Restructuring and Other Charges

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

In connection with the acquisition of First Data, the Company continues to implement certain integration plans focused on reducing the Company’s overall cost structure, including reducing vendor spend and eliminating duplicate costs. The Company recorded restructuring charges related to certain of these integration activities of $48 million, primarily reported in cost of processing and service and selling, general and administrative expenses within the consolidated statement of income, based upon committed actions during the three months ended March 31, 2020. 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

The Company recorded $40 million of employee termination costs related to severance and other separation costs for terminated employees in connection with the acquisition of First Data during the three months ended March 31, 2020. The following table summarizes the changes in the reserve related to the Company’s employee severance and other separation costs:



(In millions)	Three Months Ended March 31, 2020
Balance at December 31, 2019	$	14
Severance and other separation costs	40
Cash payments	(10		)
Balance at March 31, 2020	$	44

The employee severance and other separation costs accrual balance of $44 million at March 31, 2020 is expected to be paid in 2020. In addition, the Company recorded share-based compensation costs of $8 million during the three months ended March 31, 2020 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

The Company has 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. Facility exit and related costs during the three months ended March 31, 2020 were nominal. However, the Company anticipates exiting additional facilities as current lease agreements approach expiration.