XML 34 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
Company Restructuring
12 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]  
Company Restructuring
Company Restructuring
The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include employee termination and relocation benefits, and post-exit rent expenses in connection with these programs, and non-cash charges resulting from pension benefit payments made to agents and certain legal expenses incurred in connection with the 1999 reorganization of Allstate’s multiple agency programs to a single exclusive agency program. The expenses related to these activities are included in the Consolidated Statements of Operations as restructuring and related charges, and totaled $39 million, $18 million and $70 million in 2015, 2014 and 2013, respectively. Restructuring expenses in 2015 related to programs and actions designed to transform business operations within the organization.
The following table presents changes in the restructuring liability in 2015.
($ in millions)
Employee costs
 
Exit costs
 
Total liability
Balance as of December 31, 2014
$
3

 
$
1

 
$
4

Expense incurred
18

 
10

 
28

Adjustments to liability
(5
)
 

 
(5
)
Payments applied against liability
(15
)
 
(10
)
 
(25
)
Balance as of December 31, 2015
$
1

 
$
1

 
$
2


The payments applied against the liability for employee costs primarily reflect severance costs, and the payments for exit costs generally consist of post-exit rent expenses and contract termination penalties. As of December 31, 2015, the cumulative amount incurred to date for active programs totaled $83 million for employee costs and $60 million for exit costs.