Note 14. Acquisition and Restructuring Costs

For the three and nine months ended September 30, 2011, we recorded acquisition and restructuring costs of $85 million and $121 million, respectively. For the three and nine months ended September 30, 2010, we recorded acquisition and restructuring costs of $23 million and $77 million, respectively. The costs for the three and nine months ended September 30, 2011 were composed of integration costs of $19 million and $46 million, respectively, related to the acquired Intesa, MIFA and BIAM businesses, and restructuring costs of $66 million and $75 million, respectively, 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 business operations and information technology transformation program. The program includes operational and information technology enhancements and targeted cost initiatives, including plans related to reductions in both staff and occupancy costs. To date, we have recorded aggregate pre-tax restructuring charges of $231 million, composed of $156 million in 2010 and $75 million in the first nine months of 2011, including $66 million in the third quarter of this year.

The charges related to the program include costs associated with severance, benefits and outplacement services, as well as costs which resulted from actions taken to consolidate real estate. In addition, the program includes charges for costs related to information technology, including transition fees associated with the expansion of our use of service providers associated with components of our information technology infrastructure and application maintenance and support.

In 2010, in connection with the program, we initiated a reduction of 1,400 employees, or approximately 5% of our global workforce, which we expect to have substantially completed by the end of 2011. In addition, in the third quarter of 2011, in connection with the above-described expansion of our use of service providers associated with planned enhancements to our information technology infrastructure, we identified approximately 530 employees who will be provided with severance and outplacement services as their roles are eliminated. As of September 30, 2011, in connection with the planned aggregate staff reductions of 1,930 employees described above, approximately 1,260 employees had been involuntarily terminated and left State Street, including approximately 710 employees during the first nine months of 2011.

The following table presents activity associated with restructuring-related accruals:


(In millions)	Employee- Related Costs			Real Estate Consolidation			IT Transition Costs			Total
Initial accrual	$	105		$	51		$	—		$	156
Payments		(15	)		(4	)		—			(19	)
Balance at December 31, 2010		90			47			—			137
Additional restructuring-related accruals		53			5		$	17			75
Payments		(66	)		(12	)		(4	)		(82	)

Balance at September 30, 2011	$	77		$	40		$	13		$	130