Quarterly report pursuant to Section 13 or 15(d)

Other Expenses and Charges

v3.20.1
Other Expenses and Charges
 3 Months Ended
Mar. 31, 2020
Other Expenses [Abstract]  
Other Expenses and Charges
14. OTHER EXPENSES AND CHARGES
Restructuring
The Company incurred $13 million of charges during the three months ended March 31, 2020, related to restructuring initiatives implemented in response to COVID-19. These initiatives resulted in a reduction of 262 employees and are comprised of employee separation costs. As a result, the Company recorded charges of $7 million to its Hotel Franchising segment, $5 million to its Corporate and Other segment and the remainder to its Hotel Management segment. In addition, during the fourth quarter of 2019, the Company had implemented restructuring initiatives, primarily focused on enhancing its organizational efficiency and rationalizing its operations. Below is the activity for the three months ended March 31, 2020 relating to restructuring activities by plan:
 
 
 
 
2020 Activity
 
 
 
 
Liability as of December 31, 2019
 
Costs Recognized
 
Cash Payments
 
Other (a)
 
Liability as of March 31, 2020
2019 Plan - personnel-related
 
$
8

 
$
—

 
$
(5
)
 
$
(1
)
 
$
2

2020 Plan - personnel-related
 
—

 
13

 
—

 
—

 
13

Total accrued restructuring
 
$
8

 
$
13

 
$
(5
)
 
$
(1
)
 
$
15

______________________
(a)
Represents foreign currency impacts.
Transaction-related, net
The Company incurred $8 million and $7 million of transaction-related expenses during the three months ended March 31, 2020 and 2019, respectively, which were primarily related to integration activities for the acquisition of La Quinta.
Separation-related
The Company incurred separation-related costs associated with its spin-off from Wyndham Worldwide of $1 million and $21 million for the three months ended March 31, 2020 and 2019, respectively. These costs primarily consist of severance, stock-based compensation and other employee-related costs.