MERGER, RESTRUCTURING, AND OTHER ACCRUALS (Tables)

9 Months Ended

Sep. 26, 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.

	Third Quarter				Year-to-Date
(In millions)	2015		2014		2015		2014
Merger related expenses
Severance, retention, and relocation	$	4	$	17	$	15	$	136
Transaction and integration		16		33		69		92
Facility closure, contract termination and other costs, net		18		5		32		14
Total Merger related expenses		38		55		116		242
International restructuring and certain other expenses
Severance and retention		20		10		45		20
Integration		1		2		5		7
Other related expenses		6		5		13		7
Total International restructuring and certain other expenses		27		17		63		34
Staples Acquisition expenses		46		—		95		—
Total Merger, restructuring and other operating expenses, net	$	111	$	72	$	274	$	276

Facility Closure and Severance Costs

Of the total $274 million Merger, restructuring and other expenses recognized in the year-to-date 2015 Condensed Consolidated Statements of Operations, $189 million relates to Merger and restructuring balance sheet accruals and are included as Charges incurred in the table below. The remaining $85 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	$	16	$	(28	)	$	(1	)	$	18
European restructuring plan		26		37		(25	)		(2	)		36
Other restructuring accruals		8		6		(12	)		(1	)		1
		65		59		(65	)		(4	)		55
Lease and contract obligations, accruals for facilities closures and other costs
Merger related accruals		71		51		(49	)		(2	)		71
European restructuring plan		—		9		(2	)		—			7
Other restructuring accruals		35		5		(13	)		3			30
Acquired entity accruals		36		1		(12	)		2			27
Staples Acquisition related accruals		—		64		—			—			64
		142		130		(76	)		3			199
Total	$	207	$	189	$	(141	)	$	(1	)	$	254