Notes to Consolidated Financial Statements 2012 ANNUAL REPORT 71 final disposition of these businesses based upon the values, terms and conditions that are ultimately negotiated. On December 13, 2012, we completed the sale of the legacy Hamilton Sundstrand Industrial businesses to BC Partners and The Carlyle Group for $3.4 billion. The sale generated a pre-tax gain of approximately $2.1 billion ($0.9 billion after tax) which has been included in discontinued operations in the accompanying Consolidated Statement of Operations. The high effective tax rate is primarily attributable to non-deductible goodwill. On December 22, 2012, we announced an agreement to sell UTC Power to ClearEdge Power. The transaction is expected to close in the first quarter of 2013 and is largely subject only to the completion of certain administrative matters. On December 12, 2012, we announced an agreement to sell Pratt & Whitney Power Systems to Mitsubishi Heavy Industries. The transaction is expected to close in the first half of 2013. The sale is subject to customary closing conditions, including receipt of regulatory appro- vals. The financial results of Pratt & Whitney Power Systems have not been reclassified to discontinued operations as Pratt & Whitney is expected to have a continuing involvement with the business post disposition. On August 7, 2012, we completed the disposition of Clip- per to a private equity acquirer. The disposition resulted in pay- ments totaling approximately $367 million, which included capitalization of the business prior to sale, transaction fees, and funding of operations as the acquirer took control of a business with significant net liabilities. These payments are largely reflected in Net cash flows provided by (used in) investing activities within the discontinued operations section of the Consolidated Statement of Cash Flows. We have no continuing involvement with the Clipper business following disposition. On July 23, 2012, we announced an agreement to sell Rocketdyne to GenCorp Inc. for $550 million. The transaction is expected to close in the first half of 2013. The sale is subject to customary closing conditions, including receipt of regulatory approvals. The following summarized financial information related to these non-core businesses has been segregated from continuing operations, as applicable, and is included in Net income from dis- continued operations in the accompanying Consolidated Statement of Operations: The assets and liabilities held for sale on the Consolidated Balance Sheet as December 31, 2012 are as follows: (DOLLARS IN MILLIONS) Assets Cash and cash equivalents $ 17 Accounts receivable, net 284 Inventories and contracts in progress, net 155 Future income tax benefits, current 5 Other assets, current 7 Future income tax benefits 2 Fixed assets, net 224 Goodwill 276 Intangible assets, net 14 Other assets 87 Assets held for sale $ 1,071 Liabilities Short-term borrowings $ 1 Accounts payable 111 Accrued liabilities 258 Future pension and postretirement benefit obligations 3 Other long-term liabilities 48 Liabilities held for sale $ 421 (DOLLARS IN MILLIONS) 2012 2011 Discontinued Operations: Net sales $ 2,075 $ 2,436 Income from operations $ 171 $ 255 Income tax expense (65) (97) Income from operations, net of income taxes 106 158 Gain on disposal 861 – Income tax expense (677) – Net income from discontinued operations $ 290 $ 158