DISPOSITION - WATER OPERATIONS (Water Operations)

6 Months Ended

Apr. 30, 2015

Water Operations

Dispositions

DISPOSITION

(18) In February 2014, the Company entered into an agreement to sell the stock and certain assets of the entities that composed the Company’s Water operations to FIMI Opportunity Funds.  In the second quarter of 2014, the Company recorded a non-cash charge in other operating expenses of $36 million pretax or $4 million after-tax for an impairment to write the Water operations down to fair value less costs to sell.  The tax benefits recognized from the sale resulted primarily from a change in valuation allowances of the Water operations.  These operations were reflected as assets and liabilities held for sale in the second quarter of 2014 and were included in the Company’s agriculture and turf segment.  The sale was the result of the Company’s intention to invest its resources in growing its core businesses.

The carrying amounts of the major classes of assets and liabilities of the Water operations that were classified as held for sale on the consolidated balance sheet in millions of dollars follow:

	April 30 2014
Trade accounts and notes receivable - net	$	57
Other receivables	10
Inventories	49
Other assets	5
Asset impairment	(36)
Total assets held for sale	$	85
Accounts payable and accrued expenses	$	47
Retirement benefits and other liabilities	3
Total liabilities held for sale	$	50