Discontinued Operations

On April 28, 2017, we completed the sale of the Valves & Controls business to Emerson Electric Co. for $3.15 billion, subject to final working capital adjustments. The sale resulted in a gain, net of tax, of $198.9 million.

The results of the Valves & Controls business have been presented as discontinued operations and the related assets and liabilities have been classified as held for sale for all periods presented. The Valves & Controls business was previously disclosed as a stand-alone reporting segment. Transaction costs of $1.7 million and $55.4 million related to the sale of Valves & Controls were incurred during the three and nine months ended September 30, 2017, respectively, and were recorded within (Loss) gain from sale of discontinued operations before income taxes presented below.

Results of discontinued operations are summarized below:



	Three months ended					Nine months ended
In millions	September 30, 2017			September 30, 2016		September 30, 2017		September 30, 2016
Net sales	$	—		$	410.9	$	450.3	$	1,231.6
Cost of goods sold	—			287.6		339.7		886.7
Gross profit	—			123.3		110.6		344.9
Selling, general and administrative	—			87.4		103.3		267.6
Research and development	—			4.3		5.7		14.2
Operating income	$	—		$	31.6	$	1.6	$	63.1

Income from discontinued operations before income taxes	$	—		$	32.0	$	2.5	$	63.6
Provision for income taxes	—			9.1		0.6		15.0
Income from discontinued operations, net of tax	$	—		$	22.9	$	1.9	$	48.6

(Loss) gain from sale of discontinued operations before income taxes	$	(1.7	)	$	0.6	$	201.3	$	0.6
Provision for income taxes	—			—		2.4		—
(Loss) gain from sale of discontinued operations, net of tax	$	(1.7	)	$	0.6	$	198.9	$	0.6

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	September 30, 2017		December 31, 2016
Accounts and notes receivable, net	$	—	$	365.4
Inventories	—		491.5
Other current assets	—		35.0
Current assets held for sale	$	—	$	891.9
Property, plant and equipment, net	$	—	$	361.5
Goodwill	—		996.4
Intangibles, net	—		703.5
Asbestos-related insurance receivable	—		108.5
Other non-current assets	—		123.0
Non-current assets held for sale	$	—	$	2,292.9
Accounts payable	$	—	$	151.4
Employee compensation and benefits	—		61.5
Other current liabilities	—		143.3
Current liabilities held for sale	$	—	$	356.2
Pension and other post-retirement compensation and benefits	$	—	$	32.2
Deferred tax liabilities	—		162.8
Asbestos-related liabilities	—		228.3
Other non-current liabilities	—		82.6
Non-current liabilities held for sale	$	—	$	505.9