3. Discontinued Operations
During the second quarter of 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.
On 30 April 2012, we sold the majority of our Homecare business to The Linde Group for sale proceeds of €590 million ($777). This amount included contingent proceeds of €110 million ($144) related to the outcome of certain retender arrangements. As of 30 September 2013, this liability is reflected in payables and accrued liabilities on our consolidated balance sheet, with payment expected in the fourth quarter of fiscal 2014. As part of the sale, we subsequently received €32 million ($42) of additional cash proceeds based upon collection of certain accounts receivable balances. In the third quarter of 2012, we recognized a gain of $207.4 ($150.3 after-tax, or $.70 per share) on the sale of this business.
During the third quarter of 2012, an impairment charge of $33.5 ($29.5 after-tax, or $.14 per share) was recorded to write down the remaining business, which is primarily in the United Kingdom and Ireland, to its estimated net realizable value. In the fourth quarter of 2013, we recorded an additional charge of $18.7 ($13.6 after-tax, or $.06 per share) to update our estimate of the net realizable value as we continue to market the business for sale.
The Homecare business has been accounted for as a discontinued operation. The results of operations and cash flows of this business have been reclassified from the results of continuing operations for all periods presented. The assets and liabilities of discontinued operations have been reclassified and are segregated in the consolidated balance sheets.
| The results of discontinued operations are summarized below: | ||||||||
| 2013 | 2012 | 2011 | ||||||
| Sales | $ | 52.3 | $ | 258.0 | $ | 408.3 | ||
| Income before taxes | $ | 3.8 | $ | 68.1 | $ | 114.1 | ||
| Income tax provision | .2 | 20.8 | 24.2 | |||||
| Income from operations of discontinued operations | 3.6 | 47.3 | 89.9 | |||||
| Gain (Loss) on sale of business and impairment/write-down, net of tax | (13.6) | 120.8 | 0.0 | |||||
| Income (Loss) from Discontinued Operations, net of tax | $ | (10.0) | $ | 168.1 | $ | 89.9 |
For the year ended 30 September 2011, the income tax provision includes a tax benefit of $8.9, or $.04 per share, resulting from the completion of an audit of tax years 2007 and 2008 by the U.S. Internal Revenue Service related to our previously divested U.S. Healthcare business. For additional details on this tax benefit, refer to Note 22, Income Taxes.
| Assets and liabilities of discontinued operations consist of the following: | ||||||
| 30 September | 2013 | 2012 | ||||
| Trade receivables, net | $ | 2.5 | $ | 15.0 | ||
| Inventories | - | .5 | ||||
| Other current assets | - | .1 | ||||
| Total Current Assets | $ | 2.5 | $ | 15.6 | ||
| Plant and equipment, net | $ | - | $ | 27.2 | ||
| Total Noncurrent Assets | $ | - | $ | 27.2 | ||
| Payables and accrued liabilities | $ | 2.4 | $ | 6.0 | ||
| Total Current Liabilities | $ | 2.4 | $ | 6.0 | ||
| Other noncurrent liabilities | $ | - | $ | .2 | ||
| Total Noncurrent Liabilities | $ | - | $ | .2 |