Assets and Liabilities Held for Sale

3 Months Ended

Mar. 31, 2019

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. Please see "Embraco Sale Transaction" in the Management's Discussion and Analysis section for additional information on the agreement.

Embraco is reported within our Latin America reportable segment and meets the criteria for held for sale accounting. The operations of Embraco do not meet the criteria to be presented as discontinued operations.

The carrying amounts of the major classes of Embraco's assets and liabilities at March 31, 2019 and December 31, 2018 include the following:



Millions of dollars	March 31, 2019		December 31, 2018
Accounts receivable, net of allowance of $8 and $8, respectively	218		198
Inventories	194		165
Prepaid and other current assets	49		42
Property, net of accumulated depreciation of $586 and $616, respectively	375		364
Right of use assets	45		—
Other noncurrent assets	50		49
Total assets	$	931	$	818

Accounts payable	$	347	$	361
Accrued expenses	30		27
Accrued advertising and promotion	12		12
Other current liabilities	65		55
Lease liabilities	38		—
Other noncurrent liabilities	32		34
Total liabilities	$	524	$	489

The following table summarizes Embraco's earnings before income taxes for the periods presented:



	Three Months Ended March 31,
Millions of dollars	2019	2018
Earnings before income taxes	23	7