Discontinued Operations

9 Months Ended

Sep. 30, 2016

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

Discontinued Operations

On August 18, 2016, we entered into a Share Purchase Agreement (the "Purchase Agreement") to sell our Valves & Controls business to Emerson Electric Co. for a purchase price of $3.15 billion in cash, subject to certain customary adjustments. We expect the sale to close in late 2016 or early 2017, subject to customary regulatory approvals and closing conditions.

We have concluded, as a result of the signing of the Purchase Agreement, that the Valves & Controls business has met the criteria to be held for sale. The results of the Valves & Controls business have been presented as discontinued operations and the related assets and liabilities have been reclassified as held for sale for all periods presented. The Valves & Controls business was previously disclosed as a stand-alone reporting segment.

In addition, during the first and second quarters of 2015, we sold the remaining portions of the Water Transport business in Australia and received cash proceeds of $59.0 million. The results of the Water Transport business have been presented as discontinued operations.

Transaction costs of $15.6 million related to the sale of Valves & Controls were incurred during the nine months ended September 30, 2016.

Operating results of discontinued operations are summarized below:

	Three months ended				Nine months ended
In millions	September 30, 2016		September 26, 2015		September 30, 2016		September 26, 2015
Net sales	$	410.9	$	440.9	$	1,231.6	$	1,385.2
Cost of goods sold	287.6		295.6		886.7		934.6
Gross profit	123.3		145.3		344.9		450.6
Selling, general and administrative	87.4		113.3		267.6		316.3
Research and development	4.3		5.1		14.2		16.7
Operating income	$	31.6	$	26.9	$	63.1	$	117.6
Income from discontinued operations before income taxes	$	32.0	$	27.4	$	63.6	$	117.6
Provision for income taxes	9.1		6.9		15.0		29.0
Income from discontinued operations, net of tax	$	22.9	$	20.5	$	48.6	$	88.6
							—
Gain (loss) from sale of discontinued operations before income taxes	$	0.6	$	—	$	0.6	$	(4.8	)
Provision for income taxes	—		—		—		—
Gain (loss) from sale of discontinued operations, net of tax	$	0.6	$	—	$	0.6	$	(4.8	)

The carrying amounts of major classes of assets and liabilities that were classified as held for sale on the Condensed Consolidated Balance Sheets were as follows:

In millions	September 30, 2016		December 31, 2015
Accounts and notes receivable, net	$	382.8	$	394.5
Inventories	562.1		609.6
Other current assets	97.8		89.3
Current assets held for sale	$	1,042.7	$	1,093.4
Property, plant and equipment, net	$	381.5	$	403.1
Goodwill	996.4		996.4
Intangibles, net	708.7		742.7
Asbestos-related insurance receivable	109.3		111.0
Other non-current assets	91.9		95.4
Non-current assets held for sale	$	2,287.8	$	2,348.6
Accounts payable	$	145.0	$	175.0
Employee compensation and benefits	58.5		100.3
Other current liabilities	160.4		157.7
Current liabilities held for sale	$	363.9	$	433.0
Pension and other post-retirement compensation and benefits	$	36.3	$	42.6
Deferred tax liabilities	174.3		173.9
Asbestos-related liabilities	231.2		237.9
Other non-current liabilities	98.1		90.8
Non-current liabilities held for sale	$	539.9	$	545.2