MERGER, ACQUISITION TERMINATION, AND RESTRUCTURING ACTIVITY (Tables)

6 Months Ended

Jul. 01, 2017

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

The table below and narrative that follow provide the major components of Merger, restructuring and other operating (income) expenses, net.

	Second Quarter						First Half
(In millions)	2017			2016			2017		2016
Merger related (income) expenses
Transaction and integration	$	5		$	11		$	11	$	22
Facility closure, contract termination, and other expenses, net		(2	)		14			2		17
Total Merger related expenses		3			25			13		39
Staples Acquisition (income) expenses
Retention		—			13			—		15
Transaction		—			18			—		38
Termination Fee		—			(250	)		—		(250	)
Total Staples Acquisition income		—			(219	)		—		(197	)
Comprehensive Business Review and other restructuring expenses
Severance		6			1			15		4
Facility closure, contract termination, professional fees and other expenses, net		11			—			12		—
Total Comprehensive Business Review and other restructuring expenses		17			1			27		4
Total Merger, restructuring and other operating (income) expenses, net	$	20		$	(193	)	$	40	$	(154	)

Facility Closure and Severance Costs

These remaining amounts are excluded from the table below because they are charges that are recorded and paid in the same period.

			First Half of 2017
(In millions)	Balance as of December 31, 2016		Charges Incurred		Cash Payments			Lease Accretion and Other Adjustments			Balance as of July 1, 2017
Termination benefits
Merger related accruals	$	5	$	—	$	(3	)	$	—		$	2
Comprehensive Business Review		8		15		(17	)		—			6
Lease and contract obligations, accruals for facilities closures and other costs:
Merger related accruals		40		4		(18	)		—			26
Comprehensive Business Review		13		8		(8	)		—			13
Other restructuring accruals		5		1		(2	)		2			6
Acquired entity store closure accruals		18		—		(4	)		(1	)		13
Total	$	89	$	28	$	(52	)	$	1		$	66

Assets Held for Sale Activity

The assets held for sale activity for the first half of 2017 is presented in the table below.

(In millions)
Balance as of December 31, 2016	$	23
Disposition		(23	)
Balance as of July 1, 2017	$	—