Assets and Liabilities Held for Sale

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

ASSETS AND LIABILITIES HELD FOR SALE

Embraco Sale Transaction

On April 23, 2018, our Board of Directors approved the sale of Embraco and we subsequently entered into an agreement to sell the compressor business for a cash purchase price of $1.08 billion, subject to customary adjustments including for indebtedness, cash and working capital at closing.

Embraco is reported within our Latin America reportable segment and met the criteria for held for sale accounting during the second quarter of 2018. The operations of Embraco did not meet the criteria to be presented as discontinued operations.

The carrying amounts of the major classes of Embraco's assets and liabilities as of September 30, 2018 and December 31, 2017 include the following:



Millions of dollars	September 30, 2018		December 31, 2017
Accounts receivable, net of allowance of $8 and $7, respectively	208		202
Inventories	190		215
Prepaid and other current assets	40		61
Property, net of accumulated depreciation of $640 and $740, respectively	344		390
Other noncurrent assets	31		36
Total assets	$	813	$	904

Accounts payable	$	325	$	392
Accrued expenses	26		25
Accrued advertising and promotion	11		24
Other current liabilities	81		42
Other noncurrent liabilities	36		45
Total liabilities	$	479	$	528

The following table summarizes Embraco's earnings before income taxes for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended		Nine Months Ended
Millions of dollars	2018	2017	2018	2017
Earnings before income taxes	21	8	37	73