The Hartford 2014 Annual Report Download - page 238

Table of Contents
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

As a result of a strategic business realignment announced in 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 6 months. For related discussion of the Company's business
disposition transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements.
Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through December 31, 2014. Additional
costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to December 31, 2014, and asset
impairment charges, if any, will be expensed in the period incurred as appropriate.
In 2013, the Company initiated a plan to consolidate its real estate operations, including the intention to exit certain facilities and relocate employees. The
consolidation of real estate is consistent with the Company's strategic business realignment and follows the completion of sales of the Retirement Plans and
Individual Life businesses. Asset related charges will be incurred over the remaining estimated useful life of facilities, and relocation and other maintenance
charges will be recognized as incurred. The program costs will be recognized in the Corporate category for segment reporting. The Company intends to
substantially complete the real estate consolidation activities over the next 12 months.
Restructuring and other costs of approximately $362, before tax have been incurred by the Company to date in connection with these activities. 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, including costs incurred to date, as of December 31, 2014 are as follows:
Commercial Lines $ 6
Personal Lines 3
Group Benefits 1
Mutual Funds 4
Talcott Resolution 69
Corporate 303
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Restructuring and other costs, pre-tax incurred in connection with these activities are as follows:

  
Severance benefits $ 16 $ 22 $ 148
Professional fees 1 19 44
Asset impairment charges 42 20 5
Contract termination and other charges 12 6 2
      
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:
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  
Commercial Lines $ — $ 1 $ 5
Personal Lines — — 1
Group Benefits — — 1
Mutual Funds — 1 3
Talcott Resolution — 1 68
Corporate 71 64 121
      
F-102