Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

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DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2012
DISCONTINUED OPERATIONS  
DISCONTINUED OPERATIONS

17. DISCONTINUED OPERATIONS

AUSTRALIAN STYRENICS BUSINESS SHUTDOWN

        During the first quarter of 2010, we ceased operation of our former Australian styrenics business. The following results of operations of our former Australian styrenics business have been presented as discontinued operations in the condensed consolidated statements of operations (unaudited) (dollars in millions):

 
   Three months
ended
September 30, 		  Nine months
ended
September 30, 		 
 
   2012   2011   2012   2011  

Revenues

   $ 10   $ 10   $ 28   $ 28  

Costs and expenses, net of credits

     (11 )   7     (37 )   (34 )
                   

Operating (loss) income

     (1 )   17     (9 )   (6 )

Income tax (expense) benefit

     —     (7 )   2     1  
                   

(Loss) income from discontinued operations, net of tax

   $ (1 ) $ 10   $ (7 ) $ (5 )
                   

        In 2006, product defect actions were filed against our subsidiary, HCCA, in Australian courts relating to the sale and supply of vinyl ester resins that were used in the manufacture of fiberglass swimming pools. HCCA ceased manufacturing these specific resin formulations by 2004 and sold the business that manufactured and sold these resins in 2007.

        During the first quarter of 2011, HCCA increased its estimate of probable loss related to these claims and recorded a liability for the full estimated value of the claims and a corresponding receivable relating to our indemnity protection with a net charge to discontinued operations for any potential shortfall in insurance coverage. Following mediation held in August 2011, HCCA and its insurers reached an agreement with two claimants to settle their claims for amounts within our insurance coverage after our self-insured retention was satisfied. Accordingly, during the third quarter of 2011, HCCA reduced its estimate of probable loss proportionately and reversed a portion of the liability related to this matter. The settlements were paid in the fourth quarter of 2011.