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Discontinued Operations
 6 Months Ended
Jul. 03, 2011
Discontinued Operations
Note 4. Discontinued Operations
 
We evaluate our businesses and product lines periodically for their strategic fit within our operations. In 2011, we decided to sell our Capsugel business. In connection with the decision to sell this business, for all periods presented, the operating results associated with this business have been reclassified into Discontinued operations–– net of tax in the Condensed Consolidated Statements of Income, and the assets and liabilities associated with this business have been reclassified into Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, as appropriate, in the Condensed Consolidated Balance Sheets.
 
On April 4, 2011, we announced that we had entered into an agreement to sell Capsugel to an affiliate of Kohlberg Kravis Roberts & Co. L.P. for $2.375 billion in cash. The transaction closed on August 1, 2011.
 
The following amounts, substantially all of which relate to our Capsugel business, have been segregated from continuing operations and included in Discontinued operations—net of tax in our Condensed Consolidated Statements of Income:
   
Three Months Ended
    
Six Months Ended
  
(millions of dollars)
  
July 3,
2011
    
July 4,
2010
    
July 3,
2011
    
July 4,
2010
  
                         
Revenues
   $ 214     $ 195     $ 391     $ 369  
                                 
Pre-tax income from discontinued operations
   $ 44     $ 47     $ 72     $ 77  
Provision for taxes
     (14 )     (16 )     (32 )     (27 )
Income from discontinued operations––net of tax
     30       31       40       50  
Pre-tax gain on sale of discontinued operations
     ––       ––       ––       3  
Provision for income taxes
     ––       ––       ––       (1 )
Discontinued operations––net of tax
   $ 30     $ 31     $ 40     $ 52  
 
The following assets and liabilities, which include assets and liabilities held for sale related to our Capsugel business, and other assets held for sale, have been segregated and included in Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, as appropriate, in our Condensed Consolidated Balance Sheets:
(millions of dollars)
  
July 3,
2011
    
Dec. 31,
2010
  
             
Accounts receivable
   $ 193     $ 186  
Inventories
     149       130  
Taxes and other current assets
     25       47  
Property, plant and equipment
     1,041       1,009  
Goodwill
     20       19  
Identifiable intangible assets
     6       3  
Taxes and other noncurrent assets
     44       45  
Assets of discontinued operations and other assets held for sale
   $ 1,478     $ 1,439  
                 
Current liabilities
   $ 154     $ 124  
Other liabilities
     27       27  
Liabilities of discontinued operations
   $ 181     $ 151  

Net cash flows of our discontinued operations from each of the categories of operating, investing and financing activities were not significant.