Restructuring Charges

9 Months Ended

Sep. 30, 2013

RESTRUCTURING CHARGES

In the nine months ended September 30, 2013, we recorded $17 in severance and related costs in connection with the continuation of a focused reduction of our global workforce and other restructuring activities expected to reduce our global workforce by approximately 5%. The targeted reductions and other restructuring activities were initiated to provide efficiencies and realign resources in advance of the new Medical Device Excise Tax, as well as to allow for continued investment in strategic areas and drive growth. In addition, in the nine months ended September 30, 2013 we recorded $21 in contractual and other obligations, as certain of our restructuring actions resulted in the exit of certain lease and other commitments. The restructuring charges that we recorded in 2012 and 2011 are described in Note 9 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. We expect that our current restructuring actions will be completed by the end of 2013, and the related cash payments will be substantially completed by the end of the first quarter of 2014.

Rollforward of restructuring liability balance and nine months of restructuring activity for 2013 is as follows:



	Total			Agent Conversions			Severance and Related Costs			Contractual Obligations and Other
January 1 Balance	$	40		$	5		$	20		$	15
Charges to earnings	38			—			17			21
Cash paid	(42		)	(3		)	(23		)	(16		)
Other adjustments	(1		)	—			(1		)	—
September 30 Balance	$	35		$	2		$	13		$	20

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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