Discontinued Operations

3 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

11. 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 the acquisition of the Pet Care business in several additional countries, pending the receipt of necessary regulatory approvals. The European Union countries are not included in the agreement with Mars. In September 2014, the Company announced an agreement to sell its Pet Care operations in the European Union to Spectrum Brands. The Company expects to complete the transaction in the second half of fiscal 2015, pending the receipt of necessary regulatory approvals. The one-time impact of these transactions is not material.

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 September 30, 2014 and June 30, 2014 are presented as Assets and Liabilities held for sale in the Consolidated Balance Sheets.

Following is selected financial information included in net earnings from discontinued operations for the Pet Care business:

	Three Months Ended September 30
	2014			2013
Net sales	$	163		$	375
Earnings from discontinued operations before income taxes	19			31
Income tax expense	(6		)	(13		)
Gain on sale of discontinued operations before income taxes	193			—
Income tax benefit/(expense) on sale	(189		)	—
Net earnings from discontinued operations	17			18

The major components of assets and liabilities of the Pet Care business held for sale were as follows:

	September 30, 2014		June 30, 2014
Inventories	$	38	$	122
Prepaid expenses and other current assets	3		14
Property, plant and equipment, net	93		441
Goodwill and intangible assets, net	—		2,258
Other noncurrent assets	—		14
Total assets held for sale	134		2,849
Accounts payable	4		63
Accrued and other liabilities	5		13
Noncurrent deferred tax liabilities	—		584
Total liabilities held for sale	9		660