The Hartford 2013 Annual Report Download - page 237

F-101
21. Restructuring and Other Costs
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 24
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,
2013. Additional costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to
December 31, 2013, 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 in Connecticut, including the intention to exit certain
facilities and relocate employees. The consolidation of real estate in Connecticut 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.
Restructuring and other costs of approximately $291, before tax have been incurred by the Company to date in connection with these
activities. The Company's estimate of and actual costs incurred for restructuring activities may differ from its current estimate as the
Company executes on its operational and strategic initiatives.
Estimated restructuring and other costs, including costs incurred to date, as of December 31, 2013 are as follows:
Property & Casualty Commercial $ 6
Consumer Markets 3
Group Benefits 1
Mutual Funds 4
Talcott Resolution 69
Corporate 264
Total estimated restructuring and other costs $ 347
Restructuring and other costs, pre-tax incurred in connection with these activities are as follows:
For the Years Ended December 31,
2013 2012 2011
Severance benefits $ 22 $ 148 $ 17
Professional fees 19 44 —
Asset impairment charges 20 5 —
Contract termination and other charges 6 2 8
Total restructuring and other costs $ 67 $ 199 $ 25
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:
For the Years Ended December 31,
2013 2012 2011
Property & Casualty Commercial $ 1 $ 5 $ —
Consumer Markets — 1 —
Group Benefits — 1 —
Mutual Funds 1 3 —
Talcott Resolution 1 68 —
Corporate 64 121 25
Total restructuring and other costs $ 67 $ 199 $ 25
Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)