Quarterly report pursuant to Section 13 or 15(d)

Restructuring

v3.21.2
Restructuring
6 Months Ended
Jun. 30, 2021
Restructuring Charges [Abstract]  
Restructuring Restructuring
2020 Restructuring Plans
During 2020, the Company recorded $37 million of restructuring charges, $36 million of which were COVID-19 related. Due to the impact of COVID-19, the Company decided in the second quarter of 2020 to abandon the remaining portion of its administrative offices in New Jersey. The Company was notified in the second quarter of 2020 that Wyndham Hotels exercised its early termination rights under the sublease agreement. As a result, the Company recorded $22 million of restructuring charges associated with non-lease components of the office space and $24 million of impairment charges associated with the write-off of right-of-use assets and furniture, fixtures and equipment at its Travel and Membership segment. The Company also recognized $12 million of lease-related charges due to the renegotiation of an agreement and $2 million of facility-related restructuring charges associated with closed sales centers at its Vacation Ownership segment. The Travel and Membership segment additionally recognized $1 million in employee-related expenses associated with the consolidation of a shared service center. During 2020, the Company reduced its restructuring liability by $12 million of cash payments. The remaining 2020 restructuring liability of $27 million is expected to be paid by the end of 2029.

The Company implemented other restructuring plans prior to 2020. The remaining liability of less than $1 million as of June 30, 2021, is mostly personnel-related and is expected to be paid by the end of 2021.

The activity associated with the Company’s restructuring plans is summarized as follows (in millions):
Liability as of Liability as of
December 31, 2020 Costs Recognized Cash Payments Other June 30, 2021
Personnel-related $ $ —  $ (1) $ —  $ — 
Facility-related 23  —  —  —  23 
Marketing-related (1)
(a)
— 
(b)
$ 26  $ (1) $ (1) $ $ 27 
(a)Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment.
(b)Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment.