American Express 2015 Annual Report Download - page 158

The following table summarizes the Company’s restructuring reserves activity for the years ended December 31,
2015, 2014 and 2013:
(Millions) Severance Other (a) Total
Liability balance as of December 31, 2012 .......................................... $ 412 $ 58 $ 470
Restructuring charges, net of $4 in revisions (b) ................................... (7) 3 (4)
Payments ................................................................... (206) (23) (229)
Other non-cash (c) ............................................................ (3) (1) (4)
Liability balance as of December 31, 2013 .......................................... 196 37 233
Restructuring charges, net of $35 in revisions (b) .................................. 383 28 411
Payments ................................................................... (93) (22) (115)
Other non-cash (d) ............................................................ (51) (8) (59)
Liability balance at December 31, 2014 ............................................ 435 35 470
Restructuring charges, net of $61 in revisions (b) .................................. (33) 7 (26)
Payments ................................................................... (141) (14) (155)
Other non-cash (c) ............................................................ (23) (5) (28)
Liability balance as of December 31, 2015 (e) ........................................ $ 238 $ 23 $ 261
(a) Other primarily includes facility exit and contract termination costs.
(b) Revisions primarily relate to higher than anticipated redeployments of displaced employees to other positions within the Company, business
changes and modifications to existing initiatives.
(c) Consists primarily of foreign exchange impacts.
(d) Consists of $42 million reserve transferred to the GBT JV in the second quarter of 2014 as part of the GBT sale and $17 million of foreign
exchange and other non-cash charges.
(e) The majority of cash payments related to the remaining restructuring liabilities are expected to be completed in 2016, and to a lesser extent
certain contractual long-term severance arrangements and lease obligations are expected to be completed in 2017 and 2020, respectively.
The following table summarizes the Company’s restructuring charges, net of revisions, by reportable operating
segment and Corporate & Other for the year ended December 31, 2015, and the cumulative amounts relating to the
restructuring programs that were in progress during 2015 and initiated at various dates between 2009 and 2015.
2015 Cumulative Restructuring Expense Incurred To Date On In-Progress Restructuring Programs
(Millions)
Total Restructuring
Charges, net
revisions Severance Other Total
USCS ...................................... $ (7) $35 $— $ 35
ICS ........................................ (17) 198 — 198
GCS........................................ (16) 113 — 113
GNMS ...................................... (1) 57 — 57
Corporate & Other ........................... 15 154 73 227(a)
Total ....................................... $(26) $557 $73 $630(b)
(a) Corporate & Other includes certain severance and other charges of $151 million related to Companywide support functions which were not
allocated to the Company’s reportable operating segments, as these were corporate initiatives, which is consistent with how such charges were
reported internally.
(b) As of December 31, 2015, the total expenses to be incurred for previously approved restructuring activities that were in progress are not
expected to be materially different than the cumulative expenses incurred to date for these programs.
147