Liability for Closed Locations

6 Months Ended

Feb. 29, 2012

Notes to Financial Statements [Abstract]

Note 4. Liability for Closed Locations

The Company provides for future costs related to closed locations. The liability is based on the present value of future rent obligations and other related costs (net of estimated sublease rent) to the first lease option date. During the three and six month periods ended February 29, 2012, the Company recorded charges of $3 million and $14 million for facilities that were closed or relocated under long-term leases. This compares to $25 million and $37 million for the three and six month periods ended February 28, 2011. These charges are reported in selling, general and administrative expenses on the Consolidated Condensed Statements of Earnings.

The changes in reserve for facility closings and related lease termination charges include the following (In millions):

	February 29,			August 31,			February 28,
	2012			2011			2011
Balance – beginning of period	$	145		$	151		$	151
Provision for present value of non-cancellable lease payments on closed facilities		4			49			31
Assumptions about future sublease income, terminations and changes in interest rates		(4	)		(19	)		(4	)
Interest accretion		14			24			10
Cash payments, net of sublease income		(28	)		(60	)		(32	)
Balance – end of period	$	131		$	145		$	156