First Data 2013 Annual Report Download - page 71
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The Company recorded restructuring charges during the three years ended December 31, 2013. 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:
Restructuring charges 880 $ (17.9) $ (8.7) $ (1.7) $ (25.3) $ (53.6)
Restructuring accrual reversals 2.2 0.5 1.6 1.3 5.6
Total pretax charge, net of reversals $ (15.7) $ (8.2) $ (0.1) $ (24.0) $ (48.0)
Restructuring charges 650 $ (7.5) $ — $ (18.5) $ (2.2) $ (28.2)
Restructuring accrual reversals 1.0 — 2.8 1.3 5.1
Total pretax charge, net of reversals $(6.5) $ — $ (15.7) $ (0.9) $ (23.1)
Restructuring charges 750 $ (2.8) $ (10.5) $ (34.2) $ (3.8) $ (51.3)
Restructuring accrual reversals 1.1 — 2.5 1.3 4.9
Total pretax charge, net of reversals $(1.7)$(10.5)$(31.7)$ (2.5)$(46.4)
The Company recorded restructuring charges during 2013 in connection with management’s alignment of the business with strategic objectives
and cost savings initiatives as well as refinements of estimates. During 2013, the Company also recorded restructuring charges in connection with the
departure of executive officers. The Company expects to record additional charges in 2014 associated with similar events as well as certain relocation efforts in
the U.S.
The Company recorded restructuring charges during 2012 primarily related to employee reduction and certain employee relocation efforts in
Germany. Additional restructuring charges were recorded in 2012 in connection with management’s alignment of the business with strategic objectives as well
as refinements of estimates.
The 2011 restructurings resulted from the elimination of management and other positions as part of the Company aligning the business with
strategic objectives. Partially offsetting the charges were reversals of excess 2009 and 2010 restructuring accruals as well as reversals resulting from the
refinement of 2011 estimates.
The following table summarizes the Company’s utilization of restructuring accruals for the years ended December 31, 2012 and 2013:
Remaining accrual as of January 1, 2012 $16.7 $ 0.9
Expense provision 28.2 —
Cash payments and other (26.8) (0.8)
Changes in estimates (5.0)(0.1)
Remaining accrual as of December 31, 2012 13.1 —
Expense provision 53.6 —
Cash payments and other (40.0) —
Changes in estimates (5.6) —
Remaining accrual as of December 31, 2013 $ 21.1 $ —
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