Exit Costs and Other Charges

9 Months Ended

Sep. 29, 2012

Exit Costs and Other Charges

Note D – Exit Costs and Other Charges

In recent years, the company has been adversely affected by increasingly competitive conditions and a downturn in global economies and has taken actions including closing facilities, consolidating functional activities and disposing of assets. Exit cost accruals related to prior and current actions are as follows:

(In millions)	Balance at December 31, 2011		Charges Incurred		Cash Payments		Non-Cash Settlements and Accretion		Currency and Other Adjustments		Balance at September 29, 2012
Termination benefits	$	12	$	21	$	(26)	$	—	$	1	$	8
Lease, contract obligations and, other costs		95		18		(37)		4		—		80
Total	$	107	$	39	$	(63)	$	4	$	1	$	88

Exit cost charges incurred during the year-to-date 2012 totaled approximately $39 million. Of this amount, approximately $16 million is included in Store and warehouse operating and selling expenses and approximately $23 million is included in General and administrative expenses in the Condensed Consolidated Statement of Operations.

In addition to accruals for facilities closed as part of these activities, the company maintains accruals for facilities closed that are considered part of ongoing operating activities. During the year-to-date 2012, approximately $4 million was charged against earnings for additional closure costs and accretion and approximately $6 million of cash was paid on these locations. The accrued balance was approximately $10 million at September 29, 2012 and $12 million at December 31, 2011.