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DIVESTITURES | 6 Months Ended
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Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
DIVESTITURES | DIVESTITURES Access Solutions On June 2, 2024, the Company completed the sale of Access Solutions for cash proceeds of $5.0 billion. Access Solutions, historically reported in the Company's Fire & Security segment, is a global supplier of physical security and digital access solutions supporting the hospitality, commercial, education and military markets. The Company recognized a gain on the sale of $2.9 billion, which is included in Other income (expense), net on the accompanying Unaudited Condensed Consolidated Statement of Operations. The net proceeds received are subject to working capital and other adjustments provided in the stock purchase agreement governing the sale of Access Solutions. The following table summarizes the assets and liabilities of Access Solutions divested as of the date of sale:
(In millions) | June 2, 2024
Cash and cash equivalents | $ | 82 |
Accounts receivable, net | 90 |
Inventories, net | 43 |
Contract assets | 3 |
Other current assets | 3 |
Fixed assets, net | 18 |
Intangible assets, net | 53 |
Goodwill | 1,467 |
Operating lease right-of-use assets | 16 |
Other assets | 8 |
Total assets held for sale | $ | 1,783 |
Accounts payable | $ | 54 |
Accrued liabilities | 20 |
Contract liabilities | 60 |
Operating lease liabilities | 17 |
Other long-term liabilities | 10 |
Total liabilities held for sale | $ | 161 |
Commercial Refrigeration and Industrial Fire On December 12, 2023, the Company entered into a stock purchase agreement to sell the CCR business to Haier Group Corporation for an enterprise value of approximately $775 million. CCR, historically reported in the Company's Refrigeration segment, is a global supplier of turnkey solutions for commercial refrigeration systems and services, with a primary focus on serving food retail customers, cold storage facilities and warehouses. As a result, the assets and liabilities of CCR are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2024 and December 31, 2023, and recorded at the lower of their carrying value or fair value less estimated cost to sell. The transaction is expected to close in 2024 and is subject to customary closing conditions. The net assets of Industrial Fire met the criteria to be classified as held for sale during the fourth quarter of 2023. Industrial Fire, historically reported in the Company's Fire & Security segment, is a leading manufacturer of a full spectrum of fire detection and suppression solutions and services in critical high-hazard environments, including oil and gas, power generation, marine and offshore facilities, automotive, data centers and aircraft hangars. As a result, the assets and liabilities of Industrial Fire are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2024 and December 31, 2023, and recorded at the lower of their carrying value or fair value less estimated cost to sell. On March 5, 2024, the Company entered into a stock purchase agreement to sell its Industrial Fire business to Sentinel Capital Partners for an enterprise value of approximately $1.425 billion. The sale of Industrial Fire was completed on July 1, 2024. The following table summarizes assets and liabilities classified as held for sale:
| June 30, 2024
(In millions) | Commercial Refrigeration |  | Industrial Fire |  | Total
Cash and cash equivalents | $ | 151 |  |  | $ | 40 |  |  | $ | 191 |
Accounts receivable, net | 207 |  |  | 93 |  |  | 300 |
Inventories, net | 98 |  |  | 72 |  |  | 170 |
Contract assets | 117 |  |  | 51 |  |  | 168 |
Other current assets | 17 |  |  | 5 |  |  | 22 |
Fixed assets, net | 79 |  |  | 24 |  |  | 103 |
Intangible assets, net | — |  |  | 2 |  |  | 2 |
Goodwill | 69 |  |  | 452 |  |  | 521 |
Operating lease right-of-use assets | 48 |  |  | 26 |  |  | 74 |
Other assets | 48 |  |  | 2 |  |  | 50 |
Total assets held for sale | $ | 834 |  |  | $ | 767 |  |  | $ | 1,601 |
Accounts payable | $ | 122 |  |  | $ | 43 |  |  | $ | 165 |
Accrued liabilities | 149 |  |  | 55 |  |  | 204 |
Contract liabilities | 24 |  |  | 19 |  |  | 43 |
Long-term debt, including current portion | 7 |  |  | — |  |  | 7 |
Future pension and post-retirement obligations | 196 |  |  | — |  |  | 196 |
Future income tax obligations | 7 |  |  | 3 |  |  | 10 |
Operating lease liabilities | 36 |  |  | 20 |  |  | 56 |
Other long-term liabilities | 3 |  |  | 3 |  |  | 6 |
Total liabilities held for sale | $ | 544 |  |  | $ | 143 |  |  | $ | 687 |
| December 31, 2023
(In millions) | Commercial Refrigeration |  | Access Solutions |  | Industrial Fire |  | Total
Cash and cash equivalents | $ | 131 |  |  | $ | 6 |  |  | $ | 20 |  |  | $ | 157 |
Accounts receivable, net | 274 |  |  | 104 |  |  | 101 |  |  | 479 |
Inventories, net | 84 |  |  | 31 |  |  | 65 |  |  | 180 |
Contract assets | 98 |  |  | 2 |  |  | 42 |  |  | 142 |
Other current assets | 15 |  |  | 3 |  |  | 4 |  |  | 22 |
Fixed assets, net | 78 |  |  | 13 |  |  | 22 |  |  | 113 |
Intangible assets, net | — |  |  | 53 |  |  | 2 |  |  | 55 |
Goodwill | 72 |  |  | 1,498 |  |  | 439 |  |  | 2,009 |
Operating lease right-of-use assets | 49 |  |  | 13 |  |  | 28 |  |  | 90 |
Other assets | 44 |  |  | 10 |  |  | 13 |  |  | 67 |
Total assets held for sale | $ | 845 |  |  | $ | 1,733 |  |  | $ | 736 |  |  | $ | 3,314 |
Accounts payable | $ | 129 |  |  | $ | 20 |  |  | $ | 39 |  |  | $ | 188 |
Accrued liabilities | 181 |  |  | 21 |  |  | 55 |  |  | 257 |
Contract liabilities | 23 |  |  | 53 |  |  | 22 |  |  | 98 |
Long-term debt, including current portion | 8 |  |  | — |  |  | — |  |  | 8 |
Future pension and post-retirement obligations | 203 |  |  | — |  |  | 1 |  |  | 204 |
Future income tax obligations | 4 |  |  | 2 |  |  | 3 |  |  | 9 |
Operating lease liabilities | 40 |  |  | 11 |  |  | 23 |  |  | 74 |
Other long-term liabilities | 3 |  |  | 12 |  |  | 9 |  |  | 24 |
Total liabilities held for sale | $ | 591 |  |  | $ | 119 |  |  | $ | 152 |  |  | $ | 862 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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