Divestitures Divestitures (Tables)

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

The carrying amounts of the major classes of assets and liabilities of these businesses classified as held for sale at December 31, 2015, were as follows (in thousands):

	December 31,
	2015
Assets
Current assets	$	156,421
Net property, plant and equipment	115,865
Goodwill	46,794
Other intangibles, net of amortization	66,324
All other noncurrent assets	19,081
Assets held for sale	$	404,485
Liabilities
Current liabilities	$	72,756
Deferred income taxes	24,947
All other noncurrent liabilities	31,003
Liabilities held for sale	$	128,706

The major components of Income (loss) from discontinued operations (net of tax) for the three-month and nine-month periods ended September 30, 2016 and 2015 were as follows (in thousands):

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016		2015			2016			2015
Net sales	$	211,347	$	211,877		$	637,889		$	617,163
Cost of goods sold	100,061		118,712			333,832			368,381
Operating expenses, net	70,604		66,280			203,052			187,536
Interest and financing expenses(a)	9,864		12,763			29,912			38,792
Other expenses (income), net	134		(656		)	(1,636		)	(3,011		)
Income before income taxes	30,684		14,778			72,729			25,465
Income tax expense(b)	7,499		3,748			430,572			6,391
Income (loss) from discontinued operations (net of tax)	$	23,185	$	11,030		$	(357,843	)	$	19,074

(a) Interest and financing expenses included the allocation of interest expense not directly attributable to other operations as well as interest expense related to debt to be assumed by the buyer. The allocation of interest expense to discontinued operations was based on the ratio of net assets held for sale to the sum of total net assets plus consolidated debt.

(b) Income tax expense for the nine-month period ended September 30, 2016included a discrete non-cash charge of ($381.5) million due to a change in the Company’s assertion over book and tax basis differences related to a U.S. entity being sold. In addition, Income tax expense for the three-month and nine-month periods ended September 30, 2016 included discrete non-cash benefits (charges) of $5.4 million and ($29.8) million, respectively, related to a change in the Company’s assertion over reinvestment of foreign undistributed earnings. The associated liability of $411.3 million has been recorded in Deferred income taxes on the condensed consolidated balance sheets as of September 30, 2016. Upon completion of the sale, the buyer will not assume these outside basis differences, thus the liability is ultimately the responsibility of the Company, and as such, this amount is not recorded as a Liability held for sale. The sale is expected to close in the fourth quarter of 2016, at which time any difference between the sales price and the proportionate carrying value of the interests being sold would be recognized.

The carrying amounts of the major classes of assets and liabilities for the Chemetall Surface Treatment business classified as held for saleat September 30, 2016 and December 31, 2015, were as follows (in thousands):

	September 30,		December 31,
	2016		2015
Assets
Current assets	$	255,577	$	237,447
Net property, plant and equipment	164,860		163,643
Goodwill	1,456,214		1,433,259
Other intangibles, net of amortization	1,328,799		1,349,179
All other noncurrent assets	25,143		25,374
Assets held for sale	$	3,230,593	$	3,208,902
Liabilities
Current liabilities	$	135,735	$	200,892
Deferred income taxes	355,368		351,465
All other noncurrent liabilities	111,319		112,742
Liabilities held for sale	$	602,422	$	665,099

Depreciation and amortization and capital expenditures from discontinued operationsfor the nine-month periods ended September 30, 2016 and 2015 were as follows (in thousands):

	Nine Months Ended   September 30,
	2016		2015
Depreciation and amortization	$	35,194	$	57,567
Capital expenditures	$	15,525	$	11,521