DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2012

Notes to Financial Statements [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

In May 2012, the Company completed the divestiture of our global snacks business to The Kellogg Company (Kellogg) for $2.7 billion of cash. Under the terms of the agreement, Kellogg acquired our branded snacks products, our manufacturing facilities in Belgium and the United States and the majority of the employees working on the snacks business. The Company recorded an after-tax gain on the transaction of $1.4 billion, which is included in net earnings from discontinued operations in the Consolidated Statement of Earnings for the year ended June 30, 2012.

The snacks business had historically been part of the Company's Snacks and Pet Care reportable segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the snacks business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all years presented.

In October 2009, the Company completed the divestiture of our global pharmaceuticals business to Warner Chilcott plc (Warner Chilcott) for $2.8 billion of cash, net of assumed and transferred liabilities. Under the terms of the agreement, Warner Chilcott acquired our portfolio of branded pharmaceutical products, our prescription drug product pipeline and our manufacturing facilities in Puerto Rico and Germany. In addition, the majority of the employees working on the pharmaceuticals business were transferred to Warner Chilcott. The Company recorded an after-tax gain on the transaction of $1.5 billion, which is included in net earnings from discontinued operations in the Consolidated Statement of Earnings for the year ended June 30, 2010.

The pharmaceuticals business had historically been part of the Company's Health Care reportable segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the pharmaceuticals business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all years presented.

Following is selected financial information included in net earnings from discontinued operations for the snacks and pharmaceuticals businesses:

		Net sales		Earnings from discontinued operations		Income tax expense			Gain on sale of discontinued operations		Income tax benefit/(expense) on sale			Net earnings from discontinued operations
Snacks	2012	$	1,440	$	266	$	(96	)	$	1,899	$	(482	)	$	1,587
	2011	1,455		322		(93		)	—		—			229
	2010	1,372		289		(84		)	—		—			205
Pharmaceuticals	2012	—		—		—			—		—			—
	2011	—		—		—			—		—			—
	2010	751		306		(101		)	2,632		(1,047		)	1,790
Total	2012	1,440		266		(96		)	1,899		(482		)	1,587
	2011	1,455		322		(93		)	—		—			229
	2010	2,123		595		(185		)	2,632		(1,047		)	1,995

The net gain on the sale of the pharmaceuticals business for the year ended June 30, 2010, also includes an after-tax gain on the sale of the Actonel brand in Japan. This transaction occurred prior to the divestiture to Warner Chilcott.