Discontinued Operations

3 Months Ended

Mar. 31, 2017

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On August 18, 2016, we entered into a Share Purchase Agreement (the "Purchase Agreement") to sell our Valves & Controls business to Emerson Electric Co. for a purchase price of $3.15 billion in cash, subject to certain customary adjustments. We expect the sale to close in the second quarter of 2017, subject to customary regulatory approvals and closing conditions.

The results of the Valves & Controls business have been presented as discontinued operations and the related assets and liabilities have been reclassified as held for sale for all periods presented. The Valves & Controls business was previously disclosed as a stand-alone reporting segment. Transaction costs of $11.2 million related to the sale of Valves & Controls were incurred during the three months ended March 31, 2017 and were recorded within Selling, general and administrative expenses in the operating results of discontinued operations presented below.

Operating results of discontinued operations are summarized below:

	Three months ended
In millions	March 31, 2017			March 31, 2016
Net sales	$	356.5		$	387.0
Cost of goods sold	267.9			282.8
Gross profit	88.6			104.2
Selling, general and administrative	79.5			81.5
Research and development	4.2			4.8
Operating income	$	4.9		$	17.9
Income from discontinued operations before income taxes	$	5.7		$	18.2
Income tax (benefit) provision	(1.4		)	2.6
Income from discontinued operations, net of tax	$	7.1		$	15.6

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	March 31, 2017		December 31, 2016
Accounts and notes receivable, net	$	359.3	$	365.4
Inventories	477.6		491.5
Other current assets	40.9		35.0
Current assets held for sale	$	877.8	$	891.9
Property, plant and equipment, net	$	373.2	$	361.5
Goodwill	996.4		996.4
Intangibles, net	706.1		703.5
Asbestos-related insurance receivable	107.4		108.5
Other non-current assets	128.8		123.0
Non-current assets held for sale	$	2,311.9	$	2,292.9
Accounts payable	$	120.1	$	151.4
Employee compensation and benefits	59.6		61.5
Other current liabilities	123.3		143.3
Current liabilities held for sale	$	303.0	$	356.2
Pension and other post-retirement compensation and benefits	$	29.4	$	32.2
Deferred tax liabilities	171.3		162.8
Asbestos-related liabilities	224.6		228.3
Other non-current liabilities	81.4		82.6
Non-current liabilities held for sale	$	506.7	$	505.9