AOL Time Warner pegs its postmerger restructuring costs near $1 billion, with a big piece of that total in severance payments for laid-off employees, according to press reports.
The company made the disclosure in a Securities and Exchange Commission filing.
In the filing, AOL said in the first quarter it had recorded a restructuring liability of $965 million on its balance sheet for costs incurred in "exiting and consolidating activities" and for termination of employees. AOL wrote off $71 million of the merger-related costs in the first quarter.
AOL said $565 million of the restructuring costs were tied to "work-force reductions and represented employee-termination benefits." AOL Time Warner announced plans to cut about 2,400 jobs in January.
Restructuring charges also include approximately $400 million largely due to "lease and contract-termination costs," with a large part of that tied to terminating leases on the nationwide chain of 150 Warner Bros. stores being shuttered.
AOL Time Warner further indicated final restructuring costs might exceed its current estimates.