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SEC Filings

10-Q
NEXEO SOLUTIONS, INC. filed this Form 10-Q on 05/10/2018
Entire Document
 

5. Property, Plant and Equipment
 
Property, plant and equipment at March 31, 2018 and September 30, 2017 consisted of the following:
 
March 31, 2018
 
September 30, 2017
Land
$
50.8

 
$
51.0

Plants and buildings(1)
107.3

 
106.5

Machinery and equipment (2)
151.5

 
152.8

Software and computer equipment
64.8

 
63.3

Construction in progress
7.2

 
5.0

Total
381.6

 
378.6

Less accumulated depreciation (3)
(85.6
)
 
(62.5
)
Property, plant and equipment, net
$
296.0

 
$
316.1


(1) Includes $13.7 million related to facilities acquired under capital leases.
(2) Includes $27.4 million and $27.2 million, respectively, related to equipment acquired under capital leases.
(3) Includes $6.7 million and $4.9 million, respectively, related to facilities and equipment acquired under capital leases.

Depreciation expense recognized on the property, plant and equipment described above was as follows:
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2018
 
2017
 
2018
 
2017
Depreciation expense
$
12.6

 
$
12.1

 
$
25.2

 
$
23.3


Included in the carrying value of property, plant and equipment in the Company’s condensed consolidated balance sheets are certain closed facilities located in the U.S., which collectively have a carrying value of $1.1 million as of March 31, 2018 and September 30, 2017. The facilities do not currently meet the criteria for held-for-sale classification; accordingly, they remain classified as held and used.

During the fourth quarter of fiscal year 2017, the Company entered into a purchase agreement to buy land currently leased at one of the Company's distribution centers. The purchase is expected to be finalized during late fiscal year 2018 or during fiscal year 2019 for approximately $10.8 million.

Facility Lease

As a result of the sale in September 2016 of the Company’s Franklin Park facility to the Illinois Tollway Authority under an eminent domain proceeding, the Company relocated operations to a new leased facility in Montgomery, Illinois. During the three and six months ended March 31, 2017, the Company recorded a gain of $0.2 million and $2.7 million, respectively, related to capital expenditures incurred in connection with the relocation and reimbursed by the Illinois Tollway Authority, which is included in Other Income on the condensed consolidated statements of operations.

6. Goodwill and Other Intangibles

Goodwill
 
The following is a progression of goodwill by reportable segment: 
 
Chemicals
 
Plastics
 
Other
 
Total
Balance at September 30, 2017
$
362.8

 
$
276.7

 
$
63.5

 
$
703.0

Foreign currency translation
(0.1
)
 
3.3

 

 
3.2

Balance at March 31, 2018
$
362.7

 
$
280.0

 
$
63.5

 
$
706.2


Goodwill amounts by reportable segment at March 31, 2018 include the allocation of the purchase consideration of the Ultra Chem Acquisition as of the Ultra Chem Closing Date. See Note 3.

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