Restructuring plans are recorded in conjunction with acquisitions as well as business realignments. Severance includes employee termination benefits related to the involuntary termination of employees. Such costs include obligations resulting from severance agreements, termination of employment contracts and early-retirement agreements. Other costs primarily include amounts for lease terminations and related costs.
The following table presents the activity in the Group's restructuring programs for the years ended December 31, 2003, 2002, and 2001:
| 2002 Plans | 2001 Plan | Total | |||||||
| Group Restructuring | Scudder Restructuring | CIB Restructuring | Group Restructuring | ||||||
| in € m. | Severance | Other | Severance | Other | Severance | Other | Severance | Other | |
| Balance at | – | – | – | – | – | – | – | – | – |
| Dec 31, 2000 | |||||||||
| Additions | – | – | – | – | – | – | 234 | 60 | 294 |
| Utilization | – | – | – | – | – | – | 22 | – | 22 |
| Balance at | – | – | – | – | – | – | 212 | 60 | 272 |
| Dec 31, 2001 | |||||||||
| Additions | 235 | 105 | 83 | 3 | 215 | 50 | – | – | 6911 |
| Utilization | 203 | 92 | 57 | – | 77 | 27 | 173 | 54 | 683 |
| Releases | – | – | – | – | – | – | 20 | 2 | 22 |
| Effects from exchange rate fluctuations | (2) | (1) | (12) | – | (10) | (4) | (19) | (4) | (52) |
| Balance at | 30 | 12 | 14 | 3 | 128 | 19 | – | – | 206 |
| Dec 31, 2002 | |||||||||
| Utilization | 30 | 11 | 9 | 3 | 99 | 9 | – | – | 161 |
| Releases | – | – | 4 | – | 21 | 8 | – | – | 332 |
| Effects from exchange rate fluctuations | – | (1) | (1) | – | (8) | (2) | – | – | (12) |
| Balance at | – | – | – | – | – | – | – | – | – |
| Dec 31, 2003 | |||||||||
| 1 | Scudder restructuring of € 86 million was recorded as goodwill ; net expense, after releases, was € 583 million. |
| 2 | Scudder restructuring reserve releases of € 4 million were recorded against goodwill. € 29 million related to the CIB restructuring was released against net income. |
During the year ended December 31, 2003, approximately 1,200 employees were terminated in conjunction with the various 2002 plans, resulting in payments of € 138 million against restructuring liabilities. There were no new restructuring plans recorded in 2003. During the year ended December 31, 2002, approximately 5,400 employees were terminated, resulting in a payment of € 510 million against restructuring liabilities.
The following is a description of the Group's restructuring plans.