Restructuring Costs

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In the fourth quarter of 2022, the Company initiated activities focused on workforce actions, rationalization of technology and functional services, and reductions in real estate. For the three months ended March 31, 2024, the Company has incurred $30 million of restructuring costs related to these activities, primarily severance. Any remaining costs are expected to be incurred by the end of 2024.

The Company incurred a total of $42 million for restructuring activities for the three months ended March 31, 2024, compared to $53 million for the corresponding quarter in the prior year. The Company incurred costs related to these initiatives as follows:

	Three Months Ended  March 31,
(In millions)	2024		2023
Risk and Insurance Services	$	22	$	32
Consulting	11		9
Corporate	9		12
Total	$	42	$	53

Details of the restructuring activity from January 1, 2023 through March 31, 2024, are as follows:

(In millions)	Severance		Real Estate Related Costs (a)		Information Technology		Consulting and Other Outside Services		Total
Liability at 1/1/23	$	88	$	56	$	—	$	2	$	146
2023 charges	148		96		15		42		301
Cash payments	(147)		(69)		(13)		(42)		(271)
Non-cash charges	—		(44)		(2)		—		(46)
Liability at 12/31/23	$	89	$	39	$	—	$	2	$	130
2024 charges	21		10		5		6		42
Cash payments	(62)		(13)		(5)		(8)		(88)
Non-cash charges	—		(2)		—		—		(2)
Liability at 3/31/24	$	48	$	34	$	—	$	—	$	82

(a) Includes ROU and fixed asset impairments and other real estate related costs.

The expenses associated with these initiatives are included in compensation and benefits and other operating expenses in the consolidated statements of income. The liabilities associated with these initiatives are classified on the consolidated balance sheets as accounts payable and accrued liabilities, other liabilities or accrued compensation and employee benefits, depending on the nature of the items.