Assets and Liabilities Held for Sale

3 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

During fiscal 2022, the Company determined that its Global Retail business within its Building Solutions North America, Building Solutions Asia Pacific and Building Solutions EMEA/LA segments and a business within the Building Solutions Asia Pacific segment both met the criteria to be classified as held for sale. The assets and liabilities of both businesses are presented as held for sale in the consolidated statements of financial position as of December 31, 2022 and September 30, 2022. Assets and liabilities held for sale are recorded at the lower of carrying value or fair value, less costs to sell in accordance with ASC 360-10-15, "Impairment or Disposal of Long-Lived Assets". The carrying amount of any assets, including goodwill, that are part of the disposal group, but not in the scope of ASC 360-10, are tested for impairment under the relevant guidance prior to measuring the disposal group at fair value, less cost to sell.

During the three months ended December 31, 2022, the Company recorded impairment charges primarily due to reductions in the estimated fair values for the Global Retail business of $228 million and for the business in the Building Solutions Asia Pacific of $60 million. All of the impairments were recorded within restructuring and impairment costs in the consolidated statements of income.

The divestiture of the businesses held for sale could result in a gain or loss on sale to the extent the ultimate selling prices differ from the current carrying value of the net assets recorded, which could be material. The businesses did not meet the criteria to be classified as discontinued operations as neither divestiture represents a strategic shift that will have a major effect on the Company's operations and financial results. Both divestitures are expected to be finalized in fiscal 2023.

The following table summarizes the carrying value of the Global Retail assets and liabilities held for sale (in millions):

	December 31, 2022		September 30, 2022
Accounts receivable - net	$	220	$	199
Inventories	157		155
Other current assets	28		21
Current assets held for sale	$	405	$	375
Property, plant and equipment - net	$	191	$	89
Goodwill	—		22
Other intangible assets - net	322		514
Other noncurrent assets	72		72
Noncurrent assets held for sale	$	585	$	697
Accounts payable	$	129	$	127
Accrued compensation and benefits	16		25
Deferred revenue	38		36
Other current liabilities	116		33
Current liabilities held for sale	$	299	$	221
Other noncurrent liabilities	$	61	$	61
Noncurrent liabilities held for sale	$	61	$	61