 |
184 |
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|
|
|
|
|
|
|
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Taxes |
|
|
|
|
–38 |
–41 |
||||||||
Result from discontinued operations after taxes |
|
|
|
|
21 |
143 |
||||||||
Gain on the disposal of discontinued operations |
48 |
|
|
|
48 |
— |
||||||||
Taxes (current and deferred) |
3 |
|
|
|
3 |
— |
||||||||
Net result from discontinued operations |
|
|
|
|
72 |
143 |
||||||||
|
|
|
|
|
|
|
||||||||
Currency translation differences of discontinued operations |
|
|
|
|
–39 |
–49 |
||||||||
Other items |
|
|
|
|
6 |
9 |
||||||||
Other comprehensive income/loss from discontinued operations |
— |
— |
— |
— |
–33 |
–40 |
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|
|
|
|
|
|
|
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Operating cash flows |
107 |
|
–12 |
|
95 |
— |
||||||||
thereof: payments for restructuring |
–8 |
|
|
|
–8 |
— |
||||||||
Investing cash flows |
-49 |
|
|
|
-49 |
— |
||||||||
Total cash flow |
58 |
— |
–12 |
— |
46 |
— |
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|
|
|
|
|
|
|
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Cash flow from disposals: |
|
|
|
|
|
|
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Gross proceeds |
310 |
|
|
|
310 |
|
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Less cash and cash equivalents transferred |
–15 |
|
|
|
–15 |
|
||||||||
Net proceeds from disposal |
295 |
— |
— |
— |
295 |
— |
||||||||
|
|
|
|
|
|
|
||||||||
Net assets held for sale: |
|
|
|
|
|
|
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Property, plant and equipment |
370 |
|
|
|
370 |
— |
||||||||
Right-of-use assets |
34 |
|
|
|
34 |
|
||||||||
Intangible assets |
85 |
|
|
|
85 |
|
||||||||
Investments in associates and joint ventures |
101 |
|
|
|
101 |
|
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Deferred tax assets |
22 |
|
|
|
22 |
— |
||||||||
Inventories |
319 |
|
|
|
319 |
— |
||||||||
Trade receivables |
303 |
|
|
|
303 |
— |
||||||||
Other assets |
64 |
|
|
|
64 |
|
||||||||
Total assets held for sale |
1 298 |
— |
— |
— |
1 298 |
— |
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|
|
|
|
|
|
|
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Trade payables |
–330 |
|
|
|
–330 |
— |
||||||||
Retirement benefit obligations |
–148 |
|
|
|
–148 |
— |
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Provisions |
–52 |
|
|
|
–52 |
— |
||||||||
Lease liabilities |
–29 |
|
|
|
–29 |
|
||||||||
Total liabilities directly associated with assets held for sale |
–559 |
— |
— |
— |
–559 |
— |
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|
|
|
|
|
|
|
||||||||
Total net assets held for sale |
739 |
— |
— |
— |
739 |
— |
||||||||
Cumulative exchange rate differences recognized in equity for discontinued operations amounted to CHF 189 million on 31 December 2019.
The result of the disposal of discontinued operations can be reconciled as follows:
in CHF m |
2019 |
|
|---|---|---|
Total cash proceeds received as of 31 October 2019 |
310 |
|
Less cash and cash equivalents transferred |
–15 |
|
Total consideration for the sale |
295 |
|
|
|
|
Net assets sold including disposal related expenses |
–232 |
|
Gain on the disposal from discontinued operations |
63 |
|
Effect of the reclassification of foreign exchange differences related to disposal of discontinued operations |
–15 |
|
Gain on the disposal from discontinued operations before taxes |
48 |
|
Taxes (current and deferred) |
3 |
|
Gain on the disposal from discontinued operations after taxes |
51 |
These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic. View entire glossary
The International Financial Reporting Standards (IFRS) are international accounting standards. View entire glossary