9. Facility Consolidation and Other Cost Reduction Actions

During 2012, Covance commenced a series of actions to better align capacity to preclinical market demand and reduce overhead in its early development segment, as well as to improve future profitability by streamlining its overall cost structure, including its corporate and functional support infrastructure and consolidating facilities in connection with the rationalization of its data centers. These actions included the closure of the Company’s toxicology facility in Chandler, Arizona, its clinical pharmacology facilities in Honolulu, Hawaii and Basel, Switzerland, as well as a capacity and workforce reduction in Muenster, Germany. In 2014, additional actions were initiated in our late-stage development segment to better align capacity to expected demand. These actions are all expected to be completed in 2014.

The following table sets forth the costs associated with the restructuring component of costs incurred in connection with these actions during the three and six month periods ended June 30, 2014 and 2013:

	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
Employee separation costs	$	3,238		$	2,148		$	4,622		$	4,145
Lease and facility exit costs	(222		)	(39		)	(222		)	627
Accelerated depreciation and amortization	—			—			—			1,497
Other costs	262			1,250			503			3,260
Total	$	3,278		$	3,359		$	4,903		$	9,529

During the three months ended June 30, 2014 and 2013, restructuring costs of $3.3 million and $3.4 million, respectively, have been included in selling, general and administrative expenses. During the six months ended June 30, 2014 and 2013, restructuring costs of $4.9 million and $8.0 million, respectively, have been included in selling, general and administrative expenses and during the 2013 six month period, $1.5 million has been included in depreciation and amortization.

The following table sets forth the restructuring costs by segment incurred in connection with these actions during the three and six month periods ended June 30, 2014 and 2013:

	Three Months Ended June 30					Six Months Ended June 30
	2014			2013		2014		2013
Early Development	$	(83	)	$	1,316	$	801	$	4,869
Late-Stage Development	3,062			1,363		3,308		3,261
Corporate expenses	299			680		794		1,399
Total	$	3,278		$	3,359	$	4,903	$	9,529

Total costs for these actions are expected to approximate $56 million, including $34 million in employee separation costs, $5 million in lease and facility exit costs, $5 million in accelerated depreciation and amortization and $12 million in other costs. Costs by segment are expected to total $38 million in our early development segment, $10 million in our late-stage development segment and $8 million in corporate expenses.

Cumulative costs for these actions through June 30, 2014 totaled $52.1 million, of which $47.1 million was included in selling, general and administrative expenses and $5.0 million was included in depreciation and amortization. Cumulative costs incurred by category for these actions through June 30, 2014 totaled $32.6 million in employee separation costs, $4.4 million in lease and facility exit costs, $5.0 million in accelerated depreciation and $10.1 million in other costs. Cumulative costs incurred by segment through June 30, 2014 totaled $36.6 million in our early development segment, $8.6 million in our late-stage development segment and $6.9 million in corporate expenses.

The following table sets forth the rollforward of the restructuring activity for the six months ended June 30, 2014:

Description	Balance, Dec 31, 2013		Total Charges			Cash Payments			Other			Balance, June 30, 2014
Employee separation costs	$	2,304	$	4,622		$	(4,540	)	$	(1	)	$	2,385
Lease and facility exit costs	2,774		(222		)	(487		)	—			2,065
Other costs	142		503			(529		)	—			116
Total	$	5,220	$	4,903		$	(5,556	)	$	(1	)	$	4,566

Other costs include charges incurred in connection with transitioning services from sites being closed and legal and professional fees.

In addition to the above restructuring costs, in the three and six months ended June 30, 2014, Covance incurred $0.9 million and $3.4 million, respectively, in costs associated with other cost reduction actions, primarily to consolidate certain corporate support functions, as well as property tax and depreciation expense on facilities that have been closed but not yet disposed of. During the three and six months ended June 30, 2014, $0.5 million and $2.6 million, respectively, were included in selling, general and administrative expense and $0.4 million and $0.8 million, respectively, were included in depreciation and amortization. During the three and six months ended June 30, 2014, $0.7 million and $1.5 million, respectively, were included in our early development segment, $0.1 million was included in our late-stage development segment for both periods and $0.1 million and $1.9 million, respectively, were included in corporate expenses. During the three and six months ended June 30, 2013, Covance incurred $2.6 million in these costs ($2.0 million included in selling, general and administrative expense and $0.6 million included in depreciation and amortization). During the three and six months ended June 30, 2013, $1.0 million was included in our early development segment and $1.6 million was included in corporate expenses.