Discontinued Operations

12 Months Ended

Sep. 30, 2016

Discontinued Operations [Abstract]

Discontinued Operations

4.  Discontinued Operations

Energy-from-Waste (EfW)

On 29 March 2016, the Board of Directors approved the Company’s exit of its EfW business. As a result, efforts to start up and operate the two EfW projects located in Tees Valley, United Kingdom, have been discontinued. The decision to exit the business and stop development of the projects was based on continued difficulties encountered and the Company’s conclusion, based on testing and analysis completed during the second quarter of fiscal year 2016, that significant additional time and resources would be required to make the projects operational. The EfW segment is presented as a discontinued operation. Prior year EfW business segment information has been reclassified to conform to current year presentation.

During the second quarter of fiscal year 2016, we recorded a loss of $945.7 ($846.6 after-tax) for the disposal of the business. Income tax benefits related only to one of the projects, as the other did not qualify for a local tax deduction. This loss included $913.5 to write down plant assets, previously recorded as construction in progress, to their estimated net realizable value of $20.0 and $32.2 to record a liability for plant disposition and other costs. We estimated the net realizable value of the projects as of 31 March 2016 assuming an orderly liquidation of assets capable of being marketed on a secondary equipment market based on market quotes and our experience with selling similar equipment. An asset’s orderly liquidation value is the amount that could be realized from a liquidation sale, given a reasonable period of time to find a buyer, selling the asset in the existing condition where it is located, and assuming the highest and best use of the asset by market participants. There have been no significant changes in the estimated net realizable value as of 30 September 2016. A valuation allowance of $58.0 and unrecognized tax benefits of $7.9 were recorded relating to deferred tax assets on capital assets generated from the loss.

The following table summarizes the carrying amount of the accrual for our actions to dispose of the EfW business at 30 September
2016, which is included in current liabilities of discontinued operations:
		Asset		Contract
		Impairment		Actions/Other		Total
	Loss on disposal of business	$	913.5	$	32.2	$	945.7
	Noncash expenses		(913.5)		-		(913.5)
	Cash expenditures		-		(18.6)		(18.6)
	Currency translation adjustment		-		(1.4)		(1.4)
	30 September 2016	$	-	$	12.2	$	12.2

The results of EfW discontinued operations are summarized below:
		2016		2015		2014
Loss before taxes	$	(41.0)	$	(9.2)	$	(10.9)
Income tax provision		3.4		2.4		3.4
Loss from operations of discontinued operations		(37.6)		(6.8)		(7.5)
Loss on disposal, net of tax		(846.6)		-		-
Loss from Discontinued Operations, net of tax	$	(884.2)	$	(6.8)	$	(7.5)

The loss from operations of EfW discontinued operations primarily relates to land lease costs, commercial and administrative costs, and cost incurred for ongoing project exit activities.

Assets and liabilities of the EfW discontinued operations consist of the following:
			30 September		30 September
			2016		2015
	Plant and equipment	$	18.2	$	-
	Other current assets		1.2		1.8
	Total Current Assets	$	19.4	$	1.8
	Plant and equipment	$	-	$	891.8
	Total Noncurrent Assets	$	-	$	891.8
	Payables and accrued liabilities	$	19.0	$	17.0
	Total Current Liabilities	$	19.0	$	17.0
	Other noncurrent liabilities	$	-	$	2.5
	Total Noncurrent Liabilities	$	-	$	2.5

Homecare

In 2012, the Board of Directors authorized the sale of our Homecare business. We sold the majority of our Homecare business to The Linde Group in 2012. In 2014, a gain of $3.9 was recognized for the sale of the remaining Homecare business, which was primarily in the United Kingdom and Ireland, and the settlement of contingencies related to the 2012 sale to The Linde Group.

The results of the Homecare discontinued operations are summarized below:
		2016		2015		2014
Sales	$	-	$	-	$	8.5
Income before taxes	$	-	$	-	$	.7
Income tax provision		-		-		-
Income from operations of discontinued operations		-		-		.7
Gain on sale of business, net of tax		-		-		3.9
Income (Loss) from Discontinued Operations, net of tax	$	-	$	-	$	4.6

As of 30 September 2016 and 2015, there were no assets or liabilities classified as discontinued operations relating to the Homecare business.