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Restructuring Costs Restructuring Costs

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

.    RESTRUCTURING COSTS

Restructuring charges were $5 million and $10 million for the three and six months ended June 30, 2021, respectively, and $18 million and $30 million for the three and six months ended June 30, 2020, respectively. The components of the restructuring charges for the three and six months ended June 30, 2021 and 2020 were as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2021						2020						2021						2020
Personnel-related costs (1)			$	2					$	5					$	4					$	8
Facility-related costs (2)			3						13						6						22
Total restructuring charges			$	5					$	18					$	10					$	30

_______________

(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.

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 was 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 has worked to comply with state and local regulators to ensure safe working conditions. 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 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, 2020			$	5					$	22					$	27
Restructuring charges (1)			4						6						10
Costs paid or otherwise settled			(6)						(9)						(15)
Balance at June 30, 2021			$	3					$	19					$	22

_______________

(1)In addition, the Company incurred an additional $1 million of facility-related costs for lease asset impairments in connection with the Facility and Operational Efficiencies Program during the six months ended June 30, 2021.

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			$	57					$	54					$	3
Facility-related costs			108						67						41
Other restructuring costs			1						1						—
Total			$	166					$	122					$	44

_______________

(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			$	32					$	31					$	1
Realogy Brokerage Group			82						64						18
Realogy Title Group			6						6						—
Corporate and Other			46						21						25
Total			$	166					$	122					$	44

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- References

No definition available.

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- 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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(e))
-URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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