Note 12 - Discontinued Operations

6 Months Ended

Jun. 30, 2015

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 approximately $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.

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 was no income tax benefit. Additionally, we recognized a total charge of $7 million in the second and third quarters of 2014 related to the suspension of depreciation and amortization for assets that we were not compensated for by the buyer. The assets and liabilities of Tropical Shipping classified as held for sale on the unaudited Condensed Consolidated Statements of Financial Position are as follows:

In millions	June 30, 2014
Current assets
Cash and cash equivalents	$	15
Short-term investments		3
Receivables		35
Inventories		9
Other		2
Total current assets		64
Long-term assets and other deferred debits
Property, plant and equipment, net		127
Goodwill		42
Intangible assets		19
Other		5
Total long-term assets and other deferred debits		193
Total assets held for sale	$	257
Current liabilities
Other accounts payable – trade	$	9
Accrued expenses		7
Other		23
Total liabilities held for sale	$	39

The financial results of these businesses are reflected as discontinued operations, and the prior period presented has 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		Six months ended
In millions	June 30, 2014		June 30, 2014
Operating revenues	$	92	$	181
Operating expenses
Cost of goods sold		57		111
Operation and maintenance		27		55
Depreciation and amortization		-		5
Taxes other than income taxes		3		4
Loss on sale and goodwill impairment		4		23
Total operating expenses		91		198
Operating income (loss)		1		(17	)
Income (loss) before income taxes		1		(17	)
Income tax expense		-		(32	)
Income (loss) from discontinued operations, net of tax	$	1	$	(49	)