In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Hartford Next is intended to reduce annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities. The activities are expected to be substantially complete by the end of 2022. These estimated restructuring and other costs do not include all costs associated with a real estate consolidation plan as those plans are not yet sufficiently developed to provide a full estimate of those costs and related savings.

Termination benefits related to workforce reductions and professional fees are included within restructuring and other costs in the Condensed Consolidated Statement of Operations and unpaid restructuring costs are included in other liabilities in the September 30, 2020 Condensed Consolidated Balance Sheet. Subsequent to September 30, 2020, the Company expects to incur additional costs including accelerated amortization of IT and right of use assets, other IT costs to retire applications, professional fees and other expenses. Total restructuring and other costs are expected to be approximately $150, before tax, and will be recognized in Corporate for segment reporting.


Restructuring and Other Costs, Before Tax

	Incurred in the Three and Nine Months Ended September 30, 2020 [1]		Total Amount Expected to be Incurred
Severance benefits	$	78	$	78
IT costs	—		28
Professional fees and other expenses	9		44
Total restructuring and other costs, before tax	$	87	$	150

[1] Amounts incurred for the nine months ended September 30, 2020 are the cumulative incurred under the restructuring program.


Accrued Restructuring and Other Costs
	Nine Months Ended September 30, 2020
	Severance Benefits and Related Costs		IT Costs		Professional Fees and Other		Total Restructuring and Other Costs Liability
Balance, beginning of period	$	—	$	—	$	—	$	—
Incurred	78		—		9		87
Payments	(3)		—		(9)		(12)
Balance, end of period	$	75	$	—	$	—	$	75