Business Disposition

6 Months Ended

Jun. 30, 2018

Note 3. Business Disposition

On April 18, 2018, we entered into an agreement to sell the businesses that manufacture and sell the products in our Tools and Test Equipment product line within our Industrial segment to Emerson Electric Co. for a purchase price of $810 million. We completed this disposition on July 2, 2018 and expect to record an after-tax gain of approximately $400 million, subject to certain post-closing adjustments, in the third quarter of 2018.

At June 30, 2018, the assets and liabilities of these businesses met the criteria to be classified as held for sale, but did not qualify for presentation as a discontinued operation. Accordingly, the assets and liabilities of these businesses are recorded at the lower of the carrying value or fair value, less cost to sell, in the current period, and are each presented on a single line in the Consolidated Balance Sheet. The carrying amounts of the major classes of assets and liabilities classified as held for sale related to this disposition are as follows:

(In millions)		June 30, 2018
Assets
Accounts receivable, net	$	71
Inventories		100
Property, plant and equipment, net		59
Goodwill		153
Other assets		24

Assets of businesses held for sale	$	407

Liabilities
Accounts payable	$	30
Other current liabilities		25
Other liabilities		11

Liabilities of businesses held for sale	$	66