RESTRUCTURING ACTIVITIES

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Invigorate Program

During 2012, the Company committed to a course of action related to a multi-year program called Invigorate which is

designed to reduce its cost structure. The Invigorate program is intended to mitigate the impact of continued reimbursement

pressures and labor and benefit cost increases, free up additional resources to invest in science, innovation and other growth

initiatives, and enable the Company to improve operating profitability and quality.

The following table provides a summary of the Company's pre-tax restructuring charges associated with its Invigorate program and other restructuring activities for the three and nine months ended September 30, 2014 and 2013:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Employee separation costs	$	14	$	24	$	28	$	66
Facility-related costs	2		5		6		6
Asset impairment charges	—		—		1		—
Accelerated vesting of stock-based compensation	—		—		—		1

Total restructuring charges	$	16	$	29	$	35	$	73

Total restructuring charges incurred in the three and nine months ended September 30, 2014 are primarily associated with various workforce reduction initiatives as the Company continues to simplify and restructure its organization.

Of the total $16 million in restructuring charges incurred during the three months ended September 30, 2014, $7 million and $9 million were recorded in cost of services and selling, general and administrative expenses, respectively. Of the total $35 million in restructuring charges incurred during the nine months ended September 30, 2014, $19 million and $16 million were recorded in cost of services and selling, general and administrative expenses, respectively.

Of the total employee separation costs incurred in the three and nine months ended September 30, 2013, $1 million

and $20 million, respectively, represent costs associated with the Company's management layer reduction initiative, and $1 million and $5 million, respectively, represent costs incurred under the Company's voluntary retirement program. In

connection with further restructuring efforts, the Company entered into agreements to outsource certain aspects of support

functions. As a result of these agreements, the Company incurred approximately $17 million of employee separation costs in

the three and nine months ended September 30, 2013 related to this initiative. The remaining employee separation costs

incurred during the three and nine months ended September 30, 2013 represent other actions the Company has taken to

restructure its business.

Of the total $29 million in restructuring charges incurred during the three months ended September 30, 2013, $9 million and $20 million were recorded in cost of services and selling, general and administrative expenses, respectively. Of the total $73 million in restructuring charges incurred during the nine months ended September 30, 2013, $26 million and $47 million were recorded in cost of services and selling, general and administrative expenses, respectively.

Charges for both periods presented were primarily recorded in the Company's DIS business.

The following table summarizes activity in the restructuring liability as of September 30, 2014:



	Employee Separation Costs			Facility-Related Costs			Total

Balance, December 31, 2013	$	31		$	5		$	36
Current period charges	28			6			34
Less:
Cash payments	(36		)	(3		)	(39		)

Balance, September 30, 2014	$	23		$	8		$	31

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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