Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In September 2014, we sold Tropical Shipping to an unrelated third party. The after-tax cash proceeds and distributions from the transaction were approximately $225 million. We determined that the cumulative foreign earnings of Tropical Shipping would no longer be indefinitely reinvested offshore. Accordingly, we recognized income tax expense of $60 million, of which $31 million was recorded in the first quarter of 2014, and the remaining $29 million was recorded in the third quarter of 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in our repatriation of $86 million in cash.

During the first quarter of 2014, based upon the negotiated sales price, we recorded a non-cash goodwill impairment charge of $19 million, for which there was no income tax benefit. Additionally, we recognized a total charge of $7 million in the second and third quarters of 2014 related to the suspension of depreciation and amortization on assets for which we were not compensated by the buyer.

The financial results of these businesses are reflected as discontinued operations, and the prior periods presented have been recast to reflect the discontinued operations. The components of discontinued operations recorded on the Consolidated Statements of Income as of December 31, are as follows:

In millions	2014			2013
Operating revenues	$	243		$	365
Operating expenses
Cost of goods sold	149			222
Operation and maintenance (1)	75			110
Depreciation and amortization (2)	5			19
Taxes other than income taxes	5			6
Loss on sale and goodwill impairment (3)	28			—
Total operating expenses	262			357
Operating (loss) income	(19		)	8
(Loss) income before income taxes	(19		)	8
Income tax expense (4)	(61		)	(3		)
(Loss) income from discontinued operations, net of tax	$	(80	)	$	5

(1) Includes $1 million for another business not related to Tropical Shipping that we discontinued in 2014 and was included in our other segment.

(2) We ceased depreciating and amortizing Tropical Shipping’s assets on April 4, 2014.

(3) Primarily relates to the suspension of depreciation and amortization during 2014 totaling $7 million, and $19 million of goodwill attributable to Tropical Shipping that was impaired as of March 31, 2014, based on the negotiated sales price.

(4) Includes $60 million that was recorded in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded.