Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Consolidating Financial Information [Abstract]

Condensed Consolidating Balance Sheets

	Parent			Issuer			All Other Subsidiaries		Total Consolidating Adjustments			Consolidated
Assets:
Cash and cash equivalents	$	235		$	582		$	817	$	—		$	1,634
Accounts receivable, less allowances of $2		—			10			—		—			10
Other receivables		—			956			2		(875	)		83
Inventories		—			277			—		—			277
Deferred income taxes		—			535			—		—			535
Other current assets		—			25			—		—			25
Total current assets		235			2,385			819		(875	)		2,564
Investment in subsidiaries		(1,347	)		219			—		1,128			—
Plant and equipment, net		—			262			—		—			262
Deferred income taxes		—			50			4		—			54
Other assets		—			302			213		(387	)		128
Total assets	$	(1,112	)	$	3,218		$	1,036	$	(134	)	$	3,008
Liabilities and Shareholders’ Equity (Deficit):
Accounts and drafts payable	$	—		$	32		$	—	$	—		$	32
Accrued liabilities(1)		14			354			803		(875	)		296
Settlement costs		—			1,151			—		—			1,151
Income taxes		—			6			—		—			6
Total current liabilities		14			1,543			803		(875	)		1,485
Long-term debt		—			2,595			—		—			2,595
Postretirement pension, medical and life insurance benefits		—			388			—		—			388
Other liabilities		387			39			14		(387	)		53
Total liabilities		401			4,565			817		(1,262	)		4,521
Shareholders’ Equity (Deficit):
Common stock		2			—			—		—			2
Additional paid-in capital		266			55			214		(269	)		266
Retained earnings		2,059			(1,174	)		5		1,169			2,059
Accumulated other comprehensive loss		(228	)		(228	)		—		228			(228	)
Treasury stock		(3,612	)		—			—		—			(3,612	)
Total shareholders’ equity (deficit)		(1,513	)		(1,347	)		219		1,128			(1,513	)
Total liabilities and shareholders’ equity (deficit)	$	(1,112	)	$	3,218		$	1,036	$	(134	)	$	3,008

(1) Includes intercompany royalties between Issuer and other subsidiaries of a corresponding amount.

	Parent			Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Assets:
Cash and cash equivalents	$	163		$	1,181		$	719		$	—		$	2,063
Accounts receivable, less allowances of $3		—			9			—			—			9
Other receivables		1			67			—			—			68
Inventories		—			277			—			—			277
Deferred income taxes		—			502			1			—			503
Other current assets		—			15			—			—			15
Total current assets		164			2,051			720			—			2,935
Investment in subsidiaries		(387	)		772			—			(385	)		—
Plant and equipment		—			243			—			—			243
Prepaid pension assets		—			66			—			—			66
Deferred income taxes		—			2			4			—			6
Other assets		—			46			—			—			46
Total assets	$	(223	)	$	3,180		$	724		$	(385	)	$	3,296
Liabilities and Shareholders’ Equity (Deficit):
Accounts and drafts payable	$	—		$	27		$	—		$	—		$	27
Accrued liabilities (1)		2			397			(66	)		—			333
Settlement costs		—			1,060			—			—			1,060
Income taxes		—			—			6			—			6
Total current liabilities		2			1,484			(60	)		—			1,426
Long-term debt		—			1,769			—			—			1,769
Postretirement pension, medical and life insurance benefits		—			284			—			—			284
Other liabilities		—			30			12			—			42
Total liabilities		2			3,567			(48	)		—			3,521
Shareholders’ Equity (Deficit):
Common stock		2			—			—			—			2
Additional paid-in capital		242			283			214			(497	)		242
Retained earnings		1,666			(561	)		558			3			1,666
Accumulated other comprehensive loss		(109	)		(109	)		—			109			(109	)
Treasury stock		(2,026	)		—			—			—			(2,026	)
Total shareholders’ equity (deficit)		(225	)		(387	)		772			(385	)		(225	)
Total liabilities and shareholders’ equity (deficit)	$	(223	)	$	3,180		$	724		$	(385	)	$	3,296

(1) Includes intercompany royalties between Issuer and other subsidiaries of a corresponding amount.

Condensed Consolidating Statements of Income

	Parent		Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Net sales (including excise taxes of $2,014)	$	—	$	6,466		$	—		$	—		$	6,466
Cost of sales		—		4,123			—			—			4,123
Gross profit		—		2,343			—			—			2,343
Selling, general and administrative (1)		—		1,473			(1,022	)		—			451
Operating income		—		870			1,022			—			1,892
Investment income		1		1			1			—			3
Interest expense		—		(125	)		—			—			(125	)
Income before taxes		1		746			1,023			—			1,770
Income taxes		—		290			364			—			654
Equity in earnings of subsidiaries		1,115		659			—			(1,774	)		—
Net income	$	1,116	$	1,115		$	659		$	(1,774	)	$	1,116

(1) Includes intercompany royalties between Issuer and other subsidiaries of a corresponding amount.

	Parent		Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Net sales (including excise taxes of $1,879)	$	—	$	5,932		$	—		$	—		$	5,932
Cost of sales		—		3,809			—			—			3,809
Gross profit		—		2,123			—			—			2,123
Selling, general and administrative (1)		—		1,330			(932	)		—			398
Operating income		—		793			932			—			1,725
Investment income		—		3			1			—			4
Interest expense		—		(91	)		(3	)		—			(94	)
Income before taxes		—		705			930			—			1,635
Income taxes		—		268			338			—			606
Equity in earnings of subsidiaries		1,029		592			—			(1,621	)		—
Net income	$	1,029	$	1,029		$	592		$	(1,621	)	$	1,029

(1) Includes intercompany royalties between Issuer and other subsidiaries of a corresponding amount.

	Parent			Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Net sales (including excise taxes of $1,547)	$	—		$	5,233		$	—		$	—		$	5,233
Cost of sales		—			3,327			—			—			3,327
Gross profit		—			1,906			—			—			1,906
Selling, general and administrative (1)		1			969			(605	)		—			365
Operating income		(1	)		937			605			—			1,541
Investment income		—			4			1			—			5
Interest expense		—			(26	)		(1	)		—			(27	)
Income before taxes		(1	)		915			605			—			1,519
Income taxes		—			354			217			—			571
Equity in earnings of subsidiaries		949			388			—			(1,337	)		—
Net income	$	948		$	949		$	388		$	(1,337	)	$	948

(1) Includes intercompany royalties between Issuer and other subsidiaries of a corresponding amount.

Condensed Consolidating Statements of Cash Flows

	Parent			Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	1,116		$	1,115		$	659		$	(1,774	)	$	1,116
Adjustments to reconcile net income to net cash provided by operating activities:
Equity income from subsidiaries		(1,115	)		(659	)		—			1,774			—
Depreciation and amortization		—			37			—			—			37
Pension, health and life insurance contributions		—			(42	)		—			—			(42	)
Pension, health and life insurance benefits expense		—			28			—			—			28
Deferred income taxes		—			(16	)		1			—			(15	)
Share-based compensation		—			16			—			—			16
Excess tax benefits from share-based arrangements		—			(4	)		—			—			(4	)
Changes in operating assets and liabilities:
Accounts and other receivables		(1	)		(873	)		(2	)		877			1
Accounts payable and accrued liabilities		12			(37	)		869			(877	)		(33	)
Settlement costs		—			91			—			—			91
Income taxes		—			(2	)		(4	)					(6	)
Other current assets		—			(10	)		—			—			(10	)
Other assets		—			(170	)		(213	)		387			4
Return on investment in subsidiaries		1,730			1,212			—			(2,942	)		—
Net cash provided by (used in) operating activities		1,742			686			1,310			(2,555	)		1,183
Cash flows from investing activities:
Additions to plant and equipment		—			(56	)		—			—			(56	)
Return of capital		252			—			—			(252	)		—
Net cash provided by/(used in) investing activities		252			(56	)		—			(252	)		(56	)
Cash flows from financing activities:
Share repurchases		(1,586	)		—			—			—			(1,586	)
Proceeds from issuance of long-term debt		387			750			—			(387	)		750
Dividends paid		(723	)		(1,982	)		(1,212	)		3,194			(723	)
Debt issuance costs		—			(9	)		—			—			(9	)
Proceeds from exercise of stock options		—			8			—			—			8
Excess tax benefits from share-based arrangements		—			4			—			—			4
Net cash provided by (used in) financing activities		(1,922	)		(1,229	)		(1,212	)		2,807			(1,556	)
Change in cash and cash equivalents		72			(599	)		98			—			(429	)
Cash and cash equivalents, beginning of year		163			1,181			719			—			2,063
Cash and cash equivalents, end of year	$	235		$	582		$	817		$	—		$	1,634

	Parent			Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	1,029		$	1,029		$	592		$	(1,621	)	$	1,029
Adjustments to reconcile net income to net cash provided by operating activities:
Equity income from subsidiaries		(1,029	)		(592	)		—			1,621			—
Depreciation and amortization		—			35			—			—			35
Pension, health and life insurance contributions		—			(32	)		—			—			(32	)
Pension, health and life insurance benefits expense		—			30			—			—			30
Deferred income taxes		(5	)		7			(1	)		—			1
Share-based compensation		1			7			—			—			8
Excess tax benefits from share-based arrangements		—			(2	)		—			—			(2	)
Changes in operating assets and liabilities:
Accounts and other receivables		—			5			—			—			5
Inventories		—			4			—			—			4
Accounts payable and accrued liabilities		(16	)		(14	)		(16	)		—			(46	)
Settlement costs		—			78			—			—			78
Income taxes		(1	)		(44	)		11						(34	)
Other current assets		—			(2	)		—			—			(2	)
Other assets		—			2			15			—			17
Return on investment in subsidiaries		1,398			401			—			(1,799	)		—
Net cash provided by (used in) operating activities		1,377			912			601			(1,799	)		1,091
Cash flows from investing activities:
Additions to plant and equipment		—			(40	)		—			—			(40	)
Return of capital		17			—			—			(17	)		—
Net cash provided by (used in) investing activities		17			(40	)		—			(17	)		(40	)
Cash flows from financing activities:
Shares repurchased		(716	)		—			—			—			(716	)
Proceeds from issuance of long-term debt		—			1,000			—			—			1,000
Dividends paid		(645	)		(1,399	)		(417	)		1,816			(645	)
Debt issuance costs		—			(13	)		—			—			(13	)
Excess tax benefits from share-based arrangements		—			2			—			—			2
Net cash provided by (used in) financing activities		(1,361	)		(410	)		(417	)		1,816			(372	)
Change in cash and cash equivalents		33			462			184			—			679
Cash and cash equivalents, beginning of year		130			719			535			—			1,384
Cash and cash equivalents, end of year	$	163		$	1,181		$	719		$	—		$	2,063

	Parent			Issuer			All Other Subsidiaries			Total Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	948		$	949		$	388		$	(1,337	)	$	948
Adjustments to reconcile net income to net cash provided by operating activities:
Equity income in subsidiaries		(949	)		(388	)					1,337			—
Depreciation and amortization		—			32			—			—			32
Pension, health and life insurance contributions		—			(37	)		—			—			(37	)
Pension, health and life insurance benefits expense		—			46			—			—			46
Deferred income taxes		—			(10	)		1			—			(9	)
Share-based compensation		—			5			—			—			5
Excess tax benefits from share-based arrangements		—			(1	)		—			—			(1	)
Changes in operating assets and liabilities:
Accounts and other receivables		—			16			(4	)		—			12
Inventories		—			(26	)		—			—			(26	)
Accounts payable and accrued liabilities		18			39			(1	)		—			56
Settlement costs		—			8			—			—			8
Other assets		—			(4	)		—			—			(4	)
Other		—			13			(6	)		—			7
Return on investment in subsidiaries		1,635			350			—			(1,985	)		—
Net cash provided by (used in) operating activities		1,652			992			378			(1,985	)		1,037
Cash flows from investing activities:
Additions to plant and equipment		—			(51	)		—			—			(51	)
Return of capital		—			100			—			(100	)		—
Net cash provided by investing activities		—			49			—			(100	)		(51	)
Cash flows from financing activities:
Shares repurchased		(910	)		—			—			—			(910	)
Proceeds from issuance of long-term debt		—			750			—			—			750
Dividends paid		(631	)		(1,635	)		(450	)		2,085			(631	)
Debt issuance costs		—			(5	)		—			—			(5	)
Proceeds from exercise of stock options		—			2			—			—			2
Excess tax benefits from share-based arrangements		—			1			—			—			1
Net cash used in financing activities		(1,541	)		(887	)		(450	)		2,085			(793	)
Change in cash and cash equivalents		111			154			(72	)		—			193
Cash and cash equivalents, beginning of year		19			565			607			—			1,191
Cash and cash equivalents, end of year	$	130		$	719		$	535		$	—		$	1,384