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NOTE 4 RESTRUCTURING CHARGES AND
OTHER ITEMS
RESTRUCTURING AND OTHER CHARGES
2012 : During 2012 , total restructuring and other
charges of $109 million before taxes ( $74 million
after taxes) were recorded. These charges included:
In millions
Before-Tax
Charges
After-Tax
Charges
Early debt extinguishment costs (see Notes
12 and 13) $48 $30
xpedx restructuring (a) 44 28
EMEA packaging restructuring (b) 17 12
Other —4
Total $109 $74
(a) Includes pre-tax charges of $14 million for severance.
(b) Includes pre-tax charges of $17 million for severance.
Included in the $109 million of organizational
restructuring and other charges is $31 million of
severance charges.
The following table presents a rollforward of the
severance and other costs for approximately 811
employees included in the 2012 restructuring charg-
es:
In millions
Severance
and Other
Opening balance (recorded first quarter 2012) $7
Additions and adjustments 24
Cash charges in 2012 (15)
Balance, December 31, 2012 $ 16
As of December 31, 2012 , 432 employees had left
the Company under these programs.
2011 : During 2011 , total restructuring and other
charges of $102 million before taxes ( $66 million
after taxes) were recorded. These charges included:
In millions
Before-Tax
Charges
After-Tax
Charges
xpedx restructuring (a) $ 49 $34
Early debt extinguishment costs (see Notes
12 and 13) 32 19
Temple-Inland merger agreement 20 12
APPM acquisition 18 12
Franklin, Virginia mill – closure costs (b) (24) (15)
Other 7 4
Total $ 102 $ 66
(a) Includes pre-tax charges of $19 million for severance.
(b) Includes a pre-tax credit of $21 million related to the reversal of
an environmental reserve.
Included in the $102 million of organizational
restructuring and other charges is $25 million of
severance charges.
The following table presents a rollforward of the
severance and other costs for approximately 629
employees included in the 2011 restructuring charg-
es:
In millions
Severance
and Other
Opening balance (recorded first quarter 2011) $7
Additions and adjustments 18
Cash charges in 2011 (16)
Cash charges in 2012 (8)
Balance, December 31, 2012 $1
As of December 31, 2012 , 622 employees had left
the Company under these programs.
2010: During 2010 , total restructuring and other
charges of $394 million before taxes ( $242 million
after taxes) were recorded. These charges included:
In millions
Before-
Tax
Charges
After-
Tax
Charges
Franklin, Virginia mill – closure costs (a) $315 $192
Early debt extinguishment costs (see Notes 12 and
13) 35 21
Write-off of Ohio Commercial Activity tax receivable 11 7
Shorewood Packaging reorganization 8 5
Bellevue, Washington container facility – closure
costs 7 4
S&A reduction initiative 6 4
Other 12 9
Total $394 $242
(a) Includes pre-tax charges of $236 million for accelerated
depreciation, $36 million for environmental closure costs and
$30 million for severance.
Included in the $394 million of organizational
restructuring and other charges is $46 million of
severance charges.
56