Company Restructuring

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]


Note 14			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 the following costs related to these programs:

•Employee - severance and relocation benefits

•Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated

The expenses related to these activities are included in the Consolidated Statements of Operations as restructuring and related charges and totaled $51 million, $170 million and $253 million in 2022, 2021 and 2020, respectively.

Restructuring expenses in 2022 are primarily due to the future work environment as the Company reevaluates its facilities footprint and employee costs related to global workforce enablement, including outsourcing various elements of its operations. The Company continues to identify ways to improve

operating efficiency and reduce cost which may result in additional restructuring charges in the future.


Future work environment
($ in millions)
Expected program charges	$	110
2021 expenses	(131)
2022 expenses	(8)
Changes in estimated program costs	41
Remaining program charges	$	12

These charges are primarily recorded in the Allstate Protection segment. Exit costs of this program reflect real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated. The actions related to the future work environment are substantially complete as of December 31, 2022.


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2021	$	14	$	7	$	21
Expense incurred	31		29		60
Adjustments to liability	(9)		—		(9)
Payments and non-cash charges	(9)		(29)		(38)
Restructuring liability as of December 31, 2022	$	27	$	7	$	34

As of December 31, 2022, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $29 million for employee costs and $146 million for exit costs.