Company Restructuring

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]



Note 11	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 primarily include employee severance 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 and settlements 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 $22 million and $10 million during the three months ended March 31, 2018 and 2017, respectively. Restructuring expenses in 2018 primarily related to realignment of certain employees to centralized talent centers as well as legal expenses and settlements.



Changes in the restructuring liability
($ in millions)	Employee costs		Exit costs			Total liability
Balance as of December 31, 2017	$	15	$	30		$	45
Expense incurred ⁽¹⁾	13		6			19
Adjustments to liability	—		(1		)	(1		)
Payments applied against liability	—		(3		)	(3		)
Balance as of March 31, 2018	$	28	$	32		$	60


⁽¹⁾	Certain expenses are expensed as incurred and are not included as part of changes in the restructuring liability. During the three months ended March 31, 2018, these expenses totaled $3 million.

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, 2018, the cumulative amount incurred to date for active programs totaled $113 million for employee costs and $109 million for exit costs.