First Data 2011 Annual Report Download - page 31
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The following table summarizes the Company's utilization of restructuring accruals for the years ended December 31, 2010 and
2011 (in millions):
Employee
Severance
Facility
Closure
Remaining accrual as of January 1, 2010 $ 58.5 $ 0.2
Expense provision 86.7 0.6
Cash payments and other (91.2) (0.4)
Changes in estimates (15.3)(0.2)
Remaining accrual as of December 31, 2010 38.7 0.2
Expense provision 45.0 6.3
Cash payments and other (60.9) (5.5)
Changes in estimates (4.8)(0.1)
Remaining accrual as of December 31, 2011 $ 18.0 $ 0.9
2010 Activities.
Pretax Benefit (Charge)
Year ended December 31, 2010
(in millions)
Retail and
Alliance
Services
Financial
Services International
All Other
and
Corporate Totals
Restructuring charges $ (20.3) $ (11.3) $ (28.2) $ (27.7) $ (87.5)
Restructuring accrual reversals 0.7 0.8 10.9 3.1 15.5
Impairments (1.6) — (9.9) — (11.5)
Litigation and regulatory settlements — 2.0 — — 2.0
Total pretax charge, net of reversals $ (21.2)$ (8.5)$ (27.2)$ (24.6)$ (81.5)
The 2010 restructurings resulted from the elimination of management and other positions, approximately 1,200 employees, as
part of the Company aligning the business with strategic objectives as well as domestic site consolidations and the reorganization of
executive officers. Partially offsetting the charges were reversals of excess 2008 and 2009 restructuring accruals as well as reversals
resulting from the refinement of 2010 estimates.
In the fourth quarter of 2010, within Retail and Alliance Services, the Company recorded approximately $1.6 million in
impairment charges related to other intangibles. Also during the fourth quarter of 2010, the Company recorded approximately $9.9
million in asset impairment charges related to the International segment. Approximately $6.2 million of the total impairment occurred
because the Company did not complete a software project and determined that there were no likely alternative uses for the software.
The remaining $3.7 million of impairment charges resulted from the write off of assets the Company determined have no future use or
value.
2009 Activities.
Pretax Benefit (Charge)
Year ended December 31, 2009
(in millions)
Retail and
Alliance
Services
Financial
Services International
All Other
and
Corporate
Divested
Operations Totals
Restructuring charges $ (15.9) $ (14.5) $ (49.2) $ (22.0) $ (0.5) $ (102.1)
Restructuring accrual reversals 4.2 1.7 2.9 0.5 — 9.3
Impairments — — (131.9) (53.2) — (185.1)
Litigation and regulatory
settlements — (14.5)— 2.7 — (11.8)
Total pretax charge, net of reversals $ (11.7)$ (27.3)$ (178.2)$ (72.0)$ (0.5)$ (289.7)
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