Productivity and Cost-Savings Initiatives Expenses

In the fourth quarter of 2012, the Company began implementing additional initiatives to improve productivity and reduce costs. Additional productivity and cost-savings initiatives were implemented in the first two quarters of 2013 and will be implemented in the remainder of 2013.

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 June 30, 2013 and the total expenses expected to be incurred (in millions):



	Severance, Outplacement and Related Benefits			Other (b)			Total
Balance, December 31, 2012	$	25.7		$	1.6		$	27.3
Expenses (a)	11.0			6.7			17.7
Cash payments	(12.0		)	(5.1		)	(17.1		)
Non-cash benefit/(expense) (a)	0.2			(0.2		)	—
Balance, June 30, 2013	$	24.9		$	3.0		$	27.9

Cumulative expenses incurred to date	$	39.9		$	8.7		$	48.6
Estimated additional expenses expected to be incurred	7.0			20.0			27.0
Total expenses	$	46.9		$	28.7		$	75.6

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(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 or will be recorded when incurred.

The following table presents expenses related to productivity and cost-savings initiatives as reflected in the Condensed Consolidated Statements of Income (in millions):



	Three Months Ended June 30,		Six Months Ended June 30,
	2013		2013
Cost of services	$	7.8	$	9.4
Selling, general and administrative	5.7		8.3
Total expenses, pre-tax	$	13.5	$	17.7
Total expenses, net of tax	$	9.0	$	12.3

There were no expenses related to productivity and cost-savings initiatives incurred during the three and six months ended June 30, 2012.

The following table summarizes expenses related to productivity and cost-savings initiatives incurred by reportable segment (in millions):



	Consumer-to-Consumer		Consumer-to-Business		Business Solutions		Other		Total
2012 expenses	$	20.9	$	4.0	$	—	$	6.0	$	30.9
First quarter 2013	3.2		0.5		—		0.5		4.2
Second quarter 2013	11.7		1.4		0.1		0.3		13.5
Cumulative expenses incurred to date	$	35.8	$	5.9	$	0.1	$	6.8	$	48.6