Restructuring and Asset Impairment Charges

We continue to engage in a series of restructuring programs related to downsizing our employee base, exiting certain activities, outsourcing certain internal functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and impact all major geographies and segments. Management continues to evaluate our business, therefore, in future years, there may be additional provisions for new plan initiatives as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for those assets sold, abandoned or made obsolete as a result of these programs.

Costs associated with restructuring, including employee severance and lease termination costs are generally recognized when it has been determined that a liability has been incurred, which is generally upon communication to the affected employees or exit from the leased facility, respectively. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan, we recognize employee severance costs when they are both probable and reasonably estimable.

A summary of our restructuring program activity during the three years ended December 31, 2014 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽¹⁾			Total
Balance at December 31, 2011	$	116		$	7		$	—		$	123
Restructuring provision	156			5			2			163
Reversals of prior accruals	(13		)	—			(1		)	(14		)
Net current period charges - continuing operations⁽²⁾	143			5			1			149
Discontinued operations⁽³⁾	4			—			—			4
Total Net Current Period Charges	147			5			1			153
Charges against reserve and currency	(140		)	(5		)	(1		)	(146		)
Balance at December 31, 2012	123			7			—			130
Restructuring provision	141			2			1			144
Reversals of prior accruals	(29		)	—			—			(29		)
Net current period charges - continuing operations⁽²⁾	112			2			1			115
Discontinued operations⁽³⁾	7			—			—			7
Total Net Current Period Charges	119			2			1			122
Charges against reserve and currency	(133		)	(2		)	(1		)	(136		)
Balance at December 31, 2013	109			7			—			116
Restructuring provision	143			5			7			155
Reversals of prior accruals	(25		)	(2		)	—			(27		)
Net current period charges - continuing operations⁽²⁾	118			3			7			128
Discontinued operations⁽³⁾	2			—			—			2
Total Net Current Period Charges	120			3			7			130
Charges against reserve and currency	(136		)	(6		)	(7		)	(149		)
Balance at December 31, 2014	$	93		$	4		$	—		$	97

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(1)	Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.


(2)	Represents amount recognized within the Consolidated Statements of Income for the years shown.


(3)	Refer to Note 4 - Divestitures for additional information regarding discontinued operations.

The following table summarizes the reconciliation to the Consolidated Statements of Cash Flows:



	Year Ended December 31,
	2014			2013			2012
Charges against reserve	$	(149	)	$	(136	)	$	(146	)
Asset impairment	7			1			1
Effects of foreign currency and other non-cash items	9			(1		)	1
Restructuring Cash Payments	$	(133	)	$	(136	)	$	(144	)

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:



	Year Ended December 31,
	2014		2013		2012
Services	$	38	$	38	$	66
Document Technology	76		77		83
Other	14		—		—
Total Net Restructuring Charges	$	128	$	115	$	149