Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The major classes of line items constituting income from discontinued operations, net, in millions:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net sales	$	—	$	403	$	101	$	1,234
Cost of sales	—		314		78		959
Gross profit	—		89		23		275
Selling, general and administrative expenses	—		56		31		176
Impairment charge for goodwill (A)	—		—		—		7
Other income (expense), net	—		1		—		1
Income (loss) from discontinued operations	—		34		(8)		93
(Loss) gain on disposal of discontinued operations	—		(70)		602		(70)
(Loss) income before income tax	—		(36)		594		23
Income tax expense (B)	—		(1)		(183)		(22)
(Loss) income from discontinued operations, net	$	—	$	(37)	$	411	$	1

(A) In the first quarter of 2019, we recognized a $7 million non-cash goodwill impairment charge related to a decline in the long-term outlook of our windows and doors business in the United Kingdom.

(B) The unusual relationship between income tax expense and (loss) income before income tax for 2019 resulted primarily from a loss on the sale of UKWG providing no foreign tax benefit.

The carrying amount of major classes of assets and liabilities included as part of the Cabinetry discontinued operations, were as follows, in millions:

	December 31, 2019
Receivables	$	76
Prepaid expenses and other	7
Inventories	90
Property and equipment, net	157
Operating lease right-of-use assets	4
Goodwill	181
Other intangible assets, net	1
Other assets	12
Total assets classified as held for sale	$	528
Accounts payable	$	103
Accrued liabilities	46
Noncurrent operating lease liabilities	3
Other liabilities	10
Total liabilities classified as held for sale	$	162

Other selected financial information for Cabinetry, Milgard and UKWG during the period owned by us, were as follows, in millions:

	Nine Months Ended September 30,
	2020		2019
Depreciation and amortization	$	—	$	27
Capital expenditures	1		27
ROU assets obtained in exchange for new lease obligations	—		3