Avis 2014 Annual Report Download - page 83

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F-16
During fourth quarter 2012, the Company initiated a strategic restructuring initiative to better position the
business of its Truck Rental segment, in which it closed certain rental locations and decreased the size of
the rental fleet, with the intent to increase fleet utilization and reduce costs (the “Truck Rental
restructuring”). During the year ended December 31, 2014, the Company did not record restructuring
expense related to this initiative, which is substantially complete.
In 2011, subsequent to the acquisition of Avis Europe plc, the Company initiated restructuring initiatives,
identifying synergies across the Company, enhancing organizational efficiencies and consolidating and
rationalizing processes (the “Avis Europe restructuring”). During the years ended December 31, 2014, 2013
and 2012, as part of this process, the Company formally communicated the termination of employment to
approximately 230, 580 and 550 employees, respectively. During 2014, 2013 and 2012, the Company
recorded restructuring expenses in connection with this initiative of $21 million, $40 million and $37 million,
respectively, the majority of which have been or are expected to be settled in cash. These expenses
primarily represent costs associated with severance, outplacement services and other costs associated with
employee terminations. During 2014, the Company terminated approximately 210 of the affected
employees, and this initiative is substantially complete.
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, 2012 $ 1 $ 1 $ — $ 2
Avis Europe restructuring expense 37 — — 37
Truck Rental restructuring expense ——11
Avis Europe restructuring payment (26)— —(26)
Truck Rental payment/utilization —— (1) (1)
Balance as of December 31, 2012 12 1 — 13
Avis Europe restructuring expense 34 6 — 40
Truck Rental restructuring expense ——2121
Avis Europe restructuring payment (29)(2)—(31)
Truck Rental payment/utilization —— (21) (21)
Balance as of December 31, 2013 17 5 — 22
Avis Europe restructuring expense 20 1 — 21
T15 restructuring expense 5 — — 5
Avis Europe restructuring payment (27) (3) — (30)
T15 restructuring payment (1)— — (1)
Balance as of December 31, 2014 $ 14 $ 3 $ — $ 17
__________
(a) Includes expenses related to the disposition of vehicles.