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Special Charges

12 Months Ended

Dec. 29, 2012

Note 11. Special Charges

There were no amounts recorded within special charges in 2012 and 2011. In 2010, special charges included restructuring charges related to a global restructuring program that totaled $99 million, including $76 million of severance costs. In 2008, we initiated a global restructuring program to reduce overhead costs and improve productivity across the company and announced the exit of portions of our commercial finance business. We record restructuring costs in special charges as these costs are generally of a nonrecurring nature and are not included in segment profit, which is our measure used for evaluating performance and for decision-making purposes.

In 2010, we substantially liquidated the assets held by a Canadian entity within the Finance segment. Accordingly, we recorded a non-cash charge of $91 million ($74 million after-tax) within special charges to reclassify the entity’s cumulative currency translation adjustment amount within other comprehensive income to the Statement of Operations. The reclassification of this amount had no impact on shareholders’ equity.

An analysis of our restructuring reserve activity is summarized below:

(In millions)	Severance Costs			Asset Impairment			Contract Terminations			Total
Balance at January 2, 2010	$	48		$	—		$	3		$	51
Provision in 2010	79			16			7			102
Reversals	(3		)	—			—			(3		)
Non-cash settlement	—			(16		)	—			(16		)
Cash paid	(67		)	—			(5		)	(72		)
Balance at January 1, 2011	57			—			5			62
Cash paid	(42		)	—			(2		)	(44		)
Balance at December 31, 2011	15			—			3			18
Cash paid	(10		)	—			(1		)	(11		)
Balance at December 29, 2012	$	5		$	—		$	2		$	7