10-Q 1 avnt-20210930.htm 10-Q avnt-20210930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________
FORM 10-Q
________________________________________________
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2021
OR
 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from             to             .
Commission file number 1-16091
 ________________________________________________
AVIENT CORPORATION
(Exact name of registrant as specified in its charter)
________________________________________________
Ohio34-1730488
(State or other jurisdiction(I.R.S. Employer Identification No.)
of incorporation or organization)
Avient Center
33587 Walker Road44012
Avon Lake, Ohio
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (440930-1000
Former name, former address and former fiscal year, if changed since last report: Not Applicable
_______________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value $.01 per shareAVNTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes     No

The number of the registrant’s outstanding common shares, par value $.01 per share, as of September 30, 2021 was 91,491,380.

AVIENT CORPORATION


PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Sales$1,219.8 $924.5 $3,617.3 $2,245.1 
Cost of sales964.4 714.3 2,770.8 1,713.7 
Gross margin255.4 210.2 846.5 531.4 
Selling and administrative expense176.7 176.7 539.3 407.1 
Operating income78.7 33.5 307.2 124.3 
Interest expense, net(19.0)(29.7)(57.8)(55.3)
Other income, net1.4 1.5 4.1 12.6 
Income from continuing operations before income taxes61.1 5.3 253.5 81.6 
Income tax expense(8.5)(2.7)(51.8)(22.5)
Net income from continuing operations52.6 2.6 201.7 59.1 
Loss from discontinued operations, net of income taxes   (0.5)
Net income$52.6 $2.6 $201.7 $58.6 
Net loss (income) attributable to noncontrolling interests0.3 (0.9)(0.7)(1.3)
Net income attributable to Avient common shareholders$52.9 $1.7 $201.0 $57.3 
Earnings per share attributable to Avient common shareholders - Basic:
Continuing operations$0.58 $0.02 $2.20 $0.64 
Discontinued operations    
Total$0.58 $0.02 $2.20 $0.64 
Earnings (loss) per share attributable to Avient common shareholders - Diluted:
Continuing operations$0.57 $0.02 $2.18 $0.64 
Discontinued operations   (0.01)
Total$0.57 $0.02 $2.18 $0.63 
Weighted-average shares used to compute earnings per common share:
Basic91.4 91.5 91.3 89.7 
Plus dilutive impact of share-based compensation0.8 0.4 0.8 1.0 
Diluted92.2 91.9 92.1 90.7 
Anti-dilutive shares not included in diluted common shares outstanding 0.7  0.9 
Cash dividends declared per share of common stock$0.2125 $0.2025 $0.6375 $0.6075 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION


Avient Corporation
Consolidated Statements of Comprehensive Income (Unaudited)
(In millions)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net income$52.6 $2.6 $201.7 $58.6 
Other comprehensive income (loss), net of tax:
Translation adjustments and related hedging instruments(29.4)59.3 (70.9)56.6 
Cash flow hedges0.7 0.8 2.2 (2.4)
Total other comprehensive income (loss)(28.7)60.1 (68.7)54.2 
Total comprehensive income23.9 62.7 133.0 112.8 
Comprehensive loss (income) attributable to noncontrolling interests0.3 (0.9)(0.7)(1.3)
Comprehensive income attributable to Avient common shareholders$24.2 $61.8 $132.3 $111.5 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION


Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited) September 30, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$545.2 $649.5 
Accounts receivable, net703.0 516.6 
Inventories, net477.2 327.5 
Other current assets123.5 108.5 
Total current assets1,848.9 1,602.1 
Property, net669.6 694.9 
Goodwill1,293.9 1,308.1 
Intangible assets, net948.4 1,008.5 
Operating lease assets, net81.6 80.9 
Other non-current assets168.6 176.0 
Total assets$5,011.0 $4,870.5 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt$8.7 $18.6 
Accounts payable557.7 471.7 
Current operating lease obligations24.1 25.1 
Accrued expenses and other current liabilities371.3 285.6 
Total current liabilities961.8 801.0 
Non-current liabilities:
Long-term debt1,851.0 1,854.0 
Pension and other post-retirement benefits111.0 115.0 
Non-current operating lease obligations57.7 56.0 
Other non-current liabilities244.1 332.8 
Total non-current liabilities2,263.8 2,357.8 
SHAREHOLDERS' EQUITY
Avient shareholders’ equity1,768.8 1,697.1 
Noncontrolling interest16.6 14.6 
Total equity1,785.4 1,711.7 
Total liabilities and equity$5,011.0 $4,870.5 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

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Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
 Nine Months Ended
September 30,
 20212020
Operating Activities
Net income$201.7 $58.6 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization105.8 74.8 
Accelerated depreciation and amortization1.9 2.5 
Share-based compensation expense8.4 7.1 
Changes in assets and liabilities, net of the effect of acquisitions:
Increase in accounts receivable(199.7)(12.7)
(Increase) decrease in inventories(156.2)53.0 
Increase in accounts payable95.3 21.3 
Decrease in pension and other post-retirement benefits(14.2)(14.4)
Increase in post-acquisition earnout liabilities 2.5 
Increase in accrued expenses and other assets and liabilities, net67.0 56.1 
Taxes paid on gain on divestiture (142.0)
Payment of post-acquisition date earnout liability (38.1)
Net cash provided by operating activities110.0 68.7 
Investing activities
Capital expenditures(62.7)(38.6)
Business acquisitions, net of cash acquired(47.6)(1,342.7)
Net proceeds from divestiture 7.1 
Other investing activities(2.0)5.2 
Net cash used by investing activities(112.3)(1,369.0)
Financing activities
Debt offering proceeds 650.0 
Purchase of common shares for treasury(4.2)(13.6)
Cash dividends paid(58.2)(52.8)
Repayment of long-term debt(16.5)(6.0)
Payments of withholding tax on share awards(9.1)(1.9)
Debt financing costs (9.5)
Equity offering proceeds, net of underwriting discount and issuance costs 496.1 
Payment of acquisition date earnout liability (50.8)
Other financing activities(3.5) 
Net cash (used) provided by financing activities(91.5)1,011.5 
Effect of exchange rate changes on cash(10.5)1.4 
Decrease in cash and cash equivalents(104.3)(287.4)
Cash and cash equivalents at beginning of year649.5 864.7 
Cash and cash equivalents at end of period$545.2 $577.3 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

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Avient Corporation
Consolidated Statements of Shareholders' Equity (Unaudited)
(In millions)
 Common SharesShareholders’ Equity
Common
Shares
Common
Shares Held
in Treasury
Common
Shares
Additional
Paid-in
Capital
Retained EarningsCommon
Shares Held
in Treasury
Accumulated
Other
Comprehensive
(Loss) Income
Total Avient shareholders' equityNon-controlling InterestsTotal equity
Balance at January 1, 2021122.2 (30.8)$1.2 $1,513.3 $1,057.4 $(901.2)$26.4 $1,697.1 $14.6 $1,711.7 
Net income— — — — 79.3 — — 79.3 0.4 79.7 
Other comprehensive loss— — — — — — (50.2)(50.2)— (50.2)
Cash dividends declared (1)
— — — — (19.5)— — (19.5)— (19.5)
Repurchase of common shares— (0.1)— — — (4.2)— (4.2)— (4.2)
Share-based compensation and exercise of awards— 0.1 — 2.9 — 1.6 — 4.5 — 4.5 
Balance at March 31, 2021122.2 (30.8)$1.2 $1,516.2 $1,117.2 $(903.8)$(23.8)$1,707.0 $15.0 $1,722.0 
Net income— — — — 68.8 — — 68.8 0.6 69.4 
Other comprehensive income— — — — — — 10.2 10.2 — 10.2 
Acquisitions/other— — — — — — — — 2.6 2.6 
Cash dividends declared (1)
— — — — (19.4)— — (19.4)— (19.4)
Share-based compensation and exercise of awards— — — 1.0 — 0.6 — 1.6 — 1.6 
Balance at June 30, 2021122.2 (30.8)$1.2 $1,517.2 $1,166.6 $(903.2)$(13.6)$1,768.2 $18.2 $1,786.4 
Net income— — — — 52.9 — — 52.9 (0.3)52.6 
Other comprehensive income— — — — — — (28.7)(28.7)— (28.7)
Noncontrolling interest activity— — — — — — — — (1.3)(1.3)
Cash dividends declared (1)
— — — — (19.6)— — (19.6)— (19.6)
Share-based compensation and exercise of awards— 0.1 — (3.2)— 1.6 — (1.6)— (1.6)
Acquisitions/other— — — (2.4)— — — (2.4)— (2.4)
Balance at September 30, 2021122.2 (30.7)1.2 $1,511.6 $1,199.9 $(901.6)$(42.3)$1,768.8 $16.6 $1,785.4 
(1) Dividends declared per share were $0.2125 and $0.6375 for the three and nine months ended September 30, 2021.






5 AVIENT CORPORATION


 Common SharesShareholders’ Equity
Common
Shares
Common
Shares  Held
in Treasury
Common
Shares
Additional
Paid-in
Capital
Retained EarningsCommon
Shares  Held
in Treasury
Accumulated
Other
Comprehensive
(Loss) Income
Total Avient shareholders' equityNon-controlling InterestsTotal equity
Balance at January 1, 2020122.2 (45.3)$1.2 $1,175.2 $1,001.2 $(1,043.1)$(82.6)$1,051.9 $0.8 $1,052.7 
Net income— — — — 32.8 — — 32.8  32.8 
Other comprehensive loss— — — — — — (10.7)(10.7)— (10.7)
Noncontrolling interest activity— — — — — — — — (0.8)(0.8)
Cash dividends declared (1)
— — — — (18.7)— — (18.7)— (18.7)
Repurchase of common shares— (1.0)— — — (13.6)— (13.6)— (13.6)
Common shares equity offering— 15.3 334.6 — 161.3 — 495.9 — 495.9 
Share-based compensation and exercise of awards— 0.2 — (0.5)— 1.6 — 1.1 — 1.1 
Other— — — — (0.3)— — (0.3)— (0.3)
Balance at March 31, 2020122.2 (30.8)$1.2 $1,509.3 $1,015.0 $(893.8)$(93.3)$1,538.4 $ $1,538.4 
Net income— — — — 22.8 — — 22.8 0.4 23.2 
Other comprehensive loss— — — — — — 4.8 4.8 — 4.8 
Cash dividends declared (1)
— — — — (18.5)— — (18.5)— (18.5)
Share-based compensation and exercise of awards—  — 3.2 — 0.4 — 3.6 — 3.6 
Balance at June 30, 2020122.2 (30.8)$1.2 $1,512.5 $1,019.3 $(893.4)$(88.5)$1,551.1 $0.4 $1,551.5 
Net income— — — — 1.7 — — 1.7 0.9 2.6 
Other comprehensive loss— — — — — — 60.1 60.1 — 60.1 
Noncontrolling interest activity— — — — — — — — — — 
Cash dividends declared (1)
— — — — (18.5)— — (18.5)— (18.5)
Repurchase of common shares—  — — —  —  —  
Share-based compensation and exercise of awards—  — 1.9 — 0.5 — 2.4 — 2.4 
Other— — — — — — — — 12.8 12.8 
Balance at September 30, 2020122.2 (30.8)$1.2 $1,514.4 $1,002.5 $(892.9)$(28.4)$1,596.8 $14.1 $1,610.9 
(1) Dividends declared per share were $0.2025 and $0.6075 for the three and nine months ended September 30, 2020.
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.






6 AVIENT CORPORATION



Avient Corporation
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1 — BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2020 of Avient Corporation, formerly known as PolyOne Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.
Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2021.
Accounting Standards Adopted
On January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Financial Accounting Standards Board Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material impact.
Accounting Standards Not Yet Adopted
ASU 2020-04, Reference Rate Reform (ASU 2020-04), provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 are effective through December 31, 2022. The Company is currently evaluating the impact of adopting this standard on our consolidated financial statements and disclosures.

Note 2 — BUSINESS COMBINATIONS

Clariant Color Acquisition
On July 1, 2020, the Company completed its acquisition of the equity interests in the global masterbatch business of Clariant AG, a corporation organized and existing under the law of Switzerland (Clariant), and the masterbatch assets in India of Clariant Chemicals (India) Limited, a public limited company incorporated in India and an indirect majority owned subsidiary of Clariant (Clariant India). The business and assets are collectively referred to as Clariant Color and the acquisitions are collectively referred to as the Clariant Color Acquisition.
Total consideration paid by the Company to complete the Clariant Color Acquisition was $1.4 billion net of cash and debt acquired. To finance the purchase of Clariant Color, the Company used $496.1 million in net proceeds from the issuance of common shares in an underwritten public offering completed in February 2020 and $640.5 million in net proceeds from a senior unsecured notes offering completed in May 2020, and funded the balance using the net proceeds of the October 2019 sale of our Performance Products and Solutions business segment (PP&S).
The Clariant Color Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805. As of June 30, 2021, the purchase accounting for the Clariant Color Acquisition was finalized.






7 AVIENT CORPORATION



The summarized purchase price allocation is as follows:
(in millions)Preliminary Allocation
As of December 31, 2020
Measurement Period AdjustmentsFinal Allocation
Cash and cash equivalents$145.1 $— $145.1 
Accounts receivable170.8 — 170.8 
Inventories99.0 0.2 99.2 
Other current assets56.9 6.3 63.2 
Property267.6 (7.5)260.1 
Goodwill569.0 (7.8)561.2 
Intangible assets:
Customer relationships221.9 (20.7)201.2 
Trade names and trademarks32.0 2.8 34.8 
Patents, technology and other273.9 7.4 281.3 
Operating lease assets30.1 — 30.1 
Other long-term assets1.3 5.8 7.1 
Short term debt(0.4)— (0.4)
Accounts payable(92.7)1.2 (91.5)
Current operating lease obligations(2.8)— (2.8)
Accrued expenses and other current liabilities(81.2)(4.5)(85.7)
Long-term debt(6.7)— (6.7)
Non-current operating lease obligations(25.8)— (25.8)
Deferred tax liabilities(60.7)25.9 (34.8)
Pension and other post retirement benefits(53.8)— (53.8)
Other long-term liabilities(5.4)(6.7)(12.1)
Non-controlling interests(12.8)(2.4)(15.2)
Total purchase price consideration$1,525.3 $— $1,525.3 

The intangible assets that have been acquired are being amortized over a period of 18 to 20 years.
Goodwill of $561.2 million was recorded and allocated to the Color, Additives and Inks segment. The goodwill recognized is primarily attributable to the expected synergies to be achieved from the business combination. A portion of goodwill is deductible for tax purposes.
Had the Clariant Color Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to the acquisition, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows:
(Unaudited)
(in millions)Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Sales$924.5 $2,782.6 
Income from continuing operations before income taxes28.9146.5

The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the acquisition occurred on January 1, 2019. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. In preparation of the pro forma financial information, we eliminated certain historical allocations made by Clariant as they do not represent the stand alone operations of Clariant Color and replaced them with costs

8 AVIENT CORPORATION


more likely to occur as a part of Avient. This elimination removed expense of $7.5 million during the nine months ended September 30, 2020, while the three months ended September 30, 2020 reflect actual results.

Costs incurred in connection with the Clariant Color Acquisition were $3.5 million and $15.1 million for the three and nine months ended September 30, 2020, respectively. These fees were charged to Selling and Administrative expense on the Condensed Consolidated Statements of Income.
Other Acquisitions
On July 1, 2021, the Company completed its acquisition of Magna Colours Ltd. (Magna Colours), a market leader in sustainable, water-based inks technology for the textile screen printing industry, for the purchase price of $47.6 million, net of cash acquired. The results of the Magna Colours business are reported in the Color, Additives and Inks segment. The preliminary purchase price allocation resulted in intangible assets of $27.5 million and goodwill of $22.2 million, partially offset by net liabilities assumed. Goodwill is not deductible for tax purposes. The intangible assets that have been acquired are being amortized over a period of 10 to 20 years.
Our acquisitions of PlastiComp, Inc. (PlastiComp) on May 31, 2018 and Fiber-Line, LLC (Fiber-Line) on January 2, 2019 involved contingent earnout consideration. The PlastiComp earnout had a ceiling of $35.0 million that was reached during the first quarter of 2020 and paid in the third quarter of 2020. The Fiber-Line earnout was based on two annual earnout periods, with the second earnout period target based on year-one results. A payment of $53.9 million associated with the first Fiber-Line earnout period was made in the first quarter of 2020. There was no payment made for the second Fiber-Line earnout period, which ended on December 31, 2020.


Note 3 — GOODWILL AND INTANGIBLE ASSETS
Goodwill as of September 30, 2021 and December 31, 2020 and changes in the carrying amount of goodwill by segment were as follows:
(In millions)Specialty Engineered MaterialsColor, Additives and InksDistributionTotal
Balance at December 31, 2020$237.8 $1,068.7 $1.6 $1,308.1 
Acquisition of businesses 14.1  14.1 
Currency translation(1.0)(27.3) (28.3)
Balance at September 30, 2021$236.8 $1,055.5 $1.6 $1,293.9 

Indefinite and finite-lived intangible assets consisted of the following:
 As of September 30, 2021
(In millions)Acquisition CostAccumulated AmortizationCurrency TranslationNet
Customer relationships$507.2 $(130.1)$7.3 $384.4 
Patents, technology and other566.7 (125.1)9.2 450.8 
Indefinite-lived trade names113.2 — — 113.2 
Total$1,187.1 $(255.2)$16.5 $948.4 

 As of December 31, 2020
(In millions)Acquisition CostAccumulated AmortizationCurrency TranslationNet
Customer relationships$508.7 $(109.8)$23.8 $422.7 
Patents, technology and other549.9 (102.4)28.8 476.3 
Indefinite-lived trade names109.5 — — 109.5 
Total$1,168.1 $(212.2)$52.6 $1,008.5 

Note 4 — LEASING ARRANGEMENTS
We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment. The majority of our leases are operating leases. Finance leases are immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected within Operating

9 AVIENT CORPORATION


lease assets, net, Current operating lease obligations, and Non-current operating lease obligations, respectively, on the Condensed Consolidated Balance Sheets.
Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2021202020212020
Cost of sales$4.4 $4.4 $13.7 $9.3 
Selling and administrative expense2.6 5.4 10.4 14.5 
Total operating lease cost$7.0 $9.8 $24.1 $23.8 

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of September 30, 2021 and 2020 was 4.9 years and 5.4 years, respectively.
The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rates used to measure our operating lease liabilities as of September 30, 2021 and 2020 were 3.6% and 3.0%, respectively.
Maturity Analysis of Operating Lease Liabilities:
As of September 30, 2021
(In millions)
2021$7.6 
202226.6 
202320.0 
202412.8 
20258.0 
Thereafter15.7 
Total lease payments90.7 
Less amount of lease payment representing interest(8.9)
Total present value of lease payments$81.8 

Note 5 — INVENTORIES, NET
Components of Inventories, net are as follows:
(In millions)As of September 30, 2021As of December 31, 2020
Finished products$243.5 $171.7 
Work in process22.0 16.6 
Raw materials and supplies211.7 139.2 
Inventories, net$477.2 $327.5 


10 AVIENT CORPORATION


Note 6 — PROPERTY, NET
Components of Property, net are as follows:
(In millions)As of September 30, 2021As of December 31, 2020
Land and land improvements$