Discontinued Operations and Divestitures Discontinues Operations and Divestitures

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

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 believe the sale will be completed by the end of the first quarter of 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 classified as 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. Transaction costs of $24.2 million related to the sale of Valves & Controls were incurred during the year endedDecember 31, 2016 and were recorded within Selling, general and administrative expenses in the operating results of discontinued operations presented below.

On July 28, 2014, our Board of Directors approved a decision to exit our Water Transport business in Australia. During the third quarter of 2014, we recognized an impairment charge related to allocated amounts of goodwill, intangible assets, property, plant & equipment and other non-current assets totaling $380.1 million, net of a $12.3 million tax benefit, representing our estimated loss on disposal of the Water Transport business. The impairment charge was determined using significant unobservable inputs ("Level 3" fair value measurements). In addition, during the first quarter of 2014 and fourth quarter of 2013, we sold portions of our Water Transport business in Australia and New Zealand, respectively, resulting in losses of $5.6 million, net of a $2.4 million tax benefit, and $0.8 million, net of a $0.3 million tax benefit, respectively.

During 2015, we sold the remainder of our Water Transport business and received cash proceeds of $59.0 million. The results of the Water Transport business have been presented as discontinued operations.

Operating results of discontinued operations are summarized below:

	Years ended December 31
In millions	2016		2015			2014
Net sales	$	1,639.4	$	1,858.6		$	2,673.3
Cost of goods sold	1,177.1		1,271.2			1,785.1
Gross profit	462.3		587.4			888.2
Selling, general and administrative	367.6		457.8			551.5
Research and development	18.2		21.2			23.4
Impairment of goodwill and trade names	—		554.7			—
Operating income (loss)	$	76.5	$	(446.3	)	$	313.3
Income (loss) from discontinued operations before income taxes	$	77.2	$	(445.5	)	$	314.9
Provision for income taxes	7.2		21.3			70.9
Income (loss) from discontinued operations, net of tax	$	70.0	$	(466.8	)	$	244.0
Gain (loss) from sale / impairment of discontinued operations before income taxes	$	0.6	$	(6.7	)	$	(400.4	)
Income tax benefit	—		—			14.7
Gain (loss) from sale / impairment of discontinued operations, net of tax	$	0.6	$	(6.7	)	$	(385.7	)

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

	December 31
In millions	2016		2015
Accounts and notes receivable, net	$	365.4	$	394.5
Inventories	491.5		609.6
Other current assets	35.0		89.3
Current assets held for sale	$	891.9	$	1,093.4
Property, plant and equipment, net	$	361.5	$	403.1
Goodwill	996.4		996.4
Intangibles, net	703.5		742.7
Asbestos-related insurance receivable	108.5		111.0
Other non-current assets	123.0		95.4
Non-current assets held for sale	$	2,292.9	$	2,348.6
Accounts payable	$	151.4	$	175.0
Employee compensation and benefits	61.5		100.3
Other current liabilities	143.3		157.7
Current liabilities held for sale	$	356.2	$	433.0
Pension and other post-retirement compensation and benefits	$	32.2	$	42.6
Deferred tax liabilities	162.8		173.9
Asbestos-related liabilities	228.3		237.9
Other non-current liabilities	82.6		90.8
Non-current liabilities held for sale	$	505.9	$	545.2