DISCONTINUED OPERATIONS (Notes)

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of a strategic portfolio review conducted in 2014, the Corporation had identified certain businesses it considered non-core. The Corporation considers businesses non-core when the business’ products or services do not complement its existing businesses and where the long-term growth and profitability prospects are below the Corporation’s expectations. As part of this initiative, the Corporation divested one business in the first quarter of 2015, that was previously held for sale. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings and prior year amounts have been restated to conform to the current year presentation.

During the first quarter of 2015, due to continued uncertainty in the Oil & Gas markets, the Corporation recognized an impairment charge of $40 million in its Downstream Refining business.

The aggregate financial results of all discontinued operations for the three months ended March 31 were as follows:

(In thousands)	2015			2014
Net sales	$	34,259		$	98,453
Loss from discontinued operations before income taxes (1)	(40,112		)	(1,980		)
Income tax benefit/(expense)	12,678			714
Gain/(loss) on sale of businesses (2)	202			—
Earnings from discontinued operations	$	(27,232	)	$	(1,266	)

⁽¹⁾ Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the three months ended March 31, 2015.

⁽²⁾ In the first quarter ended March 31, 2015, the Corporation recognized aggregate after tax gain of $0.9 million on the sale of our Aviation Ground Support Equipment business which operated within the Defense segment.

Assets held for sale

During the third quarter of 2014, the Corporation committed to a plan to sell two surface technology treatment facilities, its Engineered Packaging business, as well as its Downstream Refining business. As of March 31, 2015, these businesses continue to be classified as held for sale and their results of operations are presented as discontinued operations in the Condensed Consolidated Statement of Earnings.

The aggregate components of the assets classified as held for sale, are as follows:

(In thousands)	March 31, 2015
Assets held for sale:
Receivables, net	$	49,661
Inventories, net	23,801
Property, plant, and equipment, net	21,231
Goodwill	39,396
Other intangible assets, net	17,524
Other assets	129
Deferred tax assets, net	14,317
Reserve for assets held for sale	(73,890		)
Total assets held for sale, current	$	92,169
Liabilities held for sale
Accounts payable	$	7,222
Accrued expenses	4,723
Deferred revenue	14,606
Other current liabilities	2,262
Other liabilities	325
Total liabilities held for sale, current	$	29,138

The following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three months ended March 31. All impairment charges recorded are included herein:

	Net Sales				Earnings /(loss) before income taxes
(In thousands)	2015		2014		2015			2014
Surface Technologies - Domestic	1,110		1,328		38			165
Engineered Packaging	4,377		6,148		105			1,047
Downstream Refining	28,191		27,092		(38,929		)	(1,000		)
Total included in discontinued operations	$	33,678	$	34,568	$	(38,786	)	$	212

Divestitures and facility closures

On January 9, 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ($4 million). Net sales and loss before income taxes attributable to this business for the three months ended March 31, 2014 were $7.0 million and $(0.8) million, respectively.

During 2014, the Corporation disposed of four businesses aggregating to cash proceeds of $153 million. The divestitures resulted in aggregate pre-tax losses in excess of $29 million, and tax benefits of approximately $6.7 million. During 2014, the Corporation also closed three international manufacturing facilities in its Surface Technologies business. Aggregate net sales and loss before income taxes attributable to 2014 divestitures and facility closures for the three months ended March 31, 2014 were $56.9 million and $1.4 million, respectively.