
6.	RESTRUCTURING COSTS

Restructuring charges were $2 million and $7 million for the three and six months ended June 30, 2017, respectively, and $12 million and $21 million for the three and six months ended June 30, 2016, respectively. The components of the restructuring charges for the three and six months ended June 30, 2017 and 2016 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Personnel-related costs (1)	$	1	$	9	$	6	$	11
Facility-related costs (2)	1		3		1		5
Accelerated depreciation on asset disposals	—		—		—		—
Other restructuring costs (3)	—		—		—		5
Total restructuring charges	$	2	$	12	$	7	$	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 focused on maximizing the efficiency and effectiveness of the cost structure of each of the Company's business units. The action was designed to improve client service levels across each of the business units while enhancing the Company's profitability and incremental margins. The plan focused 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. The expected costs of activities undertaken in connection with the restructuring plan are largely complete.

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



	Personnel-related costs			Facility-related costs			Accelerated depreciation on asset disposal		Other restructuring costs		Total
Balance at December 31, 2016	$	9		$	7		$	—	$	—	$	16
Restructuring charges	6			1			—		—		7
Costs paid or otherwise settled	(11		)	(3		)	—		—		(14		)
Balance at June 30, 2017	$	4		$	5		$	—	$	—	$	9

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	$	32	$	31	$	1
Facility-related costs	16		14		2
Accelerated depreciation related to asset disposals	2		1		1
Other restructuring costs	11		10		1
Total	$	61	$	56	$	5

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	$	5	$	5	$	—
Company Owned Real Estate Brokerage Services	35		33		2
Relocation Services	5		5		—
Title and Settlement Services	1		1		—
Corporate and Other	15		12		3
Total	$	61	$	56	$	5