DISCONTINUED OPERATIONS

9 Months Ended

Sep. 26, 2015

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Spin-Off of SPX FLOW

As indicated in Note 1, we completed the spin-off of SPX FLOW on September 26, 2015. The results of SPX FLOW are presented as a discontinued operation within the accompanying condensed consolidated statements of operations and condensed consolidated statements of cash flows. Major classes of line items constituting pre-tax income and after-tax income of SPX FLOW for the three and nine months ended September 26, 2015 and September 27, 2014 are shown below:

	Three months ended						Nine months ended
	September 26, 2015			September 27, 2014			September 26, 2015			September 27, 2014
Revenues	$	589.5		$	681.6		$	1,775.1		$	2,046.3
Costs and expenses:
Cost of products sold	391.5			446.7			1,179.3			1,364.5
Selling, general and administrative (1)	121.7			117.3			368.2			374.9
Intangible amortization	5.8			6.2			17.7			19.9
Impairment of intangible assets	15.0			—			15.0			—
Special charges	34.0			2.8			41.2			12.9
Other income (expense), net	(2.4		)	2.0			1.3			2.0
Interest expense, net	(11.0		)	(10.2		)	(32.6		)	(30.3		)
Income before taxes	8.1			100.4			122.4			245.8
Income tax provision	(7.4		)	(21.7		)	(41.6		)	(46.1		)
Income from discontinued operations, net of tax	0.7			78.7			80.8			199.7
Less: Net income (loss) attributable to noncontrolling interest	—			0.7			(0.9		)	1.0
Income from discontinued operations attributable to SPX Corporation common shareholders, net of tax	$	0.7		$	78.0		$	81.7		$	198.7

⁽¹⁾  Includes $16.8 and $30.8 for the three and nine months ended September 26, 2015, respectively, of professional fees and other costs that were incurred in connection with the Spin-Off.

The assets and liabilities of SPX FLOW have been reclassified to assets and liabilities of discontinued operations as of December 31, 2014. The components of SPX FLOW’s assets and liabilities as of December 31, 2014 are shown below:

ASSETS:
Cash and equivalents	$	190.4
Accounts receivable, net	593.9
Inventories, net	330.4
Other current assets	106.5
Assets of discontinued operations - current	1,221.2
Property, plant and equipment, net	433.0
Goodwill	1,081.0
Intangibles, net	659.3
Other assets	101.4
Assets of discontinued operations - non current	2,274.7
Total assets - discontinued operations	$	3,495.9
LIABILITIES:
Accounts payable	$	252.0
Accrued expenses	452.1
Income taxes payable	35.4
Short-term debt and current maturities of long-term debt	26.3
Liabilities of discontinued operations - current	765.8
Long-term debt	610.3
Other long-term liabilities	421.9
Liabilities of discontinued operations - non current	1,032.2
Total liabilities - discontinued operations	$	1,798.0

The following table presents selected financial information regarding cash flows of SPX FLOW that are included within discontinued operations in the condensed consolidated statements of cash flows:

	Nine months ended
	September 26, 2015		September 27, 2014
Non-cash items included in income from discontinued operations
Depreciation and amortization	$	44.3	$	49.0
Impairment of intangible assets	15.0		—
Capital expenditures	43.1		26.3
Prepayment of capital lease obligation	—		60.8

Other Discontinued Operations Activity

During the third quarter of 2014, we sold our Fenn LLC business for cash consideration of $3.5, resulting in a loss, net of tax, of $0.4.

During the second quarter of 2014, we sold our SPX Precision Components business for cash consideration of $63.0, resulting in a loss, net of tax, of $7.3. During the third quarter of 2014, we reduced the net loss by $0.4, primarily as a result of revisions to certain liabilities related to the sale, and paid $0.4 associated with the working capital settlement.

During the first quarter of 2014, we sold our Thermal Products Solutions business for cash consideration of $38.5 and a promissory note of $4.0, resulting in a gain, net of tax, during the quarter of $21.5. During the third quarter of 2014, the amount due under the promissory note was collected in full, and we reduced the net gain on the sale of the business by $0.3 related to revisions of certain retained liabilities associated with the sale.

In addition to the businesses discussed above, we recognized net losses of $0.6 and $1.5 during the three and nine months ended September 26, 2015, respectively, and net losses of $2.6 and $1.9 during the three and nine months ended September 27, 2014, respectively, resulting from adjustments to gains/losses on dispositions of businesses discontinued prior to 2014.

For the three and nine months ended September 26, 2015 and September 27, 2014, selected information regarding the results of operations of our businesses included in discontinued operations, other than SPX FLOW, was as follows:

	Three months ended				Nine months ended
	September 26, 2015		September 27, 2014		September 26, 2015		September 27, 2014
Revenues	$	—	$	0.3	$	—	$	26.9
Pre-tax loss	—		—		—		(0.7		)
Loss from discontinued operations, net	—		—		—		(0.5		)

For the three and nine months ended September 26, 2015 and September 27, 2014, the table below presents a reconciliation of discontinued operations activity to the related amounts in the condensed consolidated statements of operations:

	Three months ended						Nine months ended
	September 26, 2015			September 27, 2014			September 26, 2015			September 27, 2014
SPX FLOW
Income from discontinued operations	$	8.1		$	100.4		$	122.4		$	245.8
Income tax provision	(7.4		)	(21.7		)	(41.6		)	(46.1		)
Income from discontinued operations, net	0.7			78.7			80.8			199.7
All other
Income (loss) from discontinued operations	(1.1		)	—			(3.6		)	28.2
Income tax (provision) benefit	0.5			(2.9		)	2.1			(16.7		)
Income (loss) from discontinued operations, net	(0.6		)	(2.9		)	(1.5		)	11.5
Total
Income from discontinued operations	7.0			100.4			118.8			274.0
Income tax provision	(6.9		)	(24.6		)	(39.5		)	(62.8		)
Income from discontinued operations, net	$	0.1		$	75.8		$	79.3		$	211.2