Discontinued Operations

6 Months Ended

Jun. 30, 2013

Notes To Condensed Consolidated Financial Statements [Abstract]

Discontinued Operations

Discontinued Operations and Assets Held for Sale

During the quarter, we entered into two separate agreements to sell PBMSi. The assets and liabilities of PBMSi met held-for-sale classification and all historical amounts are presented as discontinued operations for all periods presented in the Condensed Consolidated Statements of Income. We closed on one of the agreements on July 5, 2013 and expect to close on the second agreement by the end of the third quarter. Total proceeds from these sales will not be material.

In connection with the disposal of PBMSi, amounts in the table below for the three and six months ended June 30, 2013 include an impairment charge of $15 million to write-off the total carrying value of long-lived assets, a goodwill impairment charge of $2 million to write-off the total carrying value of goodwill and an estimated loss on disposal of $15 million. The inputs used to determine the fair value of the long-lived assets and goodwill were classified as Level 3 in the fair value hierarchy.

During the fourth quarter of 2012, we made a strategic decision to exit our IMS operations related to the international delivery of mail and catalogs. All historical amounts related to IMS are presented as discontinued operations in the Condensed Consolidated Statements of Income. As of June 30, 2013, we have sold all of our IMS operations. Total proceeds from these sales were not material.

Discontinued operations also include our Capital Services business that was sold in 2006. For the six months ended June 30, 2012, we recognized $19 million of tax benefits arising from the resolution of tax examinations.

The following table shows selected financial information included in discontinued operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenue	$	47,727		$	79,460		$	116,481		$	165,470
Pretax loss	$	(35,948	)	$	(4,653	)	$	(39,367	)	$	(5,667	)
Net loss	$	(17,731	)	$	(3,812	)	$	(20,414	)	$	(4,486	)
Loss on sale of IMS, net of tax	(2,336		)	—			(3,342		)	—
Capital Services	—			—			—			19,332
(Loss) income from discontinued operations, net of tax	$	(20,067	)	$	(3,812	)	$	(23,756	)	$	14,846

The assets and liabilities held for sale at June 30, 2013 consist of the following:

Accounts receivables	$	58,382
Inventories	2,988
Other current assets and prepayments	8,606
Total current assets	69,976
Property, plant and equipment, net	598
Other assets	478
Assets held for sale	$	71,052
Accounts payable and accrued liabilities	$	52,573
Advance billings	955
Total current liabilities	53,528
Other non current liabilities	13,948
Liabilities related to assets held for sale	$	67,476