Discontinued Operations

9 Months Ended

Sep. 30, 2015

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On July 20, 2015, we announced an agreement to sell our Sikorsky business to Lockheed Martin Corp. for $9 billion in cash, subject to a working capital and net indebtedness adjustment. The sale is expected to close during the fourth quarter of 2015, and is subject to customary closing conditions, including regulatory approval. The sale is expected to generate approximately $6 billion in net cash, on an after-tax basis.

In the quarter ended September 30, 2015, Sikorsky met "held for sale" criteria. Sikorsky's results of operations and the related cash flows which result from this business have been reclassified to Discontinued Operations in our Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for all periods presented. The assets and liabilities of Sikorsky have been reclassified to Assets held for sale and Liabilities held for sale, respectively, in our Condensed Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014. Cash flows from the operation of Sikorsky will continue to be included in our results until completion of the sale to Lockheed Martin Corp.

The following summarized financial information related to Sikorsky has been segregated from continuing operations and reported as Discontinued Operations:

	Quarter Ended September 30,						Nine Months Ended September 30,
(Dollars in millions)	2015			2014			2015			2014
Discontinued Operations:
Net sales	$	1,421		$	1,620		$	4,379		$	5,365
Cost of sales	1,163			1,366			3,628			5,101
Research and development	47			37			133			116
Selling, general and administrative	88			79			264			247
Pension curtailment	110			—			110			—
Other (income) expenses, net	(14		)	5			(40		)	17
Income (loss) from operations	27			133			284			(116		)
Transaction related expenses	(38		)	—			(66		)	—
Income tax (expense) benefit	(54		)	(33		)	(140		)	76
(Loss) income from discontinued operations	$	(65	)	$	100		$	78		$	(40	)

The table above includes an income tax provision of approximately $68 million in the quarter and nine months ended September 30, 2015, as the undistributed earnings of Sikorsky's international subsidiaries will no longer be permanently reinvested, as a result of the sale of Sikorsky.

The assets and liabilities held for sale on the Condensed Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014 are as follows:

(Dollars in millions)	September 30, 2015		December 31, 2014
Assets
Cash and cash equivalents	$	16	$	6
Accounts receivable, net	732		869
Inventories and contracts in progress, net	2,225		2,223
Other assets, current	76		63
Fixed assets, net	692		684
Goodwill	344		347
Intangible assets, net	29		32
Other assets	722		644
Assets held for sale	$	4,836	$	4,868
Liabilities
Short-term borrowing and long-term debt currently due	$	10	$	6
Accounts payable	567		717
Accrued liabilities	1,118		1,478
Long-term debt	7		5
Other long-term liabilities	540		575
Liabilities held for sale	$	2,242	$	2,781