During the second half of 2002, the company recorded new restructuring charges of $19 million ($12 million after-tax) at TRS and, due to additional reviews of operations, $5 million ($3 million after-tax) at AEB. The TRS charge consists of $14 million of severance, relating to the elimination of approximately 500 jobs, and $5 million of other costs primarily related to the relo- cation of certain international operations. AEB’s $5 million charge consisted of $3 million of severance costs and $2 million of other costs.  As of December 31, 2002, other liabilities include $152 million for the expected future cash outlays related to aggregate restructuring charges recorded. In addition to employee attrition or redeployment, approximately 10,000 employees have been terminated since the inception of the restructuring plans in 2001. The following table summarizes by category the company’s restructuring charges, cash payments, balance sheet charge-offs, liability reductions and resulting liability balance as of December 31, 2001 and 2002: As a result of the terrorist attacks on September 11, 2001, the company incurred a $90 million ($59 million after-tax) disaster recovery charge. This charge mainly includes provisions for credit exposures to travel industry service establishments and insurance claims. $79 million of the pretax charge was incurred by TRS, while $11 million was incurred by AEFA. In addition to the pretax charge, the company waived approximately $8 million of finance charges and late fees. During 2002, $7 million ($4 million after-tax) of the original AEFA charge was reversed due to lower than anticipated insured loss claims. Restrictions on the transfer of funds exist under debt agreements and regulatory requirements of certain of the company’s subsidiaries. These restrictions have not had any effect on the company’s shareholder dividend policy and management does not anticipate any effect in the future. At December 31, 2002, the aggregate amount of net assets of subsidiaries that may be transferred to the Parent Company was approximately $9.3 billion. Should specific additional needs arise, procedures exist to permit immediate transfer of short-term funds between the company and its subsidiaries, while complying with the various contractual and regulatory constraints on the internal transfer of funds. As of December 31, 2002, the company has incurred costs of approximately $198 million related to the terrorist attacks of September 11th, which are expected to be substantially covered by insurance and, consequently, did not impact results. These include the cost of duplicate facilities and equipment associated with the relocation of the company’s offices in lower Manhattan and certain other business recovery expenses. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 83 AXP Note 21 TRANSFER OF FUNDS FROM SUBSIDIARIES Note 20 DISASTER RECOVERY CHARGE (Millions) Severance Other Total Restructuring charges $ 369 $ 262 $ 631 Cash paid (37) (14) (51) Balance sheet charge-offs — (120) (120) Liability balance at December 31, 2001 332 128 460 Cash paid (226) (65) (291) Balance sheet charge-offs — (10) (10) Net adjustments due to revisions to 2001 plans (62) 31 (31) Additional charges 17 7 24 Liability balance at December 31, 2002 $ 61 $ 91 $ 152