Assets and Liabilities Held for Sale

9 Months Ended

Sep. 30, 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, 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 cash proceeds of $27 million in the nine months ended September 30, 2019. Additionally, during the nine months ended September 30, 2019, the Company entered into agreements to transition its pipes product lines to multiple buyers for inconsequential

proceeds. Based on the cash proceeds in conjunction with the closing of the transaction to sell the thermostat product lines, the Company determined no additional gain or loss on sale was required during the nine months ended September 30, 2019. During the nine months ended September 30, 2019, the assets and liabilities were removed from the Condensed Consolidated Balance Sheet. The business did not meet the criteria to be classified as a discontinued operation.

The Company is in the process of finalizing all purchase price adjustments related to the sale of non-core product lines. Subsequent adjustments may be necessary based on the finalization of this process.

The assets and liabilities classified as held for sale at December 31, 2018 were as follows:

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