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.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Employee separation costs	$	1	$	8	$	12	$	14
Asset impairment charges	24		—		24		—
Total restructuring and impairment charges	$	25	$	8	$	36	$	14

The Company's pre-tax restructuring charges for the three and six months ended June 30, 2025 included $1 million and $12 million, respectively, of employee separation costs associated with various workforce reduction initiatives as the Company continued to restructure its organization. Additionally, during the three and six months ended June 30, 2025, the Company recorded a $24 million impairment charge on certain long-lived assets related to the potential exit of a business. Of the total restructuring and impairment charges incurred during the three months ended June 30, 2025, $1 million and $24 million were recorded in selling, general and administrative expenses and other operating (income) expense, net, respectively. Of the total restructuring and impairment charges incurred during the six months ended June 30, 2025, $6 million, $6 million and $24 million were recorded in cost of services, selling, general and administrative expenses, and other operating (income) expense, net, respectively.

The Company's pre-tax restructuring charges for the three and six months ended June 30, 2024 were $8 million and $14 million, respectively, entirely related to employee separation costs associated with various workforce reduction initiatives as the Company continued to restructure its organization. Of the total restructuring charges incurred during the three months ended June 30, 2024, $4 million and $4 million were recorded in cost of services and selling, general and administrative expenses, respectively. Of the total restructuring charges incurred during the six months ended June 30, 2024, $8 million and $6 million were recorded in cost of services and selling, general and administrative expenses, respectively.