Company Restructuring

6 Months Ended

Jun. 30, 2014

Company Restructuring

Company Restructuring

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 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 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 $4 million and $20 million during the three months ended June 30, 2014 and 2013, respectively, and $10 million and $46 million during the six months ended June 30, 2014 and 2013, respectively.

The following table presents changes in the restructuring liability during the six months ended June 30, 2014.

($ in millions)		Employee costs		Exit costs		Total liability
Balance as of December 31, 2013	$	21	$	3	$	24
Expense incurred		2		--		2
Adjustments to liability		(3)		1		(2)
Payments applied against liability		(6)		(2)		(8)
Balance as of June 30, 2014	$	14	$	2	$	16

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, 2014, the cumulative amount incurred to date for active programs totaled $94 million for employee costs and $55 million for exit costs.