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DISCONTINUED OPERATIONS AND SALE OF DRY COOLING BUSINESS
 6 Months Ended
Jul. 02, 2016
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS AND SALE OF DRY COOLING BUSINESS
DISCONTINUED OPERATIONS AND SALE OF DRY COOLING BUSINESS
Spin-Off of SPX FLOW
As indicated in Note 1, we completed the spin-off of SPX FLOW on September 26, 2015. The results of SPX FLOW are presented as a discontinued operation within the accompanying condensed consolidated statements of operations for the three and six months ended June 27, 2015 and the condensed consolidated statement of cash flows for the six months ended June 27, 2015. Major classes of line items constituting pre-tax income and after-tax income of SPX FLOW are shown below:
 
Three months ended
 
Six months ended
 
June 27, 2015
 
June 27, 2015
Revenues
$
615.0

 
$
1,185.6

Costs and expenses:


 


Cost of products sold
404.8

 
788.0

Selling, general and administrative(1)
128.3

 
246.6

Intangible amortization
5.9

 
11.8

Special charges
3.3

 
7.1

Other income (expense), net
(1.7
)
 
3.7

Interest expense, net
(11.1
)
 
(21.7
)
Income before taxes
59.9

 
114.1

Income tax provision
(11.2
)
 
(34.0
)
Income from discontinued operations, net of tax
48.7

 
80.1

Less: Net loss attributable to noncontrolling interest
(0.4
)
 
(0.7
)
Income from discontinued operations attributable to SPX Corporation common shareholders, net of tax
$
49.1

 
$
80.8

___________________________
(1) 
Includes $9.0 and $14.0 for the three and six months ended June 27, 2015 of professional fees and other costs that were incurred in connection with the Spin-Off.
The following table presents selected financial information regarding cash flows of SPX FLOW that are included within discontinued operations in the condensed consolidated statement of cash flows for the six months ended June 27, 2015:
Depreciation and amortization
$
29.5

Capital expenditures
22.6



Other Discontinued Operations Activity
In addition to the Spin-Off of SPX FLOW, we recognized net losses of $0.4 and $1.5 during the three and six months ended July 2, 2016, respectively, and net losses of $0.5 and $0.9 during the three and six months ended June 27, 2015, respectively, resulting from revisions to liabilities retained from businesses discontinued prior to 2015.
For the three and six months ended July 2, 2016 and June 27, 2015, the table below presents a reconciliation of discontinued operations activity to the related amounts in the condensed consolidated statements of operations:
 
Three months ended
 
Six months ended
 
July 2,
2016
 
June 27,
2015
 
July 2,
2016
 
June 27,
2015
SPX FLOW
 
 
 
 
 
 
 
Income from discontinued operations
$
—


$
59.9


$
—


$
114.1

Income tax provision
—


(11.2
)

—


(34.0
)
Income from discontinued operations, net
—


48.7


—


80.1

 







All other







Loss from discontinued operations
(0.6
)

(2.1
)

(1.8
)

(2.5
)
Income tax benefit
0.2


1.6


0.3


1.6

Loss from discontinued operations, net
(0.4
)

(0.5
)

(1.5
)

(0.9
)
 







Total







Income (loss) from discontinued operations
(0.6
)

57.8


(1.8
)

111.6

Income tax (provision) benefit
0.2


(9.6
)

0.3


(32.4
)
Income (loss) from discontinued operations, net
$
(0.4
)

$
48.2


$
(1.5
)

$
79.2


Sale of Dry Cooling Business
On November 20, 2015, we entered into an agreement for the sale of our dry cooling business. The assets and liabilities of our dry cooling business are presented as “held for sale” within the accompanying condensed consolidated balance sheet as of December 31, 2015. The major classes of assets and liabilities held for sale as of December 31, 2015 are shown below:
Assets:
 
   Accounts receivable, net
$
49.2

   Inventories, net
12.9

   Other current assets
13.9

   Property, plant and equipment, net
3.3

   Goodwill
10.7

   Intangibles, net
8.3

   Other assets
8.8

      Assets held for sale
$
107.1

Liabilities:
 
   Accounts payable
$
13.7

   Accrued expenses
25.3

   Other long-term liabilities
2.3

      Liabilities held for sale
$
41.3


As indicated in Note 1, on March 30, 2016, we completed the sale of our dry cooling business to Paharpur for cash proceeds of $45.9 (net of cash transferred with the business of $3.0), resulting in a gain of $17.9 during the first quarter of 2016. As previously indicated, the gain includes a reclassification from “Equity” of other comprehensive income totaling $40.4 related to foreign currency translation. During the second quarter of 2016, we recorded a charge of $1.2 in connection with adjustments to certain liabilities that we retained.