Western Union 2010 Annual Report Download - page 93

The following table summarizes the activity for the restructuring and related expenses discussed above and the
related restructuring accruals for the year ended December 31, 2010 (in millions):
Severance
and
Employee
Related
Fixed Asset
Write-Offs and
Accelerated
Depreciation
Lease
Terminations Other (b) Total
Balance, December 31, 2009 ...................... $ — $ — $ — $ — $ —
Expenses (a) .............................................. 48.7 0.9 — 9.9 59.5
Cash payments ........................................... (13.7) — — (8.8) (22.5)
Non-cash charges (a) .................................. (0.7) (0.9) — — (1.6)
Balance, December 31, 2010 ...................... $ 34.3 $ — $ — $ 1.1 $ 35.4
Cumulative expenses incurred to date .......... $ 48.7 $ 0.9 $ — $ 9.9 $ 59.5
Additional expenses expected to be
incurred ................................................. 31.3 1.1 8.0 10.1 50.5
Total expenses ........................................... $ 80.0 $ 2.0 $ 8.0 $ 20.0 $ 110.0
(a) Expenses include non-cash write-offs and accelerated depreciation of fixed assets and leasehold
improvements. However, these amounts were recognized outside of the restructuring accrual.
(b) Other expenses related to the relocation of various operations to new and existing Company facilities
including expenses for hiring, training, relocation, travel and professional fees. All such expenses will be
recorded when incurred.
2008 Plans
During 2008, the Company closed substantially all of its facilities in Missouri and Texas and did not renew the
Company’s collective bargaining agreement with the unionized workers employed at these locations. 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 also 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 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 $82.9 million comprised of $44.3 million, $7.9 million,
$7.8 million and $22.9 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.
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.
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