DIscontinued Operations

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

The sale of L&W was completed on October 31, 2016. The summarized financial information related to L&W that has been excluded from continuing operations and reported as a discontinued operation is as follows:

(millions)	Three months ended June 30,			Six months ended June 30,
	2016			2016
Net sales	$	386		$	743
Cost of products sold	367			710
Gross profit	19			33
Selling and administrative expenses	8			11
Operating profit	11			22
Income tax expense	(4		)	(8		)
Income from discontinued operations	$	7		$	14

For the three and six months ended June 30, 2017, we recorded a loss of $9 million for L&W and a loss of $1 million for our European operations which were sold in December 2012 to "Loss (income) from discontinued operations". The loss for L&W primarily reflected a pension settlement charge, net of tax, related to lump sum benefits paid to former employees of L&W.

Additionally, upon the close of the sale, we entered into a supply agreement with L&W, and for the three and six months ended June 30, 2017, we recorded sales of $134 million and $265 million, respectively, and cash inflows related to payments on trade receivables of $143 million and $252 million, respectively. For the comparable periods in 2016, the sales that were sold by L&W to third party customers through June 30, 2016 were $151 million and $296 million, respectively.