Restructuring and Other Charges

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

In connection with the acquisition of First Data, the Company has begun implementing certain integration plans focused on reducing the Company’s overall cost structure, including vendor spend and the elimination of duplicate costs. The Company recorded restructuring charges related to certain of these integration activities of $56 million, primarily reported in cost of processing and service and selling, general and administrative expenses within the consolidated statements of income, based upon committed actions during the year ended December 31, 2019. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in the next few years in connection with these activities, but is unable to estimate those amounts at this time as such plans are not yet finalized.

Employee Termination Costs

During 2019, the Company recorded $32 million of employee termination costs related to severance and other separation costs for terminated employees in connection with the acquisition of First Data. The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs for the year ended December 31, 2019:



(In millions)
Balance at December 31, 2018	$	—
Severance and other separation costs	32
Cash payments	(18		)
Balance at December 31, 2019	$	14

The employee severance and other separation costs accrual balance at December 31, 2019 of $14 million is expected to be paid in 2020. In addition, the Company recorded share-based compensation costs totaled $23 million in 2019 related to the accelerated vesting of previously issued equity awards for terminated employees. The Company expects to incur additional employee termination costs as a result of finalizing and executing further integration activities in 2020.

Facility Exit Costs

During 2019, the Company identified certain leased facilities that have been or will be exited in the future as part of the Company’s efforts to reduce facility carrying costs. The Company recorded $1 million in facility exit and related costs during 2019, primarily related to relocation costs and lease exit or termination fees, as well as ongoing operating expenses of certain vacated facilities. The Company anticipates exiting additional facilities as current lease agreements approach expiration.

Asset Impairment Charges

The Company recorded a $48 million non-cash impairment charge, reported primarily in cost of processing and services within the consolidated statements of income, associated with an international core account processing platform. Such impairment charge primarily related to the write-off of certain of the Financial segment’s purchased and capitalized software development costs; however, are presented within Corporate and Other as such charge was excluded from the Company’s measure of the Financial segment’s operating performance.