Discontinued Operations

On April 28, 2017 we completed the sale of the Valves & Controls business to Emerson Electric Co. for $3.15 billion in cash. The sale resulted in a gain of $181.1 million, net of tax.

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 $56.4 million related to the sale of Valves & Controls were incurred during the year ended December 31, 2017 and were recorded within Gain (loss) from sale/impairment of discontinued operations before income taxes presented below.

During 2015, we sold the remainder of our Water Transport business, of which a portion was sold in 2014, and received cash proceeds of $59.0 million. The results of the Water Transport business have been presented as discontinued operations.

Operating results of discontinued operations are summarized below:



	Years ended December 31
In millions	2017			2016		2015
Net sales	$	450.3		$	1,639.4	$	1,858.6
Cost of goods sold	339.7			1,177.1		1,271.2
Gross profit	110.6			462.3		587.4
Selling, general and administrative	103.3			367.6		457.8
Research and development	5.7			18.2		21.2
Impairment of goodwill and trade names	—			—		554.7
Operating Income (loss)	$	1.6		$	76.5	$	(446.3	)

Income (loss) from discontinued operations before income taxes	$	2.4		$	77.2	$	(445.5	)
Provision for income taxes	(3.0		)	7.2		21.3
Income (loss) from discontinued operations, net of tax	$	5.4		$	70.0	$	(466.8	)

Gain (loss) from sale / impairment of discontinued operations before income taxes	$	183.5		$	0.6	$	(6.7	)
Provision for income taxes	2.4			—		—
Gain (loss) from sale / impairment of discontinued operations, net of tax	$	181.1		$	0.6	$	(6.7	)

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



	December 31
In millions	2017		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