Realignment and Efficiency Plan

12 Months Ended

Dec. 31, 2012

Realignment And Efficiency Plan [Abstract]

Realignment and Efficiency Plan

Note 6— Realignment and Efficiency Plan

During the third quarter of 2012, the Company, in connection with the execution of its strategy, committed to a series of actions to further improve its organizational alignment, operational effectiveness, and efficiency.  As a result, the Company recognized charges in other operating expenses of $77 million pre-tax ($50 million after-tax) in the third quarter of 2012 consisting primarily of severance costs. The Global Health Care segment reported $65 million pre-tax ($42 million after-tax) of the charge. The remainder was reported as follows: $9 million pre-tax ($6 million after-tax) in Global Supplemental Benefits and $3 million pre-tax ($2 million after-tax) in Group Disability and Life.

Summarized below is activity for 2012.

(In millions)		Severance		Real estate		Total
Third quarter 2012 charge	$	72	$	5	$	77
less: Fourth quarter 2012 payments		5		1		6
Balance, December 31, 2012	$	67	$	4	$	71

The severance costs are expected to be substantially paid in 2013.