DISCONTINUED OPERATIONS

3 Months Ended

Dec. 28, 2019

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

DISCONTINUED OPERATIONS

Current Year Divestitures

On December 20, 2019, TransDigm completed the divestiture of the Souriau-Sunbank Connection Technologies business (“Souriau-Sunbank”) with Eaton Corporation plc (“Eaton”) for approximately $920 million. Souriau-Sunbank was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and was included in TransDigm’s Non-aviation segment. The divestiture represented a strategic shift in TransDigm’s business and, in accordance with US GAAP, qualifies as discontinued operations.

Income from discontinued operations, net of tax was $71 million in the condensed consolidated statements of income for the thirteen week period ended December 28, 2019. The $71 million was comprised of $9 million from Souriau-Sunbank's operations and a gain on the sale of Souriau-Sunbank, net of tax, of $62 million. The following is the summarized operating results for Souriau-Sunbank for the thirteen week period ended December 28, 2019 (in millions):



	Thirteen Week Period Ended December 28, 2019
Net sales	$	79
Income from discontinued operations before income taxes	13
Income tax expense	4
Income from discontinued operations, net of tax	9
Gain from sale of discontinued operations, net of tax	62
Income from discontinued operations, net of tax	$	71

At September 30, 2019, Souriau-Sunbank’s assets held-for-sale and liabilities held-for-sale were $962 million and $157 million, respectively. Under US GAAP, assets held for sale are to be reported at lower of its carrying amount or fair value less cost to sell. The following is the summarized balance sheet of Souriau-Sunbank’s assets held-for-sale and liabilities held-for-sale as of September 30, 2019 (in millions):



Assets and Liabilities of Discontinued Operations Held-for-Sale	Fiscal Year Ended September 30, 2019
Cash and cash equivalents	$	29
Trade accounts receivable—Net	67
Inventories—Net	88
Prepaid expenses and other	2
Property, plant and equipment—Net	101
Goodwill	480
Other intangibles—Net	194
Other	1
Total assets of discontinued operations	$	962

Accounts payable	$	33
Accrued liabilities	55
Long-term debt	6
Deferred income taxes	42
Other	21
Total liabilities of discontinued operations	$	157

Prior Year Divestitures

On September 20, 2019, TransDigm completed the divestiture of its Esterline Interface Technology (“EIT”) group of businesses to an affiliate of KPS Capital Partners, LP for approximately $190 million. EIT was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and was included in TransDigm’s Non-aviation segment. The divestiture represented a strategic shift in TransDigm’s business and, in accordance with US GAAP, qualifies as discontinued operations.

There was no impact to the income from discontinued operations in the condensed consolidated statements of income for the thirteen week period ended December 28, 2019.