Discontinued Operations, Divestitures and Acquisitions (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Summary of Discontinued Operations

The following table presents selected financial information regarding cash flows of Diversey that are included within discontinued operations in the Condensed Consolidated Statements of Cash Flows:

(In millions)	Six Months Ended June 30, 2017
Non-cash items included in net earnings from discontinued operations:
Depreciation and amortization	$	27.7
Share-based incentive compensation	6.0
Profit sharing expense	1.5
Provision for bad debt	1.7
Capital expenditures	9.7

Summary operating results of Diversey were as follows:

(In millions)	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
Net sales	$	651.2		$	1,232.9
Cost of sales	369.9			700.4
Gross profit	281.3			532.5
Selling, general and administrative expenses(1)	197.9			399.1
Amortization expense of intangible assets acquired(1)	4.6			22.3
Restructuring and other charges(2)	3.8			1.5
Operating profit	75.0			109.6
Other expense, net	(5.1		)	(8.0		)
Earnings from discontinued operations before income tax provision(1)(3)	69.9			101.6
Income tax (benefit) provision from discontinued operations(1)(2)	(5.2		)	15.9
Net earnings from discontinued operations, net of tax	$	75.1		$	85.7

⁽¹⁾  For the three and six months ended June 30, 2017, there was a revision to net earnings from discontinued operations, net of tax, on the Condensed Consolidated Statement of Operations related to depreciation and amortization on Diversey assets held for sale. As a result, selling, general and administrative expenses decreased $6.1 million, amortization expenses of intangible assets acquired decreased $16.5 million and income tax provision from discontinued operations increased $6.2 million.

⁽²⁾  During the three and six months ended June 30, 2017, a reclassification of restructuring expenses from continuing operations to discontinued operations was made. Refer to the Condensed Consolidated Statements of Operations for additional information.

⁽³⁾  For the three and six months ended June 30, 2017, net earnings from discontinued operations was impacted by a $5.2 million benefit and $15.9 million expense, respectively, related to a change in the repatriation strategy of foreign earnings offset by a favorable earnings mix in jurisdictions with lower rates

Summary of Consideration transferred and the Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The following table summarizes the consideration transferred to acquire Fagerdala and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed.  

	Preliminary Allocation		Measurement Period			Revised Preliminary Allocation
(In millions)	As of October 2, 2017		Adjustments			As of June 30, 2018
Total consideration transferred	$	106.6	$	(0.4	)	$	106.2
Assets:
Cash and cash equivalents	13.3					13.3
Trade receivables, net	22.4					22.4
Inventory, net	10.0		0.1			10.1
Prepaid expenses and other current assets	8.4					8.4
Property and equipment, net	23.3					23.3
Intangible assets, net	41.4		0.7			42.1
Goodwill	39.3		(0.6		)	38.7
Assets	$	158.1	$	0.2		$	158.3
Liabilities:
Short-term borrowings	14.0					14.0
Accounts payable	6.9					6.9
Other current liabilities	15.1		0.9			16.0
Long-term debt, less current portion	3.8					3.8
Non-current deferred taxes	11.7		(0.3		)	11.4
Liabilities	$	51.5	$	0.6		$	52.1