Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

Note 3 – Discontinued Operations

On September 26, 2011, the Company entered into an agreement with AmerisourceBergen Corporation (“ABC”) to sell its TheraCom, L.L.C. (“TheraCom”) subsidiary for $250 million. On November 1, 2011, the Company completed the sale of TheraCom to ABC. TheraCom is a provider of commercialization support services to the biotech and pharmaceutical industry. As of September 30, 2011 and December 31, 2010, TheraCom had approximately $0.1 billion of current assets (consisting primarily of accounts receivable) and $0.1 billion of current liabilities (consisting primarily of accounts payable). In connection with the anticipated sale, as of September 30, 2011, the Company reclassified approximately $0.2 billion of goodwill expected to be derecognized as part of the sale to other current assets. The TheraCom business has historically been part of the Company’s Pharmacy Services segment. The results of the TheraCom business are presented as discontinued operations and have been excluded from both continuing operations and segment results for all periods presented.

In connection with certain business dispositions completed between 1991 and 1997, the Company retained guarantees on store lease obligations for a number of former subsidiaries, including Linens ‘n Things which filed for bankruptcy in 2008. The Company’s income (loss) from discontinued operations includes lease-related costs which the Company believes it will likely be required to satisfy pursuant to its Linens ‘n Things lease guarantees.

Below is a summary of the results of discontinued operations:

	Three Months Ended September 30, 2011									Three Months Ended September 30, 2010
In millions	TheraCom			Linens ‘n Things			Total			TheraCom			Linens ‘n Things			Total
Net revenues	$	181		$	—		$	181		$	164		$	—		$	164
Income from operations	$	4		$	—		$	4		$	6		$	—		$	6
Loss on disposal	—			(4		)	(4		)	—			(18		)	(18		)
Income tax benefit (provision)	(1		)	1			—			(2		)	7			5
Income (loss) from discontinued operations, net of tax	$	3		$	(3	)	$	—		$	4		$	(11	)	$	(7	)
	Nine Months Ended September 30, 2011									Nine Months Ended September 30, 2010
	TheraCom			Linens ‘n Things			Total			TheraCom			Linens ‘n Things			Total
Net revenues	$	582		$	—		$	582		$	452		$	—		$	452
Income from operations	$	16		$	—		$	16		$	18		$	—		$	18
Loss on disposal	—			(8		)	(8		)	—			(22		)	(22		)
Income tax benefit (provision)	(6		)	3			(3		)	(7		)	8			1
Income (loss) from discontinued operations, net of tax	$	10		$	(5	)	$	5		$	11		$	(14	)	$	(3	)