Other Operating Income (Expense)

6 Months Ended

Jul. 02, 2011

Other Operating Income (Expense) [Abstract]

Other Operating Income (Expense)

Note 6 - Other Operating Income (Expense)

		Second Quarter						First Six Months
		2011			2010				2011			2010
		(In millions)
Equity in earnings of joint ventures	$	--		$	2		$		--		$		2
Gain (loss) on sale or retirement of operating property and equipment		(1	)		(1	)			(1	)			(2	)
Costs and asset impairments, primarily related to box plant transformation		(7	)		(2	)			(16	)			(12	)
Litigation (See Note 14)		3			--				3				--
Unsolicited tender offer costs (See Note 3)		(2	)		--				(2	)			--
Alternative fuel mixture tax credits, net of costs		--			--				--				10
Other operating income (expense)	$	(7	)	$	(1	)	$		(16	)	$		(2	)

In connection with the second phase of our box plant transformation, in second quarter 2011, we closed our Carol Stream and Northlake, Illinois box plants, and began production at our new box plant in Aurora, Illinois.  Costs related to box plant transformation in first six months 2011, included asset impairment charges of $2 million, severance costs of $1 million, and other transformation related costs of $13 million, primarily related to duplicate and incremental costs associated with production affected by box plant transformation.  In first six months 2010, costs related to box plant transformation included asset impairment charges of $8 million and other closure costs of $4 million.  Activity within our accruals for box plant transformation activities follows:

		First Six Months 2011
		(In millions)
Beginning of year	$	--
Additions		1
Cash payments		(1	)
End of period	$	--

In first quarter 2010, the Internal Revenue Service clarified an uncertainty regarding whether a portion of the alternative fuel we claimed in 2009 would qualify for the alternative fuel mixture tax credit.  As a result, in first six months 2010 we reversed a related reserve of $10 million.