Repositioning Actions and Supplemental Data

Repositioning Actions

In connection with a continuing review of our businesses focused on enhancing our strategic position, improving our operations and rebalancing our workforce, in the first quarter of 2011, we recorded $131.3 million of charges related to repositioning actions for severance, real estate lease terminations and asset and goodwill write-offs related to disposals and other costs.

A summary of our repositioning actions for the nine months ended September 30, 2011 is (dollars in millions):



Severance	$	92.8
Real estate lease terminations	15.3
Asset and goodwill write-offs related to disposals and other costs	23.2


	$	131.3

At September 30, 2011, the liability for severance related to our repositioning actions, net of payments through September 30, 2011 of $83.3 million, was $9.5 million. Substantially all payments related to real estate lease terminations were made as of September 30, 2011. The remaining $23.2 million of charges recorded is primarily comprised of non-cash items.

Salary and Service Costs and Office and General Expenses

The components of operating expenses for the three months and nine months ended September 30, 2011 and 2010 were (dollars in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,


	2011		2010		2011		2010


Salary and service costs	$	2,504.7	$	2,210.8	$	7,395.8	$	6,526.5
Office and general expenses	502.8		469.7		1,440.1		1,408.6


Operating expenses	$	3,007.5	$	2,680.5	$	8,835.9	$	7,935.1

The impact of the repositioning actions and the remeasurement gain, which were recorded in the first quarter of 2011 as described in Notes 8 and 9, on operating expenses for the nine months ended September 30, 2011 was (dollars in millions):



	Increase (Decrease)


	Repositioning Actions		Remeasurement Gain


Salary and service costs	$	92.8
Office and general expenses	38.5		$	(123.4	)


	$	131.3	$	(123.4	)

Cash Flow

Supplemental cash flow data for the nine months ended September 30, 2011 and 2010 were (dollars in millions):



	2011			2010


Decrease in accounts receivable	$	85.1		$	143.4
Increase in work in progress and other current assets	(208.2		)	(267.1		)
Decrease in accounts payable	(780.7		)	(646.2		)
Decrease in customer advances and other current liabilities	(266.4		)	(112.1		)
Change in other assets and liabilities, net	266.3			82.7


Change in operating capital	$	(903.9	)	$	(799.3	)


Income taxes paid	$	246.9		$	223.6
Interest paid	$	101.5		$	103.8