v3.2.0.727
DISCONTINUED OPERATIONS
 12 Months Ended
Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
DISCONTINUED OPERATIONS
During the quarter ended December 31, 2014, the Company divested its interest in a China-based battery joint venture, resulting in proceeds of approximately $560. In November 2014, the Company reached an agreement to divest the remainder of its Batteries business to Berkshire Hathaway (BH) via a split transaction, in which the Company will exchange a recapitalized Duracell Company for BH's shares of P&G stock. As of the date the transaction was signed, BH's shares were valued at approximately $4.7 billion. As of June 30, 2015, this value has declined to approximately $4.1 billion. The Company expects to contribute approximately $1.8 billion in cash to the Duracell Company in the pre-transaction recapitalization, subject to final working capital adjustments. The Company recorded goodwill and indefinite-lived asset impairment charges during the fiscal year ended June 30, 2015 which reflected the total estimated proceeds from the divestiture transactions (see Note 2). Since the number of shares of P&G stock the Company will receive in the Batteries
transaction is fixed, the total value to be received in the transaction will be based on the Company's share price as of the closing date, which is expected to occur in the beginning of calendar 2016. Accordingly, any further increase or decrease in the Company's share price before the closing date will ultimately be reflected in earnings from discontinued operations as a gain or loss.
The Batteries business had historically been part of the Company's Fabric Care and Home Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Batteries 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 Batteries balance sheet positions as of June 30, 2015 are presented as Assets and Liabilities held for sale in the Consolidated Balance Sheets.
On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America, and other selected countries to Mars, Incorporated (Mars) for $2.9 billion in an all-cash transaction. Under the terms of the agreement, Mars acquired our branded pet care products, our manufacturing sites in the United States and the majority of the employees working in the Pet Care business. The agreement included an option for Mars to acquire the Pet Care business in several additional countries, which were substantially completed as of June 30, 2015. The European Union countries were not included in the agreement with Mars. In December 2014, the Company completed the divestiture of its Pet Care operations in Western Europe to Spectrum Brands in an all-cash transaction. Under the terms of the agreement, Spectrum Brands acquired our branded pet care products, our manufacturing site in the Netherlands, and the majority of the employees working in the Western Europe Pet Care business. The one-time after-tax impact of these transactions is not material.
The Pet Care business had historically been part of the Company’s Health Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Pet Care 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 Pet Care balance sheet positions as of June 30, 2014 are presented as assets and liabilities held for sale in the Consolidated Balance Sheets.
Following is selected financial information included in net earnings from discontinued operations for the Batteries and Pet Care businesses:
 
 
Net Sales
 
Earnings Before Impairment Charges and Income Taxes
 
Impairment Charges
 
Income Tax Expense
 
Gain on Sale Before Income Taxes
 
Income Tax Expense on Sales
 
Net Earnings from Discontinued Operations
Batteries
2015
$
2,226

 
$
479

 
$
(2,174
)
 
$
(140
)
 
$
—

 
$
—

 
$
(1,835
)
 
2014
2,552

 
548

 
—

 
(159
)
 
—

 
—

 
389

 
2013
2,465

 
513

 
—

 
(165
)
 
—

 
—

 
348

Pet Care
2015
251

 
—

 
—

 
(4
)
 
195

 
(142
)
 
49

 
2014
1,475

 
130

 
—

 
(52
)
 
—

 
—

 
78

 
2013
1,586

 
151

 
—

 
(50
)
 
—

 
—

 
101

Total
2015
$
2,477

 
$
479

 
$
(2,174
)
 
$
(144
)
 
$
195

 
$
(142
)
 
$
(1,786
)
 
2014
4,027

 
678

 
—

 
(211
)
 
—

 
—

 
467

 
2013
4,051

 
664

 
—

 
(215
)
 
—

 
—

 
449

The major components of assets and liabilities of the Pet Care and Batteries businesses held for sale were as follows:
 
Batteries
 
Pet Care
 
June 30, 2015
 
June 30, 2014
Cash
$
25

 
$
—

Accounts receivable
245

 
—

Inventories
304

 
122

Prepaid expenses and other assets
28

 
14

Property, plant and equipment, net
496

 
441

Goodwill and intangible assets, net
2,389

 
2,258

Other noncurrent assets
23

 
14

Total assets held for sale
$
3,510

 
$
2,849

 
 
 
 
Accounts payable
$
195

 
$
63

Accrued and other liabilities
194

 
13

Long-term debt
18

 
—

Noncurrent deferred tax liabilities
780

 
584

Total liabilities held for sale
$
1,187

 
$
660