Divestitures

During the second quarter 2013, in connection with our decision to exit from the Paper distribution business, we completed the sale of our North American (N.A.) Paper business and entered into an agreement to sell our European Paper business. The decision to exit from the Paper distribution business was largely the result of management's objective to focus more on Services and innovative Document Technology. Net proceeds from the sale of the N.A. Paper business were approximately $11 and are reported as cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows.

As a result of these transactions, in the second quarter 2013 we reported these paper-related operations as Discontinued Operations and reclassified their results from the Other segment to Discontinued Operations. All prior periods have accordingly been reclassified to conform to this presentation. The sale of the European Paper business, which is subject to customary closing conditions and regulatory clearances, is expected to be completed in the fourth quarter of 2013. The net assets sold or expected to be sold in connection with these transactions are primarily related to working capital - accounts receivables and inventory - utilized in the business. As of June 30, 2013, total net assets held for sale were approximately $30 and are included in Other current assets in the Condensed Consolidated Balance Sheets.

In the second quarter of 2013 we recorded a net pre-tax loss of $23 for the disposition of our N.A. and European Paper businesses. The loss is primarily related to exit and disposal costs associated with these businesses. The disposals are expected to result in a reduction in headcount of approximately 300 employees, primarily in Europe.

The components of Discontinued Operations for the periods presented are as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2013			2012			2013			2012
Revenues*	$	134		$	173		$	287		$	344

Income from operations	$	2		$	3		$	7		$	12
Loss on disposal	(23		)	—			(23		)	—
Net (Loss) Income Before Income Taxes	(21		)	3			(16		)	12
Income tax expense	(2		)	(1		)	(4		)	(4		)
(Loss) Income From Discontinued Operations, Net of Tax	$	(23	)	$	2		$	(20	)	$	8

* 2013 revenue from discontinued operations reflects only two and five months for the quarter and year-to-date periods, respectively, of North American paper revenue as a result of the completion of the sale to Domtar Corporation on May 31, 2013.