XML 36 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Restructuring Costs Restructuring Costs | 9 Months Ended
--- | ---
Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure | . RESTRUCTURING COSTS Restructuring charges were $13 million and $38 million for the three and nine months ended September 30, 2020, respectively, and $11 million and $29 million for the three and nine months ended September 30, 2019, respectively. The components of the restructuring charges for the three and nine months ended September 30, 2020 and 2019 were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Personnel-related costs (1) | $ | 3 |  |  | $ | 4 |  |  | $ | 10 |  |  | $ | 17 |
Facility-related costs (2) | 10 |  |  | 6 |  |  | 28 |  |  | 11 |
Other restructuring costs (3) | — |  |  | 1 |  |  | — |  |  | 1 |
Total restructuring charges (4) | $ | 13 |  |  | $ | 11 |  |  | $ | 38 |  |  | $ | 29 |
_______________ (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, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals 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. (4)Restructuring charges for the three months ended September 30, 2020 relate to the Facility and Operational Efficiencies Program. Restructuring charges for the nine months ended September 30, 2020 include $36 million related to the Facility and Operational Efficiencies Program and $2 million related to the Leadership Realignment and Other Restructuring Activities Program. Restructuring charges for the three and nine months ended September 30, 2019 include $10 million and $25 million, respectively, related to the Facility and Operational Efficiencies Program and $1 million and $4 million, respectively, related to prior restructuring programs. Facility and Operational Efficiencies Program Beginning in the first quarter of 2019, the Company commenced the implementation of a plan to accelerate its office consolidation to reduce storefront costs, as well as institute other operational efficiencies to drive profitability. In addition, the Company commenced a plan to transform and centralize certain aspects of the operational support and drive changes in how it serves its affiliated independent sales agents from a marketing and technology perspective to help such agents be more productive and enable them to make their businesses more profitable. In the third quarter of 2019, the Company reduced headcount in connection with the wind-down of a former affinity program. In the fourth quarter of 2019, the Company expanded its operational efficiencies program to focus on workforce optimization. This workforce optimization initiative is focused on consolidating similar or overlapping roles, reducing the number of hierarchical layers and streamlining work and decision making. Furthermore, at the end of 2019, the Company expanded these strategic initiatives which have resulted in additional operational and facility related efficiencies in 2020. Additionally, the Company is evaluating its current office space needs and plans to transition to having more employees in a remote working environment as a result of opportunities identified during the COVID-19 crisis. As a result, additional facility and operational efficiencies are expected to be identified and implemented in the fourth quarter of 2020 and during 2021. The following is a reconciliation of the beginning and ending reserve balances related to the Facility and Operational Efficiencies Program:
| Personnel-related costs |  | Facility-related costs |  | Total
Balance at December 31, 2019 | $ | 6 |  |  | $ | 5 |  |  | $ | 11 |
Restructuring charges (1) | 10 |  |  | 26 |  |  | 36 |
Costs paid or otherwise settled | (14) |  |  | (19) |  |  | (33) |
Balance at September 30, 2020 | $ | 2 |  |  | $ | 12 |  |  | $ | 14 |
_______________ (1)In addition, the Company incurred an additional $17 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the nine months ended September 30, 2020. The following table shows the total costs currently expected to be incurred by type of cost related to the Facility and Operational Efficiencies Program:
| Total amount expected to be incurred (1) |  | Amount incurred to date |  | Total amount remaining to be incurred (1)
Personnel-related costs | $ | 34 |  |  | $ | 31 |  |  | $ | 3 |
Facility-related costs | 73 |  |  | 42 |  |  | 31 |
Other restructuring costs | 1 |  |  | 1 |  |  | — |
Total | $ | 108 |  |  | $ | 74 |  |  | $ | 34 |
_______________ (1)Facility-related costs include potential lease asset impairments to be incurred under the Facility and Operational Efficiencies Program. The following table shows the total costs currently expected to be incurred by reportable segment related to the Facility and Operational Efficiencies Program:
| Total amount expected to be incurred |  | Amount incurred to date |  | Total amount remaining to be incurred
Realogy Franchise Group | $ | 5 |  |  | $ | 5 |  |  | $ | — |
Realogy Brokerage Group | 84 |  |  | 55 |  |  | 29 |
Realogy Title Group | 5 |  |  | 5 |  |  | — |
Corporate and Other | 14 |  |  | 9 |  |  | 5 |
Total | $ | 108 |  |  | $ | 74 |  |  | $ | 34 |
Leadership Realignment and Other Restructuring Activities Beginning in the first quarter of 2018, the Company commenced the implementation of a plan to drive its business forward and enhance stockholder value. The key aspects of this plan included senior leadership realignment, an enhanced focus on technology and talent, as well as further attention to office footprint and other operational efficiencies. The activities undertaken in connection with the restructuring plan are complete. At December 31, 2019, the remaining liability was $5 million. During the nine months ended September 30, 2020, the Company incurred facility-related costs of $2 million and paid or settled costs of $4 million resulting in a remaining accrual of $3 million.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration