MERGER, RESTRUCTURING, AND OTHER ACCRUALS (Tables)

6 Months Ended

Jun. 27, 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.


	Second Quarter				First Half
(In millions)	2015		2014		2015		2014
Merger related expenses
Severance, retention, and relocation	$	6	$	48	$	11	$	119
Transaction and integration		29		38		53		59
Other related expenses		29		6		15		10

Total Merger related expenses		64		92		79		188
International restructuring and certain other expenses
Severance, retention, and relocation		20		7		25		10
Integration		2		4		4		5
Other related expenses		—		—		6		1

Total International restructuring and certain other expenses		22		11		35		16

Staples Acquisition expenses		34		—		49		—

Total Merger, restructuring and other operating expenses, net	$	120	$	103	$	163	$	204

Facility Closure and Severance Costs

Of the total $163 million Merger, restructuring and other expenses recognized in the first half of 2015 Condensed Consolidated Statement of Operations, $112 million relates to Merger and restructuring balance sheet accruals and are included as Charges incurred in the table below. The remaining $51 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	$	13	$	(20	)	$	—		$	24
European restructuring plan		26		18		(4	)		(3	)		37
Other restructuring accruals		8		6		(8	)		(1	)		5

		65		37		(32	)		(4	)		66

Lease and contract obligations, accruals for facilities closures and other costs
Merger-related accruals		71		34		(36	)		—			69
European restructuring plan		—		2		(1	)		1			2
Other restructuring accruals		35		3		(9	)		3			32
Acquired entity accruals		36		1		(7	)		—			30
Staples Acquisition related accruals		—		35		—			—			35

		142		75		(53	)		4			168

Total	$	207	$	112	$	(85	)	$	—		$	234