Assets and Liabilities Held for Sale

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

ASSETS AND LIABILITIES HELD FOR SALE

Embraco Sale Transaction

On April 23, 2018, our Board of Directors approved the sale of Embraco and we subsequently entered into an agreement to sell the compressor business for a cash purchase price of $1.08 billion, subject to customary adjustments including for indebtedness, cash and working capital at closing. Please see "Embraco Sale Transaction" in the Management's Discussion and Analysis section for additional information on the agreement. We expect the transaction to close in early 2019.

Embraco is reported within our Latin America reportable segment and meets the criteria for held for sale accounting. The operations of Embraco do not meet the criteria to be presented as discontinued operations.

The carrying amounts of the major classes of Embraco's assets and liabilities as of December 31, 2018 and December 31, 2017 include the following:



Millions of dollars	December 31, 2018		December 31, 2017
Accounts receivable, net of allowance of $8 and $7, respectively	198		202
Inventories	165		215
Prepaid and other current assets	42		61
Property, net of accumulated depreciation of $616 and $740, respectively	364		390
Other noncurrent assets	49		36
Total assets	$	818	$	904

Accounts payable	$	361	$	392
Accrued expenses	27		25
Accrued advertising and promotion	12		24
Other current liabilities	55		42
Other noncurrent liabilities	34		45
Total liabilities	$	489	$	528

The following table summarizes Embraco's earnings before income taxes for the twelve months ended December 31, 2018, 2017 and 2016:



Millions of dollars	2018	2017	2016
Earnings before income taxes	53	90	110