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Restructuring Charges
 3 Months Ended
Mar. 31, 2015
Restructuring Charges [Abstract]  
Restructuring Charges
Restructuring charges

Aggregate restructuring charges are included in M&I, litigation and restructuring charges on the income statement. Restructuring charges recorded in 2014 relate to corporate-level initiatives and were therefore recorded in the Other segment. Severance payments are primarily paid over the salary continuance period in accordance with the separation plan. In the first quarter of 2015, we recorded total restructuring recoveries of $4 million primarily related to severance.

Streamlining actions

In the second quarter of 2014, we disclosed streamlining actions which included rationalizing our staff and simplifying and automating global processes primarily related to actions taken across investment services, technology, and operations. The initial restructuring charge consisted of $125 million of severance costs. In the first quarter of 2015, we recorded total restructuring recoveries of $2 million primarily related to severance. The following table presents the activity in the reserve through March 31, 2015.

Streamlining actions 2014 – restructuring reserve activity
(in millions)
Total

Original restructuring charge
$
125

Net additional charges
59

Utilization
(92
)
Balance at Dec. 31, 2014
$
92

Net additional (recoveries)
(2
)
Utilization
(25
)
Balance at March 31, 2015
$
65




The table below presents the restructuring charge if it had been allocated by business.

Streamlining actions 2014 – restructuring charge by business
Total charges since inception

(in millions)
1Q15

4Q14

Investment Management
$
—

$
1

$
23

Investment Services
2

(16
)
85

Other segment (including Business Partners)
(4
)
21

74

Total restructuring charge (recovery)
$
(2
)
$
6

$
182




Operational Excellence Initiatives

In 2011, we announced our Operational Excellence Initiatives which include an expense reduction initiative impacting approximately 1,500 positions, as well as additional initiatives to transform operations, technology and corporate services that will increase productivity and reduce the growth rate of expenses. We recorded a pre-tax restructuring charge of $107 million related to the Operational Excellence Initiatives in 2011. This charge consisted of $78 million of severance costs and $29 million primarily for operating lease-related items and consulting costs. In the first quarter of 2015, we recorded a recovery of $2 million. The following table presents the activity in the restructuring reserve related to the Operational Excellence Initiatives through March 31, 2015.

Operational Excellence Initiatives 2011 – restructuring reserve activity
(in millions)
Severance

Other

Total

Original restructuring charge
$
78

$
29

$
107

Net additional charges (net recovery/gain)
93

(57
)
36

Utilization
(143
)
28

(115
)
Balance at Dec. 31, 2014
28

—

28

Net additional (recoveries)
(2
)
—

(2
)
Utilization
(4
)
—

(4
)
Balance at March 31, 2015
$
22

$
—

$
22




The table below presents the restructuring charge if it had been allocated by business.

Operational Excellence Initiatives 2011 – restructuring charge (recovery) by business
Total charges since inception

(in millions)
1Q15

4Q14

Investment Management
$
—

$
1

$
51

Investment Services
—

(2
)
84

Other segment (including Business Partners)
(2
)
(5
)
6

Total restructuring charge (recovery)
$
(2
)
$
(6
)
$
141