Quarterly report [Sections 13 or 15(d)]

Other Expenses and Charges

v3.26.3
Other Expenses and Charges
 9 Months Ended
Sep. 30, 2026
Other Expenses [Abstract]  
Other Expenses and Charges
15. OTHER EXPENSES AND CHARGES
Restructuring and Other-Related
During the first quarter of 2026, the Company approved a restructuring plan that commenced in the second quarter of 2026 which focuses on transitioning certain functions to a global shared service center. As a result, during the three and nine months ended September 30, 2026, the Company incurred $2 million and $8 million, respectively, of restructuring and other-related expenses relating to the 2026 plan, impacting 40 employees.
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, the Company incurred $4 million of restructuring expenses during the nine months ended September 30, 2026 and $2 million and $16 million during the three and nine months ended September 30, 2025 relating to the 2025 plan. Such charges were primarily in its Hotel Franchising segment and impacting a total of 202 employees.
The following table presents activity for the nine months ended September 30, 2026:
2026 Activity
Liability as of December 31, 2025 (a)
Costs Recognized (b)
Cash Payments
Liability as of September 30, 2026 (c)
2026 Plan
Personnel-related $ —  $ 3  $ (2) $ 1 
Other-related (d)
—  5  (4) 1 
Total 2026 Plan —  8  (6) 2 
2025 Plan
Personnel-related 4  4  (6) 2 
Facility-related 4  —  (1) 3 
Total 2025 Plan 8  4  (7) 5 
Total accrued restructuring $ 8  $ 12  $ (13) $ 7 
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(a)Reported within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.
(b)Costs recognized for the nine months ended September 30, 2026 were $9 million relating to Corporate and $3 million relating to Hotel Franchising segment.
(c)Reported within accrued expenses and other current liabilities of $5 million and other non-current liabilities of $2 million as of September 30, 2026 on the Condensed Consolidated Balance Sheets.
(d)Other-related expenses primarily consist of professional fees related to restructuring activities under the 2026 plan.
The following table presents activity for the nine months ended September 30, 2025:
2025 Activity
Liability as of December 31, 2024 Costs Recognized Cash Payments Liability as of September 30, 2025
2024 Plan
Personnel-related $ 5  $ —  $ (4) $ 1 
2025 Plan
Personnel-related —  11  (6) 5 
Facility-related —  5  —  5 
Total 2025 Plan —  16  (6) 10 
Total accrued restructuring $ 5  $ 16  $ (10) $ 11 
Transaction-Related
Transaction-related expenses were immaterial and $3 million during the three and nine months ended September 30, 2026, respectively and $1 million and $2 million during the three and nine months ended September 30, 2025, respectively. The 2026 amount primarily relates to costs associated with the issuance of the 5.625% senior unsecured notes. The 2025 amounts primarily relate to stock-based compensation costs associated with the failed hostile takeover defense.
Separation-Related
Separation-related costs associated with the Company’s spin-off from former parent were immaterial and $1 million of income during the three and nine months ended September 30, 2026, respectively, and immaterial and $1 million of expense during the three and nine months ended September 30, 2025, respectively.