Liability for Closed Locations

3 Months Ended

Nov. 30, 2014

Liability for Closed Locations [Abstract]

Liability for Closed Locations

Note 3.  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 month period ended November 30, 2014, the Company recorded charges of $26 million for facilities that were relocated under long-term leases or closed, including those closed in conjunction with the Company’s store optimization plan.  This compares to $27 million for the three month period ended November 30, 2013.  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):

	November 30, 2014			August 31, 2014			November 30, 2013
Balance – beginning of period	$	257		$	123		$	123
Provision for present value of non-cancellable lease payments on closed facilities		8			171			23
Assumptions about future sublease income, terminations and changes in interest rates		9			(8	)		3
Interest accretion		9			14			1
Cash payments, net of sublease income		(18	)		(43	)		(7	)
Balance – end of period	$	265		$	257		$	143