Western Union 2009 Annual Report Download - page 107

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The decision also resulted in the elimination of certain management positions in these same facilities and
resulted, along with other actions, in the Company no longer having employees working in the United States
under a collective bargaining agreement.
The Company incurred severance and employee related benefit expenses for all union and certain affected
management employees, facility closure expenses and other expenses associated with the relocation of these
operations to existing Company facilities and third-party providers, including costs related to hiring, training,
relocation, travel and professional fees.
The Company incurred cumulative total expenses of $46.3 million comprised of $13.1 million,
$7.3 million, $7.8 million and $18.1 million in severance and other employee related costs, asset write-offs
and incremental depreciation, lease terminations and other restructuring expenses, respectively, through
December 31, 2008. No additional restructuring and related expenses were incurred in the year ended
December 31, 2009.
Other Reorganizations
Also during 2008, in addition to the Missouri and Texas closures, the Company restructured some of its
operations and relocated or eliminated certain shared service and call center positions. The relocated positions
were moved to the Company’s existing facilities or outsourced service providers in 2008.
The Company incurred cumulative total expenses of $36.6 million comprised of $31.2 million,
$0.6 million and $4.8 million in severance and other employee related costs, asset write-offs and incremental
depreciation and other restructuring expenses, respectively, through December 31, 2008. No additional
restructuring and related expenses were incurred in the year ended December 31, 2009.
Total Plans
At December 31, 2008, the Company had a restructuring accrual of $25.8 million related to these plans,
of which $24.8 million represented an accrual for severance and employee related expenses. During 2009,
substantially all of the accruals were paid resulting in a remaining restructuring accrual which was immaterial
at December 31, 2009. The Company did not incur any material restructuring and related expenses in the year
ended December 31, 2009. Restructuring and related expenses were reflected in the Consolidated Statement of
Income for the year ended December 31, 2008 as follows (in millions):
Year Ended
December 31, 2008
Cost of services ........................................... $62.8
Selling, general and administrative ............................. 20.1
Total restructuring and related expenses, pre-tax ................... $82.9
Total restructuring and related expenses, net of tax ................. $51.6
While these items were identifiable to the Company’s segments, these expenses were excluded from the
measurement of segment operating profit provided to the chief operating decision maker (“CODM”) for
purposes of assessing segment performance and decision making with respect to resource allocation. Of the
Company’s total restructuring and related expenses of $82.9 million, $56.1 million, $23.4 million and
$3.4 million are attributable to the Company’s consumer-to-consumer, global business payments and other
segments, respectively.
93
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)