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Restructuring Charges
3 Months Ended
Mar. 31, 2019
Restructuring Charges [Abstract]  
Restructuring Charges

Note 4. Restructuring Charges

We incurred restructuring charges of $7 million ($5 million, net of tax) and $12 million ($9 million, net of tax) in the three months ended March 31, 2019 and 2018, respectively. Restructuring charges were comprised of the following:







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,

(In millions)

 

2019

 

2018

Terminix(1)

 

$

 

$

ServiceMaster Brands(2)

 

 

 

 

 —

Corporate(3)

 

 

 

 

Global Service Center relocation(4)

 

 

 —

 

 

Total restructuring charges

 

$

 

$

12 

___________________________________

(1)

For the three months ended March 31, 2019 and 2018, these charges included $2 million in each period of severance and other costs. Severance and other costs of $2 million were unpaid and accrued as of March 31, 2019, which includes amounts previously accrued as of December 31, 2018.

(2)

For the three months ended March 31, 2019, these charges included $1 million of severance and other costs. Severance and other costs of $1 million were unpaid and accrued as of March 31, 2019.

(3)

We have historically made changes on an ongoing basis to enhance capabilities and reduce costs in our corporate functions that provide company-wide administrative services to support operations. For the three months ended March 31, 2019, these charges included $1 million of severance costs and $3 million of other costs to enhance capabilities and align corporate functions with those required to support our strategic needs after the American Home Shield spin-off. For the three months ended March 31, 2018, these charges include $3 million of severance and other costs. Corporate restructuring costs of $5 million were unpaid and accrued as of March 31, 2019, which includes amounts previously accrued as of December 31, 2018.

(4)

For the three months ended March 31, 2018, these charges included lease termination and other charges of $7 million related to the relocation of our Global Service Center.

The pretax charges discussed above are reported in Restructuring charges in the unaudited condensed consolidated statements of operations and comprehensive income.

A reconciliation of the beginning and ending balances of accrued restructuring charges, which are included in Accrued liabilities—Other on the unaudited condensed consolidated statements of financial position, is presented as follows:





 

 

 



 

 

 



 

Accrued



 

Restructuring

(In millions)

 

Charges

Balance as of December 31, 2018

 

$

Costs incurred

 

 

Costs paid or otherwise settled

 

 

(7)

Balance as of March 31, 2019

 

$



 

 

 

Balance as of December 31, 2017

 

$

Costs incurred

 

 

12 

Costs paid or otherwise settled

 

 

(4)

Balance as of March 31, 2018

 

$

14 

We expect substantially all of our accrued restructuring charges to be paid by December 31, 2019.