IMS IIeallth. Inc., reports the following footnote to its \(200310-\mathrm{K}\).

a. Describe the accounting for a split-off.

b. Describe the circumstances that allowed IMS to recognize a gain on this split-off.

c. How should you interpret the gain from this split-off in your analysis of IMS for 2003?

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Split-Off of Cognizant Technology Solutions Corporation Segment ("CTS") Until February 6, 2003, we consolidated CTS, which provides custom Information Technology ("IT") design, development, integration and maintenance services. CTS is a publicly traded corporation on the NASDAQ national market system. We owned 55.3% of the common shares outstanding of CTS (92.5% of the outstanding voting power) as of December 31, 2002. On February 6, 2003. we divested CTS through a split-off transaction, and as a result, during 2003, we recorded a net gain from discontinued operations of $496,887.000. Our share of CTS' results are presented as discontinued operations for 2003 through the date of divestiture.