Restructuring and Other Costs

9 Months Ended

Sep. 30, 2012

Restructuring, Severance and Other Costs [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

16. Restructuring and Other Costs

As a result of a strategic business evaluation, the Company is currently focusing on its Property and Casualty, Group Benefits and Mutual Fund businesses. In the third quarter of 2012, the Company entered into definitive agreements to sell its Individual Life and Retirement Plans businesses and Woodbury Financial Services. In addition, the Company's existing Individual Annuity business has been placed into runoff. For further discussion of the Company's strategic business evaluation and these transactions, see Note 1 of the Notes to Condensed Consolidated Financial Statements.

These actions, in addition to previously disclosed restructuring activities aimed at reducing overall expense levels, will result in termination benefits to current employees not transitioned to the buyers whose roles are impacted by the Company's continued alignment with its current business plans, costs to terminate leases and other contracts and asset impairment charges. The Company intends to complete much of these restructuring activities over the next 12-18 months.

Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through September 30, 2012. Additional costs are expected to be incurred in subsequent quarters and such costs will be accrued when appropriate. Asset impairment charges were recorded in the nine months ended September 30, 2012 and will be recorded in subsequent quarters, as appropriate.

The total costs associated with restructuring and other are currently expected to be approximately $250, pre-tax, with the additional costs attributable mainly to severance and other related costs and professional fees. Actual costs associated with restructuring may differ from these estimates as the Company executes on its operational and strategic initiatives.

Restructuring and other costs, pre-tax incurred in connection with these activities are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Severance benefits and related costs	$	38	$	11	$	76	$	11
Professional fees	15		—		28		—
Asset impairment charges	—		—		5		—
Other contract termination charges	—		3		1		3
Total restructuring and other costs	$	53	$	14	$	110	$	14

16. Restructuring and Other Costs (continued)

The following table presents restructuring costs, included in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations for each reporting segment, as well as the Corporate category.

	Three Months Ended September 30,				Nine Months Ended September 30,				Total Estimated Costs
	2012		2011		2012		2011
Property & Casualty Commercial	$	1	$	—	$	5	$	—	$	7
Group Benefits	1		—		1		—		1
Consumer Markets	—		—		1		—		3
Individual Life	18		—		25		—		30
Retirement Plans	10		—		14		—		16
Mutual Funds	1		—		2		—		4
Life Other Operations	5		—		8		—		12
Corporate	17		14		54		14		177
Total restructuring and other costs	$	53	$	14	$	110	$	14	$	250

Changes in the accrued restructuring liability balance included in other liabilities in the Condensed Consolidated Balance Sheets are as follows:

	Nine Months Ended September 30, 2012
	Severance Benefits and Related Costs			Professional Fees			Asset impairment charges			Other Contract Termination Charges			Total Restructuring and Other Costs
Balance, beginning of period	$	12		$	—		$	—		$	5		$	17
Accruals/provisions	76			28			5			1			110
Payments/write-offs	(67		)	(19		)	(5		)	(5		)	(96		)
Balance, end of period	$	21		$	9		$	—		$	1		$	31