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Restructuring Costs Restructuring Costs
6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
6.
RESTRUCTURING COSTS
Restructuring charges were $9 million and $21 million for the three and six months ended June 30, 2019, respectively, and $6 million and $36 million for the three and six months ended June 30, 2018, respectively. The components of the restructuring charges for the three and six months ended June 30, 2019 and 2018 were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Personnel-related costs (1)
$
5

 
$
3

 
$
16

 
$
17

Facility-related costs (2)
4

 
3

 
5

 
12

Internal use software impairment (3)

 

 

 
7

Total restructuring charges (4)
$
9

 
$
6

 
$
21

 
$
36

_______________
(1)
Personnel-related costs consist of severance costs provided to employees who have been terminated and duplicate payroll costs during transition.
(2)
Facility-related costs consist of costs associated with planned facility closures such as contract termination costs, amortization of lease assets that will continue to be incurred under the contract for its remaining term without economic benefit to the Company, accelerated depreciation on asset disposals and other facility and employee relocation related costs.
(3)
Internal use software impairment relates to development costs capitalized for a project that was determined to not meet the Company's strategic goals when analyzed by the Company's new leadership team.
(4)
The three and six months ended June 30, 2019 include $9 million and $18 million, respectively, of expense related to the Facility and Operational Efficiencies Program and Leadership Realignment and zero and $3 million, respectively, of expense related to Other Restructuring Activities Program. Restructuring charges for three and six months ended June 30, 2018 relate to prior restructuring programs.
Facility and Operational Efficiencies Program
Beginning in the first quarter of 2019, the Company commenced the implementation of a plan to accelerate its office consolidation to reduce storefront costs, as well as institute other operational efficiencies to drive profitability. In addition, the Company commenced a plan to transform and centralize certain aspects of the operational support and drive changes in how it serves its affiliated independent sales agents from a marketing and technology perspective to help such agents be more productive and enable them to make their businesses more profitable.
The following is a reconciliation of the beginning and ending reserve balances related to the Facility and Operational Efficiencies Program:
 
Personnel-related costs
 
Facility-related costs (1)
 
Total
Balance at December 31, 2018
$

 
$

 
$

Restructuring charges
13

 
5

 
18

Costs paid or otherwise settled
(8
)
 
(4
)
 
(12
)
Balance at June 30, 2019
$
5

 
$
1

 
$
6


_______________
(1)
In addition, the Company incurred an additional $2 million related to lease asset impairments in connection with the Facility and Operational Efficiencies Program during the six months ended June 30, 2019.
The following table shows the total costs currently expected to be incurred by type of cost related to the Facility and Operational Efficiencies Program:
 
Total amount expected to be incurred
 
Amount incurred to date
 
Total amount remaining to be incurred
Personnel-related costs
$
13

 
$
13

 
$

Facility-related costs (1)
41

 
5

 
36

Total
$
54

 
$
18

 
$
36


_______________
(1)
Facility-related costs includes lease asset impairments expected to be incurred under the Facility and Operational Efficiencies Program.
The following table shows the total costs currently expected to be incurred by reportable segment related to the Facility and Operational Efficiencies Program:
 
Total amount expected to be incurred
 
Amount incurred to date
 
Total amount remaining to be incurred
Real Estate Franchise Services
$

 
$

 
$

Company Owned Real Estate Brokerage Services
44

 
10

 
34

Relocation Services
4

 
4

 

Title and Settlement Services
1

 
1

 

Corporate and Other
5

 
3

 
2

Total
$
54

 
$
18

 
$
36


Leadership Realignment and Other Restructuring Activities
Beginning in the first quarter of 2018, the Company commenced the implementation of a plan to drive its business forward and enhance stockholder value. The key aspects of this plan included senior leadership realignment, an enhanced focus on technology and talent, as well as further attention to office footprint and other operational efficiencies. The activities undertaken in connection with the restructuring plan are complete. At December 31, 2018, the remaining liability was $20 million. During the six months ended June 30, 2019, the Company incurred personnel-related costs of $3 million, paid or settled costs of $7 million and reclassified $5 million to offset related lease assets upon adoption of the new leasing standard, resulting in a remaining accrual of $11 million, primarily related to personnel and facility related liabilities.