First Data 2011 Annual Report Download - page 76

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Note 2: Restructuring, Impairments, and Litigation and Regulatory Settlements
The Company recorded restructuring charges, impairment charges, and litigation and regulatory settlements during the three
years ended December 31, 2011. Restructuring accruals are reviewed each period and balances in excess of anticipated requirements
are reversed through the same Consolidated Statements of Operations caption in which they were originally recorded. Such reversals
resulted from the favorable resolution of contingencies and changes in facts and circumstances.
A summary of net pretax benefits (charges), incurred by segment, for each period is as follows:
Pretax Benefit (Charge)
(in millions)
Retail and
Alliance
Services
Financial
Services International
All Other
and
Corporate Divested Totals
Year ended December 31, 2011
Restructuring charges $ (2.8) $ (10.5) $ (34.2) $ (3.8) $ — $ (51.3)
Restructuring accrual reversals 1.1 — 2.5 1.3 — 4.9
Litigation and regulatory
settlements — — — 2.5 — 2.5
Total pretax charge, net of
reversals $ (1.7) $ (10.5) $ (31.7) $ — $ — $ (43.9)
Year ended December 31, 2010
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)
Year ended December 31, 2009
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)
Restructuring Charges
2011. The 2011 restructurings resulted from the elimination of management and other positions, approximately 750 employees,
as part of the Company aligning the business with strategic objectives. Similar initiatives are expected to occur in future periods
resulting in additional restructuring charges. Partially offsetting the charges were reversals of excess 2009 and 2010 restructuring
accruals as well as reversals resulting from the refinement of 2011 estimates.
2010. 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.
2009. The 2009 restructurings resulted from the elimination of management and other positions, approximately 1,700
employees, as part of the Company's cost saving initiatives as well as domestic site consolidations and the elimination of certain
information technology positions. The Company incurred additional charges through 2010 related to these plans. Partially offsetting
the charges are reversals of 2009 and 2008 restructuring accruals related to the Company's change in strategy related to global labor
sourcing initiatives as well as refining previously recorded estimates.
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