Restructuring

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

Organizational Restructuring

Pursuant to the Company executing the Resolution MTA and the Individual Life Transaction, the Company sold five of its legal subsidiaries, SLD, SLDI, RRII, MUL and VAE to Resolution Life US, which is an insurance holding company newly formed by RLGH, a Bermuda-based limited partnership. The Company also executed an agreement with Cetera on June 9, 2021, where Cetera acquired the independent financial planning channel of VFA. Additionally, the Company transferred or ceased usage of a substantial number of administrative systems and is undertaking restructuring efforts to reduce stranded expenses associated with its Individual Life business and independent financial planning channel as well as its corporate and shared services functions. The Company anticipates incurring additional restructuring expenses directly and indirectly related to these dispositions beyond the third quarter of 2022, of $15 to $25 in addition to the $91 incurred during 2021 and $22 incurred for the nine months ended September 30, 2022.

The restructuring activities related to the Individual Life Transaction and the sale of the independent financial planning channel have resulted in recognition of severance and organizational transition costs that are reflected in both continuing operations and discontinued operations. Amounts reflected in continuing operations are reported in Operating expenses in the Condensed 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 Organizational Restructuring expenses, pre-tax, by type of costs incurred, for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,				Cumulative Amounts Incurred to Date(1)
	2022		2021		2022		2021
Severance benefits	$	(2)	$	5	$	—	$	19	$	84
Organizational transition costs	5		19		22		57		414
Total restructuring expenses	$	3	$	24	$	22	$	76	$	498
Continuing operations	$	3	$	24	$	22	$	76	$	433
Discontinued operations	$	—	$	—	$	—	$	—	$	65

(1) Includes expenses incurred during 2017-2022.

The following table presents the accrued liability associated with Organizational Restructuring expenses as of September 30, 2022:

	Severance Benefits		Organizational Transition Costs		Total
Accrued liability as of January 1, 2022	$	30	$	22	$	52
Provision	—		22		22
Payments	(8)		(39)		(47)
Accrued liability as of September 30, 2022	$	22	$	5	$	27