Discontinued Operations (Notes)

3 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

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

Discontinued Operations – The Company previously announced strategic actions to streamline its portfolio, drive growth and accelerate value creation for shareholders. On November 30, 2016, the Company completed the sale of its network power systems business for $4 billion in cash, subject to certain post-closing adjustments, and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. This business comprised the former Network Power segment. Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for a value of $1.2 billion, representing cash plus assumption of certain postretirement liabilities by the buyer, subject to post-closing adjustments. This business was previously reported in the former Industrial Automations segment. The results of operations for these businesses have been reclassified into discontinued operations, and the assets and liabilities are reflected as held-for-sale.

The financial results of the network power systems and power generation, motors and drives businesses reported as discontinued operations for the quarters ended December 31, 2016 and 2015 were as follows:    

	Network Power Systems				Power Generation, Motors and Drives				Total
	Dec 31, 2015		Dec 31, 2016		Dec 31, 2015		Dec 31, 2016		Dec 31, 2015	Dec 31, 2016
Net sales	$	1,048	630		338		310		1,386	940
Cost of sales	650		394		261		232		911	626
SG&A	279		180		66		62		345	242
Other (income) deductions, net	48		(461	)	12		40		60	(421	)
Earnings (Loss) before income taxes	71		517		(1	)	(24	)	70	493
Income taxes	24		554		—		(6	)	24	548
Earnings (Loss), net of tax	$	47	(37	)	(1	)	(18	)	46	(55	)

In the first quarter of 2017, discontinued operations consists of net earnings from operations of $14 million, an after-tax gain on divestiture of the network power systems business of $86 million ($465 million pretax), income tax expense of $144 million for repatriation of sales proceeds, a loss of $38 million to write down the power generation, motors and drives business to the sales price less cost to sell, and lower expense of $27 million due to ceasing depreciation and amortization for the discontinued businesses held-for-sale. Results of discontinued operations for the first quarter of 2016 includes net earnings from operations of $68 million and separation costs related to the divestitures of $22 million.

The Company expects to recognize approximately $100 million of income tax expense on completion of the sale of the power generation, motors and drives business, which closed on January 31, 2017, subject to finalization of several matters and post-closing adjustments.

In fiscal 2017, the Company expects to pay income taxes of approximately $600 million as a result of completing the sales of the network power systems and power generation, motors and drives businesses.

The aggregate carrying amounts of the major classes of assets and liabilities classified as held-for-sale as of December 31, 2016 and September 30, 2016 are summarized as follows:

	Network Power Systems			Power Generation, Motors and Drives		Total
		Sept 30, 2016		Sept 30, 2016	Dec 31, 2016	Sept 30, 2016	Dec 31, 2016
Assets
Receivables		$	1,202	290	259	1,492	259
Inventories		381		197	185	578	185
Other current assets		108		22	26	130	26
Property plant & equipment, net		352		259	237	611	237
Goodwill		2,111		580	528	2,691	528
Other noncurrent assets		473		55	49	528	49
Total assets held-for-sale		$	4,627	1,403	1,284	6,030	1,284
Liabilities
Accounts payable		$	664	176	155	840	155
Other current liabilities		620		141	134	761	134
Deferred taxes and other noncurrent    liabilities		227		99	89	326	89
Total liabilities held-for-sale		$	1,511	416	378	1,927	378

Net cash from operating and investing activities for the network power systems and power generation, motors and drives businesses for the quarters ended December 31, 2016 and 2015 were as follows:    

	Network Power Systems					Power Generation, Motors and Drives				Total
	Dec 31, 2015			Dec 31, 2016		Dec 31, 2015		Dec 31, 2016		Dec 31, 2015		Dec 31, 2016
Cash from operating activities	$	83		(173	)	18		1		101		(172	)
Cash from investing activities	$	(8	)	3,903		(12	)	(9	)	(20	)	3,894

Cash from operating activities was reduced by $139 million and $24 million for the quarters ending December 31, 2016 and 2015, respectively, due to income taxes and fees paid related to the transactions.