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DISCONTINUED OPERATIONS AND SALE OF DRY COOLING BUSINESS
 9 Months Ended
Oct. 01, 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 nine months ended September 26, 2015 and the condensed consolidated statement of cash flows for the nine months ended September 26, 2015. Major classes of line items constituting pre-tax income and after-tax income of SPX FLOW are shown below:
 
Three months ended
 
Nine months ended
 
September 26,
2015
 
September 26,
2015
Revenues
$
589.5

 
$
1,775.1

Costs and expenses:


 


Cost of products sold
391.5

 
1,179.3

Selling, general and administrative (1)
121.7

 
368.2

Intangible amortization
5.8

 
17.7

Impairment of intangible assets
15.0

 
15.0

Special charges
34.0

 
41.2

Other income (expense), net
(2.4
)
 
1.3

Interest expense, net
(11.0
)
 
(32.6
)
Income before taxes
8.1

 
122.4

Income tax provision
(7.4
)
 
(41.6
)
Income from discontinued operations, net of tax
0.7

 
80.8

Less: Net loss attributable to noncontrolling interest
—

 
(0.9
)
Income from discontinued operations attributable to SPX Corporation common shareholders, net of tax
$
0.7

 
$
81.7

___________________________
(1) 
Includes $16.8 and $30.8 for the three and nine months ended September 26, 2015, respectively, 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 nine months ended September 26, 2015:
Non-cash items included in income from discontinued operations:
 
Depreciation and amortization
$
44.3

Impairment of intangible assets
15.0

Capital expenditures
43.1


Other Discontinued Operations Activity
In addition to the Spin-Off of SPX FLOW, we recognized net losses of $0.7 and $2.2 during the three and nine months ended October 1, 2016, respectively, and net losses of $0.6 and $1.5 during the three and nine months ended September 26, 2015, respectively, resulting primarily from revisions to liabilities retained from businesses discontinued prior to 2015.
For the three and nine months ended October 1, 2016 and September 26, 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
 
Nine months ended
 
October 1,
2016
 
September 26,
2015
 
October 1,
2016
 
September 26,
2015
SPX FLOW
 
 
 
 
 
 
 
Income from discontinued operations
$
—


$
8.1


$
—


$
122.4

Income tax provision
—


(7.4
)

—


(41.6
)
Income from discontinued operations, net
—


0.7


—


80.8

 







All other







Loss from discontinued operations
(0.5
)

(1.1
)

(2.3
)

(3.6
)
Income tax (provision) benefit
(0.2
)

0.5


0.1


2.1

Loss from discontinued operations, net
(0.7
)

(0.6
)

(2.2
)

(1.5
)
 







Total







Income (loss) from discontinued operations
(0.5
)

7.0


(2.3
)

118.8

Income tax (provision) benefit
(0.2
)

(6.9
)

0.1


(39.5
)
Income (loss) from discontinued operations, net
$
(0.7
)

$
0.1


$
(2.2
)

$
79.3


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). During the third quarter of 2016, we reached an agreement with Paharpur regarding the final working capital of the dry cooling business, resulting in additional cash proceeds during the quarter of $1.7. In connection with the sale, we recorded a gain of $18.4, including $1.7 recorded during the third quarter of 2016 associated with the aforementioned working capital settlement. The gain includes a reclassification from “Equity” of other comprehensive income totaling $40.4 related to foreign currency translation.