Discontinued Operations (Notes)

6 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations – In fiscal 2017, the Company completed the previously announced strategic repositioning actions to streamline its portfolio and drive growth in its core businesses. On November 30, 2016, the Company completed the sale of its network power systems business for $4 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately $1.2 billion, subject to post-closing adjustments.

The financial results of the network power systems and power generation, motors and drives businesses reported as discontinued operations for the three and six months ended March 31, 2017 were as follows:

	Three Months Ended			Six Months Ended
	March 31, 2017
Net sales	$	97		$	1,037
Cost of sales	75			701
SG&A	21			263
Other (income) deductions, net	4			(417		)
Earnings (Loss) before income taxes	(3		)	490
Income taxes	81			629
Earnings (Loss), net of tax	$	(84	)	$	(139	)

In 2017, the loss of $139, consisted of an after-tax loss of $172 ($38 pretax loss) on the divestiture of the power generation, motors and drives business, an after-tax gain on the divestiture of the network power systems business of $100 ($465 pretax), income tax expense of $103 for the planned repatriation of sales proceeds and existing cash from the businesses, lower expense of $30 due to ceasing depreciation and amortization for the discontinued businesses held-for-sale, and net earnings from operations of $6.

Net cash from operating and investing activities for the network power systems and power generation, motors and drives businesses for the six months ended March 31, 2017 were as follows:    

	Six Months Ended Mar 31, 2017
Cash from operating activities	$	(601	)
Cash from investing activities	$	5,051

Operating cash flow used by discontinued operations of $601 for the six months ended March 31, 2017 primarily included payments for income taxes on completion of the divestitures and repatriation of cash, and professional fees and other costs.