Restructuring Charges

9 Months Ended

Sep. 30, 2022


Note 19: Restructuring Charges

The Company began pursuing various initiatives to reduce expenses and create a more efficient and streamlined organization in third quarter 2020. Actions from these initiatives included (i) reorganizing and simplifying business processes and structures to improve internal operations and the customer experience, (ii) reducing headcount, (iii) optimizing third-party spending, including for our technology infrastructure, and (iv) rationalizing our branch and administrative locations, which may include consolidations and closures. Substantially all of the restructuring charges were personnel expenses related to severance costs associated with headcount reductions with

payments made over time in accordance with our severance plan, as well as payments for other employee benefit costs such as incentive compensation.

Restructuring charges are recorded as a component of noninterest expense on our consolidated statement of income. Changes in estimates represent adjustments to noninterest expense based on refinements to previously estimated amounts, which may reflect trends such as higher voluntary employee attrition, as well as changes in business activities.

Table 19.1 provides details on our restructuring charges.

Table 19.1: Accruals for Restructuring Charges


	Quarter ended September 30,			Nine months ended September 30,
(in millions)	2022		2021	2022		2021
Balance, beginning of period	$	375	804	$	565	1,214
Restructuring charges	—		244	—		547
Changes in estimates	—		(243)	5		(537)
Payments and utilization	(108)		(149)	(303)		(568)
Balance, end of period	$	267	656	$	267	656