Restructuring Costs Restructuring Costs (Notes)

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]


6.	RESTRUCTURING COSTS

The restructuring charge for the three months ended March 31, 2016 was $9 million. The components of the restructuring charges for the three months ended March 31, 2016 and 2015 were as follows:



	Three Months Ended March 31,
	2016		2015
Personnel-related costs (1)	$	2	$	—
Facility-related costs (2)	2		—
Other restructuring costs (3)	5		—
Total restructuring charges	$	9	$	—

_______________


(1)	Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition.


(2)	Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, lease payments that will continue to be incurred under the contract for its remaining term without economic benefit to the Company and other facility and employee relocation related costs.


(3)	Other restructuring costs consist of costs related to professional fees, consulting fees and other costs associated with restructuring activities.

2015-2016 Business Optimization Initiative

During the fourth quarter of 2015, the Company began a business optimization initiative that focuses on maximizing the efficiency and effectiveness of the cost structure of each of the Company's business units. The action is designed to improve client service levels across each of the business units while enhancing the Company's profitability and incremental margins. The plan focuses on several key areas of opportunity which include process improvement efficiencies, office footprint optimization, leveraging technology and media spend, centralized procurement and organizational design. Activities undertaken in connection with the restructuring plan are expected to be substantially completed by the end of 2016.

The following is a reconciliation of the beginning and ending restructuring reserve balances for the 2015-2016 Business Optimization Initiative:



	Personnel-related costs			Facility-related costs			Other restructuring costs			Total
Balance at December 31, 2015	$	3		$	3		$	3		$	9
Restructuring charges	2			2			5			9
Costs paid or otherwise settled	(3		)	(1		)	(5		)	(9		)
Balance at March 31, 2016	$	2		$	4		$	3		$	9

The following is a reconciliation of the total amounts expected to be incurred from the 2015-2016 Business Optimization Initiative:



	Total amount expected to be incurred		Amount incurred to date		Total amount remaining to be incurred
Personnel-related costs	$	20	$	5	$	15
Facility-related costs	14		5		9
Accelerated depreciation related to asset disposals	1		—		1
Other restructuring costs	9		9		—
Total	$	44	$	19	$	25

The following is a reconciliation of the total amounts expected to be incurred from the 2015-2016 Business Optimization Initiative by reportable segment:



	Total amount expected to be incurred		Amount incurred to date		Total amount remaining to be incurred
Real Estate Franchise Services	$	4	$	—	$	4
Company Owned Real Estate Brokerage Services	22		7		15
Relocation Services	6		3		3
Title and Settlement Services	1		—		1
Corporate and Other	11		9		2
Total	$	44	$	19	$	25