Restructuring and Other Costs Level 1 (Notes)

12 Months Ended

Dec. 31, 2014

As a result of a strategic business realignment announced in 2012, The Hartford is currently focusing on its Property & Casualty, Group Benefits and Mutual Funds businesses. In addition, the Company implemented restructuring activities in 2011 across several areas aimed at reducing overall expense levels. The Company intends to substantially complete the related restructuring activities over the next 6 months. For further discussion of the Company's strategic business realignment and related business disposition transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements.

Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through December 31, 2013. Additional costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to December 31, 2014, and asset impairment charges, if any, will be expensed as appropriate.

In 2013, The Hartford initiated a plan to consolidate its real estate operations, including the intention to exit certain facilities and relocate employees. The consolidation of real estate is consistent with The Hartford's strategic business realignment and follows the completion of sales of the Retirement Plans and Individual Life businesses. Asset related charges will be incurred over the remaining estimated useful life of facilities, and relocation and other maintenance charges will be recognized as incurred.

Restructuring and other costs are expected to approximate $164, pre-tax. As the Company executes on its operational and strategic initiatives, the Company's estimate of and actual costs incurred for restructuring activities may differ from these estimates.

Restructuring and other costs, pre-tax incurred by the Company in connection with these activities are as follows:



	For the years ended December 31,
	2014		2013		2012
Severance benefits and related costs	$	8	$	7	$	93
Professional fees	—		15		23
Asset impairment charges	9		5		4
Total restructuring and other costs	$	17	$	27	$	120

The tables below provide roll-forwards for accrued restructuring and other costs included in other liabilities in the Consolidated Balance Sheets.



	For the year ended December 31, 2014
	Severance Benefits and Related Costs			Professional Fees		Asset Impairment Charges			Total Restructuring and Other Costs
Balance, beginning of period	$	1		$	—	$	—		$	1
Accruals/provisions	8			—		9			17
Payments/write-offs	(5		)	—		(9		)	(14		)
Balance, end of period	$	4		$	—	$	—		$	4



	For the year ended December 31, 2013
	Severance Benefits and Related Costs			Professional Fees			Asset Impairment Charges			Total Restructuring and Other Costs
Balance, beginning of period	$	31		$	—		$	—		$	31
Accruals/provisions	7			15			5			27
Payments/write-offs	(37		)	(15		)	(5		)	(57		)
Balance, end of period	$	1		$	—		$	—		$	1

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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