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MERGER, RESTRUCTURING, AND OTHER ACCRUALS | 3 Months Ended
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Mar. 29, 2014
MERGER, RESTRUCTURING, AND OTHER ACCRUALS | NOTE 3. MERGER, RESTRUCTURING, AND OTHER ACCRUALS In recent years, the Company has taken restructuring actions to adapt to changing and competitive conditions. These actions include closing facilities, consolidating functional activities, disposing of businesses and assets, and taking actions to improve process efficiencies. Additionally, the Merger was approved and completed in 2013 and integration activities began. In connection with the Merger, the Company assumed exit liabilities previously recorded by OfficeMax. Starting in the fourth quarter of 2013, the Company began presenting Merger, restructuring and other operating expenses, net on a separate line in the Consolidated Statements of Operations to identify these activities apart from the expenses incurred to sell to and service its customers. Prior period presentation has been updated accordingly. During the first quarter of 2014, these expenses totaled $101 million, with $96 million of Merger-related expenses and $5 million of net restructuring and certain other expenses. As noted in the Basis of Presentation in Note 1, these expenses are not reported in Division operating income. Merger-related expenses include (i) $21 million related to transaction and integration activities, which were primarily legal, accounting, and integration-related; (ii) $71 million of employee related expenses for cash termination benefits, acceleration of share-based compensation for departing employees and certain incentives to relocate, retain and motivate employees; and (iii) $4 million of other expenses. Refer to Note 2 for additional information on the Merger. Restructuring expenses primarily relate to activities in Europe, such as severance and other costs for organizational changes. Exit costs Of the $101 million Merger, restructuring and other expenses, net recognized in the first quarter of 2014, certain amounts are considered exit costs and included as charges incurred in the table below. Transaction, integration, certain shareholder-related and other expenses are not considered exit costs. The share-based compensation that was recognized against additional paid-in capital is also not presented in the exit cost table. The table includes $71 million of employee compensation expenses from Merger and restructuring activities, presented as termination benefits and other costs. In addition, the table presents expenses related to facilities closed as part of ongoing operations which is included in Selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.
(In millions) |  | Beginning Balance |  |  | Charges Incurred |  |  | Cash Payments |  |  | Currency, Lease Accretion and Other Adjustments |  |  | Ending Balance |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Merger-related accruals |  | $ | 23 |  |  | $ | 48 |  |  | $ | (32 | ) |  | $ | — |  |  | $ | 39 |
Other restructuring accruals |  |  | 5 |  |  |  | 4 |  |  |  | (3 | ) |  |  | — |  |  |  | 6 |
Acquired entity accruals |  |  | 4 |  |  |  | — |  |  |  | (1 | ) |  |  | (2 | ) |  |  | 1 |
|  |  | 32 |  |  |  | 52 |  |  |  | (36 | ) |  |  | (2 | ) |  |  | 46 |
Lease and contract obligations, accruals for facilities closures and other costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Merger-related accruals |  |  | 25 |  |  |  | 20 |  |  |  | (20 | ) |  |  | (1 | ) |  |  | 24 |
Other restructuring accruals |  |  | 62 |  |  |  | 2 |  |  |  | (16 | ) |  |  | 2 |  |  |  | 50 |
Acquired entity accruals |  |  | 59 |  |  |  | — |  |  |  | (7 | ) |  |  | (1 | ) |  |  | 51 |
|  |  | 146 |  |  |  | 22 |  |  |  | (43 | ) |  |  | — |  |  |  | 125 |
Total |  | $ | 178 |  |  | $ | 74 |  |  | $ | (79 | ) |  | $ | (2 | ) |  | $ | 171 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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