Note 12 - Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 12 - Discontinued Operations

On September 1, 2014, we closed on the sale of Tropical Shipping to an unrelated third party. The after-tax cash proceeds and distributions from the transaction were $225 million. We determined that the cumulative foreign earnings of Tropical Shipping would no longer be indefinitely reinvested offshore. Accordingly, we recognized income tax expense of $60 million, of which $31 million was recorded in the first quarter of 2014, and the remaining $29 million was recorded in the third quarter of 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in our repatriation of $86 million in cash.

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During the first quarter of 2014, based upon the negotiated sales price, we also recorded a goodwill impairment charge of $19 million, for which there is no income tax benefit.

Our financial statements, including footnotes 1, 2, 4, 9 and 11 have been updated to recast our segment information and to give effect to the classification of Tropical Shipping as discontinued operations for all periods presented. The assets and liabilities of Tropical Shipping classified as held for sale on the unaudited Condensed Consolidated Statements of Financial Position are as follows:

	March 31,		December 31,		March 31,
In millions	2014		2013		2013
Current assets
Cash and cash equivalents	$	26	$	24	$	27
Short-term investments		3		1		2
Receivables		34		36		35
Inventories		9		9		9
Other		2		1		2
Total current assets		74		71		75
Long-term assets and other deferred debits
Property, plant and equipment, net		123		124		127
Goodwill		42		61		61
Intangible assets		19		19		20
Other		6		8		8
Total long-term assets and other deferred debits		190		212		216
Total assets held for sale	$	264	$	283	$	291
Current liabilities
Other accounts payable - trade	$	9	$	11	$	8
Accrued expenses		4		7		4
Other		23		22		22
Total current liabilities		36		40		34
Total liabilities held for sale	$	36	$	40	$	34

The financial results of these businesses are reflected as discontinued operations, and all prior periods presented have been recast to reflect the discontinued operations. The components of discontinued operations recorded on the unaudited Condensed Consolidated Statements of Income are as follows:

	Three months ended March 31,
In millions	2014			2013
Operating revenues	$	89		$	87
Operating expenses
Cost of goods sold		54			53
Operation and maintenance		28			26
Depreciation and amortization		5			4
Taxes other than income taxes		1			3
Loss on sale and goodwill impairment (1)		19			-
Total operating expenses		107			86
Operating (loss) income		(18	)		1
(Loss) income before income taxes		(18	)		1
Income tax expense (2)		(32	)		-
(Loss) Income from discontinued operations, net of tax	$	(50	)	$	1

(1) Relates to $19 million of goodwill attributable to Tropical Shipping that was impaired as of March 31, 2014, based on the negotiated sales price.

(2) Includes $31 million that was recorded in the first quarter of 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded.