Company Restructuring

9 Months Ended

Sep. 30, 2016

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 Condensed Consolidated Statements of Operations as restructuring and related charges, and totaled $5 million and $9 million during the three months ended September 30, 2016 and 2015, respectively, and $21 million and $32 million during the nine months ended September 30, 2016 and 2015, respectively.

The following table presents changes in the restructuring liability during the nine months ended September 30, 2016.

($ in millions)	Employee costs			Exit costs			Total liability
Balance as of December 31, 2015	$	1		$	1		$	2
Expense incurred	7			1			8
Adjustments to liability	—			—			—
Payments applied against liability	(7		)	(1		)	(8		)
Balance as of September 30, 2016	$	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 September 30, 2016, the cumulative amount incurred to date for active programs totaled $78 million for employee costs and $62 million for exit costs.