DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of a strategic portfolio review conducted in 2014, the Corporation 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. In 2015, the Corporation divested all five businesses that were classified as held for sale as of December 31, 2014. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings.

The aggregate financial results of all discontinued operations for the three and nine months ended September 30, 2016 and 2015 were as follows:

	Three Months Ended					Nine Months Ended
(In thousands)	September 30,					September 30,
	2016		2015			2016		2015
Net sales	$	—	$	727		$	—	$	58,011
Loss from discontinued operations before income taxes (1)	—		(872		)	—		(40,831		)
Income tax benefit / (expense)	—		(1,231		)	—		7,725
Loss on sale of businesses (2)	—		(2,155		)	—		(12,768		)
Loss from discontinued operations	$	—	$	(4,258	)	$	—	$	(45,874	)

⁽¹⁾ Loss from discontinued operations before income taxes includes approximately $41 million of held for sale impairment expense recorded in the nine months ended September 30, 2015.

⁽²⁾ Net of tax benefit for the three and nine months ended September 30, 2015 of $3.0 million, respectively.

Divestitures

In October 2015 and August 2015, the Corporation sold its two surface technology treatment facilities for an immaterial amount, that were previously classified as held for sale.

In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $14 million and recognized a pre-tax gain of $2.3 million.

In May 2015, the Corporation completed the divestiture of its Downstream oil and gas business for $19 million, net of transaction costs. The business had recorded impairment charges of $40 million during the nine months ended September 30, 2015. In connection with the sale, the Corporation realized a pre-tax loss on divestiture of $18 million for the nine months ended September 30, 2015.

In January 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ($4 million).

For the year ended December 31, 2015, the Corporation disposed of five businesses in total aggregating to total cash proceeds of $31 million. The divestitures resulted in aggregate pre-tax losses in excess of $17 million, and tax benefits of approximately $3.3 million. Aggregate net sales attributable to these 2015 divestitures and facility closures for the three and nine months ended September 30, 2015 were $0.7 million and $58.0 million, respectively, and losses before income taxes for the three and nine months ended September 30, 2015 were $0.9 million and $40.8 million, respectively.