Discontinued Operations and Divestitures

9 Months Ended

Sep. 27, 2014

Business Combinations [Abstract]

Discontinued Operations and Divestitures

Discontinued Operations and Divestitures

Discontinued Operations

On July 28, 2014, our Board of Directors approved a decision to exit our Water Transport business in Australia. We expect to dispose of the Water Transport business by early to mid-2015. The results of the Water Transport business have been presented as discontinued operations and the assets and liabilities of the Water Transport business have been reclassified as held for sale for all periods presented.

During the quarter ended September 27, 2014, we recognized an impairment charge related to allocated amounts of goodwill, intangible assets, property, plant & equipment and other non-current assets totaling $380.1 million, net of a $12.3 million tax benefit, representing our estimated loss on disposal of the Water Transport business. The impairment charge was determined using significant unobservable inputs (Level 3 fair value measurements). In addition, during the first quarter of 2014 we sold a portion of our Water Transport business in Australia resulting in a loss of $5.6 million, net of a $2.4 million tax benefit.

Operating results of discontinued operations are summarized below:

	Three months ended						Nine months ended
In millions	September 27, 2014			September 28, 2013			September 27, 2014			September 28, 2013
Net sales	$	74.8		$	116.7		$	235.4		$	403.0
Income from discontinued operations before income taxes	$	0.2		$	10.3		$	0.3		$	40.0
Income tax benefit (provision)	1.4			(2.5		)	2.3			(10.2		)
Income from discontinued operations, net of tax	$	1.6		$	7.8		$	2.6		$	29.8
Loss from sale / impairment of discontinued operations before income taxes	$	(392.4	)	$	—		$	(400.4	)	$	—
Income tax benefit	12.3			—			14.7			—
Loss from sale / impairment of discontinued operations, net of tax	$	(380.1	)	$	—		$	(385.7	)	$	—

The carrying amounts of major classes of assets and liabilities that were classified as held for sale on the Condensed Consolidated Balance Sheets were as follows:

In millions	September 27, 2014		December 31, 2013
Cash and cash equivalents	$	10.6	$	9.1
Accounts and notes receivable, net	40.7		49.3
Inventories	45.0		48.2
Other current assets	32.9		27.8
Current assets held for sale	$	129.2	$	134.4
Property, plant and equipment, net	$	22.8	$	125.7
Goodwill	—		273.5
Intangibles, net	—		26.2
Other non-current assets	13.4		40.9
Non-current assets held for sale	$	36.2	$	466.3
Accounts payable	22.4		19.7
Employee compensation and benefits	17.4		34.7
Other current liabilities	20.7		18.1
Current liabilities held for sale	$	60.5	$	72.5
Long-term debt	$	4.5	$	4.7
Pension and other post-retirement compensation and benefits	3.2		4.6
Deferred tax liabilities	3.7		23.6
Other non-current liabilities	0.5		1.0
Non-current liabilities held for sale	$	11.9	$	33.9

Divestitures

During the first quarter of 2013 we sold a business that was part of Technical Solutions for a cash purchase price of $30.0 million, net of transaction costs, resulting in a gain of $16.7 million. Goodwill of $5.3 million was included in the assets of the business sold. The sales price was subject to a working capital adjustment and we received an additional $0.1 million cash in the third quarter of 2013 as a result.