Restructuring and Other Related Charges

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

In 2024, we initiated a global restructuring plan to further right size our operations (“Global Rightsizing”). The costs associated with this initiative are primarily related to the operational scaling of processes, locations, and lines of business. We expect further restructuring expense of approximately $70 million related to this initiative to be incurred in 2025.

In 2022, we initiated a restructuring plan to focus on consolidating our global operations by designing new processes and implementing new systems (“Cost Optimization”). In 2021, we initiated a global restructuring plan to focus on cost discipline by reviewing headcounts, facilities and contractor agreements. We transformed our business as we exited the COVID-19 crisis by controlling fixed costs and matching variable costs to demand (“T21”). In 2020, we initiated a global restructuring plan to reduce operating costs, such as headcount and facilities, due to declining reservations and revenue resulting from the COVID-19 outbreak (“2020 Optimization”). In 2019, we initiated a restructuring plan to exit our operations in Brazil by closing rental facilities, disposing of assets and terminating personnel (“Brazil”). We also initiated a restructuring plan in that same year to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for our truck rental operations in the United States by reducing headcount, large vehicles and rental locations (“T19”). These initiatives are complete.

The following tables summarize the changes to our restructuring-related liabilities and identify the amounts recorded within our reportable segments for restructuring charges and corresponding payments and utilizations:


	Personnel Related		Facility Related		Other		Total
Balance at January 1, 2022	$	7	$	2	$	1	$	10
Restructuring expense:
Cost Optimization	9		—		—		9
T21	3		—		—		3
Brazil	—		—		1		1
Restructuring payment/utilization:
Cost Optimization	(6)		—		(1)		(7)
T21	(8)		(1)		—		(9)
2020 Optimization	(1)		—		—		(1)
Brazil	—		—		(1)		(1)
T19	—		(1)		—		(1)
Balance as of December 31, 2022	$	4	$	—	$	—	$	4
Restructuring expense:
Cost Optimization	8		—		2		10
Brazil	—		—		1		1
Restructuring payment/utilization:
Cost Optimization	(8)		—		(2)		(10)
Brazil	—		—		(1)		(1)
Balance as of December 31, 2023	$	4	$	—	$	—	$	4
Restructuring expense:
Global Rightsizing (a)	19		—		17		36
Cost Optimization	—		—		1		1
Restructuring payment/utilization:
Global Rightsizing (a)	(12)		—		(8)		(20)
Cost Optimization	(1)		—		(3)		(4)
Balance as of December 31, 2024	$	10	$	—	$	7	$	17

__________

(a) Other includes the disposition of vehicles.


	Americas		International		Total
Balance at January 1, 2022	$	2	$	8	$	10
Restructuring expense:
Cost Optimization	2		7		9
T21	1		2		3
Brazil	1		—		1
Restructuring payment/utilization:
Cost Optimization	(2)		(5)		(7)
T21	(2)		(7)		(9)
2020 Optimization	—		(1)		(1)
Brazil	(1)		—		(1)
T19	—		(1)		(1)
Balance as of December 31, 2022	1		3		4
Restructuring expense:
Cost Optimization	7		3		10
Brazil	1		—		1
Restructuring payment/utilization:
Cost Optimization	(6)		(4)		(10)
Brazil	(1)		—		(1)
Balance as of December 31, 2023	2		2		4
Restructuring expense:
Global Rightsizing	19		17		36
Cost Optimization	1		—		1
Restructuring payment/utilization:
Global Rightsizing	(12)		(8)		(20)
Cost Optimization	(1)		(3)		(4)
Balance as of December 31, 2024	$	9	$	8	$	17

Other Related Charges

In April 2022, we announced the departure of Veresh Sita as Executive Vice President and Chief Digital and Innovation Officer effective May 13, 2022. In connection with Mr. Sita’s separation, we recorded other related charges of approximately $1 million, inclusive of accelerated stock-based compensation expense, for the year ended December 31, 2022.