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Restructuring Costs (Notes) | 3 Months Ended
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Mar. 31, 2024
Restructuring and Related Activities [Abstract] |
Restructuring Costs | RESTRUCTURING COSTS Restructuring charges were $11 million and $25 million for the three months ended March 31, 2024 and 2023, respectively. The components of the restructuring charges were as follows:
| Three Months Ended March 31,
| 2024 |  | 2023
Personnel-related costs (1) | $ | 5 |  |  | $ | 11 |
Facility-related costs (2) | 6 |  |  | 14 |
Total restructuring charges (3) | $ | 11 |  |  | $ | 25 |
_______________ (1)Personnel-related costs consist of severance costs provided to employees who have been terminated. (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)Restructuring charges for the three months ended March 31, 2024 include $10 million of expense related to the Operational Efficiencies Plan and $1 million of expense related to prior restructuring plans. Restructuring charges for the three months ended March 31, 2023 include $23 million of expense related to the Operational Efficiencies Plan and $2 million of expense related to prior restructuring plans. Operational Efficiencies Plan The Company continues to execute on its strategic plan ("the Operational Efficiencies Plan" or "the Plan") to optimize operational efficiency, reduce its office footprint costs, centralize certain aspects of its operational support structure and drive changes in how it serves its affiliated independent sales agents as well as consumers from a marketing and technology perspective. In January 2023, the Company executed a meaningful workforce reduction driven by worsening trends in the housing market beginning in 2022. The Company has and will incur additional costs in 2024, primarily associated with facility closures that are part of the continued execution of the Plan. These actions build on the multiple other cost reduction and spending reprioritization initiatives such as simplified and more integrated and digitized offerings, systems and support. Delivering the Company’s business model more digitally is an increasing part of improving the agent, franchisee and consumer experience and the Company's ongoing cost focus. The Company expects to continue to prioritize investments in efforts to support its independent sales agents, franchisees and consumers which includes investments in technology and innovative products, lead generation and franchisee support. The following is a reconciliation of the beginning and ending reserve balances related to the Plan:
| Personnel-related costs |  | Facility-related costs |  | Total
Balance at December 31, 2023 | $ | 10 |  |  | $ | 4 |  |  | $ | 14 |
Restructuring charges (1) | 5 |  |  | 5 |  |  | 10 |
Costs paid or otherwise settled | (4) |  |  | (4) |  |  | (8) |
Balance at March 31, 2024 | $ | 11 |  |  | $ | 5 |  |  | 16 |
_______________ (1)In addition, the Company incurred $5 million of facility-related costs for lease asset impairments in connection with the Plan during the three months ended March 31, 2024. The following table shows the total costs currently expected to be incurred by type of cost related to the Plan:
| Total amount expected to be incurred |  | Amount incurred to date |  | Total amount remaining to be incurred
Personnel-related costs | $ | 42 |  |  | $ | 40 |  |  | $ | 2 |
Facility-related costs | 48 |  |  | 33 |  |  | 15 |
Total | $ | 90 |  |  | $ | 73 |  |  | $ | 17 |
The following table shows the total costs currently expected to be incurred by reportable segment related to the Plan:
| Total amount expected to be incurred |  | Amount incurred to date |  | Total amount remaining to be incurred
Franchise Group | $ | 14 |  |  | $ | 14 |  |  | $ | — |
Owned Brokerage Group | 61 |  |  | 45 |  |  | 16 |
Title Group | 5 |  |  | 4 |  |  | 1 |
Corporate and Other | 10 |  |  | 10 |  |  | — |
Total | $ | 90 |  |  | $ | 73 |  |  | $ | 17 |
Prior Restructuring Plans During 2019, the Company took various strategic initiatives to reduce costs and institute operational and facility related efficiencies to drive profitability. During 2020, as a result of the COVID-19 pandemic, the Company transitioned substantially all of its employees to a remote-work environment which allowed the Company to reevaluate its office space needs. As a result, additional facility and operational efficiencies were identified and implemented which included the transformation of its corporate headquarters in Madison, New Jersey to an open-plan innovation hub. At December 31, 2023, the remaining liability related to these initiatives was $9 million. During the three months ended March 31, 2024, the Company incurred $1 million of costs and paid or settled $2 million of costs resulting in a remaining accrual of $8 million at March 31, 2024. The remaining accrual of $8 million and total amount remaining to be incurred of $19 million primarily relate to the transformation of the Company's corporate headquarters.

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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