Company Restructuring

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Company Restructuring

Note 11 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 severance 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 and settlements 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 $27 million and $53 million during the three months ended June 30, 2018 and 2017, respectively, and $49 million and $63 million during the six months ended June 30, 2018 and 2017, respectively. Restructuring expenses in 2018 primarily related to realignment of certain employees to centralized talent centers as well as legal expenses and settlements.

Restructuring activity during the period
($ in millions)	Employee costs			Exit costs			Total liability
Restructuring liability as of December 31, 2017	$	15		$	30		$	45
Expense incurred	31			18			49
Adjustments to liability	1			(1		)	—
Payments and non-cash pension settlements	(6		)	(21		)	(27		)
Restructuring liability as of June 30, 2018	$	41		$	26		$	67

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 June 30, 2018, the cumulative amount incurred to date for active programs totaled $130 million for employee costs and $109 million for exit costs.