Restructuring and Other Special Charges (Credits), Net

6 Months Ended

Jun. 30, 2016

Restructuring And Related Activities [Abstract]

Restructuring and Other Special Charges (Credits), Net

Note 9. Restructuring and Other Special Charges (Credits), Net

Restructuring and other special charges (credits), net were $16 million and $48 million for the three and six months ended June 30, 2016, respectively, as compared to $12 million and $37 million in the three and six months ended June 30, 2015, respectively. These net charges (credits) are not recorded in our reportable segment earnings.

During the three months ended June 30, 2016, we recorded $16 million of other special charges primarily associated with the planned merger with Marriott International, Inc. (Marriott) (see Note 18).

Additionally, during the six months ended June 30, 2016, we recorded $8 million in net restructuring charges and $24 million of other special charges. The restructuring charges are primarily related to costs associated with our cost savings initiatives announced in 2015. Other special charges primarily consist of $19 million of costs associated with the planned merger with Marriott and a $2 million charge for technology related costs and expenses that we no longer deem recoverable.

During the three months ended June 30, 2015, we recorded $13 million in restructuring costs primarily related to severance costs associated with our previously announced cost savings initiatives and a $1 million credit to other special charges. Other special charges primarily consist of a $6 million charge for technology related costs and expenses that we no longer deem recoverable, offset by the reversal of $5 million of reserves as a result of the favorable resolutions of an exposure from a previous disposition and a dispute with a foreign taxing authority.

Additionally, during the six months ended June 30, 2015, we recorded $8 million in restructuring costs primarily associated with severance as a result of certain cost savings initiatives at our divisions and $17 million of other special charges. Other special charges primarily consist of a $7 million severance charge associated with the resignation of our prior President and Chief Executive Officer and the establishment of $6 million of reserves related to potential liabilities assumed in connection with the Le Méridien acquisition (see Note 17).

As of June 30, 2016, we had remaining restructuring accruals of $3 million, of which $2 million is recorded in accrued expenses and the remainder is recorded in other liabilities. As of December 31, 2015, we had remaining restructuring accruals of $6 million, of which $4 million is recorded in accrued expenses and the remainder is recorded in other liabilities. The following table summarizes activity in the restructuring related accruals during the six months ended June 30, 2016 (in millions):

	December 31,		Expenses/			Payments			Non-Cash		June 30,
	2015		Reversals						Other		2016
Severance costs related to cost savings initiatives	$	2	$	(1	)	$	(1	)	$	—	$	—
Other		4		10			(11	)		—		3
Total	$	6	$	9		$	(12	)	$	—	$	3