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MERGER-RELATED AND RESTRUCTURING COSTS

9 Months Ended

Sep. 30, 2013

11. MERGER-RELATED AND RESTRUCTURING COSTS

Merger-related and restructuring costs for the three and nine months ended September 30, 2013 and 2012 consisted of (in millions):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Merger-related costs	$	2	$	7	$	9	$	50
Restructuring costs		21		25		72		48
Total merger-related and restructuring costs	$	23	$	32	$	81	$	98

Merger-related Costs

Through September 30, 2013, the Company incurred merger-related costs of $63 million primarily due to severance costs and legal, professional and other fees incurred in connection with the acquisition of Insight Communications Company, Inc. and made cash payments of $56 million. Changes in the Company's accruals for merger-related costs are presented below (in millions):

	Employee
	Termination		Other
	Costs		Costs		Total
Costs incurred	$	22	$	32	$	54
Cash paid^(a)		(15)		(25)		(40)
Remaining liability as of December 31, 2012		7		7		14
Costs incurred		—		9		9
Cash paid		(4)		(12)		(16)
Remaining liability as of September 30, 2013^(b)	$	3	$	4	$	7

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Of the total cash paid in 2012, $37 million was paid during the nine months ended September 30, 2012.
Of the remaining liability as of September 30, 2013, $6 million is classified as a current liability, with the remaining amount classified as a noncurrent liability in the consolidated balance sheet. Amounts are expected to be paid through January 2015.

Restructuring Costs

Through September 30, 2013, the Company incurred restructuring costs to improve operating efficiency of $326 million and made cash payments of $302 million. The Company expects to incur additional restructuring costs during the remainder of 2013 primarily related to employee terminations in connection with initiatives intended to improve operating efficiency. Changes in the Company's restructuring reserves are presented below (in millions):

	Employee		Other
	Termination		Exit
	Costs		Costs		Total
Remaining liability as of December 31, 2011	$	29	$	4	$	33
Costs incurred		46		15		61
Cash paid^(a)		(51)		(16)		(67)
Remaining liability as of December 31, 2012		24		3		27
Costs incurred		59		13		72
Cash paid		(63)		(12)		(75)
Remaining liability as of September 30, 2013^(b)	$	20	$	4	$	24

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Of the total cash paid in 2012, $55 million was paid during the nine months ended September 30, 2012.
Of the remaining liability as of September 30, 2013, $22 million is classified as a current liability, with the remaining amount classified as a noncurrent liability in the consolidated balance sheet. Amounts are expected to be paid through March 2016.