Restructuring Costs

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In the fourth quarter of 2022, the Company initiated activities focused on workforce actions, rationalization of technology and functional services, and reductions in real estate. In the third quarter of 2024, the Company finalized its detailed plans and anticipates total charges related to these activities to be approximately $650 million. The Company has incurred approximately $540 million of these restructuring costs through September 30, 2024, primarily severance and lease exit charges, of which $36 million and $96 million were incurred for the three and nine months ended September 30, 2024, respectively. The Company is expected to complete these activities by the end of 2024.

The Company incurred a total of $54 million and $140 million for restructuring activities for the three and nine months ended September 30, 2024, respectively, compared to $52 million and $170 million, for the corresponding periods in the prior year.

The Company incurred costs related to these initiatives as follows:

	Three Months Ended September 30,				Nine Months Ended  September 30,
(In millions)	2024		2023		2024		2023
Risk and Insurance Services	$	22	$	26	$	73	$	89
Consulting	14		17		30		33
Corporate	18		9		37		48
Total	$	54	$	52	$	140	$	170

Details of the restructuring activity from January 1, 2023 through September 30, 2024, are as follows:

(In millions)	Severance		Real Estate Related Costs (a)		Information Technology		Consulting and Other Outside Services		Total
Liability at January 1, 2023	$	88	$	56	$	—	$	2	$	146
2023 charges	148		96		15		42		301
Cash payments	(147)		(69)		(13)		(42)		(271)
Non-cash charges	—		(44)		(2)		—		(46)
Liability at December 31, 2023	$	89	$	39	$	—	$	2	$	130
2024 charges	63		41		19		17		140
Cash payments	(123)		(34)		(19)		(19)		(195)
Non-cash charges	—		(9)		—		—		(9)
Liability at September 30, 2024	$	29	$	37	$	—	$	—	$	66

(a) Includes ROU and fixed asset impairments and other real estate related costs.

The expenses associated with these initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities or accrued compensation and employee benefits, depending on the nature of the items.