Company Restructuring

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]


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 the following costs related to these programs:

•Employee - severance and relocation benefits

•Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $1 million and $71 million during the three months ended June 30, 2022 and 2021, respectively, and $13 million and $122 million during the six months ended June 30, 2022 and 2021, respectively.

Restructuring expenses during the second quarter and first six months of 2022 are primarily due to the

future work environment. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.


Future work environment
($ in millions)
Expected program charges	$	110
2021 expenses	(131)
2022 expenses	(14)
Change in estimated program costs	47
Remaining program charges	$	12

These charges are primarily recorded in the Allstate Protection segment. Exit costs of this program reflect real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated. The Company expects that the majority of these actions will be completed in 2022.


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2021	$	14	$	7	$	21
Expense incurred	4		17		21
Adjustments to liability	(8)		—		(8)
Payments and non-cash charges	(6)		(17)		(23)
Restructuring liability as of June 30, 2022	$	4	$	7	$	11

As of June 30, 2022, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $4 million for employee costs and $140 million for exit costs.