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Discontinued Operations
 3 Months Ended
Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
The results of our former Performance Materials Division (PMD) and Energy-from-Waste (EfW) segment are reflected in our consolidated financial statements as discontinued operations for all periods presented.
During the second quarter of fiscal year 2017, we completed the sale of PMD to Evonik Industries AG (Evonik) for $3.8 billion in cash. A gain of $2,870 ($1,828 after-tax, or $8.32 per share) was recognized on the sale, which closed on 3 January 2017.
In fiscal year 2016, we discontinued efforts to start up and operate two EfW projects located in Tees Valley, United Kingdom. During the second quarter of fiscal year 2016, we recorded an initial loss on disposal of $945.7 ($846.6 after-tax) to write down plant assets to their estimated net realizable value and record a liability for plant disposition and other costs. Income tax benefits related only to one of the projects as the other did not qualify for a local tax deduction. During the first quarter of fiscal year 2017, we recorded an additional loss on disposal of $59.3 ($47.1 after-tax), primarily for land lease obligations and to update our estimate of the net realizable value of the plant assets as of 31 December 2016. There have been no significant changes to our estimates as of 31 December 2017.
The losses on disposal were recorded as a component of discontinued operations while the liability associated with land lease obligations was recorded in continuing operations. The remaining carrying amount of the accrual in discontinued operations at 31 December 2017 was not material.
Summarized Financial Information of Discontinued Operations
For the three months ended 31 December 2017, the loss from discontinued operations, net of tax, on the consolidated income statements of $1.0 related to ongoing EfW project exit activities and administrative costs.
The following table details the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three months ended 31 December 2016:
 
Three Months Ended
 
31 December 2016
 
 
 
Total

Performance
Energy-
Discontinued
 
Materials
from-Waste(A)
Operations
Sales
$
254.8

$
—

$
254.8

Cost of sales
179.0

6.6

185.6

Selling and administrative
20.4

.2

20.6

Research and development
5.1

—

5.1

Other income (expense), net
(.4
)
.3

(.1
)
Operating Income (Loss)
49.9

(6.5
)
43.4

Equity affiliates’ income
.3

—

.3

Income (Loss) Before Taxes
50.2

(6.5
)
43.7

Income tax benefit(B)
(50.5
)
(1.1
)
(51.6
)
Income (Loss) From Operations of Discontinued Operations, net of tax
100.7

(5.4
)
95.3

Loss on Disposal, net of tax
—

(47.1
)
(47.1
)
Income (Loss) From Discontinued Operations, net of tax
100.7

(52.5
)
48.2


(A) 
The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for ongoing project exit activities.
(B) 
As a result of the expected gain on sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards primarily during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $69.
 
 
 
 
 

Current assets of discontinued operations on the consolidated balance sheets of $10.2 as of 31 December 2017 and 30 September 2017 relate to the remaining EfW plant and equipment.
Current liabilities of discontinued operations on the consolidated balance sheets of $13.6 and $15.7 as of 31 December 2017 and 30 September 2017, respectively, primarily relate to reserves associated with the disposition of PMD.