DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jul. 01, 2017

Major Component of Discontinued Operations, Net of Tax

Completion of the sale of the remaining International Operations may be for amounts different from the current estimates and will be evaluated each reporting period until the dispositions are complete.

The major components of Discontinued operations, net of tax presented in the Condensed Consolidated Statements of Operations are presented below. The 2016 amounts include the results of the European Business, which was sold at the end of 2016.

	Second Quarter						First Half
(In millions)	2017			2016			2017		2016
Sales	$	119		$	635		$	287	$	1,303
Cost of goods sold and occupancy costs		97			501			233		1,027
Operating expenses		26			146			52		296
Restructuring charges		1			6			2		11
Interest income		—			—			—		1
Interest expense		—			(2	)		—		(4	)
Net (increase) reduction of loss on discontinued operations held for sale		(2	)		—			45		—
Net gain on sale of discontinued operations		13			—			3		—
Income tax expense		3			2			3		4
Discontinued operations, net of tax	$	3		$	(22	)	$	45	$	(38	)

Assets and liabilities of discontinued operations presented in the Condensed Consolidated Balance Sheets as of July 1, 2017, and December 31, 2016, are included in the following table. As the sale of the European Business was completed before year-end 2016, the assets and liabilities of that business are not included in either period presented below. Additionally, the sale of the South Korean business was completed in April 2017, and therefore the assets and liabilities of that business are not included in the July 1, 2017, period presented below.

(In millions)	July 1, 2017			December 31, 2016
Assets
Cash and cash equivalents	$	57		$	44
Receivables, net		68			88
Inventories		56			82
Prepaid expenses and other current assets		3			4
Property and equipment, net		31			31
Other assets		3			6
Valuation allowance		(65	)		(113	)
Current assets of discontinued operations	$	153		$	142
Liabilities
Trade accounts payable	$	42		$	60
Accrued expenses and other current liabilities		21			27
Income taxes payable		1			2
Short-term borrowings and current maturities of long-term debt		—			9
Deferred income taxes and other long-term liabilities		5			6
Current liabilities of discontinued operations	$	69		$	104