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Discontinued Operations
6 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
In 2014, we committed to a plan to sell our International Technology and our Hospital Automation businesses from our Technology Solutions segment and certain businesses from our Distribution Solutions segment. As required, we classified the results of operations and cash flows of these businesses as discontinued operations for all periods presented in our consolidated financial statements in 2014 and depreciation and amortization expense was not recognized.
During the third quarter of 2014, we sold our Hospital Automation business for net cash proceeds of $55 million and recorded a pre-tax and after-tax loss of $5 million and $7 million.
During the third quarter of 2014, we recorded an $80 million pre-tax ($80 million after-tax) non-cash impairment charge to reduce the carrying value of our International Technology business to its estimated net realizable value (fair value less costs to sell). The charge was primarily the result of the terms of the preliminary purchase offers received for this business during the third quarter of 2014. The impairment charge was primarily attributed to goodwill and other long-lived assets and as a result, there was no tax benefit associated with this charge. During the first quarter of 2015, we entered into an agreement to sell the software business within our International Technology business. We completed the sale of this business during the second quarter of 2015, at which time we recorded a pre-tax and after-tax loss of $6 million.
During the first quarter of 2015, we decided to retain the workforce business within our International Technology business. This business consists of workforce management solutions for the National Health Service in the United Kingdom, which we now intend to wind down in 2016. As a result, we reclassified the workforce business, which had been designated as a discontinued operation since the first quarter of 2014, as a continuing operation for all periods presented effective in the first quarter of 2015. During the first quarter of 2015, we also recorded a non-cash pre-tax charge of $34 million ($27 million after-tax) primarily relating to depreciation and amortization expense for 2014 when the business was classified as held for sale. The non-cash charge was recorded in our condensed consolidated statement of operations primarily in cost of sales.
A summary of results of discontinued operations is as follows:
 
Quarter Ended September 30,
 
Six Months Ended September 30,
(In millions)
2014
 
2013
 
2014
 
2013
Revenues
$
3

 
$
79

 
$
40

 
$
164

 
 
 
 
 
 
 
 
Loss from discontinued operations
$
(8
)
 
$
(25
)
 
$
(24
)
 
$
(28
)
Loss on sale
(6
)
 

 
(6
)
 

Loss from discontinued operations before income tax
(14
)
 
(25
)
 
(30
)
 
(28
)
Income tax benefit

 
6

 
2

 
5

Loss from discontinued operations, net of tax
$
(14
)
 
$
(19
)
 
$
(28
)
 
$
(23
)

The assets and liabilities of our discontinued operations are classified as held-for-sale effective in 2014. All applicable assets of the businesses to be sold are included under the caption “Prepaid expenses and other” and all applicable liabilities under the caption “Other accrued liabilities” within our condensed consolidated balance sheet at September 30, 2014 and March 31, 2014. The carrying values of the assets and liabilities classified as held-for-sale were $14 million and $14 million at September 30, 2014 and $267 million and $248 million at March 31, 2014.