DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 13

DISCONTINUED OPERATIONS

On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America, and other selected countries to Mars, Incorporated (Mars) for $2.9 billion in an all-cash transaction. Under the terms of the agreement, Mars acquired our branded pet care products, our manufacturing facilities in the United States and the majority of the employees working in the Pet Care business. The agreement includes an option for Mars to acquire the Pet Care business in several additional countries. The one-time earnings impact from the divestiture is not expected to be material and will be reflected in fiscal 2015 results. The European Union countries are not included in the agreement with Mars. The Company is pursuing alternate plans to sell its Pet Care business in these markets.

The Pet Care business had historically been part of the Company’s Health Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Pet Care business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Pet Care balance sheet positions as of June 30, 2014 are presented as assets and liabilities held for sale in the Consolidated Balance Sheets.

In fiscal 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 former 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.

Following is selected financial information included in net earnings from discontinued operations for the pet care and snacks 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
PET CARE	2014	$	1,475	$	130	$	(52	)	$	—	$	—		$	78
	2013	1,586		151		(50		)	—		—			101
	2012	1,674		257		(90		)	—		—			167
SNACKS	2014	—		—		—			—		—			—
	2013	—		—		—			—		—			—
	2012	1,440		266		(96		)	1,899		(482		)	1,587
TOTAL	2014	1,475		130		(52		)	—		—			78
	2013	1,586		151		(50		)	—		—			101
	2012	3,114		523		(186		)	1,899		(482		)	1,754

At June 30, 2014, the major components of assets and liabilities of the Pet Care business held for sale were as follows:

	June 30, 2014
Inventories	$	122
Prepaid expenses and other current assets	14
Property, plant and equipment, net	441
Goodwill and intangible assets, net	2,258
Other noncurrent assets	14
Total assets held for sale	2,849
Accounts payable	63
Accrued and other liabilities	13
Noncurrent deferred tax liabilities	584
Total liabilities held for sale	660