Assets and Liabilities Held for Sale and Discontinued Operations

3 Months Ended

Apr. 01, 2016

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale and Discontinued Operations

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. The charges were immaterial for the three months endedApril 1, 2016 and April 3, 2015.

As part of this plan, the Company completed the following as of April 1, 2016:

• In the first quarter of 2016, the Company completed the sale of General Cable Energy India Private Ltd. ("India") for gross proceeds of $10.8 million. The pre-tax gain recognized in the three months endedApril 1, 2016 from the disposition of India was $1.6 million.

• In the third quarter of 2015, the Company completed the sale of Phelps Dodge International Thailand ("Thailand") for cash consideration of approximately $88 million.

• In the first quarter of 2015, the Company completed the sale of its 51% interest in Dominion Wire and Cables ("Fiji") and its 20% interest in Keystone Electric Wire and Cable ("Keystone") for cash consideration of $9.3 million and $11.0 million, respectively.

• In the fourth quarter of 2014, the Company completed the sale of its interest in Phelps Dodge International Philippines, Inc. (“PDP”) and Phelps Dodge Philippines Energy Products Corporation (“PDEP”) for cash consideration of $67.1 million.

As of April 1, 2016, the Company determined that the remaining Asia Pacific operations continued to meet the held for sale criteria set forth in ASC 360 - Property, Plant and Equipment ("ASC 360") 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 value in this circumstance is complex and is dependent upon, among other factors, the nature of potential sales transactions, 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 April 1, 2016, the Company determined that 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 2015, as of April 1, 2016, the Company determined the disposals of the PDP and PDEP, Fiji, Keystone, Thailand and India businesses combined with the businesses held for sale 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 Asia Pacific 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, 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 Condensed Consolidated Financial Statements.

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

	Three Fiscal Months Ended
	April 1, 2016			April 3, 2015
Net sales	$	28.7		$	91.2
Cost of sales	23.9			84.2
Gross profit	4.8			7.0
Selling, general and administrative expenses	1.2			13.1
Goodwill and intangible asset impairment charges	—			3.2
Operating income (loss)	3.6			(9.3		)
Other income (expense)	0.2			0.9
Interest expense, net	(0.2		)	(0.4		)
Pre-tax gain on the disposal of discontinued operation	1.6			1.0
Income (loss) before income taxes	5.2			(7.8		)
Income tax (provision) benefit	(1.6		)	1.6
Net income (loss) including noncontrolling interest	$	3.6		$	(6.2	)

The pre-tax income attributable to the parent for Asia Pacific for the three months ended April 1, 2016 was $5.2 million and pre-tax loss attributable to the parent for Asia Pacific for the three months ended April 3, 2015 was $5.9 million.

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

	April 1, 2016		December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	33.8	$	32.7
Receivables, net of allowances	24.5		28.5
Inventories	33.0		38.6
Prepaid expenses and other	1.4		4.1
Total current assets	92.7		103.9
Property, plant and equipment, net	40.0		39.7
Deferred income taxes	10.0		10.3
Other non-current assets	6.6		6.9
Total assets	$	149.3	$	160.8
Liabilities
Current liabilities:
Accounts payable	$	10.1	$	17.3
Accrued liabilities	15.0		21.1
Current portion of long-term debt	—		13.2
Total current liabilities	25.1		51.6
Deferred income taxes	—		0.2
Other liabilities	1.4		1.5
Total liabilities	$	26.5	$	53.3