Travelers 2006 Annual Report Download - page 243

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
231
17. RESTRUCTURING ACTIVITIES
During the second quarter of 2004, theCompany’s management approved and committed toplans to
terminate andrelocate certain employees and to exit certain activities. The cost of these actions has been
recognized as a liability andis included ineither the allocation of thepurchase price or recorded as part of
general and administrative expenses. The following tables summarize the Company’s costs related to these
plans.
Balance at
Original 2004 December 31,
(in millions)Accrued Costs Payments Adjustments 2004
Restructuring costs included in the allocation of the
purchase price:
Employee termination andrelocation costs.........$ 71 $(43)$(3) $ 25
Costs to exit leases .............................. 4(1)5 8
Other exit costs................................. 4(2) —2
Total included in the allocation of purchase price .79 (46) 235
Employee termination costs included in general and
administrative expenses:
Business Insurance............................ 34 (4)(9) 21
Financial, Professional and International
Insurance.................................. 1 (1) — —
Personal Insurance. ........................... 4— (1)3
Total included in general and administrative
expenses. ................................ 39(5) (10) 24
Total restructuring costs ..................... $118 $(51)$(8)$59
Balance at Balanceat
December 31, 2005 December 31,
(in millions)2004 Payments Adjustments 2005
Restructuring costs included in the allocation of the
purchase price:
Employee terminationand relocation costs.......... $25$(23) $5 $7
Costs to exit leases ...............................8 (3)(1) 4
Other exit costs..................................2 (2)— —
Total included in the allocation of purchase price .. 35 (28)4 11
Employee termination costs included in general and
administrative expenses:
Business Insurance.............................21(15)1 7
Personal Insurance. ............................3 (2)— 1
Totalincluded in general and administrative expenses 24 (17) 1 8
Total restructuring costs ..........................$59 $(45)$5$19