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Discontinued Operations
 6 Months Ended
Jun. 28, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
NOTE 3. DISCONTINUED OPERATIONS
Divestiture of A&S Business
On October 1, 2018, we completed the split-off of four of our operating companies (the “A&S Business”) in a tax efficient Reverse Morris Trust transaction with Altra Industrial Motion Corp. (“Altra”). The total consideration received was $2.7 billion and consisted of (i) $1.3 billion through a fully-subscribed exchange offer, in which we accepted and subsequently retired 15,824,931 shares of our own common stock from our stockholders in exchange for the 35,000,000 shares of common stock of Stevens Holding Company, Inc., an entity created to hold the A&S Business; (ii) $1.0 billion in cash paid to us for the direct sales of certain assets and liabilities of the A&S Business; (iii) $250 million as part of a debt-for-debt exchange that reduced outstanding indebtedness of Fortive; and (iv) $150 million in cash paid to us by Stevens Holding Company, Inc. as a dividend. We recognized an after-tax gain on the transaction of $1.9 billion.

The accounting requirements for reporting the disposition of the A&S Business as a discontinued operation were met when the separation and merger were completed in the fourth quarter of 2018. Accordingly, the accompanying consolidated condensed financial statements reflect the A&S Business as discontinued operations for all periods presented.

We continue to provide certain support services to Altra under transition services agreements. The impact of these services on our consolidated condensed financial statements was immaterial during the three and six month periods ended June 28, 2019.

The key components of income from discontinued operations for the three and six month periods ended June 28, 2019 and June 29, 2018 were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
June 28, 2019
 
June 29, 2018
 
June 28, 2019
 
June 29, 2018
Sales
$
0.4

 
$
254.2

 
$
6.1

 
$
502.7

Cost of sales
(0.3
)
 
(146.1
)
 
(6.1
)
 
(290.1
)
Selling, general and administrative expenses
(0.5
)
 
(40.9
)
 
(0.5
)
 
(76.1
)
Research and development expenses
—

 
(9.2
)
 
—

 
(18.2
)
Gain (loss) on disposition of discontinued operations before income taxes
(0.3
)
 
—

 
0.2

 
—

Interest expense and other
—

 
(1.4
)
 
—

 
(2.7
)
Earnings before income taxes
(0.7
)
 
56.6

 
(0.3
)
 
115.6

Income taxes
—

 
(11.8
)
 
—

 
(23.6
)
Net earnings from discontinued operations
$
(0.7
)
 
$
44.8

 
$
(0.3
)
 
$
92.0


Interest expense related to the debt retired as part of the debt-for-debt exchange was allocated to discontinued operations for all periods prior to the disposition.
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our accompanying Consolidated Condensed Balance Sheets as of June 28, 2019 and December 31, 2018 ($ in millions):
 
June 28, 2019
 
December 31, 2018
ASSETS
 
 
 
Trade accounts receivable, net
$
0.3

 
$
4.2

Inventories
—

 
4.4

Other current assets
21.1

 
21.4

Total current assets, discontinued operations
$
21.4

 
$
30.0

LIABILITIES
 
 
 
Current liabilities:
 
 
 
Trade accounts payable
$
5.2

 
$
9.2

Accrued expenses and other current liabilities
11.9

 
21.5

Total current liabilities, discontinued operations
$
17.1

 
$
30.7