Restructuring

6 Months Ended

Jun. 30, 2011


15.	Restructuring

2010 Restructuring Plan

During 2010, the Company committed to a strategic realignment initiative at its vacation exchange and rentals business targeted at reducing costs, primarily impacting the operations at certain vacation exchange call centers. During both the three and six months ended June 30, 2011, the Company incurred $7 million of incremental costs. During the six months ended June 30, 2011, the Company reduced its liability with $7 million of cash payments and increased its liability with $2 million of other non-cash items. The remaining liability of $11 million is expected to be paid in cash; $9 million of facility-related by the first quarter of 2020 and $2 million of personnel-related by the second quarter of 2012. As of June 30, 2011, the Company has incurred $16 million of expenses related to the 2010 restructuring plan.

2008 Restructuring Plan

During 2008, the Company committed to various strategic realignment initiatives targeted principally at reducing costs, enhancing organizational efficiency and consolidating and rationalizing existing processes and facilities. During the six months ended June 30, 2011, the Company reversed $1 million of previously recorded facility-related expenses and reduced its liability with $4 million of cash payments. The remaining liability of $6 million, all of which is facility-related, is expected to be paid in cash by September 2017. As of June 30, 2011, the Company has incurred $124 million of expenses related to the 2008 restructuring plan.

The activity related to the restructuring costs is summarized by category as follows:


	Liability as of										Liability as of
	December 31,		Costs			Cash			Other		June 30,
	2010		Recognized			Payments			Non-cash		2011

Personnel-related ^(a)	$	9	$	—		$	(7	)	$	—	$	2	^(c)
Facility-related		11		6	^(b)		(4	)		2		15	^(d)

	$	20	$	6		$	(11	)	$	2	$	17


	^(a)	As of June 30, 2011, the Company had notified substantially all of the employees related to such costs.

	^(b)	Includes $7 million of costs incurred at the Company's vacation exchange and rentals business and $1 million of a reversal of previously recorded expenses at the Company's vacation ownership business.

	^(c)	Balance as of June 30, 2011 is recorded at the Company's vacation exchange and rentals business.

	^(d)	Approximately $9 million and $6 million is recorded at the Company's vacation exchange and rentals business and vacation ownership business, respectively, as of June 30, 2011.

- 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.

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