Company Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Company Restructuring

Note 13 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 $87 million and $14 million during the three months ended September 30, 2023 and 2022, respectively, and $141 million and $27 million during the nine months ended September 30, 2023 and 2022, respectively.

Restructuring expenses during the third quarter of 2023 primarily relate to implementing actions to

achieve the organizational transformation component of the Transformative Growth plan designed to streamline the organization and outsource operations. Restructuring expenses during the first nine months of 2023 primarily relate to the organizational transformation and real estate costs related to facilities being vacated. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future.

Organizational transformation
($ in millions)
Expected program charges	$	95
2023 expenses	(76)
Remaining program charges	$	19

These charges are primarily recorded in the Allstate Protection segment. The Company expects these actions will be completed in 2024.

Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2022	$	27	$	7	$	34
Expense incurred	92		56		148
Adjustments to liability	(1)		(6)		(7)
Payments and non-cash charges	(35)		(56)		(91)
Restructuring liability as of September 30, 2023	$	83	$	1	$	84

As of September 30, 2023, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $91 million for employee costs and $185 million for exit costs.