Restructuring and Related Activities

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

18. 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 2023.

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 June 30, 2023 and December 31, 2022 Condensed Consolidated Balance Sheets.

Subsequent to June 30, 2023, 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 and other expenses. Total restructuring and other costs are expected to be approximately $127, before tax, and will be recognized in Corporate for segment reporting. The estimated restructuring and other costs for future periods do not include all costs associated with the real estate consolidation plan as those plans are still being finalized.

Restructuring and Other Costs, Before Tax
	Incurred in the Three Months Ended June 30,				Incurred in the Six Months Ended June 30,				Cumulative Incurred Through June 30, 2023		Total Amount Expected to be Incurred
	2023		2022		2023		2022
Severance benefits	$	—	$	(5)	$	(3)	$	(7)	$	38	$	38
IT costs	1		3		2		5		21		24
Professional fees and other expenses	2		4		4		9		62		65
Total restructuring and other costs, before tax	$	3	$	2	$	3	$	7	$	121	$	127

Accrued Restructuring and Other Costs
	Six Months Ended June 30, 2023
	Severance Benefits and Related Costs		IT Costs		Professional Fees and Other		Total Restructuring and Other Costs Liability
Balance, beginning of period	$	7	$	—	$	—	$	7
Incurred	(3)		2		4		3
Payments	(1)		(2)		(4)		(7)
Balance, end of period	$	3	$	—	$	—	$	3

Accrued Restructuring and Other Costs
	Six Months Ended June 30, 2022
	Severance Benefits and Related Costs		IT Costs		Professional Fees and Other		Total Restructuring and Other Costs Liability
Balance, beginning of period	$	18	$	—	$	—	$	18
Incurred	(7)		5		9		7
Payments	(2)		(5)		(9)		(16)
Balance, end of period	$	9	$	—	$	—	$	9