XML 90 R29.htm IDEA: XBRL DOCUMENT v3.25.0.1
Restructuring and Related Activities
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
21. RESTRUCTURING AND OTHER COSTS
In recognition of the need to become more cost efficient and competitive along with enhancing the experience we provide to agents and customers, on July 30, 2020 the Company announced an operational transformation and cost reduction plan it refers to as Hartford Next. Hartford Next is intended to reduce annual insurance operating costs and other expenses through reduction of the Company's headcount, investment in information technology ("IT") to further enhance our capabilities, and other activities.
Termination benefits related to workforce reductions and professional fees are included within restructuring and other costs in the Consolidated Statement of Operations and unpaid restructuring costs are included in other liabilities in the Company's Consolidated Balance Sheets. For the years ended December 31, 2023 and December 31, 2022, the severance
benefits accrual was reduced by $6, and $7 respectively, due to more recent experience of higher than expected voluntary attrition.
As of December 31, 2024, the program is substantially complete, though the Company may incur additional costs related to real estate that has been temporarily idled as part of Hartford Next. Any other remaining costs, including amortization of right of use assets, other lease exit costs, IT costs to retire applications and other expenses are expected to be immaterial.Total restructuring and other costs, excluding any additional costs related to temporarily idled real estate, are expected to be approximately $127, before tax, and have been recognized in the Corporate category for segment reporting.
Restructuring and Other Costs, Before Tax
Incurred in the Year Ended December 31, 2022Incurred in the Year Ended December 31, 2023Incurred in the Year Ended December 31, 2024Cumulative Incurred in the Year Ended December 31, 2024Total Amount Expected to be Incurred
Severance benefits$(7)$(6)$— $35 $35 
IT costs8 5 — 25 25 
Professional fees and other expenses12 7 2 67 67 
Total restructuring and other costs, before tax$13 $6 $2 $127 $127 
Accrued Restructuring and Other Costs
Year Ended December 31, 2024
Severance Benefits and Related CostsIT CostsProfessional Fees and OtherTotal Restructuring and Other Costs Liability
Balance, beginning of period$— $— $— $— 
Incurred— — 2 2 
Payments— — (2)(2)
Balance, end of period$— $— $— $— 
Accrued Restructuring and Other Costs
Year Ended December 31, 2023
Severance Benefits and Related CostsIT CostsProfessional Fees and OtherTotal Restructuring and Other Costs Liability
Balance, beginning of period$7 $— $— $7 
Incurred(6)5 7 6 
Payments(1)(5)(7)(13)
Balance, end of period$— $— $— $—