Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

B. In the first quarter of 2013, the Company determined that Tvilum, its Danish ready-to-assemble cabinet business, is no longer core to its long-term growth strategy and, accordingly, the Company has embarked on a plan for disposition. The Company has accounted for this business and those which were sold in 2012 as discontinued operations. Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Sales	$	60		$	80		$	119		$	169
Operating loss from discontinued operations	$	(5	)	$	(10	)	$	(8	)	$	(21	)
Impairment of assets		—			—			(10	)		—
Loss on disposal of discontinued operations, net		—			(2	)		—			(3	)
Loss before income tax		(5	)		(12	)		(18	)		(24	)
Income tax expense (benefit)		—			12			(4	)		9
Loss from discontinued operations, net	$	(5	)	$	(24	)	$	(14	)	$	(33	)

Included in impairment of assets in 2013 is the impairment of fixed assets held for sale. During the first quarter of 2013, the Company estimated the fair value of the business held for sale, using unobservable inputs (Level 3). After considering the currency translation gains reported in Accumulated Other Comprehensive Income, the Company recorded an impairment of $10 million in the first quarter of 2013; no further adjustment was made in the second quarter of 2013.

The unusual relationship between income tax expense and loss before income tax in 2012 results primarily from the increase in the deferred tax liability associated with the abandonment of tax basis in indefinite-lived intangibles due to the disposition of certain discontinued operations.

The following balance sheet items have been reclassified as held for sale:

	June 30,		December 31,
	2013		2012
Receivables	$	36	$	32
Inventories		64		66
Prepaid expenses and other		1		2
Property and equipment, net		91		103
Total assets	$	192	$	203
Accounts payable	$	36	$	31
Accrued liabilities		12		14
Deferred income taxes		—		4
Total liabilities	$	48	$	49