NOTE 6: Exit Activities
When locations under operating leases are closed, the Company recognizes a liability for the fair value of future contractual obligations, including future minimum lease payments, property taxes, utilities, common area maintenance and other ongoing expenses, net of estimated sublease income and other recoverable items. During 2013, the Company relocated two stores subject to operating leases. In 2012, the Company relocated one store subject to an operating lease.
Subsequent changes to the liabilities, including a change resulting from a revision to either the timing or the amount of estimated cash flows, are recognized in the period of change. Changes to the accrual for exit activities for 2013 and 2012 are summarized as follows:
|
| | | | | | | |
(In millions) | 2013 |
| | 2012 |
|
Accrual for exit activities, balance at beginning of year | $ | 75 |
| | $ | 86 |
|
Additions to the accrual - net | 11 |
| | 11 |
|
Cash payments | (32 | ) | | (22 | ) |
Accrual for exit activities, balance at end of year | $ | 54 |
| | $ | 75 |
|
