Pulp and Tissue Restructuring Actions

In January 2011, we initiated a pulp and tissue restructuring plan ("The Restructuring") in order to exit our remaining integrated pulp manufacturing operations and improve the underlying profitability and return on invested capital of our consumer tissue and KCP businesses. The Restructuring involved the streamlining, sale or closure of six of our manufacturing facilities around the world. In conjunction with these actions, we exited certain non-strategic products, primarily non-branded offerings, and transferred some production to lower-cost facilities in order to improve overall profitability and returns. In addition, in January 2012, we announced our decision to streamline an additional manufacturing facility in North America ("Additional Streamlining") to further enhance the profitability of our consumer tissue business. Both restructuring actions were substantially complete at December 31, 2012, including the pending sale of one facility that is expected to close in the first half of 2013.

The following charges were incurred in connection with the restructuring actions:



	Twelve Months Ended December 31
	2012									2011
	The Restructuring			Additional Streamlining			Total			The Restructuring
Incremental depreciation	$	8		$	22		$	30		$	252
Charges for workforce reductions	—			2			2			71
Asset impairments	—			—			—			58
Asset write-offs	11			3			14			19
Other exit costs	79			3			82			7
Cost of products sold	98			30			128			407
Charges for workforce reductions and other included in Marketing, research and general expenses	6			—			6			6
Other exit costs included in Other (income) and expense, net	1			—			1			2
Provision for income taxes	(37		)	(12		)	(49		)	(126		)
Net charges	$	68		$	18		$	86		$	289

Pre-tax charges for the pulp and tissue restructuring actions relate to activities in the following geographic areas:



	Year Ended December 31, 2012
	North America		Australia		Other		Total
Incremental depreciation	$	29	$	1	$	—	$	30
Charges for workforce reductions	3		2		1		6
Asset write-offs	14		—		—		14
Other exit costs	51		32		2		85
Total charges	$	97	$	35	$	3	$	135



	Year Ended December 31, 2011
	North America		Australia		Other		Total
Incremental depreciation	$	165	$	73	$	14	$	252
Charges for workforce reductions	27		47		3		77
Asset impairments	—		—		58		58
Asset write-offs	10		9		—		19
Other exit costs	2		4		3		9
Total charges	$	204	$	133	$	78	$	415

See Note 17 for additional information on the pulp and tissue restructuring charges by segment.

The following summarizes the cash charges recorded and reconciles these charges to accrued expenses:



	2012			2011
Accrued expenses - January 1	$	37		$	—
Charges for workforce reductions and other exit costs	91			86
Cash payments	(91		)	(51		)
Currency and other	1			2
Accrued expenses - December 31	$	38		$	37