XML 41 R13.htm IDEA: XBRL DOCUMENT

Strategic Initiatives

12 Months Ended

Dec. 31, 2011

4. Strategic Initiatives

As discussed in prior filings, we have historically performed several comprehensive evaluations of the strategies and opportunities of our operations. As a result of these various evaluations, we discontinued all new customer account originations in our Consumer Lending and Mortgage Services businesses. As discussed more fully in Note 3, “Discontinued Operations,” in August 2011 we announced we had entered into an agreement to sell our Card and Retail Services business and as a result, this business is now reported within discontinued operations. There were no other significant strategic actions related to our continuing operations during 2011 or 2010.

During 2009, we undertook a number of strategic actions for our continuing operations including the following:

>

Throughout 2009, we decided to exit certain lease arrangements and consolidate a variety of locations across the United States. The process of closing and consolidating these facilities, which began during the second quarter of 2009, was completed during the fourth quarter of 2010. As a result, we have exited certain facilities and/or significantly reduced our occupancy space in the following locations: Elmhurst, Illinois; Sioux Falls, South Dakota and Tampa, Florida. Additionally, we have consolidated our operations in Virginia Beach, Virginia into our Chesapeake, Virginia facility and consolidated certain servicing functions previously performed in Brandon, Florida to facilities in Buffalo, New York and Elmhurst, Illinois.

>

In late February 2009, we decided to discontinue new customer account originations for all products by our Consumer Lending business and close all branch offices.

The following summarizes the changes in the restructure liability during the years ended December 31, 2011 and 2010, respectively, relating to actions implemented during 2009:


	One-Time Termination and Other Employee Benefits			Lease Termination and Associated Costs			Other			Total
	(in millions)
Year ended December 31, 2011:
Restructuring liability at January 1, 2011	$	4		$	1		$	-		$	5
Restructuring costs recorded during the period		-			-			-			-
Restructuring costs paid during the period		-			(1	)		-			(1	)
Adjustments to the restructure liability during the period		(1	)		-			-			(1	)

Restructure liability at December 31, 2011	$	3		$	-		$	-		$	3

Year ended December 31, 2010:
Restructuring liability at January 1, 2010	$	9		$	9		$	2		$	20
Restructuring costs recorded during the period		1			-			-			1
Restructuring costs paid during the period		(6	)		(7	)		-			(13	)
Adjustments to the restructure liability during the period		-			(1	)		(2	)		(3	)

Restructure liability at December 31, 2010	$	4		$	1		$	-		$	5

Summary of Strategic Initiatives The table below summarizes the net cash and non-cash expenses recorded for all restructuring activities during the years ended December 31, 2011, 2010 and 2009.


	One-Time Termination and Other Employee Benefits⁽¹⁾			Lease Termination and Associated Costs⁽²⁾			Other⁽³⁾			Fixed Assets and Other Non-Cash Adjustments⁽⁴⁾		Total
	(in millions)
Year ended December 31, 2011:
2009 Facility Closures	$	-		$	-		$	-		$	-	$	-
2009 Consumer Lending Closure		(1	)		-			-			-		(1	)

Total expense release	$	(1	)	$	-		$	-		$	-	$	(1	)

Year ended December 31, 2010:
2009 Consumer Lending Closure		1			(1	)		(2	)		-		(2	)
2007 Mortgage Services initiatives⁽⁵⁾		-			(14	)		-			-		(14	)

Total expense release	$	1		$	(15	)	$	(2	)	$	-	$	(16	)

Year ended December 31, 2009:
2009 Facility Closures	$	4		$	1		$	-		$	-	$	5
2009 Consumer Lending Closure⁽⁶⁾		73			53			11			14		151

Total expense release	$	77		$	54		$	11		$	14	$	156

⁽¹⁾	One-time termination and other employee benefits are included as a component of Salaries and employee benefits in the consolidated statement of income (loss).

⁽²⁾	Lease termination and associated costs are included as a component of Occupancy and equipment expenses in the consolidated statement of income (loss).

⁽³⁾	The other expenses are included as a component of Other servicing and administrative expenses in the consolidated statement of income (loss).

⁽⁴⁾

Includes $29 million fixed asset write-offs during 2009, which were recorded as a component of Other servicing and administrative expenses in the consolidated statement of income (loss). Other expenses during 2009 also includes $3 million relating to stock based compensation and other benefits, a curtailment gain of $16 million and a reduction of pension expense of $2 million which were recorded as a component of Salaries and employee benefits in the consolidated statement of income (loss).

⁽⁵⁾	During 2007 as it relates to our Mortgage Services business, we discontinued correspondent channel acquisitions and ceased operations of Decision One Mortgage Company.

⁽⁶⁾	Excludes intangible asset impairment charges of $14 million recorded during 2009.

- 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.

+ References+ Details