Company Transformation

6 Months Ended

Jun. 30, 2012

Company Transformation [Abstract]

COMPANY TRANSFORMATION

NOTE 3

COMPANY TRANSFORMATION

In connection with activities taken to complete the Distribution and to create the revised organizational structure we recognized pre-tax expenses of $5.2 and $62.8 during the three months ended June 30, 2012 and 2011, respectively, and pre-tax expenses of $17.5 and $146.6 during the six months ended June 30, 2012 and 2011, respectively (referred to herein as transformation costs). Transformation costs presented within income from discontinued operations are costs directly related to the Distribution that provide no future benefit to the Company. The components of transformation costs incurred during the three and six month periods ended June 30, 2012 and 2011 are presented below.

	2012									2011
Three Months Ended June 30	Continuing Operations			Discontinued Operations			Total			Continuing Operations			Discontinued Operations			Total
Advisory fees	$	1.8		$	0.1		$	1.9		$	—		$	22.0		$	22.0
IT costs		1.3			—			1.3			—			21.2			21.2
Employee retention and other compensation costs		0.1			—			0.1			2.8			5.1			7.9
Other costs		1.2			0.7			1.9			1.9			9.8			11.7
Transformation costs before income tax expense (benefit)		4.4			0.8			5.2			4.7			58.1			62.8
Tax-related separation costs		—			—			—			0.3			13.6			13.9
Tax benefit		(1.7	)		(0.2	)		(1.9	)		(2.1	)		(27.5	)		(29.6	)
Total transformation costs, net of tax benefit	$	2.7		$	0.6		$	3.3		$	2.9		$	44.2		$	47.1
	2012									2011
Six Months Ended June 30	Continuing Operations			Discontinued Operations			Total			Continuing Operations			Discontinued Operations			Total
Asset impairment(a)	$	—		$	—		$	—		$	55.0		$	—		$	55.0
Advisory fees		2.8			6.3			9.1			—			43.0			43.0
IT costs		1.9			1.0			2.9			—			21.9			21.9
Employee retention and other compensation costs		1.1			—			1.1			3.7			6.9			10.6
Other costs		3.5			0.9			4.4			5.7			10.4			16.1
Transformation costs before income tax expense (benefit)		9.3			8.2			17.5			64.4			82.2			146.6
Tax-related separation costs		—			—			—			0.3			13.6			13.9
Tax benefit		(3.1	)		(1.1	)		(4.2	)		(22.1	)		(30.0	)		(52.1	)
Total transformation costs, net of tax benefit	$	6.2		$	7.1		$	13.3		$	42.6		$	65.8		$	108.4

^(a) Reflects a $55.0 non-cash impairment charge related to a decision to discontinue development of an information technology consolidation initiative.

The table included below provides a rollforward of accrued transformation costs for the six months ended June 30, 2012.

Transformation accrual – December 31, 2011	$	33.9
Charges for actions during the period:
Continuing operations		9.3
Discontinued operations		8.2
Cash payments		(40.3	)
Transformation accrual – June 30, 2012	$	11.1