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Restructuring And Other Charges
3 Months Ended
Mar. 31, 2020
Restructuring And Other Charges [Abstract]  
Restructuring And Other Charges Note 4. Restructuring and Other Charges

Restructuring Charges

We incurred restructuring charges of $4 million ($3 million, net of tax) and $6 million ($4 million, net of tax) in the three months ended March 31, 2020 and 2019, respectively. Restructuring charges were comprised of the following:

Three Months Ended

March 31,

(In millions)

2020

2019

Terminix(1)

$

1

$

2

European Pest Control and Other(2)

3

4

Total restructuring charges

$

4

$

6

___________________________________

(1)For the three months ended March 31, 2020 and 2019, these charges included $1 million and $2 million, respectively, of severance and other costs. Of this amount, $1 million was unpaid and accrued as of March 31, 2020.

(2)We have historically made changes on an ongoing basis to enhance capabilities and reduce costs in our corporate functions that provide company-wide administrative services to support operations. For the three months ended March 31, 2020 and 2019, these charges included $2 million and $1 million, respectively, of severance and other costs, including accelerated depreciation on systems we are replacing with the implementation of our new customer experience platform, and $1 million and $3 million, respectively, of other costs to enhance capabilities and align corporate functions with those required to support our strategic needs as a pure play pest control company after the potential sale of the ServiceMaster Brands business and after the American Home Shield spin-off, respectively. Of this amount, $3 million was unpaid and accrued as of March 31, 2020.

The pretax charges discussed above are reported in Restructuring and other charges in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

A reconciliation of the beginning and ending balances of accrued restructuring charges, which are included in Accrued liabilities—Other on the unaudited Condensed Consolidated Statements of Financial Position, is presented as follows:

Accrued

Restructuring

(In millions)

Charges

Balance as of December 31, 2019

$

1

Costs incurred

4

Costs paid or otherwise settled

(1)

Balance as of March 31, 2020

$

4

Balance as of December 31, 2018

$

7

Costs incurred

6

Costs paid or otherwise settled

(7)

Balance as of March 31, 2019

$

6

We expect substantially all of our accrued restructuring charges to be paid by December 31, 2020.