Company: MATV
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001000623-25-000009
Chunk: 126

Company: Mativ Holdings, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 126
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 Engineered Papers business was tested for recoverability as of each balance sheet date since meeting the discontinued operations criteria and the Company concluded that there is no impairment expense to be recognized.

Summary financial results of discontinued operations were as follows (in millions):Years Ended December 31, 20232022Net sales$490.9 $530.5 Cost of products sold373.4 398.9 Gross profit117.5 131.6 Selling and general expense29.4 32.0 Research and development expense8.6 7.8 Intangible asset amortization expense— — Total nonmanufacturing expenses38.0 39.8 Restructuring and other impairment expense0.5 0.2 Operating profit79.0 91.6 Interest expense (1)49.0 28.8 Other income, net194.8 9.3 Income from discontinued operations before income taxes224.8 72.1 Income tax expense29.1 15.0 Income from equity affiliates, net of income taxes2.5 5.2 Income from discontinued operations, net of tax$198.2 $62.3 (1) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to approximately $641.2 million. This debt repayment is based on the triggering of a financial covenant in the loan agreement and interest expense has been allocated to discontinued operations on a pro-rata basis within the Consolidated Statements of Income (Loss) and the Consolidated Statement of Cash Flows based on the outstanding loan balances.

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MATIV HOLDINGS, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 10. Goodwill

The Company evaluates goodwill for impairment at least annually during the fourth quarter or whenever events or changes in circumstances indicate that an evaluation should be completed. The Company determines the fair value of its reporting units using the income approach. The determination of the fair value using the income approach requires management to make significant estimates and assumptions related to forecasts of future cash flows and discount rates. Changes to the forecasted revenue growth, earnings before income taxes, depreciation and amortization (“EBITDA”) and discount rate assumptions may result in a significantly different estimate of the fair value of the reporting units, which could result in a different assessment of the recoverability of goodwill or measurement of an