XML 19 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring Activities
 9 Months Ended
Sep. 30, 2013
Restructuring Charges [Abstract]  
Restructuring Activities
Restructuring Activities
As a result of restructuring activities implemented during 2012 and 2011, we recorded liabilities for employee termination costs and lease and other contract exit costs. The restructuring activities are classified as components of general and administrative expenses in the consolidated statements of income for the respective period in which they occurred.
The 2012 restructuring activities were initiated primarily as a result of personnel changes, organizational realignment to create efficiencies in our business processes and certain integration activities associated with the Amerigroup acquisition. Activity related to these liabilities for the nine months ended September 30, 2013, by reportable segment, is as follows:
 
Commercial
and Specialty
Business
 
Government
Business
 
Other
 
Total
2012 Restructuring Activities
 
 
 
 
 
 
 
Employee termination costs:
 
 
 
 
 
 
 
Liability for employee termination costs at January 1, 2013
$
60.0

 
$
54.7

 
$
2.9

 
$
117.6

Payments
(30.2
)
 
(32.4
)
 
(1.5
)
 
(64.1
)
Liability released
(6.1
)
 
(1.6
)
 
(0.2
)
 
(7.9
)
Liability for employee termination costs at September 30, 2013
23.7

 
20.7

 
1.2

 
45.6

Lease and other contract exit costs:
 
 
 
 
 
 
 
Liability for lease and other contract exit costs at January 1, 2013
8.8

 
2.9

 
0.1

 
11.8

Payments
(5.1
)
 
(1.7
)
 
(0.2
)
 
(7.0
)
Liability released
(0.6
)
 
(0.2
)
 
—

 
(0.8
)
Liability for lease and other contract exit costs at September 30, 2013
3.1

 
1.0

 
(0.1
)
 
4.0

Total liability for 2012 restructuring activities at September 30, 2013
$
26.8

 
$
21.7

 
$
1.1

 
$
49.6


The 2011 restructuring activities were initiated as a result of a change in strategic focus primarily in response to federal health care reform. At September 30, 2013, our total liability for 2011 restructuring activities was $18.8, of which $2.4 related to employee termination costs and $16.4 related to lease and other contract exit costs. We expect the remaining payments for employee termination costs to be substantially completed by the end of 2013. Payments for lease and other contract exit costs will continue to occur over the remaining terms of the related contracts.