|12 Months Ended|
Dec. 31, 2022
|Restructuring Charges [Abstract]|
2022 Restructuring Plans
During 2022, the Company incurred $14 million of restructuring charges. These charges are associated with certain positions that were made redundant based upon changes to the organizational structure of the Company, primarily within the Travel and Membership segment. The charges consisted of (i) $9 million of personnel costs at the Travel and Membership segment (ii) $3 million of lease and personnel-related costs at the Vacation Ownership segment, and (iii) $2 million of personnel-related costs at the Company’s corporate operations. These restructuring charges included $3 million of accelerated stock-based compensation expense. All material initiative and related expenses have been incurred as of December 31, 2022. The 2022 restructuring liability was reduced by $5 million of cash payments during the year ended December 31, 2022. The majority of the remaining 2022 restructuring liability of $7 million is expected to be paid in 2023 with lease-related payments continuing through 2025.
2020 Restructuring Plans
During 2020, the Company recorded $37 million of restructuring charges, most of which were COVID-19 related. These charges included $22 million at the Travel and Membership segment associated with the Company’s decision to abandon the remaining portion of its administrative offices in New Jersey, and $14 million of lease-related charges due to the renegotiation of an agreement and facility-related restructuring charges associated with closed sales centers at the Vacation Ownership segment. This restructuring liability was reduced by $3 million, $5 million, and $12 million of cash payments during the years ended December 31, 2022, 2021 and 2020. The remaining 2020 restructuring liability of $19 million is lease-related and is expected to be paid by the end of 2029.
The activity associated with all of the Company’s restructuring plans is summarized by category as follows (in millions):
(a)Includes $2 million of restructuring charges related to 2019 Restructuring Plans which have been fully repaid.
(b)Includes $1 million reversal of expense related to the reimbursement of prepaid licensing fees that were previously written-off at the Vacation Ownership segment.
(c)Includes $2 million reimbursement of termination payments and $1 million reimbursement of license fees at the Vacation Ownership segment.
(d)Represents $3 million of accelerated stock-based compensation expense included in Additional paid-in capital on the Consolidated Balance Sheets.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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