This excerpt taken from the MRO 10-K filed Mar 10, 2005.
11. Business Transformation
During 2003, Marathon implemented an organizational realignment plan that included streamlining Marathon's business processes and services, realigning reporting relationships to reduce costs across all organizations, consolidating organizations in Houston and reducing the workforce. During 2004, Marathon entered into two outsourcing agreements to achieve further business process improvements and cost reductions.
During 2004 and 2003, Marathon recorded $43 million and $24 million of costs as general and administrative expenses related to these business transformation programs. These charges included employee severance and benefit costs related to the elimination of approximately 700 regular employee positions, relocation costs, net benefit plans settlement and curtailment losses and fixed asset related costs.
The following table sets forth the significant components and activity in the business transformation programs during 2004 and 2003.
No additional significant charges are expected to be incurred in 2005.