Assets and Liabilities Held for Sale and Discontinued Operations

In October 2014, the Company announced the intent to divest all of the Company's operations in Africa and Asia Pacific in order to simplify the Company's geographic portfolio and reduce operational complexity. The October divestiture plan is focused on the sale and closure of the Company's non-core assets. The Company expects to incur approximately $14 million in pre-tax charges consisting primarily of legal and transaction fees for the dispositions. Such amounts are reflected in the North America segment. For the year ended December 31, 2015, the Company recognized $3.4 million. The charges were immaterial for the year ended December 31, 2014.

As part of this plan, the Company recognized the following:

•

On June 25, 2015, the Company announced it reached a definitive agreement to sell its Asia Pacific operations consisting of Thailand, Alcan (Tianjin) Alloy Products ("China"), General Cable New Zealand Limited ("New Zealand") and General Cable Australia Pty. Ltd ("Australia") in a two-step process, with close on sale of the Thailand operations on August 31, 2015 and expected close on the China, New Zealand and Australia operations (together "the remaining Asia Pacific Operations") on September 30, 2015. On August 31, 2015, the Company completed the sale of its Thailand operations for cash consideration of approximately $88 million. The pre-tax gain recognized in the year ended December 31, 2015 from the disposition of Thailand was $14.5 million, which included post-closing working capital adjustments. On September 29, 2015, the Company received notice from the buyer that certain closing conditions of the definitive agreement to sell were unsatisfied or incapable of satisfaction and terminated the purchase agreement for the remaining Asia Pacific Operations.


•	In the first quarter of 2015, the Company completed the sale of its 51% interest in Fiji for cash consideration of $9.3 million. The pre-tax loss recognized in the year ended December 31, 2015 from the disposition of Fiji was $2.6 million.


•	In the first quarter of 2015, the Company completed the sale of its 20% interest in Keystone for cash consideration of $11.0 million. The pre-tax gain recognized in the year ended December 31, 2015 from the disposition of Keystone was $3.6 million.


•	In the fourth quarter of 2014, the Company completed the sale of its interest in PDP and PDEP for cash consideration of $67.1 million. The pre-tax gain on the sale from the disposition of PDP and PDEP recognized in the year ended December 31, 2014 was $17.6 million.

As of December 31, 2015, the Company has initiated actions to respond to the termination of the definitive agreement to sell the remaining Asia Pacific Operations and is actively marketing the assets at a price that is reasonable given the termination of this agreement. During the year ended December 31, 2015, the Company determined that the remaining Asia Pacific Operations met the held for sale criteria set forth in ASC 360 - Property, Plant and Equipment to be classified as held for sale. Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell and depreciation is ceased. Development of estimates of fair values in this circumstance is complex and is dependent upon, among other factors, the nature of the potential sales transaction, composition of assets and/or businesses in the disposal group, the comparability of the disposal group to market transactions, negotiations with third party purchasers, etc. Such factors bear directly on the range of potential fair values and the selection of the best estimates. Key assumptions were developed based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction.

As of December 31, 2015, the Company determined that the remaining businesses in the Africa/Asia Pacific segment, the Africa businesses, did not meet the held for sale criteria set forth in ASC 360 primarily driven by management’s belief that the probability of a sale within one year is uncertain.

Consistent with the conclusion reached in the second and third quarters of 2015, as of December 31, 2015, the Company determined the disposals of the PDP and PDEP, Fiji, Keystone and Thailand businesses combined with the businesses held for sale (the Asia Pacific Operations) result in the Company’s disposal of a major geographical area, Asia Pacific. This disposal is considered a strategic shift that has and will have a major effect on the Company's operations and financial results; therefore, the results of the Asia Pacific Operations have been reclassified as discontinued operations for all periods presented. Previously the results of these businesses included certain allocated corporate costs, which have been reallocated to the remaining continuing operations within the Africa/Asia Pacific segment on a retrospective basis. As a result of the Company’s strategic shift out of the Asia Pacific Operations, the Africa/Asia Pacific segment is now comprised primarily of the Company’s Africa businesses. The financial results of the Company's Africa businesses are presented as continuing operations in the Consolidated Financial Statements.

The results of operations, financial position and cash flows for the Asia Pacific Operations are separately reported as discontinued operations for all periods presented. Included in Net income (loss) from discontinued operations, net of taxes in the Consolidated Statements of Operations and Comprehensive Income (Loss) were the following (in millions):



	Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013
Net sales	$	289.4		$	590.8		$	639.9
Cost of sales⁽¹⁾	270.8			532.9			541.2
Gross profit	18.6			57.9			98.7
Selling, general and administrative expenses	36.0			58.3			62.8
Goodwill impairment charge	3.2			61.6			—
Intangible asset impairment charges	—			20.5			—
Operating income (loss)	(20.6		)	(82.5		)	35.9
Other income (expense)	(5.3		)	(2.1		)	(0.1		)
Interest expense, net	(1.4		)	(1.7		)	(1.9		)
Pre-tax gain on the disposal of discontinued operations	15.5			17.6			—
Income (loss) before income taxes	(11.8		)	(68.7		)	33.9
Income tax (provision) benefit	0.1			(1.7		)	(8.3		)
Equity in net earnings of affiliated companies	0.1			0.2			—
Net income (loss) including noncontrolling interest	$	(11.6	)	$	(70.2	)	$	25.6

(1) Based on the estimated expected sales price of the India operations and in accordance with ASC 360, the Company recorded an impairment loss in cost of sales of $13.6 million in the year ended December 31, 2015. As part of the Company's strategic review and asset optimization plans, announced in the second quarter of 2014, the Company recorded an asset impairment charge in cost of sales of $16.5 million in the year ended December 31, 2014, based on the review of its India asset group in accordance with ASC 360.

The pre-tax loss attributable to the parent for the Asia Pacific Operations for the years ended December 31, 2015 and December 31, 2014 was $8.2 million and $53.9 million, respectively. The pre-tax gain attributable to the parent for the Asia Pacific Operations for the year ended December 31, 2013 was $24.9 million.

Financial information for assets and liabilities held for sale were the following (in millions):



	December 31, 2015		December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	32.7	$	69.1
Receivables, net of allowances	28.5		111.9
Inventories	38.6		92.2
Deferred income taxes	—		8.4
Prepaid expenses and other	4.1		32.2
Total current assets	103.9		313.8
Property, plant and equipment, net	39.7		87.7
Deferred income taxes	10.3		6.4
Goodwill	—		3.3
Intangible assets, net	—		14.6
Other non-current assets	6.9		7.9
Total assets	$	160.8	$	433.7
Liabilities
Current liabilities:
Accounts payable	$	17.3	$	119.4
Accrued liabilities	21.1		27.3
Current portion of long-term debt	13.2		11.9
Total current liabilities	51.6		158.6
Deferred income taxes	0.2		4.7
Other liabilities	1.5		11.3
Total liabilities	$	53.3	$	174.6