The Company is regularly evaluating ways to deliver its products and services more efficiently and at a lower cost. During 2013 and 2012, the Company adopted specific plans to increase its organizational efficiency as follows.

2013 Plan. During the fourth quarter of 2013, the Company committed to a plan to increase its organizational efficiency and reduce costs through a series of actions that includes employee headcount reductions. As a result, the Company recognized charges in other operating expenses of $60 million pre-tax ($40 million after-tax) in the fourth quarter of 2013, primarily for severance costs. We expect most of the severance to be paid by the end of 2015.

2012 Plan. During the third quarter of 2012, in connection with the execution of its strategy, the Company committed to a series of actions to further improve its organizational alignment, operational effectiveness, and efficiency. As a result, the Company recognized charges in other operating expenses of $77 million pre-tax ($50 million after-tax) in the third quarter of 2012 consisting primarily of severance costs. As of March 31, 2014, the costs associated with this plan have been substantially paid.

Summarized below is activity for these plans for 2013 and the first quarter of 2014.

(In millions)		Severance		Real estate		Total
Balance, January 1, 2013	$	67	$	4	$	71
Fourth quarter 2013 charge		47		13		60
Less: 2013 Payments		46		4		50
Balance, December 31, 2013		68		13		81
Less: First quarter 2014 payments		11		1		12
Balance, March 31, 2014	$	57	$	12	$	69