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Table of Contents
74
values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments
approximate fair value. See Note 5, Debt, for information about the fair value of our long-term debt.
4. Restructuring Charges
Summary
Restructuring charges incurred in fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
Continuing operations
Renew Blue $ 11 $ 155 $ 171
Other restructuring activities (6)(6) 244
Total 5 149 415
Discontinued operations
Renew Blue 18 10 —
Other restructuring activities — 100 34
Total (Note 2) 18 110 34
Total $ 23 $ 259 $ 449
Renew Blue Plan
In the fourth quarter of fiscal 2013 (11-month), we began implementing initiatives intended to reduce costs and improve
operating performance. These initiatives included focusing on core business activities, reducing headcount, updating our store
operating model and optimizing our real estate portfolio. These cost reduction initiatives represented one of the key Renew
Blue priorities for fiscal 2014 and 2015 and cost reductions will continue to be a priority in fiscal 2016. We incurred $29
million of charges related to Renew Blue initiatives during fiscal 2015. Of the total charges, $10 million related to our
Domestic segment, which consisted of employee termination benefits. The remaining $19 million of charges related to our
International segment and consisted of employee termination benefits, property and equipment impairments and facility closure
and other costs. We expect to continue to implement cost reduction initiatives throughout fiscal 2016, as we further analyze our
operations and strategies.
We incurred $165 million of charges related to Renew Blue initiatives during fiscal 2014. Of the total charges, $129 million
related to our Domestic segment, which consisted primarily of employee termination benefits, investment impairments, and
property and equipment impairments. The remaining $36 million of charges related to our International segment and consisted
of employee termination benefits, facility closure and other costs, and property and equipment impairments.
For continuing operations, the inventory write-downs related to our Renew Blue restructuring activities are presented in
restructuring charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring
charges are presented in restructuring charges in our Consolidated Statements of Earnings. The restructuring charges from
discontinued operations related to this plan are presented in loss from discontinued operations, net of tax.