MERGER AND RESTRUCTURING ACTIVITY (Tables)

3 Months Ended

Mar. 30, 2019

Summary of Major Components of Merger and Restructuring Expenses, Net

The table below summarizes the major components of Merger and restructuring expenses, net.

	First Quarter
(In millions)	2019		2018
Merger and transaction related expenses, net
Severance and retention	$	1	$	2
Transaction and integration		7		7
Facility closure, contract termination, and other expenses, net		—		3
Total Merger and transaction related expenses, net		8		12
Restructuring expenses
Facility closure, contract termination, professional fees and other expenses, net		6		5
Total Restructuring expenses		6		5
Total Merger and restructuring expenses, net	$	14	$	17

Facility Closure and Severance Costs

The activity in the merger and restructuring accruals in the first quarter of 2019 is presented in the table below.

	Balance as of										Balance as of
	December 29,		Charges		Cash			Adjustments			March 30,
(In millions)	2018		Incurred		Payments			(a)			2019
Termination benefits:
Merger-related accruals	$	3	$	1	$	(2	)	$	—		$	2
Comprehensive Business Review		—		1		—			—			1
Lease and contract obligations, accruals for facilities closures and other costs:
Merger-related accruals		10		—		—			(10	)		—
Comprehensive Business Review		5		5		—			(3	)		7
Total	$	18	$	7	$	(2	)	$	(13	)	$	10

(a)

Represents reclassification of operating lease obligations associated with facility closures to Operating lease right-of-use assets on the Consolidated Balance Sheet in accordance with the new lease accounting standard.