Quarterly report [Sections 13 or 15(d)]

Other Expenses and Charges

v3.25.2
Other Expenses and Charges
 6 Months Ended
Jun. 30, 2025
Other Expenses [Abstract]  
Other Expenses and Charges
13. OTHER EXPENSES AND CHARGES
Transaction-Related
The Company recognized transaction-related expenses of $1 million during both the three and six months ended June 30, 2025, primarily related to stock-based compensation costs associated with the failed hostile takeover defense. The Company recognized transaction-related expenses of $5 million and $46 million during the three and six months ended June 30, 2024, primarily related to costs associated with the failed hostile takeover defense and costs related to the repricing of the Company’s term loan B. During the six months ended June 30, 2024 the Company made $50 million of transaction-related payments. Such amounts primarily consisted of legal and advisory costs.
Separation-Related
The Company recognized $12 million and $11 million of separation-related income for the three and six months ended June 30, 2024, respectively, which were due to the reversal of a reserve associated with the expiration of a tax matter.
Restructuring
During the second quarter of 2025, the Company approved a restructuring plan focused on streamlining its organizational structure, primarily within its marketing, reservation and loyalty functions. As a result, during the three and six months ended June 30, 2025, the Company incurred $13 million of restructuring expenses, primarily in its Hotel Franchising segment and impacting a total of 156 employees. Such expenses included $8 million related to the closure of a leased call center facility in Canada, of which $3 million were personnel-related and impacting 69 employees.
During the first quarter of 2024, the Company approved a restructuring plan focused on enhancing its organizational efficiency. As a result, during the three and six months ended June 30, 2024, the Company incurred $7 million and $9 million, respectively, of restructuring expenses, all of which were personnel-related and primarily in its Hotel Franchising segment. Such plan resulted in a reduction of 135 employees in full year 2024. The following table presents activity for both plans for the six months ended June 30, 2025:
2025 Activity
Liability as of December 31, 2024 (a)
Costs Recognized Cash Payments
Liability as of June 30, 2025 (b)
2024 Plan
Personnel-related $ 5  $ —  $ (3) $ 2 
2025 Plan
Personnel-related —  8  (2) 6 
Facility-related —  5  —  5 
Total 2025 Plan —  13  (2) 11 
Total accrued restructuring $ 5  $ 13  $ (5) $ 13 
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(a)Reported within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.
(b)Reported within accrued expenses and other current liabilities of $10 million and other non-current liabilities of $3 million as of June 30, 2025 on the Condensed Consolidated Balance Sheets.
The following table presents activity for the six months ended June 30, 2024:
2024 Activity
Liability as of December 31, 2023 Costs Recognized Cash Payments
Other (a)
Liability as of June 30, 2024
2024 Plan
Personnel-related $ —  $ 9  $ (3) $ (2) $ 4 
Total accrued restructuring $ —  $ 9  $ (3) $ (2) $ 4 
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(a)Represents non-cash payments in Company stock.
Impairment
As a result of the Company’s evaluation of the recoverability of the carrying value of certain assets, the Company recorded an impairment charge of $12 million, primarily related to development advance notes, during the first quarter of 2024. The impairment charge was reported within the impairment line item on the Condensed Consolidated Statements of Income.