The Hartford 2012 Annual Report Download - page 242

Table of Contents
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

As a result of a strategic business realignment announced in March 2012, the Company is currently focusing on its Property & Casualty, Group Benefits and
Mutual Fund businesses. In addition, the Company implemented restructuring activities in 2011 across several areas aimed at reducing overall expense levels.
The Company intends to substantially complete the related restructuring activities over the next 12-18 months. For further discussion of the Company's
strategic business realignment and related business disposition transactions, see Note 1 and Note 2 of Notes to Consolidated Financial Statements.
Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through December 31, 2012. Additional
costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to December 31, 2012, and asset impairment
charges, if any, will be expensed as appropriate.
Restructuring and other costs are expected to approximate $ 275, pre-tax. As the Company executes on its operational and strategic initiatives, the Company's
estimate of and actual costs incurred for restructuring activities may differ from these estimates.
Estimated restructuring and other costs as of December 31, 2012 are as follows:
Property & Casualty Commercial $ 7
Consumer Markets 3
Group Benefits 1
Mutual Funds 4
Talcott Resolution 72
Corporate 188
 
Restructuring and other costs, pre-tax incurred in connection with these activities are as follows:

 
Severance benefits $148 $ 17
Professional fees 44 —
Asset impairment charges 5 —
Other contract termination charges 2 8
  
Restructuring and other costs costs, included in insurance operating costs and other expenses in the Consolidated Statements of Operations for each reporting
segment, as well as the Corporate category are as follows:

 
Property & Casualty Commercial $ 5 $ —
Consumer Markets 1 —
Group Benefits 1 —
Mutual Funds 3—
Talcott Resolution 68 —
Corporate 121 25
  
The Company incurred restructuring and other costs of $26, consisting primarily of severance benefits, and completed the associated restructuring activities
in the year ended December 31, 2010. Restructuring and other costs for 2010 are included in the Corporate reporting category.
F-100