XML 119 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Discontinued Operations
 6 Months Ended
Jun. 30, 2013
Notes to Condensed Consolidated Financial Statements [Abstract]  
Discontinued Operations
Discontinued Operations
In 2012, the UTC Board of Directors approved plans for the divestiture of a number of non-core businesses, which were completed with the sale of Pratt & Whitney Rocketdyne (Rocketdyne), as discussed below. Cash generated from these divestitures has been used to repay debt incurred to finance the Goodrich acquisition.
On June 14, 2013, we completed the sale of substantially all operations of Rocketdyne to GenCorp Inc. The sale generated a pre-tax loss of approximately $17 million ($10 million after tax) which has been included in discontinued operations in the Condensed Consolidated Statement of Comprehensive Income. We had previously recorded pre-tax goodwill impairment charges of approximately $360 million ($220 million after tax) during the six months ended June 30, 2012 related to Rocketdyne.
On February 12, 2013, we completed the disposition of UTC Power to ClearEdge Power. The disposition resulted in payments by UTC totaling $48 million, which included capitalization of the business prior to the sale and interim funding of operations as the buyer took control of a loss generating business. We have no continuing involvement with the UTC Power business post disposition.
The legacy Hamilton Sundstrand Industrial businesses, as well as Clipper Windpower (Clipper), Rocketdyne and UTC Power all met the "held-for-sale" criteria in 2012. The results of operations, including the net realized gains and losses on disposition, and the related cash flows which result from these non-core businesses, have been reclassified to Discontinued Operations in our Condensed Consolidated Statements of Comprehensive Income and Cash Flows. The dispositions of Clipper and the legacy Hamilton Sundstrand Industrial businesses were completed in 2012.
The following summarized financial information for our discontinued operations businesses, up to the point of sale, has been segregated from continuing operations and reported as Discontinued Operations:
 
Quarter Ended June 30,
 
Six Months Ended June 30,
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Discontinued Operations:
 
 
 
 
 
 
 
Net sales
$
146

 
$
562

 
$
309

 
$
1,086

Income (loss) from operations
$
43

 
$
(182
)
 
$
63

 
$
(1,108
)
Income tax (expense) benefit
(24
)
 
76

 
(32
)
 
160

Income (loss) from operations, net of income taxes
19

 
(106
)
 
31

 
(948
)
Loss on disposal
(25
)
 
(31
)
 
(40
)
 
(36
)
Income tax benefit (expense)
14

 
1

 
13

 
(9
)
Net income (loss) on discontinued operations
$
8

 
$
(136
)
 
$
4

 
$
(993
)

Income (loss) from operations of discontinued operations for the quarter and six months ended June 30, 2012 includes pre-tax impairment charges of approximately $179 million and $1,135 million, respectively. These amounts were previously included in loss on disposal of discontinued operations and have been reclassified for consistency of presentation.