Restructuring and Related Charges

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Note 18 – Restructuring and Related Charges

During the three months ended June 30, 2020, the Company initiated and completed certain restructuring activities in order to reduce its overall cost structure in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the Company’s business. The Company exited the JUMP business and incurred costs related to site closures and asset impairments and write-offs. There were no restructuring activities during the three and six months ended June 30, 2019.

The following table presents the total restructuring and related charges associated with the Company’s segments as well as corporate charges for the three months ended June 30, 2020 (in millions):


Mobility	$	76
Delivery	33
Freight	7
ATG and Other Technology Programs	59
Other Bets ⁽¹⁾	123
Total restructuring and related charges by segment	298
Corporate G&A and Platform R&D	84
Total restructuring and related charges	$	382

⁽¹⁾ Includes restructuring and related charges associated with the exit of the JUMP business, including severance and other termination benefits of $31 million, site closure costs of $27 million and other costs of $65 million.

The following table presents the total restructuring and related charges, by function, for the three months ended June 30, 2020 (in millions):


Operations and support	$	187
Sales and marketing	22
Research and development	86
General and administrative	87
Total	$	382

The following table provides the components of and changes in the Company’s restructuring and related charges accrual during the six months ended June 30, 2020 (in millions):


	Severance and Other Termination Benefits		Site Closure Costs		Other		Total
Balance as of December 31, 2019	$	—	$	—	$	—	$	—
Charges^{(1), (2)}	210		107		65		382
Cash payments	(142)		—		—		(142)
Non-cash adjustments	—		(105)		(16)		(121)
Balance as of June 30, 2020	$	68	$	2	$	49	$	119

⁽¹⁾ Site closure costs primarily includes $50 million related to the impairment of operating lease right-of-use assets and $38 million for write-offs of leasehold improvements.

⁽²⁾ Total restructuring and related charges include $261 million of cash settled charges, primarily for severance and other termination benefits, and are expected to be completely paid by the end of 2020.

The remaining costs related to these restructuring activities are expected to be immaterial.