Expenses

Severance Costs:

In the three months ended March 31, 2014, we recorded $72 million of severance costs. These severance costs were the result of staff reductions associated with the realignment of our cost base, and were recorded in compensation and employee benefits expenses in our consolidated statement of income.

Acquisition and Restructuring Costs:

The following table presents net acquisition and restructuring costs recorded in the periods indicated:



	Three Months Ended March 31,
(In millions)	2014		2013
Acquisition costs	$	21	$	15
Restructuring charges, net	12		(1		)
Total acquisition and restructuring costs	$	33	$	14

Acquisition Costs

Acquisition costs recorded in the three months ended March 31, 2014 and 2013 were related to previously disclosed acquisitions.

Restructuring Charges

Information with respect to our Business Operations and Information Technology Transformation program and our 2012 expense control measures, including charges, employee reductions and aggregate activity in the related accruals, is provided in the two sections that follow.

Business Operations and Information Technology Transformation Program

In November 2010, we announced a global multi-year Business Operations and Information Technology Transformation program. The program includes operational, information technology and targeted cost initiatives, including plans related to reductions in both staff and occupancy costs. To date, we have recorded aggregate restructuring charges of $390 million in our consolidated statement of income, composed of $156 million in 2010, $133 million in 2011, $67 million in 2012, $25 million in 2013 and $9 million in the three months ended March 31, 2014.

The charges related to the program included costs related to severance, benefits and outplacement services, as well as costs which resulted from actions taken to reduce our occupancy costs through the consolidation of leases and properties. The charges also included costs related to information technology, including transition fees associated with the expansion of our use of third-party service providers associated with components of our information technology infrastructure and application maintenance and support.

In 2010, in connection with the program, we initiated the involuntary termination of 1,400 employees, or approximately 5% of our global workforce, which we completed by the end of 2011. In addition, in connection with our announcement in 2011 of the expansion of our use of third-party service providers associated with our information technology infrastructure and application maintenance and support, as well as the continued execution of the business operations transformation component of the program, we identified 1,436 additional involuntary terminations. As of March 31, 2014, we eliminated 1,375 of these positions.

Expense Control Measures

In December 2012, in connection with expense control measures designed to better align our expenses to our business strategy and related outlook for 2013, we identified additional targeted staff reductions. As a result of these actions, we have recorded aggregate pre-tax restructuring charges of $133 million in 2012, $3 million in 2013 and $3 million in the three months ended March 31, 2014 in our consolidated statement of income. Employee-related costs included severance, benefits and outplacement services. Costs for asset and other write-offs were primarily related to contract terminations. We originally identified involuntary terminations of 960 employees (630 positions after replacements). As of March 31, 2014, we substantially completed these reductions.

Aggregate Restructuring-Related Accrual Activity

The following table presents aggregate activity associated with accruals that resulted from the charges associated with the Business Operations and Information Technology Transformation program and expense control measures:



(In millions)	Employee- Related Costs			Real Estate Consolidation			Asset and Other Write-Offs			Total
Balance as of December 31, 2013	$	50		$	49		$	7		$	106
Additional accruals for Business Operations and Information Technology Transformation program	6			3			—			9
Additional accruals for 2012 expense control measures	—			—			3			3
Payments and adjustments	(17		)	(12		)	(2		)	(31		)
Balance as of March 31, 2014	$	39		$	40		$	8		$	87