Assets Held for Sale

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2. ASSETS HELD-FOR-SALE

In the third quarter of 2019, we entered into a definitive agreement to sell the U.S. operations of our Casting segment to entities affiliated with Gamut Capital Management, L.P. for a sales price of $245.0 million, subject to certain customary adjustments. The sales price consists of $185.0 million in cash and a $60.0 million deferred payment obligation, which will accrue interest at an annual rate of 6% beginning on January 1, 2020 for a period of twelve years. The sale is expected to close in the fourth quarter of 2019.

As a result, the assets and liabilities associated with this business have met the criteria to be classified as held-for-sale in our Condensed Consolidated Balance Sheet as of September 30, 2019. Upon reclassification to held-for-sale in the third quarter of 2019, we recorded a pre-tax impairment charge of $225.0 million to reduce the carrying value of this business to fair value less cost to sell. The sale of the U.S. operations of our Casting segment did not qualify for classification as discontinued operations as the sale does not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results.

The assets and liabilities classified as held-for-sale are as follows (in millions):



	September 30, 2019

Accounts receivable, net	$	89.1
Inventories	32.8
Prepaid expenses and other	1.5
Property, plant and equipment, net	184.6
Intangible assets, net	158.2
Other assets and deferred charges	71.0
Impairment of carrying value	(225.0		)
Total assets held-for-sale*	$	312.2

Accounts payable	$	71.3
Accrued compensation and benefits	6.8
Accrued expenses and other	3.4
Postretirement benefits and other long-term liabilities	20.2
Total liabilities held-for-sale*	$	101.7

* The assets and liabilities classified as held-for-sale are classified entirely as current in the September 30, 2019 Condensed Consolidated Balance Sheet as we expect to complete the sale in the fourth quarter of 2019. As this transaction does not qualify for classification as discontinued operations, no reclassification of the assets and liabilities in the December 31, 2018 Condensed Consolidated Balance Sheet was required.