
4.	Restructuring and Other Related Charges

Restructuring

During fourth quarter 2017, the Company initiated a strategic restructuring initiative to better position its truck rental operations in the U.S., in which it closed certain rental locations and reduced the size of the older rental fleet, with the intent to increase fleet utilization and reduce vehicle and overhead costs (“Truck initiative”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 25 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 20 of these employees. The Company expects further restructuring expense of approximately $3 million related to this initiative to be incurred in 2018.

During first quarter 2017, the Company initiated a strategic restructuring initiative to drive operational efficiency throughout the organization by reducing headcount, improving processes and consolidating functions, closing certain rental locations and decreasing the size of its fleet (“T17”). During the year ended December 31, 2017, as part of this initiative, the Company formally communicated the termination of employment to approximately 680 employees, and as of December 31, 2017, the Company had terminated the employment of approximately 665 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 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 (“T15”). 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 and 2015, as part of this process, the Company formally communicated the termination of employment to approximately 615 and 325 employees, respectively. At December 31 2017, the Company had terminated approximately 990 employees as part of this initiative. 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 complete.

In conjunction with previous acquisitions, the Company identified opportunities to integrate and streamline its operations, primarily in Europe (“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, 2017, the Company had terminated approximately 260 of these employees. This initiative is complete.

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 (“Avis Europe”). 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, 2015	$	14		$	3		$	—		$	17
Restructuring expense:
T15	9			—			—			9
Acquisition integration	9			—			—			9
Restructuring payment:
T15	(12		)	—			—			(12		)
Acquisition integration	(3		)	—			—			(3		)
Avis Europe	(7		)	(2		)	—			(9		)
Balance as of December 31, 2015	10			1			—			11
Restructuring expense:
T15	15			1			5			21
Acquisition integration	9			—			—			9
Avis Europe	(1		)	—			—			(1		)
Restructuring payment/utilization:
T15	(12		)	(1		)	(5		)	(18		)
Acquisition integration	(15		)	—			—			(15		)
Avis Europe	(1		)	—			—			(1		)
Balance as of December 31, 2016	5			1			—			6
Restructuring expense:
Truck initiative	1			—			4			5
T17	20			—			15			35
Restructuring payment/utilization:
Truck initiative	(1		)	—			(4		)	(5		)
T17	(17		)	(1		)	(15		)	(33		)
T15	(3		)	—			—			(3		)
Acquisition integration	(1		)	—			—			(1		)
Balance as of December 31, 2017	$	4		$	—		$	—		$	4

__________


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



	Americas			International			Total
Balance as of January 1, 2015	$	4		$	13		$	17
Restructuring expense:
T15	6			3			9
Acquisition integration	1			8			9
Restructuring payment:
T15	(8		)	(4		)	(12		)
Acquisition integration	(1		)	(2		)	(3		)
Avis Europe	(1		)	(8		)	(9		)
Balance as of December 31, 2015	1			10			11
Restructuring expense:
T15	11			10			21
Acquisition integration	—			9			9
Avis Europe	—			(1		)	(1		)
Restructuring payment/utilization:
T15	(11		)	(7		)	(18		)
Acquisition integration	—			(15		)	(15		)
Avis Europe	—			(1		)	(1		)
Balance as of December 31, 2016	1			5			6
Restructuring expense:
Truck initiative	5			—			5
T17	25			10			35
Restructuring payment/utilization:
Truck initiative	(5		)	—			(5		)
T17	(24		)	(9		)	(33		)
T15	(1		)	(2		)	(3		)
Acquisition integration	—			(1		)	(1		)
Balance as of December 31, 2017	$	1		$	3		$	4

Other Related Charges

Officer Separation Costs

On May 12, 2017, the Company announced the resignation of David B. Wyshner as the Company’s President and Chief Financial Officer. In connection with Mr. Wyshner’s departure, the Company recorded other related charges of $7 million during the year ended December 31, 2017, inclusive of accelerated stock-based compensation expense of $2 million.

Limited Voluntary Opportunity Plans (“LVOP”)

During 2017, the Company offered voluntary termination programs to certain employees in the Americas’ field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the year ended December 31, 2017, the Company recorded other related charges of $16 million in connection with LVOP. Approximately 355 qualified employees elected to participate in the plans, and as of December 31, 2017, the Company had terminated the employment of approximately 340 of these participants.