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F-15
As of December 31, 2012, the Company has terminated substantially all of these employees. The Company expects
further restructuring expenses of approximately $20 million to be incurred through 2013 related to this initiative.
Beginning in 2008, the Company initiated strategic initiatives within the Company’s North America, International and
Truck Rental segments, as part of a cost-reduction and efficiency improvement plan to reduce costs, enhance
organizational efficiency and consolidate and rationalize existing processes and facilities. The Company recorded
restructuring expenses in connection with these initiatives of $2 million and $11 million in 2011 and 2010, respectively.
The majority of these restructuring expenses have been settled in cash. These expenses primarily represented costs
associated with the closure and consolidation of certain administrative facilities and severance, outplacement services
and other costs associated with employee terminations. The Company has substantially completed its activities under this
restructuring initiative. As of December 31, 2012, the remaining liability relating to these restructuring actions was
immaterial, and the Company does not expect any costs to be incurred.
The following tables summarize the change to our restructuring-related liabilities and identify the amounts recorded
within the Company’s reporting segments for restructuring charges and corresponding payments and utilizations:
Personnel
Related
Facility
Related
Other (a)
Total
Balance as of January 1, 2010
$
1
$
4
$
-
$
5
Restructuring expense
4
7
-
11
Cash payment/utilization
(5)
(5)
-
(10)
Balance as of December 31, 2010
-
6
-
6
Restructuring expense
5
-
-
5
Acquired restructuring obligation
-
1
-
1
Cash payment/utilization
(4)
(6)
-
(10)
Balance as of December 31, 2011
1
1
-
2
Restructuring expense
37
-
1
38
Cash payment/utilization
(26)
-
(1)
(27)
Balance as of December 31, 2012
$
12
$
1
$
-
$
13
__________
(a) Includes expenses related to the disposition of vehicles.
North
America
International
Truck
Rental
Total
Balance as of January 1, 2010
$
3
$
1
$
1
$
5
Restructuring expense
11
-
-
11
Cash payment/utilization
(8)
(1)
(1)
(10)
Balance as of December 31, 2010
6
-
-
6
Restructuring expense
2
3
-
5
Acquired restructuring obligation
-
1
-
1
Cash payment/utilization
(7)
(3)
-
(10)
Balance as of December 31, 2011
1
1
-
2
Restructuring expense
1
36
1
38
Cash payment/utilization
(1)
(25)
(1)
(27)
Balance as of December 31, 2012
$
1
$
12
$
-
$
13
5. Licensing Activities
Revenues from licensing, which are recorded within other revenues on the accompanying Consolidated Statements of
Operations, amounted to $136 million, $70 million and $46 million during 2012, 2011 and 2010, respectively. The
Company renews license agreements in the normal course of business and occasionally terminates, purchases or sells
license agreements. In connection with ongoing fees that the Company receives from its licensees pursuant to license
agreements, the Company is required to provide certain services, such as training, marketing and the operation of
reservation systems.