MERGER, RESTRUCTURING, AND OTHER ACCRUALS (Tables)

3 Months Ended

Mar. 28, 2015

Summary of Major Components of Merger, Restructuring and Other Operating Expenses, Net

The table below and narrative that follows summarize the major components of Merger, restructuring and other operating expenses, net.

	First Quarter
(In millions)	2015			2014
Merger related expenses
Severance, retention, and relocation	$	5		$	71
Transaction and integration		24			21
Other related expenses (gain)		(14	)		4
Total Merger related expenses		15			96
International restructuring and certain other expenses		13			5
Staples Acquisition expenses		15			—
Total Merger, restructuring and other operating expenses, net	$	43		$	101

Facility Closure and Severance Costs

Of the total $43 million Merger, restructuring and other expenses recognized in the first quarter 2015 Condensed Consolidated Statement of Operations, $22 million relates to Merger and restructuring balance sheet accruals and are included as Charges incurred in the table below. The remaining $21 million is excluded from the table below because these items are expensed as incurred, non-cash, or otherwise not associated with Merger and restructuring balance sheet accounts.

(In millions)	Beginning Balance		Charges Incurred		Cash Payments			Currency, Lease Accretion and Other Adjustments			Ending Balance
2015
Termination benefits
Merger-related accruals	$	31	$	7	$	(11	)	$	(1	)	$	26
European restructuring plan		26		1		(1	)		(4	)		22
Other restructuring accruals		8		3		(5	)		—			6
		65		11		(17	)		(5	)		54
Lease and contract obligations, accruals for facilities closures and other costs
Merger-related accruals		71		—		(14	)		—			57
European restructuring plan		—		1		(1	)		1			1
Other restructuring accruals		35		3		(4	)		1			35
Acquired entity accruals		36		1		(3	)		—			34
Staples Acquisition related accruals		—		6		—			—			6
		142		11		(22	)		2			133
Total	$	207	$	22	$	(39	)	$	(3	)	$	187