Company Restructuring

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Company Restructuring

Company Restructuring

The Company undertakes various programs to reduce expenses.  These programs generally involve a reduction in staffing levels, and in certain cases, office closures.  Restructuring and related charges include employee termination and relocation benefits, and post-exit rent expenses in connection with these programs, and non-cash charges resulting from pension benefit payments made to agents in connection with the reorganization of Allstate’s multiple agency programs to a single exclusive agency program.  The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges, and totaled $19 million and $4 million during the three months ended June 30, 2015 and 2014, respectively, and $23 million and $10 million during the six months ended June 30, 2015 and 2014, respectively.

The following table presents changes in the restructuring liability during the six months ended June 30, 2015.

($ in millions)	Employee costs			Exit costs		Total liability
Balance as of December 31, 2014	$	3		$	1	$	4
Expense incurred	14			—		14
Adjustments to liability	—			—		—
Payments applied against liability	(1		)	—		(1		)
Balance as of June 30, 2015	$	16		$	1	$	17

The payments applied against the liability for employee costs primarily reflect severance costs, and the payments for exit costs generally consist of post-exit rent expenses and contract termination penalties.  As of June 30, 2015, the cumulative amount incurred to date for active programs totaled $83 million for employee costs and $50 million for exit costs.