Company Restructuring

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

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 primarily 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 and certain legal expenses incurred in connection with the 1999 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 $10 million and $5 million during the three months ended March 31, 2017 and 2016, respectively.

The following table presents changes in the restructuring liability during the three months ended March 31, 2017.



($ in millions)	Employee costs		Exit costs			Total liability
Balance as of December 31, 2016	$	—	$	2		$	2
Expense incurred	3		2			5
Payments applied against liability	—		(3		)	(3		)
Balance as of March 31, 2017	$	3	$	1		$	4

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 March 31, 2017, the cumulative amount incurred to date for active programs totaled $62 million for employee costs and $63 million for exit costs.