Restructuring

During fourth quarter 2012, the Company initiated a strategic restructuring initiative to better position the business of its Truck Rental segment, in which it will close certain rental locations and decrease the size of the rental fleet, which the Company believes will increase fleet utilization and reduce costs. During the three months ended March 31, 2013, as part of this process, the Company recorded restructuring expense of $4 million. The Company expects further restructuring expenses of approximately $8 million to be incurred in 2013 related to this initiative.

In 2011, subsequent to the acquisition of Avis Europe, the Company implemented a restructuring initiative, to identify synergies across the Company, enhance organizational efficiencies and consolidate and rationalize processes and facilities. During the three months ended March 31, 2013, as part of this process, the Company formally communicated the termination of employment to approximately 150 employees and recorded $6 million of expense in connection with these initiatives. These expenses primarily represent costs associated with severance, outplacement services and other costs associated with employee terminations. As of March 31, 2013, the Company has terminated approximately 100 of these employees. The Company expects further restructuring expenses of approximately $20 million to be incurred in 2013.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within the Company’s reportable segments and by category for restructuring expenses and corresponding payments and utilizations:



	North America			International			Truck Rental			Total
Balance as of January 1, 2013	$	1		$	12		$	—		$	13
Restructuring expense	3			3			4			10
Cash payment/utilization	(2		)	(7		)	(4		)	(13		)
Balance as of March 31, 2013	$	2		$	8		$	—		$	10

	Personnel Related			Facility Related			Other ^(a)			Total
Balance as of January 1, 2013	$	12		$	1		$	—		$	13
Restructuring expense	5			1			4			10
Cash payment/utilization	(9		)	—			(4		)	(13		)
Balance as of March 31, 2013	$	8		$	2		$	—		$	10

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^(a)	Includes expenses related to the disposition of vehicles.