US Bank 2002 Annual Report Download - page 77

The following table presents a summary of activity with respect to the merger and restructuring-related accruals:
Piper
(Dollars in Millions) USBM NOVA Restructuring Mercantile Other (a) Total
Balance at December 31, 1999 *************************** $ — $ — $ — $ 21.2 $ 82.0 $ 103.2
Provision charged to operating expense **************** — — — 227.0 121.7 348.7
Additions related to purchase acquisitions*************** ————46.0 46.0
Cash outlays **************************************** — — — (197.9) (169.7) (367.6)
Noncash write-downs and other *********************** — — — (50.3) (30.2) (80.5)
Balance at December 31, 2000 *************************** ————49.8 49.8
Provision charged to operating expense **************** 1,167.2 1.6 50.7 22.7 24.2 1,266.4
Additions related to purchase acquisitions*************** — 82.2 — — 7.4 89.6
Cash outlays **************************************** (532.5) (32.4) (22.3) (23.8) (53.8) (664.8)
Noncash write-downs and other *********************** (510.4) (3.0) (10.3) 1.1 (13.0) (535.6)
Balance at December 31, 2001 *************************** 124.3 48.4 18.1 — 14.6 205.4
Provision charged to operating expense **************** 271.1 34.9 — — 18.1 324.1
Additions related to purchase acquisitions*************** — 3.8 — — 18.6 22.4
Cash outlays **************************************** (327.9) (36.2) (10.8) — (27.2) (402.1)
Noncash write-downs and others ********************** (48.9) (35.8) (7.3) — (5.7) (97.7)
Balance at December 31, 2002 *************************** $ 18.6 $ 15.1 $ — $ — $ 18.4 $ 52.1
(a) In 2002, ‘‘Other’’ primarily included merger and restructuring-related items pertaining to the Bay View acquisition, State Street Corporate Trust and the Lyon Financial acquisition. In
2001 and 2000, ‘‘Other’’ primarily included the 1998 acquisition of the former Firstar Corporation by Star Banc. Star Banc was renamed Firstar Corporation.
The adequacy of the accrued liabilities is reviewed lower utilization of benefits by affected staff, changes in
regularly taking into consideration actual and projected initial assumptions as a result of subsequent mergers and
payments. Adjustments are made to increase or decrease alterations of business plans.
these accruals as needed. Reversals of expenses can reflect a
The following table presents a summary of activity with respect to the Firstar/USBM merger:
Severance Systems Asset
and Conversions Write-downs Balance
Employee- and and Lease Sheet
(Dollars in Millions) Related Integration Terminations Restructurings Other Total
Balance at December 31, 2001 **************************** $ 88.3 $ — $ 33.1 $ 2.1 $ .8 $ 124.3
Provision charged to operating expense ***************** 4.1 197.0 104.0 (38.8) 4.8 271.1
Cash outlays ***************************************** (83.5) (197.0) (47.3) — (.1) (327.9)
Noncash write-downs and other ************************ 9.7 — (89.8) 36.7 (5.5) (48.9)
Balance at December 31, 2002 **************************** $ 18.6 $ — $ — $ — $ — $ 18.6
The components of the merger and restructuring-related accruals for all acquisitions were as follows:
December 31,
(Dollars in Millions) 2002 2001
Severance *********************************************************************************************** $30.2 $106.3
Other employee-related costs ****************************************************************************** 3.1 4.7
Lease termination and facility costs ************************************************************************* 17.2 64.3
Contracts and system write-offs **************************************************************************** .5 18.3
Other **************************************************************************************************** 1.1 11.8
Total ************************************************************************************************* $52.1 $205.4
U.S. Bancorp 75