Restructuring Costs (Notes)

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING COSTS

Restructuring charges for the years ended December 31, 2020, 2019 and 2018 were $67 million, $52 million and $58 million, respectively. The components of the restructuring charges for the years ended December 31, 2020, 2019 and 2018 were as follows:


	Years Ended December 31,
	2020		2019		2018
Personnel-related costs (1)	$	20	$	33	$	25
Facility-related costs (2)	47		18		22
Internal use software impairment (3)	—		—		11
Other restructuring costs (4)	—		1		—
Total restructuring charges (5)	$	67	$	52	$	58

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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, 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)Internal use software impairment relates to development costs capitalized for a project that was determined to not meet the Company's strategic goals when analyzed by the Company's leadership team.

(4)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.

(5)Restructuring charges for the year ended December 31, 2020 include $65 million related to the Facility and Operational Efficiencies Program and $2 million related to the Leadership Realignment and Other Restructuring Activities Program. The year ended December 31, 2019 includes $47 million of expense related to the Facility and Operational Efficiencies Program and $5 million of expense primarily related to the Leadership Realignment and Other Restructuring Activities Program. The year ended December 31, 2018 includes costs primarily related to the Leadership Realignment and Other Restructuring Activities Program.

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 real estate benefit 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.

As a result of the COVID-19 pandemic, the Company transitioned substantially all of its employees to a remote-work environment in mid-March 2020 and have worked to comply with state and local regulators to ensure safe working conditions. At December 31, 2020, many of the Company's employees continued to work remotely on a full-time or hybrid basis. This transition to remote work has allowed the Company to reevaluate its office space needs. As a result, additional facility and operational efficiencies were identified and implemented in the second half of 2020 and additional facility initiatives are expected in 2021. The two most significant lease impairments recognized by the Company are the corporate headquarters in Madison, New Jersey that has a lease term expiring in December 2029 of which approximately 44% of the space (approximately 120,000 square feet) is impaired and the relocation business' main corporate operations in Danbury, Connecticut which has a lease term expiring in November 2030 with an early termination date in November 2025.

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	$	9	$	5	$	14
Restructuring charges (1)	20		45		65
Costs paid or otherwise settled	(24)		(28)		(52)
Balance at December 31, 2020	$	5	$	22	$	27

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(1)In addition, the Company incurred an additional $46 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the year ended December 31, 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	$	54	$	50	$	4
Facility-related costs	113		61		52
Other restructuring costs	1		1		—
Total	$	168	$	112	$	56

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(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	$	31	$	28	$	3
Realogy Brokerage Group	83		60		23
Realogy Title Group	6		6		—
Corporate and Other	48		18		30
Total	$	168	$	112	$	56

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 year ended December 31, 2020, the Company incurred facility-related costs of $2 million and paid or settled costs of $5 million resulting in a remaining accrual of $2 million.