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Restructuring And Other Charges
9 Months Ended
Sep. 30, 2020
Restructuring And Other Charges [Abstract]  
Restructuring And Other Charges Note 4. Restructuring and Other Charges

We incurred restructuring charges of $2 million ($2 million, net of tax) in each of the three months ended September 30, 2020 and 2019. We incurred restructuring charges of $14 million ($10 million, net of tax) and $10 million ($7 million, net of tax) in the nine months ended September 30, 2020 and 2019, respectively. Restructuring charges were comprised of the following:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(In millions)

2020

2019

2020

2019

Terminix(1)

$

2

$

1

$

6

$

4

Corporate Functions(2)

1

1

8

5

Global Service Center relocation(3)

1

Total restructuring charges

$

2

$

2

$

14

$

10

___________________________________

(1)For the three and nine months ended September 30, 2020, these charges included $1 million and $3 million of severance and other costs and $1 million and $3 million of impairment and other charges related to our call center right of use assets, which we exited during the second quarter. Severance and other costs of $2 million were unpaid and accrued as of September 30, 2020. For the three and nine months ended September 30, 2019, these charges included $1 million and $4 million, respectively, of severance and other costs.

(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. Of the restructuring charges incurred by European Pest Control and Other, $2 million was unpaid and accrued as of September 30, 2020. For the three and nine months ended September 30, 2020 and 2019, these charges were comprised of the following:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(In millions)

2020

2019

2020

2019

Severance

$

$

$

3

$

1

Other costs(a)

1

5

4

Total Corporate Functions

$

1

$

1

$

8

$

5

___________________________________

(a)Represents costs incurred in connection with our CEO transition, charges associated with the marketing of our corporate aircraft for sale and accelerated depreciation on systems we are replacing with the implementation of our new customer experience platform.

(3)For the nine months ended September 30, 2019, these charges included lease termination and other charges of $1 million related to our headquarter relocation.

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

14

Costs paid or otherwise settled

(12)

Balance as of September 30, 2020

$

4

Balance as of December 31, 2018

$

7

Costs incurred

10

Costs paid or otherwise settled

(16)

Balance as of September 30, 2019

$

1

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

Other Charges

Other charges represent professional fees incurred that are not closely associated with our ongoing operations. Other charges were $2 million ($1 million, net of tax) for the three and nine months ended September 30, 2019. No similar charges were incurred in the three and nine months ended September 30, 2020.