agreements also provided for the granting of both a security interest and a guarantee to support certain of the liabilities under the
There was also an evaluation being undertaken as to whether additional benefit obligations exist in connection with the equalization of certain benefits under the
UKPension Plan that occurred in the early 1990s. Based on the results of the evaluation in 2011, $8 millionof expense was recorded in the fourth quarter of 2011, which was subject to adjustment as further information is gathered as part of the evaluation. Additional information has been gathered and evaluated during the second quarter of 2013 and resulted in a reduction of the estimated liability from that originally estimated. Accordingly we recorded $2 millionof income to SG&A in the second quarter of 2013. When we reach agreement with the trustees of the UKPension Plan as to what additional benefit obligations exist, our UKsubsidiary is required to make additional cash contributions to the UKPension Plan. We had net liabilities related to unrecognized tax benefits of $40 millionat June 30, 2013. We believe it is reasonably possible that our unrecognized tax benefits may decrease by approximately $3 millionwithin the next 12 months. Guarantees In addition to $15 millionin outstanding letters of credit at June 30, 2013, we have guarantees that have been provided to various financial institutions. At June 30, 2013, we had $12 millionof outstanding guarantees primarily related to vendor deposits. The letters of credit and guarantees were primarily related to liabilities for insurance obligations, environmental obligations, banking credit facilities, vendor deposits and European value added tax ("VAT") obligations. Strategic Initiatives We continually review each of our businesses, individually and as part of our portfolio to determine whether to continue in, consolidate, reorganize, exit or expand our businesses, operations and product lines. We have established strategic and financial criteria against which we assess whether to invest in the expansion of a business, operation or products line as well as to determine which portfolio businesses may, at an appropriate time, be monetized. As part of these assessments, we also review our manufacturing and facility footprints to determine if we should consolidate or close facilities to optimize customer supply and reduce our unit product costs. Our review process also involves expanding businesses, investing in innovation and regional growth, expanding existing product lines and bringing new products to market or changing the way we do business. During the first quarter of 2013, we completed an assessment of an initiative to monetize the assets of one of our businesses. As of March 31, 2013, we considered it more-likely-than-not that the initiative would become effective during 2013. In performing the impairment analysis, we probability weighted the possible outcomes of the initiative as of March 31, 2013. Based on this analysis, the expected undiscounted cash flows were sufficient to recover the carrying values of assets of the business component to which the initiative relates. As a result, we concluded that no impairment existed at March 31, 2013. There were no material changes in our assumptions related to this initiative during the quarter ended June 30, 2013. However, changes in the underlying details or probability of occurrence of the initiative could materially impact the results of our analysis in future quarters.