Severance and Facility Closure

9 Months Ended

Sep. 28, 2013

Note F – Severance and Facility Closure

In recent years, the Company has taken actions to adapt to changing and increasingly competitive conditions in the markets in which the Company serves. These actions include closing stores and distribution centers, consolidating functional activities, disposing of businesses and assets, and taking actions to improve process efficiencies.

Severance and facility closure accruals are as follows:


(In millions)	Balance at December 29, 2012		Charges Incurred		Cash Payments			Non-Cash Settlements and Accretion		Currency and Other Adjustments			Balance at September 28, 2013
Termination benefits	$	6	$	18	$	(20	)	$	—	$	—		$	4
Lease and contract obligations, accruals for facilities closures, and other costs		87		3		(27	)		5		(1	)		67

Total	$	93	$	21	$	(47	)	$	5	$	(1	)	$	71

Exit cost charges incurred during the year-to-date 2013 totaled $21 million. Of this amount, $12 million is included in Operating and selling expenses and $9 million is included in General and administrative expenses in the Condensed Consolidated Statement of Operations. The amounts of these charges that were recognized in North American Retail, North American Business Solutions, and International Divisions were $5 million, $2 million, and $14 million, respectively.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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