Avis 2009 Annual Report Download - page 82

Table of Contents
The initial recognition of the restructuring charges, additional incremental charges and the corresponding payments and utilization from
inception are summarized by category as follows:
The restructuring charges and corresponding payments and utilization are recorded within the Company’s segments as follows:
F
-
20
Personnel
Related
Facility
Related
Asset
Impairments
Total
Balance as of January 1, 2007
$
4
$
6
$
-
$
10
Cash payment/utilization
(4
)
(4
)
-
(8
)
Balance as of December 31, 2007
-
2
-
2
Initial restructuring charge
23
4
1
28
Cash payment/utilization
(13
)
(1
)
-
(14
)
Balance as of December 31, 2008
10
5
1
16
Incremental charges
11
6
3
20
Cash payment/utilization
(20
)
(7
)
(4
)
(31
)
Balance as of December 31, 2009
$
1
$
4
$
-
$
5
The initial charge primarily represents severance benefits resulting from reductions in staff. As of December 31, 2009, the Company
had terminated all of these employees.
During the twelve months ended December 31, 2009, the Company incurred additional restructuring charges primarily for severance
benefits resulting from reductions in staff and the closure of certain facilities. The Company formally communicated the termination of
employment to approximately 1,750 employees, representing a wide range of employee groups. As of December 31, 2009, the
Company had terminated substantially all of these employees.
At December 31, 2009, the remaining liability relates primarily to required minimum lease payments.
Domestic
Car Rental
International
Car Rental
Truck
Rental
Total
Balance as of January 1, 2007
$
2
$
-
$
8
$
10
Cash payment/utilization
(2
)
-
(6
)
(8
)
Balance as of December 31, 2007
-
-
2
2
Initial Restructuring charge
23
3
2
28
Cash payment/utilization
(11
)
(1
)
(2
)
(14
)
Balance at December 31, 2008
12
2
2
16
Incremental charges
16
2
2
20
Cash payment/utilization
(25
)
(3
)
(3
)
(31
)
Balance at December 31, 2009
$
3
$
1
$
1
$
5
The initial charge primarily represents severance benefits resulting from reductions in staff. As of December 31, 2009, the Company
had terminated all of these employees.
During the twelve months ended December 31, 2009, the Company incurred additional restructuring charges primarily for severance
benefits resulting from reductions in staff and the closure of certain facilities. The Company formally communicated the termination of
employment to approximately 1,750 employees, representing a wide range of employee groups. As of December 31, 2009, the
Company had terminated substantially all of these employees.
(c)
(a)
(b)
(a)
(b)
(c)
(a)
(b)
(a)
(b)