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NOTE 22 Restructuring Charges
During 2005 and 2004, the Company recorded restruc-
turing charges consisting of employee severance obliga-
tions and other exit costs (principally relating to the early
termination of certain real property leases). The charges
reflect expenses in connection with several initiatives
relating principally to the restructuring of the Company’s
business travel and international operations and the relo-
cation of certain functions in the Company’s finance and
technologies operations. The charges related to severance
obligations are included in human resources and the
other exit costs are included in occupancy and equip-
ment, professional services and other expenses in the
Company’s Consolidated Statements of Income for the
years ended December 31, 2005 and 2004. As of
December 31, 2005, other liabilities included $107 mil-
lion related to the aggregate restructuring charges
recorded for future cash outlays expected to be paid out
prior to the end of 2006. The following tables summarize
by category the Company’s restructuring activity for each
of the Company’s operating segments.
2004 Restructuring Charges Cash paid during 2004
Liability balance at
December 31, 2004
(Millions) Severance Other Total Severance Other Total Severance Other Total
U.S. Card Services $— $— $— $— $— $— $— $— $—
International Card &
Global Commercial
Services 71 19 90 8 6 14 63 13 76
Global Network &
Merchant Services — — — ——— ———
Corporate & Other 5 4 9 246 3—3
Total $76 $23 $99 $10 $10 $20 $66 $13 $79
Liability balance at
December 31, 2004 2005 Restructuring Charges Cash paid during 2005
Liability balance at
December 31, 2005
(Millions) Severance Other Total Severance Other Total Severance Other Total Severance Other Total
U.S. Card Services $ — $ — $ — $10$—$10 $6$—$6 $4$—$4
International Card &
Global Commercial
Services 63 13 76 88 12 100 103 21 124 48 4 52
Global Network &
Merchant Services — — — 3— 3 1— 1 2— 2
Corporate & Other 3 — 3 63 17 80 22 12 34 44 5 49
Total $ 66 $ 13 $ 79 $ 164 $ 29 $ 193 $ 132 $ 33 $ 165 $ 98 $ 9 $ 107
Notes to Consolidated
Financial Statements
AXP / AR.2005
[100 ]