EXIT COSTS AND RESTRUCTURING RESERVES

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

For the three months ended March 31, 2015, the Company incurred $1 million of restructuring costs, consisting of $2 million of facilities costs in occupancy, $1 million in outside services, and a reversal of $2 million in salaries and employee benefits.

In 2014, the Company began the implementation of a restructuring initiative designed to achieve operating efficiencies and reduce expense growth. As a result of this program, the Company expects to incur additional restructuring costs of approximately $18 million through December 31, 2015, consisting of $13 million of employee compensation, $3 million of facilities costs and $2 million of other costs, primarily consulting and technology services. For the year ended December 31, 2014, the Company incurred $101 million of restructuring costs, $41 million consisting of employee compensation reported in salaries and employee benefits, $18 million of facilities costs (including $6 million of building impairment) in occupancy, $24 million in outside services, $6 million in software expense reported in amortization of software, and $12 million in other operating expenses.

Also in 2014, as a result of the sale of retail branches located in Illinois, the Company incurred total costs of approximately $17 million for the year ended December 31, 2014, consisting of $3 million of employee compensation reported in salaries and employee benefits, $3 million of fixed assets expenses reported in equipment, $4 million in outside services and $7 million in other operating expenses.

For segment reporting, all of these restructuring costs are reported within Other. See Note 19 “Business Segments” for further information.

The following table includes the activity in the exit costs and restructuring reserves:



(in millions)	Salaries & Employee Benefits			Occupancy & Equipment			Other			Total
Reserve balance as of January 1, 2014		$2			$24			$—			$26
Additions	43			24			57			124
Reversals	(1		)	(5		)	(4		)	(10		)
Utilization	(21		)	(25		)	(50		)	(96		)
Reserve balance as of December 31, 2014	23			18			3			44
Additions	—			2			1			3
Reversals	(2		)	—			—			(2		)
Utilization	(3		)	(3		)	(4		)	(10		)
Reserve balance as of March 31, 2015		$18			$17			$—			$35

- 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