Company: AVNT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001122976-25-000030
Chunk: 3

Company: AVIENT CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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.4%. The sales decrease was primarily within the transportation and defense end markets, which more than offset an increase within the healthcare end market.

Operating income decreased $6.3 million, or 11.8%, for the three months ended March 31, 2025, primarily driven by the impacts of foreign exchange and lower sales along with unfavorable margin impact associated with lower defense sales.

Corporate

Corporate costs increased $90.8 million for the three months ended March 31, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, charges of $14.7 million associated with unpaid contractual obligations for hosting fees, and increased restructuring costs of $12.1 million. Partially offsetting these charges was lower compensation cost for the three months ended March 31, 2025

Liquidity and Capital Resources

Our objective is to finance our business through operating cash flow and an appropriate mix of debt and equity. By laddering the maturity structure, we avoid concentrations of debt maturities, reducing liquidity risk. We may from time to time seek to retire or purchase our outstanding debt with cash and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. We may also seek to repurchase our outstanding common shares. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved have been and may continue to be material.

The following table summarizes our liquidity as of March 31, 2025 and December 31, 2024:

  (In millions)                      As of March 31, 2025                 As of December 31, 2024             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cash and cash equivalents          $                         456.0      $                            544.5  
  Revolving credit availability      255.1                                211.4                               
  Liquidity                          $                         711.1      $                            755.9  

As of March 31, 2025, approximately 71% of the Company’s cash and cash equivalents resided outside the United States.

Expected sources of cash needed to satisfy cash requirements for 2025 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. We believe that these sources will also provide sufficient liquidity