Restructuring and Related Expenses

6 Months Ended

Jun. 30, 2011

Restructuring and Related Expenses [Abstract]

Restructuring and Related Expenses

4.  Restructuring and Related Expenses

On May 25, 2010 and as subsequently revised, the Company’s Board of Directors approved a restructuring plan (the “Restructuring Plan”) designed to reduce the Company’s overall headcount and migrate positions from various facilities, primarily within North America and Europe, to regional operating centers. Details of the estimated expenses are included in the tables below. Included in these estimated expenses are approximately $2 million of non-cash expenses related to fixed asset and leasehold improvement write-offs and accelerated depreciation at impacted facilities. The Company expects all of these activities to be completed by the end of the third quarter of 2011. The foregoing figures are the Company’s estimates and are subject to change as the Restructuring Plan continues to be implemented.

The following table summarizes the activity for the restructuring and related expenses discussed above for the six months ended June 30, 2011, the related restructuring accruals at June 30, 2011 and December 31, 2010 and a reconciliation between the cumulative amount incurred through June 30, 2011 and the total expenses expected to be incurred (in millions):

	Severance,			Fixed Asset
	Outplacement			Write-Offs and
	and Related			Accelerated			Lease
	Benefits			Depreciation			Terminations			Other(b)			Total
Balance, December 31, 2010	$	34.3		$	—		$	—		$	1.1		$	35.4
Expenses (a)		22.1			1.3			1.7			7.8			32.9
Cash payments		(25.3	)		—			(1.7	)		(8.3	)		(35.3	)
Non-cash charges (a)		1.2			(1.3	)		—			—			(0.1	)
Balance, June 30, 2011	$	32.3		$	—		$	—		$	0.6		$	32.9
Cumulative expenses incurred to date	$	70.8		$	2.2		$	1.7		$	17.7		$	92.4
Estimated additional expenses expected to be incurred		4.2			—			2.3			6.1			12.6
Total expenses	$	75.0		$	2.2		$	4.0		$	23.8		$	105.0

(a)	Expenses include non-cash write-offs and accelerated depreciation of fixed assets and leasehold improvements. However, these amounts were recognized outside of the restructuring accrual.
(b)	Other expenses related to the relocation of various operations to new and existing Company facilities including expenses for hiring, training, relocation, travel and professional fees. All such expenses will be recorded when incurred.

Restructuring and related expenses are reflected in the Condensed Consolidated Statements of Income as follows (in millions):

	Three Months Ended		Six Months Ended		Three and Six Months Ended
	June 30, 2011		June 30, 2011		June 30, 2010
Cost of services	$	0.5	$	7.4	$	9.4
Selling, general and administrative		8.4		25.5		25.1
Total restructuring and related expenses, pre-tax	$	8.9	$	32.9	$	34.5
Total restructuring and related expenses, net of tax	$	5.9	$	22.3	$	22.4

The following table summarizes the restructuring and related expenses, including expenses recorded to date, along with the additional expenses expected to be incurred, by reportable segment (in millions). These expenses have not been allocated to the Company’s segments disclosed in Note 15. While these items are identifiable to the Company’s segments, these expenses have been excluded from the measurement of segment operating profit provided to the chief operating decision maker (“CODM”) for purposes of assessing segment performance and decision making with respect to resource allocation.

			Global
	Consumer-to-		Business
	Consumer		Payments		Other		Total
2010 expenses	$	44.7	$	12.8	$	2.0	$	59.5
First quarter 2011		19.1		3.5		1.4		24.0
Second quarter 2011		6.8		1.8		0.3		8.9
Cumulative expenses incurred to date		70.6		18.1		3.7		92.4
Estimated additional expenses expected to be incurred		7.8		4.6		0.2		12.6
Total expenses	$	78.4	$	22.7	$	3.9	$	105.0

During both the three and six months ended June 30, 2010 $26.2 million of the restructuring expenses incurred were attributable to consumer-to consumer, $6.9 million to global business payments and $1.4 million to other for a total of $34.5 million.