DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE

9 Months Ended

Jul. 31, 2016

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE

DISTRIBUTION AND PARTIAL SALE OF INVESTMENT - SITEONE

(19)  In May 2016, the Company received a distribution of $60 million from SiteOne Landscapes, LLC (SiteOne) that reduced the Company’s investment in unconsolidated affiliates. The distribution included $4 million of a return on investment, which is shown in the Statement of Consolidated Cash Flows in undistributed earnings of unconsolidated affiliates in net cash provided by operating activities, and $56 million of a return of investment shown in other cash flows from investing activities. In May 2016, the Company also sold approximately 30 percent of its interest in SiteOne in an initial public offering and terminated a service agreement resulting in gross proceeds of approximately $81 million with a total gain of $75 million pretax or $47 million after-tax. The gain is recorded in other income. The Company retained an approximately 24 percent ownership interest in SiteOne.