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This excerpt taken from the WYN 10-Q filed May 7, 2009. RESTRUCTURING
PLAN
In response to a deteriorating global economy, during 2008, we
committed to various strategic realignment initiatives targeted
principally at reducing costs, enhancing organizational
efficiency and consolidating and rationalizing existing
processes and facilities. As a result, we recorded
$43 million in incremental restructuring costs during the
first quarter of 2009. Such strategic realignment initiatives
included:
Lodging
We continued the operational realignment of our lodging
business, which began during 2008, to enhance its global
franchisee services, promote more efficient channel management
to further drive revenue at franchised locations and managed
properties and position the Wyndham brand appropriately and
consistently in the marketplace. As a result of these
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changes, we recorded $3 million in costs primarily related
to the elimination of certain positions and the related
severance benefits and outplacement services that were provided
for impacted employees.
Vacation
Exchange and Rentals
Our strategic realignment in our vacation exchange and rentals
business streamlined exchange operations primarily across its
international businesses by reducing management layers to
improve regional accountability. Such plan resulted in
$4 million in restructuring costs during the first quarter
of 2009. We expect additional costs during the second quarter of
2009 of approximately $1 million to $4 million in cash
payments for severance and related benefits.
Vacation
Ownership
Our vacation ownership business refocused its sales and
marketing efforts by closing the least profitable sales offices
and eliminating marketing programs that were producing prospects
with lower credit quality. Consequently, we have decreased the
level of timeshare development, reduced our need to access the
asset-backed securities market and enhanced the cash flow from
the business unit. Such realignment includes the elimination of
certain positions, the termination of leases of certain sales
offices, the termination of development projects and the
write-off of assets related to the sales offices and cancelled
development projects. These initiatives resulted in costs of
$35 million during 2009.
Corporate
and Other
We identified opportunities at our corporate business to reduce
costs by enhancing organizational efficiency and consolidating
and rationalizing existing processes. As a result, we recorded
$1 million in restructuring costs during the first quarter
of 2009.
Total
Company
These strategic realignments resulted in the termination of
approximately 320 more employees and incremental restructuring
costs of $43 million during the first quarter of 2009, of
which $21 million was paid in cash and $15 million was
a non-cash expense. The remaining liability of $47 million
will be paid in cash; $18 million of personnel-related by
May 2010 and $29 million of primarily facility-related by
September 2017. We anticipate additional restructuring costs
during the second quarter of 2009 of approximately
$1 million to $4 million in cash payments for
severance and related benefits. These amounts are preliminary
estimates and subject to change. We began to realize the
benefits of these strategic realignment initiatives during the
fourth quarter of 2008 and anticipate annual net savings from
such initiatives of approximately $160 million to
$180 million beginning in 2009.
This excerpt taken from the WYN 10-K filed Feb 27, 2009. RESTRUCTURING
PLAN
In response to a deteriorating global economy, during 2008, we
committed to various strategic realignment initiatives targeted
principally at reducing costs, enhancing organizational
efficiency and consolidating and rationalizing existing
processes and facilities. As a result, we recorded
$79 million in restructuring costs during 2008. Such
strategic realignment initiatives included:
This excerpt taken from the WYN 10-Q filed Nov 10, 2008. RESTRUCTURING
PLAN
During the third quarter of 2008, we committed to various
strategic realignment initiatives targeted principally at
reducing costs, enhancing organizational efficiency and
consolidating and rationalizing existing processes and
facilities. As a result, we recorded $6 million in
restructuring costs during the third quarter of 2008. Such
strategic realignment initiatives included:
We realigned the operations of our lodging business to enhance
its global franchisee services, promote more efficient channel
management to further drive revenue at franchised locations and
managed properties and position the Wyndham brand appropriately
and consistently in the marketplace. As a result of these
changes, certain positions were eliminated and severance
benefits and outplacement services were provided for impacted
employees resulting in costs of $4 million.
Our vacation exchange and rentals business began a restructuring
plan during the third quarter of 2008, which resulted in costs
of $2 million. Our strategic realignment in our vacation
exchange and rentals business streamlines exchange operations
primarily across its international businesses by reducing
management layers to improve regional accountability. We expect
additional costs of approximately $9 to $12 million during
the fourth quarter of 2008 and approximately $0 to
$1 million during the first quarter of 2009.
Our vacation ownership business will refocus its sales and
marketing efforts by closing the least profitable sales offices
and eliminating marketing programs that were producing prospects
with lower credit quality. Consequently, we will decrease the
level of timeshare development and enhance the cash flow from
the business unit. Such realignment will include the
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elimination of certain positions, the termination of leases of
certain sales offices and the write-off of related assets from
such offices. These initiatives began during the fourth quarter
of 2008 and, thus, we expect costs of approximately $16 to
$18 million during the fourth quarter of 2008 and
approximately $5 to $9 million during the first quarter of
2009.
These strategic realignments, including the termination of less
than 100 employees, resulted in total restructuring costs
of $6 million ($5 million expected to be paid in cash)
during the third quarter of 2008. We estimate further
restructuring costs, including the termination of approximately
1,000 employees, of approximately $25 to $30 million
(approximately $20 to $22 million expected to be paid in
cash) during the fourth quarter of 2008 and approximately $5 to
$10 million (approximately $5 to $7 million expected
to be paid in cash) during the first quarter of 2009. These
amounts are preliminary estimates and subject to change. We
expect to begin realizing the benefits of these restructuring
initiatives during the fourth quarter of 2008 and anticipate net
savings from such initiatives to offset the full amount of the
related costs by the end of 2010.
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