
4.	Restructuring

In 2014, the Company committed to various strategic initiatives to identify best practices and drive efficiency throughout its organization, by reducing headcount, improving processes and consolidating functions (the “T15 restructuring”). In first quarter 2016, the Company expanded the T15 restructuring to take advantage of additional efficiency opportunities. The expanded T15 restructuring fits within the initiative’s focus areas to identify best practices and drive efficiency throughout the organization, including the consolidation of rental locations. During the years ended December 31, 2016, 2015 and 2014, as part of this process, the Company formally communicated the termination of employment to approximately 615, 325 and 75 employees, respectively. At December 31 2016, the Company had terminated approximately 945 of these employees. The costs associated with this initiative primarily represent severance, outplacement services and other costs associated with employee terminations, the majority of which have been or are expected to be settled in cash. This initiative is substantially complete.

In conjunction with previous acquisitions, the Company identified opportunities to integrate and streamline its operations, primarily in Europe (the “Acquisition integration”). During the years ended December 31, 2016 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 115 and 180 employees, respectively. At December 31, 2016, the Company had terminated approximately 255 of these employees. The Company expects further restructuring expense of approximately $2 million related to this initiative to be incurred in 2017.

In 2011, subsequent to the acquisition of Avis Europe plc, the Company initiated restructuring initiatives, identifying synergies across the Company, enhancing organizational efficiencies and consolidating and rationalizing processes (the “Avis Europe restructuring”). During the year ended December 31, 2014, as part of this process, the Company formally communicated the termination of employment to approximately 230 employees. The costs associated with severance, outplacement services and other costs associated with employee terminations were settled in cash. This initiative is complete.

The following tables summarize the change to our restructuring-related liabilities and identify the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:



		Personnel Related			Facility Related			Other ^(a)			Total
Balance as of January 1, 2014		$	17		$	5		$	—		$	22
	T15 restructuring expense	5			—			—			5
	Avis Europe restructuring expense	20			1			—			21
	T15 restructuring payment	(1		)	—			—			(1		)
	Avis Europe restructuring payment	(27		)	(3		)	—			(30		)
Balance as of December 31, 2014		14			3			—			17
	T15 restructuring expense	9			—			—			9
	Acquisition integration expense	9			—			—			9
	Avis Europe restructuring payment	(7		)	(2		)	—			(9		)
	T15 restructuring payment	(12		)	—			—			(12		)
	Acquisition integration payment	(3		)	—			—			(3		)
Balance as of December 31, 2015		10			1			—			11
	T15 restructuring expense	15			1			5			21
	Acquisition integration expense	9			—			—			9
	Avis Europe restructuring expense	(1		)	—			—			(1		)
	T15 restructuring payment	(12		)	(1		)	(5		)	(18		)
	Acquisition integration payment	(15		)	—			—			(15		)
	Avis Europe restructuring payment	(1		)	—			—			(1		)
Balance as of December 31, 2016		$	5		$	1		$	—		$	6

__________


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



		Americas			International			Total
Balance as of January 1, 2014		$	1		$	21		$	22
	T15 restructuring expense	4			1			5
	Avis Europe restructuring expense	4			17			21
	T15 restructuring payment	(1		)	—			(1		)
	Avis Europe restructuring payment	(4		)	(26		)	(30		)
Balance as of December 31, 2014		4			13			17
	T15 restructuring expense	6			3			9
	Acquisition integration expense	1			8			9
	Avis Europe restructuring payment	(1		)	(8		)	(9		)
	T15 restructuring payment	(8		)	(4		)	(12		)
	Acquisition integration payment	(1		)	(2		)	(3		)
Balance as of December 31, 2015		1			10			11
	T15 restructuring expense	11			10			21
	Acquisition integration expense	—			9			9
	Avis Europe restructuring expense	—			(1		)	(1		)
	T15 restructuring payment	(11		)	(7		)	(18		)
	Acquisition integration payment	—			(15		)	(15		)
	Avis Europe restructuring payment	—			(1		)	(1		)
Balance as of December 31, 2016		$	1		$	5		$	6