NOTE 12—BRANCH CLOSURE AND CONSOLIDATION ACTIVITIES

Fiscal 2013 Plan

During the fourth quarter of fiscal 2013, management evaluated the cost structure of the Company and identified opportunities to reduce costs across its businesses, primarily through a workforce reduction of approximately 150 employees in the Power Solutions business, global support center and, to a lesser extent, its other businesses. As a result, the Company recorded a restructuring charge of $12 million, which included $9 million for employee-related charges, primarily severance, and $3 million for inventory liquidation related to discontinued products at Power Solutions. The inventory liquidation charges were recorded to Cost of sales and all other restructuring charges were recorded to operating expenses within the Consolidated Statement of Operations and Comprehensive Income (Loss). During fiscal 2014, the Company expects to record restructuring charges of approximately $3 million to $5 million for additional restructuring activities under this plan, including the consolidation of six White Cap branches into three branches. The Company expects the costs of these restructuring actions will be recovered through cost savings in less than one year. Payments of the employee-related cash charges are expected to be completed within fiscal 2014.

Fiscal 2007—Fiscal 2009 Plans

Concurrent with the 2007 Transactions and acquisition integration, management evaluated the operations and performance of individual branches and identified branches for closure or consolidation. In addition, during fiscal years 2008 and 2009, management initiated additional plans to restructure its business, which included evaluating opportunities to consolidate branches, reduce costs, more efficiently employ working capital and streamline activities. Under these plans, which were completed in fiscal 2010, management closed or consolidated 235 branches and reduced workforce personnel by approximately 5,000 employees. The Company does not expect to incur additional restructuring charges under these plans.

The remaining liability balances for these plans represents the net present value of future lease obligations, including rent, taxes, utilities, etc., less estimated sublease income of the closed branches. The Company regularly reviews the assumptions used to estimate these liabilities. The following table presents the activity for the liability balance, included in Other current liabilities and Other liabilities in the Consolidated Balance Sheets (amounts in millions):


Balance—January 30, 2011	$	53
Charges, net of reductions		2
Cash payments		(15	)


Balance—January 29, 2012	$	40


Charges, net of reductions		(4	)
Cash payments		(14	)
Other		(1	)


Balance—February 3, 2013	$	21


Charges, net of reductions		(1	)
Cash payments		(4	)


Balance—February 2, 2014	$	16

As of February 2, 2014, approximately $5 million of the liability balances for the branch closure and consolidation activities is classified as a current liability on the Company's Consolidated Balance Sheet. Payments for occupancy costs are expected to be substantially complete over the next four years, with certain property lease obligations extending out as far as ten years. The Company regularly reviews the assumptions used to estimate the net present value of the on-going lease liabilities and other occupancy costs, net of expected sublease income. In addition, the Company continues to actively pursue buyout options or subleasing opportunities for the leased properties. The expected timing of cash payments related to the branch closure and consolidation activities could change or adjustments to the reserve may become necessary depending on the success and timing of entering into these types of agreements. Due to favorable lease and property dispositions, during fiscal 2013, the Company reduced the liability by $1 million and during fiscal 2012, the Company reduced the liability by $4 million, $2 million of which was recorded to continuing operations and $2 million of which was recorded as Income from discontinued operations, net in the Consolidated Statement of Operations and Comprehensive Income (Loss).