Discontinued Operations

9 Months Ended

Mar. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In February 2012, the Company announced an agreement to sell its global snacks business to The Kellogg Company for $2.7 billion in an all-cash transaction. The Company expects to complete the transaction by the end of the current fiscal year with final timing pending the receipt of necessary regulatory approvals.

The snacks business had historically been part of the Company’s Snacks & Pet Care reportable segment. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the snacks business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the balance sheet positions as of March 31, 2012, that are anticipated to transition to The Kellogg Company are presented as held for sale in the Consolidated Balance Sheet.

Following is selected financial information included in net earnings from discontinued operations for the snacks business:

	Three months ended September 30				Three months ended December 31				Three months ended March 31				Nine months ended March 31
Amounts in millions	2011		2010		2011		2010		2012		2011		2012		2011
Net sales	$	387	$	338	$	391	$	371	$	350	$	337	$	1,128	$	1,046
Earnings from discontinued operations before income taxes	84		77		59		73		56		67		199		217
Income tax expense	26		22		18		17		22		20		66		59
Net earnings from discontinued operations	58		55		41		56		34		47		133		158

At March 31, 2012, the major components of assets and liabilities of the snacks business held for sale were as follows:

Amounts in millions	March 31, 2012
Accounts receivable	$	119
Inventories	122
Prepaid expenses and other assets	7
Property, plant and equipment, net	354
Goodwill	95
Total assets held for sale	697
Accrued and other liabilities	55
Total liabilities held for sale	55
Assets held for sale, net	642