Allstate 2012 Annual Report Download - page 239

debt to capital resources ratio as defined in the agreement. Although the right to borrow under the facility is not subject
to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of
the Company’s senior, unsecured, nonguaranteed long-term debt. The total amount outstanding at any point in time
under the combination of the commercial paper program and the credit facility cannot exceed the amount that can be
borrowed under the credit facility. No amounts were outstanding under the credit facility as of December 31, 2011 and
2010. The Company had no commercial paper outstanding as of December 31, 2011 and 2010.
The Company paid $363 million, $363 million and $383 million of interest on debt in 2011, 2010 and 2009,
respectively.
During 2009, the Company filed a universal shelf registration statement with the Securities and Exchange
Commission (‘‘SEC’’) that expires in 2012. The registration statement covers an unspecified amount of securities and
can be used to issue debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase
contracts, stock purchase units and securities of trust subsidiaries.
Capital stock
The Company had 900 million shares of issued common stock of which 501 million shares were outstanding and
399 million shares were held in treasury as of December 31, 2011. In 2011, the Company reacquired 33 million shares at
an average cost of $28.65 and reissued 1 million shares under equity incentive plans.
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 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. In 2011, restructuring programs primarily relate to Allstate Protection’s
field claim office consolidations, reorganization of technology shared services and reorganization within Allstate
Financial’s sales and support organization. The expenses related to these activities are included in the Consolidated
Statements of Operations as restructuring and related charges, and totaled $44 million, $30 million and $130 million in
2011, 2010 and 2009, respectively.
The following table presents changes in the restructuring liability in 2011.
($ in millions) Employee Exit Total
costs costs liability
Balance as of December 31, 2010 $ 13 $ 3 $ 16
Expense incurred 21 7 28
Adjustments to liability (10) — (10)
Payments applied against liability (19) (5) (24)
Balance as of December 31, 2011 $ 5 $ 5 $ 10
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 December 31, 2011,
the cumulative amount incurred to date for active programs totaled $110 million for employee costs and $47 million for
exit costs.
14. Commitments, Guarantees and Contingent Liabilities
Leases
The Company leases certain office facilities and computer equipment. Total rent expense for all leases was
$256 million, $256 million and $267 million in 2011, 2010 and 2009, respectively.
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