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 address 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. In connection with this program, the Company also launched a voluntary retirement program to certain eligible employees, which was essentially completed at the end of the first quarter of 2013. The Invigorate program is currently expected to be principally completed by the end of 2014.

As part of the Invigorate program, the Company launched a major management restructuring aimed at driving operational excellence and restoring growth. The key element of this organizational change is to eliminate the complexity associated with the Company's prior structure, including reducing management layers, so that the Company can better focus on customers and speed decision-making. The new organization is designed to align around future growth opportunities, improve execution and leverage company-wide infrastructure to maximize value and efficiency. The majority of the organizational changes became effective on January 1, 2013. The Company has completed the elimination of at least three layers from the organization, and has reduced approximately 450 management positions from the Company through the end of the second quarter of 2013 associated with this initiative. The Company expects to eliminate a total of approximately 500 management positions by the end of 2013.

The following table provides a summary of the Company's pre-tax restructuring and integration charges associated with the Invigorate program and other employee separation costs for the three and six months ended June 30, 2013:



	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
Employee separation costs	$	7,762	$	41,355
Facility-related costs	1,234		1,243
Accelerated vesting of stock-based compensation	—		1,284
Total restructuring charges	8,996		43,882

Other integration costs	$	8,413	$	13,257
Total restructuring and integration charges	$	17,409	$	57,139

Of the total employee separation costs incurred during the three and six months ended June 30, 2013, $0.3 million and $18.5 million, respectively, represent costs associated with the Company's management layer reduction initiative, and $1.4 million and $4.4 million, respectively, represent costs incurred under the Company's voluntary retirement program. The remaining employee separation costs incurred during the three and six months ended June 30, 2013 represent other actions the Company has taken to restructure its business.

Of the total $17.4 million in restructuring and integration charges incurred during the three months ended June 30, 2013, $5.6 million and $11.8 million was recorded in cost of services and selling, general and administrative expenses, respectively. Of the total $57.1 million in restructuring and integration charges incurred during the six months ended June 30, 2013, $22.3 million and $34.8 million was recorded in cost of services and selling, general and administrative expenses, respectively. These charges were primarily recorded in the Company's DIS business for both periods presented.

The following table summarizes activity in the restructuring liability as of June 30, 2013:



	Employee Separation Costs			Facility-Related Costs		Total

Balance, December 31, 2012	$	40,018		$	257	$	40,275
Current period charges	41,355			1,243		42,598
Other / adjustments	2,915			—		2,915
Less:
Cash payments	(36,775		)	—		(36,775		)
Balance, June 30, 2013	$	47,513		$	1,500	$	49,013

In addition to the restructuring and integration charges noted above, the Company incurred approximately $1.4 million and $6.1 million during the three and six months ended June 30, 2013, respectively, primarily associated with professional fees incurred in connection with further restructuring and integration of the Company's business. The remainder for both periods represent costs related to the integration of recent acquisitions with the Company's operations.