Restructuring and Related Activities

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

17. RESTRUCTURING AND OTHER COSTS

In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Hartford Next is intended to reduce annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities. The activities are expected to be substantially complete by the end of 2022.

Termination benefits related to workforce reductions and professional fees are included within restructuring and other

costs in the Condensed Consolidated Statement of Operations and unpaid restructuring costs are included in other liabilities in the March 31, 2021 Condensed Consolidated Balance Sheet. Subsequent to March 31, 2021, the Company expects to incur additional costs including amortization of right of use assets and other lease exit costs, other IT costs to retire applications, professional fees and other expenses. Total restructuring and other costs are expected to be approximately $164, before tax, and are being recognized in Corporate for segment reporting.

Restructuring and Other Costs, Before Tax
	Incurred in the Three Months Ended March 31, 2021		Cumulative Incurred Through March 31, 2021		Total Amount Expected to be Incurred
Severance benefits	$	—	$	73	$	73
IT costs	2		4		27
Professional fees and other expenses	9		38		64
Total restructuring and other costs, before tax	$	11	$	115	$	164

Accrued Restructuring and Other Costs
	Three Months Ended March 31, 2021
	Severance Benefits and Related Costs		IT Costs		Professional Fees and Other		Total Restructuring and Other Costs Liability
Balance, beginning of period	$	54	$	—	$	—	$	54
Incurred	—		2		9		11
Payments	(6)		(2)		(6)		(14)
Balance, end of period	$	48	$	—	$	3	$	51