Company Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Company Restructuring

Note 13 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 Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $13 million and $27 million during the three months ended June 30, 2024 and 2023, respectively, and $23 million and $54 million during the six months ended June 30, 2024 and 2023, respectively.

Restructuring expenses during the second quarter and first six months of 2024 primarily relate to implementing actions to achieve a new phase of the organizational transformation component of the Transformative Growth plan, which commenced in the second quarter of 2024. Organizational transformation includes streamlining the organization and outsourcing certain aspects of operations. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.

Organizational transformation
($ in millions)
Expected program charges	$	24
2024 expenses	(20)
Remaining program charges	$	4

These charges are primarily recorded in the Allstate Protection segment. The Company expects these actions will be completed in the first half of 2025.

Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2023	$	40	$	1	$	41
Expense incurred	25		9		34
Adjustments to liability	(11)		—		(11)
Payments and non-cash charges	(21)		(9)		(30)
Restructuring liability as of June 30, 2024	$	33	$	1	$	34

As of June 30, 2024, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $107 million for employee costs and $7 million for exit costs.