Severance and Leased Real Estate

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Severance and Leased Real Estate

Severance and Leased Real Estate

Periodically, we reduce our workforce and accrue liabilities for the related severance costs. These workforce reductions result primarily from the progression or completion of our post-acquisition integration plans, increased competitive pressures, cost reduction initiatives, process improvements through automation and reduced workload demands due to the loss of customers purchasing certain services.

We have recognized liabilities to reflect our estimates of the fair values of the existing lease obligations for real estate which we have ceased using, net of estimated sublease rentals. At September 30, 2018, the current and noncurrent portions of our leased real estate accrual were $21 million and $87 million, respectively. The remaining lease terms range from 0.26 years to 12.3 years, with a weighted-average of 7.0 years.

Changes in our accrued liabilities for severance expenses and leased real estate were as follows:

	Severance			Real Estate
	(Dollars in millions)
Balance at December 31, 2017	$	33		64
Accrued to expense	126			60
Payments, net	(137		)	(16	)
Balance at September 30, 2018	$	22		108