Western Union 2013 Annual Report Download - page 215

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
105
3. Productivity and Cost-Savings Initiatives and Restructuring and Related Expenses
Productivity and Cost-Savings Initiatives
In the fourth quarter of 2012 and throughout 2013, the Company implemented initiatives to improve productivity and reduce
costs. Costs related to these productivity and cost-savings initiatives include costs related to termination benefits received by certain
of the Company's former executives. The following table summarizes the activity for the employee termination benefits and other
costs related to the productivity and cost-savings initiatives accruals as of and for the years ended December 31, 2013 and 2012
(in millions):
Severance,
Outplacement
and Related
Benefits Other (b) Total
Balance, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Expenses (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.9 2.0 30.9
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.2)(0.4)(5.6)
Non-cash benefit (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 — 2.0
Balance, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25.7 $ 1.6 $ 27.3
Expenses (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.8 16.1 56.9
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25.3)(16.5)(41.8)
Non-cash benefit/(expense) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 (0.2) 4.0
Balance, December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45.4 $ 1.0 $ 46.4
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69.7 $ 18.1 $ 87.8
____________
(a) Expenses include a non-cash benefit for adjustments to stock compensation for awards forfeited by employees. Other expenses
also include non-cash write-offs and accelerated depreciation of fixed assets and leasehold improvements. These amounts
were recognized outside of the accrual.
(b) Other expenses primarily related to the relocation of various operations to new and existing Company facilities and third-
party providers including expenses for hiring, training, relocation, travel and professional fees. All such expenses were recorded
when incurred.
2010 Restructuring
On May 25, 2010 and as subsequently revised, the Company's Board of Directors approved a restructuring plan (the
"Restructuring Plan") designed to reduce the Company's overall headcount and migrate positions from various facilities, primarily
within North America and Europe, to regional operating centers. As of December 31, 2011, the Company had incurred all of the
expenses related to the Restructuring Plan. The Company incurred expenses of $46.8 million, comprised of $26.1 million, $1.3
million, $3.5 million and $15.9 million in severance, outplacement and related benefits, fixed asset write-offs and accelerated
depreciation, lease terminations and other restructuring expenses, respectively, for the year ended December 31, 2011.
As of December 31, 2011, the Company had a restructuring accrual of $13.9 million related to this plan, of which $13.7 million
represented an accrual for severance, outplacement and related benefits. Substantially all of the accrual was paid in 2012, resulting
in a remaining restructuring accrual which was immaterial as of December 31, 2012.