Note 14. Acquisition and Restructuring Costs

For the three and six months ended June 30, 2011, we recorded acquisition and restructuring costs of $17 million and $36 million, respectively. For the three and six months ended June 30, 2010, we recorded acquisition and restructuring costs of $41 million and $54 million, respectively. The costs for the three and six months ended June 30, 2011 were composed of $13 million and $27 million, respectively, of integration costs related to the acquired Intesa, MIFA and BIAM businesses, and $4 million and $9 million, respectively, of restructuring charges related to the business operations and information technology transformation program described below. The 2010 costs were composed of integration costs associated with acquisitions.

In November 2010, we announced a global multi-year program designed to enhance service excellence and innovation, deliver increased efficiencies in our operating model and position us for accelerated growth. The program includes operational and information technology enhancements and targeted cost initiatives, including planned reductions in both staff and occupancy costs. We initiated the first reduction in force in December 2010, which we expect to be substantially completed by the end of 2011. In connection with the reduction in force, during the first six months of 2011, approximately 425 employees were involuntarily terminated and left State Street.

The following table presents activity related to restructuring-related accruals:


(In millions)	Employee- Related Costs			Real Estate Consolidation			Total
Balance at December 31, 2010	$	90		$	47		$	137
Additional restructuring-related accruals		6			3			9
Payments and adjustments		(49	)		(4	)		(53	)

Balance at June 30, 2011	$	47		$	46		$	93