Divestitures and Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]

Divestitures and Discontinued Operations

DISCONTINUED OPERATIONS

The components of discontinued operations for the years ended December 31 are as follows:

In millions	2014			2013			2012
Net revenues	$	—		$	1,889.9		$	2,046.6
Pre-tax earnings (loss) from operations	$	41.2		$	84.7		$	379.5
Pre-tax gain (loss) on sale	—			—			2.3
Tax benefit (expense)	(6.5		)	(71.4		)	(129.8		)
Discontinued operations, net of tax	$	34.7		$	13.3		$	252.0

Discontinued operations by business for the years ended December 31 are as follows:

In millions	2014		2013		2012
Allegion, net of tax	$	15.0	$	12.4	$	254.2
Other discontinued operations, net of tax	19.7		0.9		(2.2		)
Discontinued operations, net of tax	$	34.7	$	13.3	$	252.0

Allegion Spin-Off

On December 1, 2013, the Company completed the previously announced separation of its commercial and residential security businesses by distributing the related ordinary shares of Allegion, on a pro rata basis, to the Company's shareholders of record as of November 22, 2013. Allegion is now an independently traded publicly company.

The results of the commercial and residential security businesses prior to the spin-off are presented as a discontinued operation on the Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows for all periods presented.

In connection with the spin-off, the Company and Allegion entered into several agreements covering administrative and tax matters to provide or obtain services on a transitional basis, as needed, for varying periods after the spin-off. As of December 31, 2014, all services provided under these agreements were substantially complete.

Net revenues and after-tax earnings of Allegion for the year ended December 31 are as follows:

In millions	2014		2013		2012
Net revenues	$	—	$	1,889.9	$	2,046.6
Discontinued operations, net of tax	$	15.0	$	12.4	$	254.2

After-tax earnings from Allegion for the year ended December 31, 2014 primarily represent adjustments for certain tax matters. After-tax earnings from Allegion for the years ended December 31, 2013 and 2012 include spin costs of $128.0 million and $5.7 million, respectively. Also, the 2013 results include non-cash goodwill charges and tax of $111.4 million and $148.2 million, respectively. See below for further discussion of the impairment.

During the third quarter of 2013, prior to the spin-off, the Company recorded a non-cash, pre-tax goodwill impairment charge of $111.4 million ($106.2 million after-tax) related to Europe, Middle East, India and Africa (EMEIA) reporting unit of Allegion. This charge is reflected within Discontinue operations, net of tax, for the year ended December 31, 2013.

Other Discontinued Operations

The components of other discontinued operations for the years ended December 31 are as follows:

In millions	2014		2013		2012
Retained costs, net of tax	$	19.7	$	0.9	$	(16.2	)
Net gain (loss) on disposals, net of tax	—		—		14.0
Discontinued operations, net of tax	$	19.7	$	0.9	$	(2.2	)

Other discontinued operations, net of tax for the years ended December 31, 2014 and 2013 is mainly related to postretirement benefits, product liability, worker's compensation, and legal costs (mostly asbestos-related) from previously sold businesses and tax effects of post-closing purchase price adjustments.

Retained costs recognized in 2012 are primarily related to the settlement of post-closing matters with Doosan Infracore related to its 2007 acquisition of our Bobcat Utility Equipment and Attachments business in 2007.