Assets and Liabilities Held for Sale

3 Months Ended

Mar. 31, 2019

Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Assets and Liabilities Held For Sale

In 2017, the Company started exploring strategic options for non-core product lines in the Engine segment and launched an active program to locate a buyer and initiated all other actions required to complete the plan to sell and exit the non-core pipe and thermostat product lines. During 2018, the Company continued its marketing efforts with interested parties and engaged in active discussions with these parties. In December 2018, after finalizing negotiations regarding various aspects of the sale, the Company entered into a definitive agreement to sell its thermostat product lines for approximately $28 million subject to customary adjustments. All closing conditions were satisfied, and the sale was closed on April 1, 2019. The Company received partial cash proceeds of $23 million prior to March 31, 2019. As the cash was legally restricted for withdrawal or usage prior to closing on April 1, 2019, the Company reflected the proceeds as restricted cash on the consolidated balance sheet at March 31, 2019. As of March 31, 2019 and December 31, 2018, assets of $50 million and $47 million, including allocated goodwill of $7 million, and liabilities of $22 millionand$23 million, respectively, were reclassified as held for sale on the Consolidated Balance Sheets. Based on the cash proceeds in conjunction with the closing of the transaction, the Company determined no additional adjustment to the carrying value was required to reflect fair value less costs to sell as of March 31, 2019. The business did not meet the criteria to be classified as a discontinued operation.

The assets and liabilities classified as held for sale are as follows:

	March 31,			December 31,
(millions of dollars)	2019			2018
Receivables, net	$	18		$	15
Inventories, net	39			42
Prepayments and other current assets	12			12
Property, plant and equipment, net	45			45
Goodwill	7			7
Other intangible assets, net	20			20
Impairment of carrying value	(91		)	(94		)
Total assets held for sale	$	50		$	47
Accounts payable and accrued expenses	$	17		$	18
Other liabilities	5			5
Total liabilities held for sale	$	22		$	23