Restructuring Costs

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2024, the Company has incurred $30 million and $60 million, respectively, 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 $44 million and $86 million for restructuring activities for the three and six months ended June 30, 2024, respectively, compared to $65 million and $118 million, for the corresponding periods in the prior year.

The Company incurred costs related to these initiatives as follows:

	Three Months Ended June 30,				Six Months Ended  June 30,
(In millions)	2024		2023		2024		2023
Risk and Insurance Services	$	29	$	31	$	51	$	63
Consulting	5		7		16		16
Corporate	10		27		19		39
Total	$	44	$	65	$	86	$	118

Details of the restructuring activity from January 1, 2023 through June 30, 2024, are as follows:

(In millions)	Severance		Real Estate Related Costs (a)		Information Technology		Consulting and Other Outside Services		Total
Liability at January 1, 2023	$	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 December 31, 2023	$	89	$	39	$	—	$	2	$	130
2024 charges	42		21		11		12		86
Cash payments	(102)		(26)		(11)		(14)		(153)
Non-cash charges	—		(3)		—		—		(3)
Liability at June 30, 2024	$	29	$	31	$	—	$	—	$	60

(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.