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Spin-Off Charges
12 Months Ended
Dec. 31, 2019
Spin-Off Charges [Abstract]  
Spin-Off Charges  Note 9. Spin-off Charges

We incurred Spin-off charges of $1 million ($1 million, net of tax), $24 million ($19 million, net of tax), and $13 million ($9 million, net of tax) the years ended December 31, 2019, 2018 and 2017, respectively.

These charges include nonrecurring costs incurred to evaluate, plan and execute the Spin-off. In 2019, Spin-off charges were primarily comprised of third-party consulting fees. In 2018, Spin-off charges primarily comprised $19 million of third-party consulting fees and $5 million of other incremental costs directly related to the Spin-off process. In 2017, Spin-off charges primarily comprised $12 million of third-party consulting fees and $1 million of other incremental costs directly related to the Spin-off process.

The pre-tax charges discussed above are reported in “Spin-off charges” in the accompanying consolidated and combined statements of operations and comprehensive income.

A reconciliation of the beginning and ending balances of accrued Spin-off charges, which are included in "Accrued liabilities—other" on the accompanying consolidated statements of financial position, is presented as follows:

(In millions)

Accrued
Spin-off
Charges

Balance as of December 31, 2017

$

1

Costs incurred(1)

22

Costs paid or otherwise settled

(23)

Balance as of December 31, 2018

$

Costs incurred

1

Costs paid or otherwise settled

(1)

Balance as of December 31, 2019

$

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(1)An additional $2 million of Spin-off charges were pre-paid in 2017 and subsequently expensed in 2018.

During 2019 and 2018, we incurred incremental capital expenditures required to effect the Spin-off of $2 million and $15 million, respectively, principally reflecting costs to replicate technology systems historically shared with ServiceMaster.