XML 48 R23.htm IDEA: XBRL DOCUMENT v3.22.4
Restructuring Costs (Notes)
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Costs RESTRUCTURING COSTS
Restructuring charges for the years ended December 31, 2022, 2021 and 2020 were $32 million, $17 million and $67 million, respectively. The components of the restructuring charges for the years ended December 31, 2022, 2021 and 2020 were as follows:
 Years Ended December 31,
2022 2021 2020
Personnel-related costs (1)$16 $$20 
Facility-related costs (2)16 11  47 
Total restructuring charges (3)$32 $17 $67 
_______________
(1)Personnel-related costs consist of severance costs provided to employees who have been terminated.
(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)Restructuring charges for the year ended December 31, 2022 include $20 million of expense related to the Operational Efficiencies Plan and $12 million of expense related to prior restructuring plans. Restructuring charges for the years ended December 31, 2021 and December 31, 2020 related to prior restructuring plans.
Operational Efficiencies Plan
Beginning in the third quarter of 2022, the Company commenced the implementation of a plan ("the Plan") to reduce its office footprint costs, centralize certain aspects of its operational support structure and drive changes in how it serves its affiliated independent sales agents as well as consumers from a marketing and technology perspective. Furthermore, in
January 2023, the Company executed a meaningful workforce reduction driven by worsening trends in the housing market. These actions build on the multiple other cost reduction and spending reprioritization initiatives such as simplified and more integrated and digitized offerings, systems and support. Delivering the Company’s business model more digitally is an increasing part of improving the consumer experience and the Company's ongoing cost focus. The Company expects to continue to prioritize investments in efforts to support its independent sales agents, franchisees and consumers which includes investments in technology and innovative products, lead generation and franchisee support.
The following is a reconciliation of the beginning and ending reserve balances related to the Plan:
Personnel-related costsFacility-related costs Total
Balance at December 31, 2021$— $— $— 
Restructuring charges (1)14 20 
Costs paid or otherwise settled(4)(4)(8)
Balance at December 31, 2022$10 $12 
_______________
(1)In addition, the Company incurred an additional $5 million of facility-related costs for lease asset impairments in connection with the Plan during the year ended December 31, 2022.
The following table shows the total costs currently expected to be incurred by type of cost related to the Plan:
Total amount expected to be incurred Amount incurred
to date
 Total amount remaining to be incurred
Personnel-related costs$23 $14 $
Facility-related costs12 
Total$35 $20 $15 

The following table shows the total costs currently expected to be incurred by reportable segment related to the Plan:
Total amount expected to be incurred Amount incurred
to date
 Total amount remaining to be incurred
Franchise Group$$$— 
Owned Brokerage Group26 14 12 
Title Group— — — 
Corporate and Other
Total$35 $20 $15 
Prior Restructuring Plans
During 2019, the Company took various strategic initiatives to reduce costs and institute operational and facility related efficiencies to drive profitability. During 2020, as a result of the COVID-19 pandemic, the Company transitioned substantially all of its employees to a remote-work environment which allowed the Company to reevaluate its office space needs. As a result, additional facility and operational efficiencies were identified and implemented which included the transformation of its corporate headquarters in Madison, New Jersey to an open-plan innovation hub. At December 31, 2021, the remaining liability related to these initiatives was $18 million. During the year ended December 31, 2022, the Company incurred $12 million of costs and paid or settled $18 million of costs resulting in a remaining accrual of $12 million at December 31, 2022. The remaining accrual of $12 million and total amount remaining to be incurred of $24 million primarily relate to the transformation of the Company's corporate headquarters.