
6.	RESTRUCTURING COSTS

The restructuring charge for the three and six months ended June 30, 2016 was $12 million and $21 million, respectively. The components of the restructuring charges for the three and six months ended June 30, 2016 and 2015 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Personnel-related costs (1)	$	9	$	—	$	11	$	—
Facility-related costs (2)	3		—		5		—
Other restructuring costs (3)	—		—		5		—
Total restructuring charges	$	12	$	—	$	21	$	—

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(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 which are primarily included in the Corporate and Other business segment.

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, outsourcing administrative services and organizational design. During the second quarter of 2016, the Company expanded the scope of restructuring activities in order to realign the Company Owned Real Estate Brokerage Services back office administration and support functions across the country. As a result of this realignment, the expected costs of activities undertaken in connection with the restructuring plan have increased and are now expected to be largely completed by mid 2017.

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



	Personnel-related costs			Facility-related costs			Other restructuring costs			Total
Balance at December 31, 2015	$	3		$	3		$	3		$	9
Restructuring charges	11			5			5			21
Costs paid or otherwise settled	(9		)	(2		)	(7		)	(18		)
Balance at June 30, 2016	$	5		$	6		$	1		$	12

The following table shows the total restructuring costs expected to be incurred by type of cost for the Business Optimization Initiative:



	Total amount expected to be incurred		Amount incurred to date		Total amount remaining to be incurred
Personnel-related costs	$	41	$	14	$	27
Facility-related costs	13		8		5
Accelerated depreciation related to asset disposals	1		—		1
Other restructuring costs	11		9		2
Total	$	66	$	31	$	35

The following table shows the total restructuring costs expected to be incurred by reportable segment for the Business Optimization Initiative:



	Total amount expected to be incurred		Amount incurred to date		Total amount remaining to be incurred
Real Estate Franchise Services	$	4	$	3	$	1
Company Owned Real Estate Brokerage Services	43		14		29
Relocation Services	6		4		2
Title and Settlement Services	1		—		1
Corporate and Other	12		10		2
Total	$	66	$	31	$	35