Restructuring

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring and Other Related Charges

Restructuring

During first quarter 2020, the Company initiated a global restructuring plan to reduce operating costs, such as headcount and facilities, due to declining reservations and revenue resulting from the COVID-19 outbreak (“2020 Optimization Plan”). During the six months ended June 30, 2020, as part of this process, the Company formally communicated the termination of employment to approximately 2,400 employees. The Company expects further restructuring expense of approximately $20 million related to this initiative to be incurred in 2020.

During third quarter 2019, the Company initiated a restructuring plan to exit its operations in Brazil by closing rental facilities, disposing of assets and terminating personnel (“Brazil”). During the six months ended June 30, 2020, as part of this initiative, the Company formally communicated the termination of employment to approximately 20 employees. The Company expects further restructuring expense of approximately $7 million to be incurred.

During first quarter 2019, the Company initiated a restructuring plan to drive global efficiency by improving processes and consolidating functions, and to create new objectives and strategies for its U.S. truck rental operations by reducing headcount, large vehicles and rental locations (“T19”). This initiative is substantially complete.

The following tables summarize the changes to our restructuring-related liabilities and identifies the amounts recorded within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:

				Americas		International		Total
Balance as of January 1, 2020				$	2	$	4	$	6
	Restructuring expense:
	2020 Optimization Plan			24		23		47
	Brazil			1		—		1
	T19			4		—		4
	Restructuring payment/utilization:
	2020 Optimization Plan			(19)		(17)		(36)
	Brazil			(2)		—		(2)
	T19			(6)		(3)		(9)
Balance as of June 30, 2020				$	4	$	7	$	11
		Personnel		Facility Related		Other (a)		Total
Balance as of January 1, 2020		$	3	$	1	$	2	$	6
	Restructuring expense:
	2020 Optimization Plan	44		1		2		47
	Brazil	1		—		—		1
	T19	—		—		4		4
	Restructuring payment/utilization:
	2020 Optimization Plan	(35)		—		(1)		(36)
	Brazil	(1)		(1)		—		(2)
	T19	(4)		—		(5)		(9)
Balance as of June 30, 2020		$	8	$	1	$	2	$	11

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^(a)Includes expenses primarily related to the disposition of vehicles.

Other Related Charges

Limited Voluntary Opportunity Plan (“LVOP”)

During 2020, the Company offered a voluntary termination program to certain employees in field operations, shared services, and general and administrative functions for a limited time. These employees, if qualified, elected resignation from employment in return for enhanced severance benefits to be settled in cash. During the six months ended June 30, 2020, the Company recorded other related charges of approximately $18 million in connection with the LVOP. As of June 30, 2020, approximately 400 qualified employees elected to participate in the plan and the employment of all participants had been terminated.

Officer Separation Costs

In March 2020, the Company announced the departure of Michael K. Tucker as Executive Vice President, General Counsel effective March 27, 2020. In connection with Mr. Tucker’s separation, the Company recorded other related charges of approximately $2 million for the six months ended June 30, 2020.

In March 2019, the Company announced the resignation of Mark J. Servodidio as the Company’s President, International effective June 14, 2019. In connection with Mr. Servodidio’s departure, the Company recorded other related charges of approximately $3 million, inclusive of accelerated stock-based compensation expense for the six months ended June 30, 2019.

In May 2019, the Company announced the resignation of Larry D. De Shon as the Company’s President and Chief Executive Officer. Mr. De Shon continued to serve in his role until December 31, 2019. In connection with Mr. De Shon’s departure, the Company recorded other related charges of approximately $8 million, inclusive of accelerated stock-based compensation expense for the six months ended June 30, 2019.