RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES

RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES

    Invigorate Program

    The Company is engaged in a multi-year program called Invigorate, which includes structured plans to drive savings and improve productivity across the value chain, including in such areas as patient services, logistics and laboratory operations, revenue services, information technology and procurement. The Invigorate program aims to deliver 3% annual cost savings and productivity improvements to partially offset pressures from the current inflationary environment, including labor and benefit cost increases and reimbursement pressures. The Company is leveraging automation and artificial intelligence to improve productivity and also improve quality across the entire value chain, not just in the laboratory. Other areas of focus include reducing denials and patient concessions, enhancing the digital experience, and selecting and retaining talent.

    Restructuring and Impairment Charges

    The following table provides a summary of the Company's pre-tax restructuring and impairment charges for the years ended December 31, 2024, 2023 and 2022:

	2024		2023		2022
Employee separation costs	$	28	$	25	$	55
Asset impairment charges	—		29		14
Total restructuring and impairment charges	$	28	$	54	$	69

    The restructuring charges incurred for the years ended December 31, 2024, 2023 and 2022 were partially associated with various workforce reduction initiatives as the Company continued to restructure its organization. Additionally, during the year ended December 31, 2023, the Company recorded an impairment charge on certain long-lived assets related to the shutdown of a business and, during the year ended December 31, 2022, the Company recorded an impairment charge on certain property, plant and equipment. Of the total restructuring and impairment charges incurred during the year ended December 31, 2024, $15 million and $13 million were recorded in cost of services and selling, general and administrative expenses, respectively. Of the total restructuring and impairment charges incurred during the year ended December 31, 2023, $13 million, $12 million and $29 million were recorded in cost of services, selling, general and administrative expenses and other operating expense, net, respectively. Of the total restructuring charges incurred during the year ended December 31, 2022, $19 million, $36 million and $14 million were recorded in cost of services, selling, general and administrative expenses and other operating expense, net, respectively.

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

    The following table summarizes the activity of the restructuring liability during 2024 and 2023, which is included in accrued expenses in Note 12:

	Employee Separation Costs
Balance, December 31, 2022	$	44
Income statement expense	25
Cash payments	(57)
Balance, December 31, 2023	12
Income statement expense	28
Cash payments	(27)
Balance, December 31, 2024	$	13