Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Organizational Restructuring

As a result of the closing of the 2018 Transaction, the decision to cease new sales following the strategic review of the Company’s Individual Life business and the additional cost savings targets announced in November 2018, the Company has undertaken restructuring efforts to execute the 2018 Transaction, reduce stranded expenses, as well as improve operational efficiency, strengthen technology capabilities and centralize certain sales, operations and investment management activities ("Organizational Restructuring"). The initiatives associated with the closing of the 2018 Transaction and the decision to cease new sales following the strategic review of the Company’s Individual Life business concluded during 2019.

These activities have resulted in recognition of severance and organizational transition costs and are reflected in Operating expenses in the Consolidated Statements of Operations, but excluded from Adjusted operating earnings before income taxes. These expenses are classified as a component of Other adjustments to Income (loss) from continuing operations before income taxes and consequently are not included in the adjusted operating results of the Company's segments. For the years ended December 31, 2019 and 2018, the Company incurred Organizational Restructuring expenses of $201 and $49 and associated with continuing operations.

The summary below presents Organizational Restructuring expenses, pre-tax, by type of costs incurred, for the periods indicated:



	Years Ended December 31,						Cumulative Amounts Incurred to Date
	2019		2018		2017		Cumulative Amounts Incurred to Date
Severance benefits	$	39	$	15	$	4	$	58
Organizational transition costs	162		40		—		202
Total restructuring expenses	$	201	$	55	$	4	$	260

Including the expense of $201 for the year ended December 31, 2019, the aggregate amount of additional Organizational Restructuring expenses expected is in the range of $250 to $300. The Company anticipates that these costs, which will include severance, organizational transition costs incurred to reorganize operations and other costs such as contract terminations and asset write-offs, will occur at least through the end of 2020.

The following table presents the accrued liability associated with Organizational Restructuring expenses as of December 31, 2019:



	Severance Benefits			Organizational Transition Costs			Total
Accrued liability as of January 1, 2019	$	12		$	9		$	21
Provision	39			162			201
Payments	(21		)	(146		)	(167		)
Accrued liability as of December 31, 2019	$	30		$	25		$	55

Pursuant to the Individual Life Transaction, the Company will divest or dissolve five regulated insurance entities, including its life companies domiciled in Colorado and Indiana, and captive entities domiciled in Arizona and Missouri. The Company will also divest Voya America Equities LLC, a regulated broker-dealer, and transfer or cease usage of a substantial number of administrative systems. The Company will undertake further restructuring efforts to reduce stranded expenses associated with its Individual Life business as well as its corporate and shared services functions. Through the closing of the Individual Life Transaction, the Company anticipates incurring additional restructuring expenses directly related to the disposition. These collective costs, which include severance, transition and other costs, cannot currently be estimated but could be material. Refer to the Business Held for Sale and Discontinued Operation Note to these Consolidated Financial statement for further information.

2016 Restructuring

In 2016, the Company began implementing a series of initiatives designed to make it a simpler, more agile company able to deliver an enhanced customer experience ("2016 Restructuring"). These initiatives include an increasing emphasis on less capital-intensive products and the achievement of operational synergies. Substantially all of the initiatives associated with the 2016 Restructuring program concluded at the end of 2018.

Total 2016 Restructuring expenses are reflected in Operating expenses in the Consolidated Statements of Operations, but excluded from Adjusted operating earnings before income taxes. These expenses are classified as a component of Other adjustments to Income (loss) from continuing operations before income taxes and consequently are not included in the adjusted operating results of the Company's segments.

The summary below presents 2016 Restructuring expense, pre-tax, by type of costs incurred, for the periods indicated:



	Years Ended December 31,						Cumulative Amounts Incurred to Date⁽¹⁾
	2019		2018		2017		Cumulative Amounts Incurred to Date⁽¹⁾
Severance benefits	$	—	$	9	$	34	$	69
Asset write-off costs	—		1		16		17
Transition costs	—		7		17		24
Other costs	8		13		15		44
Total restructuring expenses	$	8	$	30	$	82	$	154

⁽¹⁾Cumulative amounts incurred to date include $26 of severance benefits and $8 of other costs incurred during the year ended December 31, 2016.

The following table presents the accrued liability associated with 2016 Restructuring expenses as of December 31, 2019:



	Severance Benefits			Transition Costs			Other Costs			Total
Accrued liability as of January 1, 2019	$	8		$	14		$	2		$	24
Provision	—			—			8			8
Payments	(4		)	(6		)	(10		)	(20		)
Accrued liability as of December 31, 2019	$	4		$	8		$	—		$	12