Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note 2. Discontinued Operations

In December 2011, the Company signed a definitive agreement to sell its Office and Consumer Products (“OCP”) business to 3M Company (“3M”) for gross cash proceeds of $550 million, subject to adjustment in accordance with the terms of the agreement. This business comprises substantially all of the Company’s previously reported OCP segment. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the second half of 2012. The Company has classified the operating results from this business, together with certain costs associated with the divestiture transaction, as discontinued operations in the unaudited Consolidated Statements of Income for the three and six months ended June 30, 2012 and July 2, 2011. Assets and liabilities of this business are classified as “held for sale” in the unaudited Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011. The operating results of the retained portion of the previously reported OCP segment, which are not significant, are included in other specialty converting businesses for all periods presented.

As part of the purchase and sale agreement, certain transitional services will be provided primarily by the Company to 3M for up to 15 months after closing. The purpose of these services is to provide short-term assistance to 3M in assuming the operations of the OCP business. Additionally, the Company agreed to enter into a supply agreement with 3M at closing, which would involve the ongoing purchase of certain pressure-sensitive label stock products by 3M from the Company for at least three years after closing. While both agreements are expected to generate revenues and cash flows for the Company, the estimated amounts and the Company’s continuing involvement in the OCP operations are not expected to be significant to the Company as a whole.

The operating results of these discontinued operations were as follows:

	Three Months Ended				Six Months Ended
(In millions)	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Net sales		$  179.2		$  202.9		$  336.0		$  358.2
Income before taxes		$    18.6		$    23.7		$    15.6		$    28.5
Provision for income taxes		5.7		3.5		5.1		.4
Income from discontinued operations, net of tax		$    12.9		$    20.2		$    10.5		$    28.1

Net sales from the Company’s continuing operations to the OCP business were $19.2 million and $41.2 million for the three and six months ended June 30, 2012, respectively, and $22 million and $44.5 million for the three and six months ended July 2, 2011, respectively. These sales have been included in “Net sales” in the unaudited Consolidated Statements of Income.

The carrying values of the major classes of assets and liabilities related to these discontinued operations were as follows:

(In millions)	June 30, 2012		December 31, 2011
Assets
Trade accounts receivable, net		$  132.9		$  117.7
Inventories, net		93.9		50.9
Other current assets		8.0		5.9
Total current assets		234.8		174.5
Property, plant and equipment, net		75.1		74.2
Goodwill		163.1		166.0
Other intangibles resulting from business acquisitions, net		31.2		32.9
Other assets		7.0		7.3
		$  511.2		$  454.9
Liabilities
Short-term borrowings		$        .9		$      1.1
Accounts payable		55.5		34.7
Other current liabilities		96.0		105.1
Total current liabilities		152.4		140.9
Non-current liabilities		12.6		13.6
		$  165.0		$  154.5