| DISCONTINUED OPERATIONS |
4. DISCONTINUED OPERATIONS
Ìý
In August 2017, we separated the P&A Business and conducted an IPO of ordinary shares of Venator, formerly a wholly-owned subsidiary of ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾. Following the IPO, we retained approximately 75% ownership in Venator. We intend to monetize our retained ownership in Venator at prevailing market conditions and expect to implement multiple follow-on capital market or block transactions to permit the orderly distribution of our retained shares.
Ìý
In August 2017, we entered into a separation agreement, a transition services agreement (“TSAâ€�) and a registration rights agreement with Venator to effect the Separation and provide a framework for a short term set of transition services as well as a tax matters agreement and an employee matters agreement. Pursuant to the TSA, we will, for a limited time following the Separation, provide Venator with certain services and functions that the parties have historically shared, including administrative, payroll, human resources, data processing, environmental, health and safety, financial audit support, financial transaction support, marketing support, information technology systems and various other corporate and support services. We may also provide Venator with additional services that Venator and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ may identify from time to time in the future. In general, the services began following the Separation and cover a period not expected to exceed 24 months; however, Venator may terminate individual services provided by us under the TSA early, as it becomes able to operate its business without such services.
Ìý
The following table summarizes the major classes of assets and liabilities constituting assets and liabilities held for sale:
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
Ìý
|
DecemberÌý31,Ìý
|
|
Ìý
|
Ìý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
|
Carrying amounts of major classes of assets held for sale:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Accounts receivable
|
Ìý
|
$
|
411
|
Ìý
|
$
|
234
|
|
Inventories
|
Ìý
|
Ìý
|
432
|
Ìý
|
Ìý
|
426
|
|
Other current assets
|
Ìý
|
Ìý
|
280
|
Ìý
|
Ìý
|
117
|
|
Total current assets(1)
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
777
|
|
Property, plant and equipment, net
|
Ìý
|
Ìý
|
1,290
|
Ìý
|
Ìý
|
1,178
|
|
Deferred income taxes
|
Ìý
|
Ìý
|
195
|
Ìý
|
Ìý
|
143
|
|
Other noncurrent assets
|
Ìý
|
Ìý
|
137
|
Ìý
|
Ìý
|
142
|
|
Total noncurrent assets(1)
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
1,463
|
|
Total assets held for sale
|
Ìý
|
$
|
2,745
|
Ìý
|
$
|
2,240
|
|
Carrying amounts of major classes of liabilities in held for sale:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Accounts payable
|
Ìý
|
$
|
319
|
Ìý
|
$
|
297
|
|
Accrued liabilities
|
Ìý
|
Ìý
|
213
|
Ìý
|
Ìý
|
145
|
|
Other current liabilities
|
Ìý
|
Ìý
|
16
|
Ìý
|
Ìý
|
25
|
|
Total current liabilities(1)
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
467
|
|
Deferred income taxes
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
56
|
|
Long term debt
|
Ìý
|
Ìý
|
747
|
Ìý
|
Ìý
|
Ìýâ€�
|
|
Other noncurrent liabilities
|
Ìý
|
Ìý
|
338
|
Ìý
|
Ìý
|
337
|
|
Total noncurrent liabilities(1)
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
393
|
|
Total liabilities held for sale
|
Ìý
|
$
|
1,633
|
Ìý
|
$
|
860
|
|
(1)
|
|
The assets and liabilities held for sale are classified as current as of September 30, 2017 because it is probable that the sale of the remaining 75% interest in Venator ordinary shares will occur and proceeds will be collected within one year.
|
Ìý
The following table summarizes major classes of line items constituting pretax and after-tax income of discontinued operations:
Ìý
ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
ThreeÌýmonths
|
Ìý
|
Nine months
|
|
Ìý
|
Ìý
|
ended
|
Ìý
|
ended
|
|
Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
ÌýÌýÌýÌý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
|
Major classes of line items constituting pretax income (loss) of discontinued operations:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Trade sales, services and fees, net
|
Ìý
|
$
|
589
|
Ìý
|
$
|
540
|
Ìý
|
$
|
1,700
|
Ìý
|
$
|
1,670
|
|
Cost of goods sold
|
Ìý
|
Ìý
|
470
|
Ìý
|
Ìý
|
496
|
Ìý
|
Ìý
|
1,421
|
Ìý
|
Ìý
|
1,566
|
|
Selling, general and administrative
|
Ìý
|
Ìý
|
54
|
Ìý
|
Ìý
|
42
|
Ìý
|
Ìý
|
128
|
Ìý
|
Ìý
|
131
|
|
Restructuring, impairment and plant closing costs
|
Ìý
|
Ìý
|
17
|
Ìý
|
Ìý
|
Ìý8
|
Ìý
|
Ìý
|
51
|
Ìý
|
Ìý
|
32
|
|
Business separation expenses
|
Ìý
|
Ìý
|
11
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
32
|
Ìý
|
Ìý
|
Ìýâ€�
|
|
Other operating income, net
|
Ìý
|
Ìý
|
(51)
|
Ìý
|
Ìý
|
(23)
|
Ìý
|
Ìý
|
(83)
|
Ìý
|
Ìý
|
(37)
|
|
Other loss (income), net
|
Ìý
|
Ìý
|
Ìý8
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý9
|
Ìý
|
Ìý
|
(2)
|
|
Income (loss) from discontinued operations before income taxes
|
Ìý
|
Ìý
|
80
|
Ìý
|
Ìý
|
17
|
Ìý
|
Ìý
|
142
|
Ìý
|
Ìý
|
(20)
|
|
Income tax (expense) benefit
|
Ìý
|
Ìý
|
(17)
|
Ìý
|
Ìý
|
Ìý7
|
Ìý
|
Ìý
|
(41)
|
Ìý
|
Ìý
|
Ìý8
|
|
Income (loss) from discontinued operations, net of tax
|
Ìý
|
Ìý
|
63
|
Ìý
|
Ìý
|
24
|
Ìý
|
Ìý
|
101
|
Ìý
|
Ìý
|
(12)
|
|
Net income attributable to noncontrolling interests
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
Ìý
|
(3)
|
Ìý
|
Ìý
|
(8)
|
Ìý
|
Ìý
|
(8)
|
|
Net income (loss) attributable to discontinued operations
|
Ìý
|
$
|
61
|
Ìý
|
$
|
21
|
Ìý
|
$
|
93
|
Ìý
|
$
|
(20)
|
Ìý
ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Ìý
|
Ìý
|
ThreeÌýmonths
|
Ìý
|
Nine months
|
|
Ìý
|
Ìý
|
ended
|
Ìý
|
ended
|
|
Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
Ìý
|
SeptemberÌý30,Ìý
|
|
Ìý
|
ÌýÌýÌýÌý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
ÌýÌýÌýÌý
|
2017
|
ÌýÌýÌýÌý
|
2016
|
|
Major classes of line items constituting pretax income (loss) of discontinued operations:
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
Ìý
|
|
Trade sales, services and fees, net
|
Ìý
|
$
|
589
|
Ìý
|
$
|
540
|
Ìý
|
$
|
1,700
|
Ìý
|
$
|
1,670
|
|
Cost of goods sold
|
Ìý
|
Ìý
|
471
|
Ìý
|
Ìý
|
498
|
Ìý
|
Ìý
|
1,424
|
Ìý
|
Ìý
|
1,571
|
|
Selling, general and administrative
|
Ìý
|
Ìý
|
54
|
Ìý
|
Ìý
|
42
|
Ìý
|
Ìý
|
128
|
Ìý
|
Ìý
|
131
|
|
Restructuring, impairment and plant closing costs
|
Ìý
|
Ìý
|
17
|
Ìý
|
Ìý
|
Ìý8
|
Ìý
|
Ìý
|
51
|
Ìý
|
Ìý
|
32
|
|
Business separation expenses
|
Ìý
|
Ìý
|
11
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
32
|
Ìý
|
Ìý
|
Ìýâ€�
|
|
Other operating income, net
|
Ìý
|
Ìý
|
(51)
|
Ìý
|
Ìý
|
(23)
|
Ìý
|
Ìý
|
(83)
|
Ìý
|
Ìý
|
(37)
|
|
Other loss (income), net
|
Ìý
|
Ìý
|
Ìý8
|
Ìý
|
Ìý
|
Ìýâ€�
|
Ìý
|
Ìý
|
Ìý9
|
Ìý
|
Ìý
|
(2)
|
|
Income (loss) from discontinued operations before income taxes
|
Ìý
|
Ìý
|
79
|
Ìý
|
Ìý
|
15
|
Ìý
|
Ìý
|
139
|
Ìý
|
Ìý
|
(25)
|
|
Income tax (expense) benefit
|
Ìý
|
Ìý
|
(17)
|
Ìý
|
Ìý
|
Ìý7
|
Ìý
|
Ìý
|
(41)
|
Ìý
|
Ìý
|
Ìý8
|
|
Income (loss) from discontinued operations, net of tax
|
Ìý
|
Ìý
|
62
|
Ìý
|
Ìý
|
22
|
Ìý
|
Ìý
|
98
|
Ìý
|
Ìý
|
(17)
|
|
Net income attributable to noncontrolling interests
|
Ìý
|
Ìý
|
(2)
|
Ìý
|
Ìý
|
(3)
|
Ìý
|
Ìý
|
(8)
|
Ìý
|
Ìý
|
(8)
|
|
Net income (loss) attributable to discontinued operations
|
Ìý
|
$
|
60
|
Ìý
|
$
|
19
|
Ìý
|
$
|
90
|
Ìý
|
$
|
(25)
|
Ìý
|