Discontinued Operations (Notes)

3 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations – In fiscal 2017, the Company completed the previously announced strategic repositioning actions to streamline its portfolio and drive growth in its core businesses. On November 30, 2016, the Company completed the sale of its network power systems business for $4 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately $1.2 billion, subject to post-closing adjustments.

The financial results of the network power systems and power generation, motors and drives businesses reported as discontinued operations for the three months ended December 31, 2016 were as follows:

	Three Months Ended Dec 31, 2016
Net sales	$	940
Cost of sales	626
SG&A	242
Other (income) deductions, net	(421		)
Earnings (Loss) before income taxes	493
Income taxes	548
Earnings (Loss), net of tax	$	(55	)

Discontinued operations for the first quarter of 2017 included a loss of $55, consisting of net earnings from operations of $14, an after-tax gain on the divestiture of the network power systems business of $86 ($465 pretax), income tax expense of$144 for repatriation of sales proceeds, a loss of $38 to write down the power generation, motors and drives business to the sales price less cost to sell, and lower expense of $27 due to ceasing depreciation and amortization for the discontinued businesses held-for-sale.

Net cash from operating and investing activities for the network power systems and power generation, motors and drives businesses for the three months ended December 31, 2016 were as follows:    

	Three Months Ended Dec 31, 2016
Cash from operating activities	$	(172	)
Cash from investing activities	$	3,894

Operating cash flow used by discontinued operations of $172 for the three months ended December 31, 2016 included payments of $139 for income taxes and fees related to the transactions.