DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

uring the fourth quarter of 2016, the Company announced the sale of the majority of its mechanical security businesses within the Security segment to Dormakaba for $725 million. This pending divestiture includes the commercial hardware brands of Best Access, phi Precision and GMT. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions including regulatory approvals. In addition, the Company sold a small business within the Tools & Storage segment in January 2017 for approximately $25 million. Neither of these disposals qualify as discontinued operations and therefore, are included in the Company's continuing operations for all periods presented. Pre-tax income for these businesses totaled $43.9 million, $28.0 million and $31.6 million, respectively, for the years ended December 31, 2016, January 2, 2016 and January 3, 2015. The assets and liabilities of these businesses that are expected to be included in the sale are classified as held for sale as of December 31, 2016 on the Company's Consolidated Balance Sheets and totaled $523.4 million and $53.5 million, respectively. There were no assets or liabilities held for sale as of January 2, 2016. The carrying amounts of the assets and liabilities that were classified as held for sale as of December 31, 2016 are presented in the following table:

(Millions of Dollars)	2016
Accounts and notes receivable, net	$	35.3
Inventories, net	33.2
Property, Plant and Equipment, net	52.3
Goodwill and other intangibles, net	399.8
Other Assets	2.8
Total assets	$	523.4
Accounts payable and accrued expenses	$	38.0
Other liabilities	15.5
Total liabilities	$	53.5

Disposals Prior to Adoption of ASU 2014-08

In the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations (“Security Spain and Italy”) as held for sale based on management's intention to sell these businesses. As a result of this decision, the Company recorded a pre-tax impairment loss of $60.7 million in 2014 to remeasure the disposal group at estimated fair value less costs to sell. In July 2015, the Company completed the sale of these businesses resulting in an insignificant incremental loss.

Security Spain and Italy operations have been reported as discontinued operations in the Company's Consolidated Financial Statements for the years ended January 2, 2016 and January 3, 2015, as follows:

(Millions of Dollars)	2015			2014
Net Sales	$	39.4		$	118.4
Loss from discontinued operations before income taxes	(19.3		)	(104.0		)
Income tax expense (benefit) on discontinued operations	0.8			(7.7		)
Net loss from discontinued operations	$	(20.1	)	$	(96.3	)