Restructuring Charges

3 Months Ended

Mar. 31, 2013

Restructuring charges

The aggregate restructuring charge is included in the merger and integration, litigation and restructuring charges expense category on the income statement and reported in the Other segment as restructuring charges are corporate initiatives and not directly related to the operating performance of the businesses. Severance payments are primarily paid over the salary continuance period in accordance with the separation plan.

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. In the first quarter of 2013, we recorded a net charge of $5 million reflecting additional severance charges. The following table presents the activity in the restructuring reserve related to the operational excellence initiatives through March 31, 2013.



Operational excellence initiatives 2011 – restructuring reserve activity
(in millions)	Severance			Other			Total
Original restructuring charge	$	78		$	29		$	107
Net additional charges (net recovery/gain)	55			(57		)	(2		)
Utilization	(41		)	28			(13		)
Balance at Dec. 31, 2012	$	92		$	—		$	92
Net additional charges	5			—			5
Utilization	(13		)	—			(13		)
Balance at March 31, 2013	$	84		$	—		$	84

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)	1Q13		4Q12			Total charges since inception
Investment Management	$	1	$	28		$	49
Investment Services	—		21			60
Other segment (including Business Partners)	4		(47		)	1
Total restructuring charge	$	5	$	2		$	110

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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