Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CONVERGYS CORP. | ||
Entity Central Index Key | 1062047 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 99,352,812 | ||
Trading symbol | cvg | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $2,167,660,455.04 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | $2,855.50 | $2,046.10 | $2,005 | |||
Operating Costs and Expenses: | ||||||
Cost of providing services and products sold | 1,814.50 | [1] | 1,335.10 | [1] | 1,289.50 | [1] |
Selling, general and administrative expenses | 677.1 | 465 | 477.2 | |||
Research and development costs | 7.7 | 8.2 | 10.8 | |||
Depreciation | 142.9 | 85.5 | 82.4 | |||
Amortization | 24.7 | 5.3 | 6.3 | |||
Restructuring charges | 1.7 | 5.4 | 11.6 | |||
Asset Impairment Charges | -1.6 | 1.5 | 88.6 | |||
Transaction and integration costs | 37.7 | 2.7 | 0 | |||
Total costs and expenses | 2,704.70 | 1,908.70 | 1,966.40 | |||
Operating Income (Loss) | 150.8 | 137.4 | 38.6 | |||
Other income (expense), net | -2.2 | 5.1 | 4.3 | |||
Interest expense | -19.3 | -11.5 | -13.6 | |||
Income (loss) before income taxes | 129.3 | 131 | 29.3 | |||
Income tax expense | 12.8 | 72.5 | 1.1 | |||
Income (loss) from continuing operations | 116.5 | 58.5 | 28.2 | |||
Income (loss) from discontinued operations, net of tax | 3.5 | 2.4 | 72.4 | |||
Net Income (Loss) | $120 | $60.90 | $100.60 | |||
Basic Earnings (Loss) per share: | ||||||
Continuing operations | $1.16 | $0.57 | $0.25 | |||
Discontinued operations | $0.03 | $0.02 | $0.65 | |||
Net basic earnings (loss) per share | $1.19 | $0.59 | $0.90 | |||
Diluted Earnings (Loss) per share: | ||||||
Continuing operations | $1.10 | $0.54 | $0.24 | |||
Discontinued operations | $0.03 | $0.02 | $0.62 | |||
Net diluted earnings (loss) per share | $1.13 | $0.56 | $0.86 | |||
Weighted average common shares outstanding: | ||||||
Basic | 100.7 | 103.3 | 112.2 | |||
Diluted | 106.2 | 109.2 | 117.1 | |||
Common Stock, Dividends, Per Share, Declared | $0.27 | $0.24 | $0.15 | |||
[1] | Exclusive of depreciation and amortization, with the exception of amortization of deferred charges. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income (Loss) | $120 | $60.90 | $100.60 |
Foreign currency translation adjustments | -36.2 | -1.3 | 22.3 |
Change related to pension liability, net of tax | -15.2 | 26.2 | 1 |
Unrealized gain (loss) on hedging activities, net of tax | 4.2 | -33.9 | 12.9 |
Total other comprehensive income (loss) | -47.2 | -9 | 36.2 |
Total Comprehensive Income (Loss) | $72.80 | $51.90 | $136.80 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income Parenthetical (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income Parenthetical [Abstract] | |||
Tax (expense) benefit, pension liability | $8.60 | ($17.10) | ($0.60) |
Tax (expense) benefit, unrealized (loss) gain on hedging activities | ($2.90) | $21.40 | ($8.10) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $198.90 | $580.80 |
Short-term Investments | 13 | 82.9 |
Receivables, net of allowances of $8.1 and $5.3 | 511.1 | 319.8 |
Deferred income tax asset | 107.2 | 6.2 |
Prepaid expenses | 28.9 | 25.2 |
Other current assets | 31.8 | 45.5 |
Total current assets | 890.9 | 1,060.40 |
Property and equipment, net | 367.8 | 246.4 |
Goodwill, net | 850.7 | 589.4 |
Other intangibles, net | 355.2 | 20.4 |
Deferred income tax asset | 8.2 | 8.9 |
Other assets | 43.7 | 31.2 |
Total Assets | 2,516.50 | 1,956.70 |
Liabilities and Shareholders' Equity | ||
Debt and capital lease obligations maturing within one year | 7.5 | 0.9 |
Payables and other current liabilities | 361 | 291.7 |
Total current liabilities | 368.5 | 292.6 |
Long-term debt and capital lease obligations | 368.4 | 60.2 |
Deferred Tax Liabilities, Net, Noncurrent | 275.6 | 150.8 |
Accrued pension liability | 116.9 | 73.7 |
Other long-term liabilities | 95.6 | 89.8 |
Total liabilities | 1,225 | 667.1 |
Temporary Equity, Par Value | 64.3 | 65.5 |
Shareholders' Equity | ||
Preferred shares - without par value, 5.0 authorized; none outstanding | 0 | 0 |
Common shares - without par value, 500.0 authorized; 189.8 and 188.9 issued, 99.4 and 100.8 outstanding, as of December 31, 2014 and December 31, 2013, respectively | 1,077.50 | 1,074.40 |
Treasury Stock - 90.4 shares in 2014 and 88.2 in 2013 | -1,491.20 | -1,445.60 |
Retained earnings | 1,707.60 | 1,614.80 |
Accumulated other comprehensive loss | -66.7 | -19.5 |
Total shareholders' equity | 1,227.20 | 1,224.10 |
Total Liabilities and Shareholders' Equity | $2,516.50 | $1,956.70 |
Balance_Sheet_Parenthetical_Pa
Balance Sheet Parenthetical (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts Receivable, Current | $8.10 | $5.30 |
Preferred Stock, Value, Issued | $0 | $0 |
Preferred Stock, Shares Authorized | 5 | 5 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0 | $0 |
Common Stock, Shares Authorized | 500 | 500 |
Common Stock, Shares, Issued | 189.8 | 188.9 |
Common Stock, Shares, Outstanding | 99.4 | 100.8 |
Treasury Stock, Shares | 90.4 | 88.2 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income (Loss) | $120 | $60.90 | $100.60 |
Income (loss) from discontinued operations | 3.5 | 2.4 | 72.4 |
Income (loss) from continuing operations | 116.5 | 58.5 | 28.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 167.6 | 90.8 | 88.7 |
Asset impairment | -1.6 | 1.5 | 88.6 |
Deferred income tax expense (benefit) | -67.7 | 63.9 | -4.2 |
Stock compensation expense | 8.4 | 13.4 | 20.2 |
Changes in assets and liabilities: | |||
Change in receivables | -12.9 | 4.5 | -14.1 |
Change in other current assets | 22.5 | 10.3 | -23.4 |
Change in deferred charges, net | 1.9 | 1.3 | 1.4 |
Change in other assets and liabilities | 15.8 | -3.6 | -28.2 |
Change in payables and other current liabilities | 10.5 | -32.1 | -56.5 |
Other, net | 0 | -0.1 | 3.2 |
Net cash provided by operating activities of continuing operations | 261 | 208.4 | 103.9 |
Net cash used in operating activities of discontinued operations | 0 | 1.6 | 9.1 |
Net cash provided by operating activities | 261 | 210 | 113 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | -116.7 | -63.8 | -98.4 |
Proceeds from Sales of Assets, Investing Activities | 0.1 | 48 | 0 |
Payments to acquire short-term investments | -7.2 | -175.3 | -83.3 |
Proceeds from maturity of short-term investments | 75.9 | 170.9 | 19 |
Acquisitions, net of cash acquired | 802.6 | 16.4 | 0 |
Net cash used in investing activities of continuing operations | -850.5 | -36.6 | -162.7 |
Net cash provided by (used in) investing activities of discontinued operations | 0 | 1 | 425.3 |
Net cash provided by (used in) investing activities | -850.5 | -35.6 | 262.6 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of credit facilities and other debt, net | 344.9 | 0 | 0 |
Repayments of Long-term Debt | -107.1 | -5.9 | -66.5 |
Proceeds from Accounts Receivable Securitization | 514 | 0 | 0 |
Repayments of Accounts Receivable Securitization | -474 | 0 | 0 |
Repurchase of common shares | -45.4 | -122.6 | -180.8 |
Proceeds from exercise of stock options | 1.5 | 2.8 | 10.9 |
Payments of Debt Issuance Costs | -2 | 0 | 0 |
Payments of Dividends | -26.2 | -23.8 | -11.2 |
Excess tax benefit from share-based compensation | 1.9 | 1.2 | 5 |
Net cash used in financing activities of continuing operations | 207.6 | -148.3 | -242.6 |
Net cash used in financing activities of discontinued operations | 0 | 0 | -0.1 |
Net cash used in financing activities | 207.6 | -148.3 | -242.7 |
Net increase (decrease) in cash and cash equivalents | -381.9 | 26.1 | 132.9 |
Cash and cash equivalents at beginning of period | 580.8 | 554.7 | 421.8 |
Cash and cash equivalents at end of period | 198.9 | 580.8 | 554.7 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid for interest | 16.6 | 11.2 | 13.7 |
Income taxes paid, net of refunds | $52.70 | ($5.70) | $68.20 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock [Member] |
In Millions | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2011 | $1,411.50 | $1,111.80 | ($1,149.10) | $1,495.50 | ($46.70) | |
Balance (shares) at Dec. 31, 2011 | 185 | |||||
Issuance of common shares (shares) | 2.5 | |||||
Treasury shares issued for share-based plans, net | 3.3 | 4.3 | -1 | |||
Tax related to share-based arrangements, net of excess tax benefits | -14.6 | -14.6 | ||||
Stock option exercises | 10.9 | 10.9 | ||||
Repurchase of Common Shares | -184.4 | -184.4 | ||||
Net Income (Loss) | 100.6 | 100.6 | ||||
Other comprehensive income | 36.2 | 36.2 | ||||
Cash dividends declared | -16.5 | -16.5 | ||||
Amortization of stock-based compensation | 24.9 | 24.9 | 0 | |||
Balance at Dec. 31, 2012 | 1,371.90 | 1,133 | -1,329.20 | 1,578.60 | -10.5 | |
Balance (shares) at Dec. 31, 2012 | 187.5 | |||||
Issuance of common shares (shares) | 1.4 | |||||
Treasury shares issued for share-based plans, net | 2.7 | 0.1 | 2.6 | |||
Tax related to share-based arrangements, net of excess tax benefits | -9.4 | -9.4 | ||||
Stock option exercises | 2.8 | 2.8 | ||||
Repurchase of Common Shares | -119 | -119 | ||||
Net Income (Loss) | 60.9 | 60.9 | ||||
Other comprehensive income | -9 | -9 | ||||
Cash dividends declared | -24.7 | -24.7 | ||||
Amortization of stock-based compensation | 13.4 | 13.4 | ||||
Temporary Equity, Par Value | -65.5 | -65.5 | ||||
Balance at Dec. 31, 2013 | 1,224.10 | 1,074.40 | -1,445.60 | 1,614.80 | -19.5 | |
Balance (shares) at Dec. 31, 2013 | 188.9 | |||||
Issuance of common shares (shares) | 0.9 | |||||
Treasury shares issued for share-based plans, net | 1 | 0.3 | 0.7 | |||
Tax related to share-based arrangements, net of excess tax benefits | -8.3 | -8.3 | ||||
Stock option exercises | 1.5 | 1.5 | ||||
Repurchase of Common Shares | -46.3 | -46.3 | ||||
Net Income (Loss) | 120 | 120 | ||||
Other comprehensive income | -47.2 | -47.2 | ||||
Cash dividends declared | -27.2 | -27.2 | ||||
Amortization of stock-based compensation | 8.4 | 8.4 | ||||
Temporary Equity, Par Value | -64.3 | |||||
Temporary Equity, Accretion of Dividends | 1.2 | 1.2 | ||||
Balance at Dec. 31, 2014 | $1,227.20 | $1,077.50 | ($1,491.20) | $1,707.60 | ($66.70) | |
Balance (shares) at Dec. 31, 2014 | 189.8 |
Background_And_Basis_Of_Presen
Background And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | BACKGROUND AND BASIS OF PRESENTATION |
Convergys Corporation (the Company or Convergys) is a global customer management leader, focused on bringing value to its clients through every customer interaction. | |
On March 3, 2014, Convergys completed its acquisition of SGS Holdings, Inc. (Stream), a global customer management leader, providing technical support, customer care and sales, for Fortune 1000 companies. This acquisition expanded the Company's geographic footprint and capabilities, adding approximately 40,000 employees in 22 countries. Combined, Convergys now has 125,000 employees working out of more than 150 locations in 31 countries, interacting with our clients' customers in 47 languages. Stream's complementary client portfolio also diversifies Convergys' client base through the addition of leading technology, communications and other clients. Stream's operating results are included in Convergys' Consolidated Statements of Income beginning on March 3, 2014, and contributed revenue of $834.8 during 2014. |
Accounting_Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SIGNIFICANT ACCOUNTING POLICIES |
Principles of Consolidation and Basis of Presentation | |
The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission regulations. The Consolidated Financial Statements include the accounts of the Company’s majority-owned subsidiaries. All material intercompany accounts and transactions are eliminated upon consolidation. | |
Reclassification | |
Certain prior year balances in the Consolidated Statements of Income have been reclassified to conform to the current year presentation. The reclassifications were not material to the Consolidated Financial Statements. | |
Use of Estimates, Risks and Uncertainties | |
The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. These estimates include, but are not limited to, project completion dates, time and cost required to complete projects for purposes of revenue recognition and future revenue, expense and cash flow estimates for purposes of impairment analysis and loss contract evaluation. Actual results could differ from those estimates. | |
The Company’s results are affected by economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, and government fiscal policies, can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. | |
Foreign Currency Translation | |
Assets and liabilities of foreign operations are translated to U.S. Dollars at year-end exchange rates. Revenues and expenses are translated at average exchange rates for the year. Translation adjustments are accumulated and reflected as adjustments to other comprehensive (loss) income, a component of Shareholders’ Equity, and included in net earnings only upon sale or liquidation of the underlying foreign subsidiary. Gains or losses resulting from foreign exchange transactions related to balance sheet positions are recorded in the Consolidated Statements of Income within Other (expense) income, net. | |
Revenue Recognition | |
Revenues mostly consist of fees generated from outsourced services provided to the Company’s clients. Approximately 94% of the Company's revenues are derived from agent-related services. The Company typically recognizes these revenues as services are performed based on staffing hours or the number of contacts handled by service agents using contractual rates. The remaining revenues are derived from the sale of premise-based and hosted automated self-care and technology solutions and provision of professional services. Revenues from the sale of these solutions and provision of services are typically recognized as services are provided over the duration of the contract using contractual rates. | |
Revenues are recognized only when the services are performed, there is evidence of an arrangement, the Company determines that the fee is fixed and determinable and collection of the fee included in the arrangement is considered probable. When determining whether the fee is considered fixed and determinable and collection is probable, the Company considers a number of factors including the creditworthiness of the client and the contractual payment terms. If a client is not considered creditworthy, all revenue under arrangements with that client is recognized upon receipt of cash. If payment terms extend beyond what is considered customary or standard in the related industry and geographic location, the related fees are considered extended and deferred until they become due and payable. | |
The Company considers the criteria established primarily by Accounting Standards Codification (ASC) Topic 605-45, “Principal Agent Considerations,” (ASC 605-45) in determining whether revenue should be recognized on a gross versus a net basis. Factors considered in determining if gross or net basis recognition is appropriate include whether the Company is primarily responsible to the client for the services, has discretion on vendor selection, or bears credit risk. The Company provides certain services to clients using third-party vendors. Typically, the costs incurred with third-party vendors related to these services are passed through to the clients. In consideration of the above mentioned criteria, the Company recognizes the net amount of total payments received from clients related to these services and total payments made by the Company to third-party vendors as cost of providing services and products sold. | |
The Company may earn supplemental revenues depending on the satisfaction of certain service levels or achievement of certain performance measurement targets. The supplemental revenues are recognized only after required measurement targets are met and the other criteria for recognition are satisified. | |
Stock-Based Compensation | |
The Company accounts for stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the Company. Stock-based compensation cost for restricted stock awards and restricted stock units and performance restricted stock units is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for stock options is estimated at the grant date based on each option's fair-value as calculated by the Black-Scholes option-pricing model. The Company recognizes stock-based compensation cost as expense for awards other than its performance-based restricted stock units ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost associated with its performance based restricted stock units over the requisite service period if it is probable that the performance conditions will be satisfied. The Company will recognize a benefit from stock-based compensation in equity if an incremental tax benefit is realized by following the ordering provisions of the tax law. Tax benefits related to stock compensation expense are reported as financing cash flow and tax expenses are reported as operating cash flow. Further, the Company applies an estimated forfeiture rate to unvested awards when computing the stock compensation-related expenses. | |
Income Taxes | |
The provision for income taxes includes taxes paid, currently payable or receivable, and those deferred. Under U.S. GAAP, the Company recognizes deferred tax assets and liabilities based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to be settled or realized. | |
The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it is more likely than not that some portion or all of a deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical pre-tax and taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The expected timing of the reversals of existing temporary differences is based on current tax law and the Company’s tax methods of accounting. | |
The Company also reviews its tax activities and evaluates uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit, which is the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company’s policy is to recognize interest and penalties accrued on unrecognized tax benefits as part of income tax expense. | |
Other Comprehensive Income (Loss) | |
Components of other comprehensive (loss) income include currency translation adjustments, changes related to pension liabilities, net of tax, and unrealized (losses) gains on hedging activities, net of tax. Foreign currency translation adjustments generally are not adjusted for income taxes as they relate to indefinite investments in non-U.S. operations. Accumulated other comprehensive (loss) income also includes, net of tax, actuarial gains or losses, prior service costs or credits and transition assets and obligations that are not recognized currently as components of net periodic pension cost. | |
Concentration of Credit Risk | |
In the normal course of business, the Company is exposed to credit risk. The principal concentrations of credit risk are cash and cash equivalents, short-term investments, accounts receivable and derivative instruments. The Company regularly monitors credit risk exposures and takes steps to mitigate the likelihood of these exposures resulting in a loss. Historically, credit losses on accounts receivable have not been material because of the large concentration of revenues with a small number of large, established companies. The Company does not require collateral or other security to support accounts receivable. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes, as discussed above, as well as through its ongoing collectability assessment processes for accounts receivable. The Company maintains an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific clients, historical trends and other information. The Company limits its counterparty credit risk exposures by entering into derivative contracts with financial institutions that are investment grade rated. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand and short-term, highly liquid investments with original maturities of three months or less. | |
Receivables and Allowance for Doubtful Accounts | |
Trade receivables are comprised primarily of amounts owed to the Company by clients and are presented net of an allowance for doubtful accounts of $8.1 and $5.3 at December 31, 2014 and 2013, respectively. Contracts with individual clients determine when receivables are due, generally within 30-60 days, and whether interest is accrued on late payments. | |
The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company regularly reviews the adequacy of its allowance for doubtful accounts. The Company determines the allowance based on historical write-off experience and current economic conditions and also considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Property and Equipment | |
Property and equipment are stated at cost. Depreciation is based on the straight-line method over the estimated useful lives of the assets. Buildings are generally depreciated over a 30-year life, software over a three- to eight-year life and equipment generally over a three-to-five-year life. Leasehold improvements are depreciated over the shorter of their estimated useful life or the remaining term of the associated lease. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation expense for assets held under captial lease is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease. Included within Property and equipment is initial cost of $64.6 related to assets under capital lease arrangements. | |
The Company reviews property and equipment asset groups for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company monitors these changes and events on at least a quarterly basis. Examples of events or changes in circumstances could include, but are not limited to, a prolonged economic downturn, current period operating or cash flow losses combined with a history of losses or a forecast of continuing losses associated with the use of an asset group, or a current expectation that an asset group will be sold or disposed of before the end of its previously estimated useful life. Recoverability is based upon projections of anticipated future undiscounted cash flows associated with the use and eventual disposal of the property and equipment asset groups, as well as specific appraisals in certain instances. Reviews occur at the lowest level for which identifiable cash flows are largely independent of cash flows associated with other property and equipment asset groups. If the future undiscounted cash flows result in a value that is less than the carrying value, then the long-lived asset is considered impaired and a loss is recognized based on the amount by which the carrying amount exceeds the estimated fair value. Various factors that the Company uses in determining the impact of these assessments include the expected useful lives of long-lived assets and our ability to realize any undiscounted cash flows in excess of the carrying amounts of such asset groups, and are affected primarily by changes in the expected use of the assets, changes in technology or development of alternative assets, changes in economic conditions, changes in operating performance and changes in expected future cash flows. Because judgment is involved in determining the fair value of property and equipment asset groups, there is risk that the carrying value of these assets may require adjustment in future periods. | |
Internal Use Software | |
The Company capitalizes certain expenditures for software that is purchased or internally developed for use in the business. During 2014, 2013, and 2012, internally developed software amounts capitalized were $4.9, $1.0 and $6.8, respectively. Amortization of internal use software begins when the software is ready for service and continues on the straight-line method over the estimated useful life. | |
Business Combinations | |
Accounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Refer to Note 3 of the Notes to the Consolidated Financial Statements for a discussion of the Stream acquisition. | |
Goodwill and Other Intangibles | |
As discussed more fully in Note 6, goodwill is reviewed at the reporting unit level for impairment as of October 1 each year and at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. | |
The first step compares the fair value of a reporting unit with its carrying amount, including the goodwill allocated to each reporting unit (Step 1). If the fair value of the reporting unit is in excess of the carrying value, the related goodwill is considered not to be impaired and no further analysis is necessary. If the carrying amount of the reporting unit exceeds the fair value, there is an indication of potential impairment and a second step of testing is performed to measure the amount of the impairment, if any, for that reporting unit. | |
When required, the second step compares the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of the net assets and identifiable intangibles as if the reporting unit were being acquired. Any excess of the carrying value of the reporting unit goodwill over the implied fair value of the reporting unit goodwill will be recorded as an impairment loss. An impairment charge recognized cannot exceed the amount of goodwill allocated to a reporting unit and cannot be reversed subsequently even if the fair value of the reporting unit recovers. | |
Fair value of the reporting unit is determined using a combination of the market approach and the income approach. Under the market approach, fair value is based on revenue and earnings multiples for guideline public companies in the reporting unit's peer group. The market approach requires significant judgment regarding the selection of guideline companies. Under the income approach, value is dependent on the present value of net cash flows to be derived from the ownership. The income approach requires significant judgment including estimates about future cash flows and discount rates. A combination of methodologies is used and weighted appropriately for reporting units with significant adverse changes in business climate. | |
Other intangibles, primarily customer relationship assets and trademarks, are amortized over a straight-line basis with estimated useful lives ranging from four to seventeen years and are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. | |
Postemployment Benefits | |
The funded status of the Company’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement. For active plans, the present value reflects estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligation is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates and mortality rates. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note 9. | |
The Company provides severance benefits to certain employees. The Company accrues the benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. | |
Government Grants | |
From time to time, the Company receives grants from local or state governments as an incentive to locate or retain operations in their jurisdictions. Depending on the arrangement, the grants are either received up-front or at the time the Company achieves the milestones set forth in the grant. The Company’s policy is to record the grant funds received as deferred credit and to amortize the deferred credit as a reduction of cost of providing services and products sold or selling, general and administrative expense as the milestones are met over the term of the grant. | |
Derivative Instruments | |
The Company’s risk management strategy includes the use of derivative instruments to reduce the effects on its operating results and cash flows from fluctuations caused by volatility in currency exchange and interest rates. The Company currently uses only cash flow hedges. These instruments are hedges of forecasted transactions or of the variability of cash flows to be received or paid related to a recognized asset or liability. The Company generally enters into forward exchange contracts expiring within 36 months as hedges of anticipated cash flows denominated in foreign currencies. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates. In using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to counterparty credit risk. | |
All derivatives, including foreign currency exchange contracts, are recognized in the Consolidated Balance Sheets at fair value. Fair values for the Company’s derivative financial instruments are based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current assumptions. On the date the derivative contract is entered into, the Company determines whether the derivative contract qualifies for designation as a hedge. For derivatives that are designated as hedges, the Company further designates the hedge as either a fair value or cash flow hedge; all currently existing hedges have been designated as cash flow hedges. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of Other Comprehensive (Loss) Income and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to forecasted transactions, respectively. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. | |
The Company also periodically enters into forward exchange contracts that are not designated as hedges. The purpose of the majority of these derivative instruments is to protect the Company against foreign currency exposure pertaining to receivables, payables and intercompany transactions that are denominated in currencies different from the functional currencies of the Company or the respective subsidiaries. The Company records changes in the fair value of these derivative instruments in the Consolidated Statements of Income within Other income, net. | |
Investments | |
Management determines the appropriate classification of securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Currently all investment securities are classified as trading, and are reported within short-term investments in the Consolidated Balance Sheets. Trading securities are carried at fair value, with gains and losses, both realized and unrealized, reported in Other (expense) income, net in the Consolidated Statements of Income. The cost of securities sold is based upon the specific identification method. Interest and dividends on securities classified as trading is included in Other (expense) income, net. | |
Fair Value Measurements | |
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | |
New Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718)." This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition, and apply existing guidance under the Stock Compensation Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This update will be applied prospectively and is effective for interim and annual periods beginning after December 15, 2015. This standard is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The standard will apply one comprehensive revenue recognition model across all contracts, entities and sectors. The core principal of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Once effective, this ASU will replace most of the existing revenue recognition requirements in U.S. GAAP. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the effect that adoption of the new standard, including possible transition alternatives, will have on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU changes the criteria for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new standard, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. Once adopted, this update will be applied prospectively and is effective for annual periods, and interim periods within those years, beginning after December 15, 2014. This standard is not expected to have a material effect on the Company's consolidated financial statements, but will impact the reporting of any future dispositions. |
Earnings_Loss_Per_Share_and_Sh
Earnings (Loss) Per Share and Shareholders' Equity | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||
Earnings (Loss) Per Share and Shareholder's Equity | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Earnings per Share | ||||||||||||||||||
The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations: | ||||||||||||||||||
Continuing | Discontinued | Total | ||||||||||||||||
Operations | Operations | |||||||||||||||||
Shares (in Millions) | Shares | Net | Per | Net | Per | Per | ||||||||||||
Income | Share | Income | Share | Share | ||||||||||||||
Amount | Amount | Amount | ||||||||||||||||
2014:00:00 | ||||||||||||||||||
Basic EPS | 100.7 | $ | 116.5 | $ | 1.16 | $ | 3.5 | $ | 0.03 | $ | 1.19 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 1 | — | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Convertible Debt | 4.5 | — | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Diluted EPS | 106.2 | $ | 116.5 | $ | 1.1 | $ | 3.5 | $ | 0.03 | $ | 1.13 | |||||||
2013:00:00 | ||||||||||||||||||
Basic EPS | 103.3 | $ | 58.5 | $ | 0.57 | $ | 2.4 | $ | 0.02 | $ | 0.59 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 1.2 | — | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Convertible Debt | 4.7 | — | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Diluted EPS | 109.2 | $ | 58.5 | $ | 0.54 | $ | 2.4 | $ | 0.02 | $ | 0.56 | |||||||
2012:00:00 | ||||||||||||||||||
Basic EPS | 112.2 | $ | 28.2 | $ | 0.25 | $ | 72.4 | $ | 0.65 | $ | 0.9 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 2.1 | — | — | — | (0.01 | ) | (0.01 | ) | ||||||||||
Convertible Debt | 2.8 | — | (0.01 | ) | — | (0.02 | ) | (0.03 | ) | |||||||||
Diluted EPS | 117.1 | $ | 28.2 | $ | 0.24 | $ | 72.4 | $ | 0.62 | $ | 0.86 | |||||||
The diluted EPS calculation excludes the effect of 0.5, 0.6 and 1.0 of outstanding stock options for 2014, 2013 and 2012, respectively, because they are anti-dilutive. The calculation also excludes 0.6 of performance-based restricted stock units (0.3 granted in both 2014 and 2013) as performance criteria have not yet been fully defined, which precludes the establishment of a grant date for accounting purposes. | ||||||||||||||||||
As described more fully in Note 7, the Company issued approximately $125.0 aggregate principal amount of 5.75% Junior Subordinated Convertible Debentures due 2029 (2029 Convertible Debentures) in 2009. The 2029 Convertible Debentures were initially convertible, subject to certain conditions, into shares of the Company's common stock at an initial conversion price of approximately $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand in principal amount of debentures. The conversion rate will be subject to adjustments for certain events outlined in the indenture governing the Debentures (the Indenture), including payment of dividends. As of December 31, 2014, the implied conversion rate for the Convertible Debentures was $11.65 per share, or eighty-five and eighty-three hundredths shares per one thousand in principal amount of debentures. There were 4.5, 4.7 and 2.8 dilutive shares related to the 2029 Convertible Debentures for 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Shareholders’ Equity | ||||||||||||||||||
The Company repurchased 2.3 shares of its common stock during the year ended December 31, 2014 at an average price of $20.00 per share for a total of $46.3. Based upon timing of transactions, $0.9 of the shares repurchased had not settled as of December 31, 2014. There were 6.7 shares repurchased during the year ended December 31, 2013. Below is a summary of the Company’s share repurchases during 2014, 2013 and 2012: | ||||||||||||||||||
Shares | Cost | |||||||||||||||||
2014 | 2.3 | $ | 46.3 | |||||||||||||||
2013 | 6.7 | $ | 119 | |||||||||||||||
2012 | 12.3 | $ | 184.4 | |||||||||||||||
At December 31, 2014, the Company has the authority to repurchase an additional $87.1 of outstanding common shares pursuant to current authorizations. This is reflective of approval by the Company's Board of Directors in February 2013 to increase the remaining authorized share repurchases to $250.0 in the aggregate. The timing and terms of any future transactions will depend on a number of considerations including market conditions and our liquidity and limits that may be applicable under the covenants in our credit agreement. | ||||||||||||||||||
The Company also repurchased 0.5 shares at an average price of $20.06 for aggregate proceeds of $9.5 subsequent to December 31, 2014, through February 18, 2015. | ||||||||||||||||||
Preferred Shares | ||||||||||||||||||
The Company is authorized to issue up to 5.0 preferred shares, of which 4.0 would have voting rights. At December 31, 2014 and 2013, there were no preferred shares issued or outstanding. | ||||||||||||||||||
Dividends | ||||||||||||||||||
During 2013 and 2014, the Company's Board of Directors approved, and the Company has paid, the following dividends per common share: | ||||||||||||||||||
Announcement Date | Record Date | Dividend Amount | Payment Date | |||||||||||||||
February 7, 2013 | March 22, 2013 | $0.06 | April 5, 2013 | |||||||||||||||
April 30, 2013 | June 21, 2013 | $0.06 | July 5, 2013 | |||||||||||||||
July 30, 2013 | September 20, 2013 | $0.06 | October 4, 2013 | |||||||||||||||
November 6, 2013 | December 27, 2013 | $0.06 | January 10, 2014 | |||||||||||||||
February 5, 2014 | March 21, 2014 | $0.06 | April 4, 2014 | |||||||||||||||
May 12, 2014 | June 19, 2014 | $0.07 | July 3, 2014 | |||||||||||||||
August 11, 2014 | September 19, 2014 | $0.07 | October 3, 2014 | |||||||||||||||
November 5, 2014 | December 26, 2014 | $0.07 | January 9, 2015 | |||||||||||||||
On February 18, 2015, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.07 per common share to be paid on April 3, 2015 to shareholders of record as of March 20, 2015. | ||||||||||||||||||
The Board expects that future cash dividends will be paid on a quarterly basis. However, any decision to pay future cash dividends will be subject to Board approval, and will depend on the Company's future earnings, cash flow, financial condition, financial covenants and other relevant factors. |
Business_Combination_Business_
Business Combination Business Combination (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS | ||||||
Stream Acquisition | |||||||
Background and Financing | |||||||
On January 6, 2014, the Company and its wholly-owned subsidiary (Merger Sub), entered into an Agreement and Plan of Merger (the Merger Agreement) with Stream and, for limited purposes, other Sellers listed in the Merger Agreement. On March 3, 2014, Merger Sub was merged with and into Stream (the Merger), with Stream continuing as the surviving corporation and as a wholly owned subsidiary of Convergys. At the time of the Merger, each share of Stream common stock was converted into the right to receive an amount in cash, without interest. | |||||||
The total purchase price, net of cash acquired, was $802.6, which was funded using available cash, borrowings under the Accounts Receivable Securitization Facility and proceeds from a term loan under the February 28, 2014 Credit Agreement (the Credit Agreement). The Credit Agreement consists of a term loan in the amount of $350.0 and a revolving credit facility in the amount of $300.0 (see Note 7, "Debt and Capital Lease Obligations" for the definition of these terms and further discussion). | |||||||
The purchase price of Stream consisted of the following items: | |||||||
Cash consideration for Stream stock (1) | $ | 481 | |||||
Cash consideration for Stream stock options (2) | 16.1 | ||||||
Cash consideration for repayment of Stream 11.25% Senior Secured Notes (3) | 243 | ||||||
Cash consideration for repayment of Stream 10.0% Promissory Notes (4) | 19.3 | ||||||
Cash consideration for repayment of Stream Revolving Credit Facility (5) | 63.4 | ||||||
Cash consideration for transaction expenses of Stream (6) | 7.8 | ||||||
Total cash consideration | 830.6 | ||||||
Cash acquired (7) | (28.0 | ) | |||||
Net consideration transferred | $ | 802.6 | |||||
-1 | The cash consideration for the outstanding shares of Stream's common stock, which includes final settlement for working capital. Stream outstanding common shares totaled 0.7 as of March 3, 2014. | ||||||
-2 | The cash consideration paid per share of "in the money" stock option awards. | ||||||
-3 | The cash consideration to repay Stream's 11.25% Senior Secured Notes due 2014, which reflects the aggregate principal and interest amounts of $230.0 and $13.0, respectively, as of March 3, 2014. | ||||||
-4 | The cash consideration to repay Stream's 10.0% Promissory Notes, which reflects the aggregate principal and interest amounts of $16.1 and $3.2, respectively, as of March 3, 2014. | ||||||
-5 | The cash consideration to repay Stream's Revolving Credit Facility, which reflects the aggregate principal and interest amounts of $63.1 and $0.3, respectively, as of March 3, 2014. | ||||||
-6 | Pursuant to the Merger Agreement, Convergys reimbursed the holders of Stream common stock for expenses incurred by Stream in connection with the merger. These expenses primarily related to third-party consulting services. | ||||||
-7 | Represents the Stream cash balance acquired at acquisition. | ||||||
The Company incurred $14.7 and $2.7 of transaction costs for the twelve months ended December 31, 2014 and 2013, respectively. These costs are included in Transaction and integration costs in the accompanying Consolidated Statements of Income. | |||||||
Preliminary Purchase Price Allocation | |||||||
The Company accounted for Stream using the acquisition method of accounting in accordance with applicable U.S. GAAP whereby the total purchase price was preliminarily allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values. The following table summarizes the preliminary values of the assets acquired and liabilities assumed at the date of acquisition: | |||||||
3-Mar-14 | |||||||
Assets: | |||||||
Receivables | $ | 197.9 | |||||
Other current assets | 13.5 | ||||||
Property and equipment | 159.3 | ||||||
Goodwill | 277.5 | ||||||
Intangible assets | 370.4 | ||||||
Other assets | 7.8 | ||||||
Liabilities: | |||||||
Accounts payable | $ | (12.3 | ) | ||||
Accrued expenses | (100.3 | ) | |||||
Other current liabilities | (3.8 | ) | |||||
Debt | (34.6 | ) | |||||
Deferred tax - net | (61.2 | ) | |||||
Other long-term liabilities | (11.6 | ) | |||||
Total purchase price | $ | 802.6 | |||||
As of December 31, 2014, the purchase price allocation for the acquisition was preliminary and subject to completion. Adjustments to the current fair value estimates in the above table may occur as the process conducted for various valuations and assessments is finalized, including tax assets, liabilities and other attributes. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the Stream acquisition. The benefits include an enhanced global footprint and expanded language capabilities. None of the goodwill is expected to be deductible for income tax purposes and was entirely allocated to the Customer Management - Agent Services reporting unit for purposes of the evaluation for any future goodwill impairment. The Company evaluated whether any adjustments in the prior period purchase price allocation was material and concluded no retrospective adjustment to prior period financial statements were required. | |||||||
Intangible Assets Identified | |||||||
The following details the total intangible assets identified: | |||||||
Intangible asset type | Value | Life (years) | |||||
Customer relationship | $ | 352 | 17 | ||||
Trade name | 17 | 4 | |||||
Favorable lease contract | 1.4 | 1 | - | 7 | |||
Total | $ | 370.4 | |||||
The preliminary fair value of the customer relationship asset was determined using the income approach through an excess earnings analysis, with projected earnings discounted at a rate of 11.0%. The customer relationship intangible asset represents relationships between Stream and its customers. Convergys applied the income approach through a relief-from-royalty analysis to determine the preliminary fair value of the Stream trade name asset. The determination of the useful lives was based upon consideration of market participant assumptions and transaction specific factors. | |||||||
Impact on Operating Results | |||||||
The results of Stream's operations have been included in Convergys' Consolidated Financial Statements since the March 3, 2014 date of acquisition. The following table provides sales and results of operations from the acquired Stream business included in Convergys' December 31, 2014 results: | |||||||
Three Months Ended | Twelve Months Ended | ||||||
31-Dec-14 | 31-Dec-14 | ||||||
Revenues | $ | 253.3 | $ | 834.8 | |||
Income before income taxes | $ | 9.2 | $ | 11.2 | |||
The following unaudited pro forma information assumes the acquisition of Stream occurred at the beginning of the respective periods presented. The unaudited pro forma information presented below is for illustrative purposes only and does not reflect future events that may occur after December 31, 2014 or any operating efficiencies or inefficiencies that may result from the Stream acquisition and related financing. Additionally, this unaudited pro forma information for the twelve months ended December 31, 2014 includes certain one-time costs associated with the Company's integration of the acquired Stream operations. Therefore, the information is not necessarily indicative of results that would have been achieved had the business been combined during the periods presented or the results that the Company will experience going forward. | |||||||
Year Ended December 31, | |||||||
Unaudited pro forma information | 2014 | 2013 | |||||
Revenues | $ | 3,026.90 | $ | 3,061.80 | |||
Income from Continuing Operations, net of tax | $ | 110.8 | $ | 56 | |||
Earnings from Continuing Operations per share | |||||||
Basic | $ | 1.1 | $ | 0.54 | |||
Diluted | $ | 1.04 | $ | 0.51 | |||
Weighted average common shares outstanding | |||||||
Basic | 100.7 | 103.3 | |||||
Diluted | 106.2 | 109.2 | |||||
Datacom Acquisition | |||||||
On April 30, 2013, the Company acquired the customer management operations of New Zealand-based Datacom, including contact centers in Kuala Lumpur, Malaysia and Manila, Philippines. The purchase price of $20.0 Australian Dollar (approximately $20.0 U.S. Dollar) included $15.0 of cash paid at closing and $5.3 of debt obligations assumed, which were immediately paid by the Company, as well as working capital adjustments that were finalized during the third quarter of 2013. In connection with the acquisition, the Company recognized $12.2 of goodwill and $7.0 of customer relationship intangible asset. The customer relationship intangible asset will be amortized over an estimated economic useful life of 8 years. The determination of the useful life was based upon consideration of market participant and transaction specific factors. The Company included various industry studies, historical acquisition experience, economic factors, future cash flows of the combined company and the relative stability of the acquired customer base. The acquired goodwill is not expected to be deductible for income tax purposes. |
Divestitures
Divestitures | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||
Divestitures | DIVESTITURES AND DISCONTINUED OPERATIONS | |||||||||
Information Management | ||||||||||
On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation. During 2014 and 2013, the Company recorded an additional gain of $3.5 and $2.4, respectively, net of tax, as certain contingencies and tax positions related to Information Management were settled or adjusted. | ||||||||||
The results of Information Management have been classified as discontinued operations for all periods presented. Certain costs previously allocated to the Information Management segment that do not qualify for discontinued operations accounting treatment are now reported as costs from continuing operations. The Company has taken action to reduce these costs and the transition services revenue from services provided to the buyer subsequent to completion of the sale substantially offset the remainder of these costs. During the twelve months ended December 31, 2014, the Company earned $8.2 in revenue under these transition services agreements, compared to $17.1 as of December 31, 2013. All transition services agreements expired by the end of the June 2014 quarter, and the Company has substantially eliminated the related costs. | ||||||||||
Summarized operating results of the Information Management business are as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenue | $ | — | $ | — | $ | 128.8 | ||||
Income before tax - Information Management operations (1) | — | — | 23.7 | |||||||
Gain (loss) on disposition (2) | 0.3 | (6.4 | ) | 99.8 | ||||||
Income (loss) before income taxes | 0.3 | (6.4 | ) | 123.5 | ||||||
Income tax (benefit) expense: | ||||||||||
Expense related to Information Management operations | — | — | 7.9 | |||||||
(Benefit) expense related to gain on disposition | (3.2 | ) | (8.8 | ) | 83.6 | |||||
Income from discontinued operations, net of tax | $ | 3.5 | $ | 2.4 | $ | 32 | ||||
(1) Excludes costs previously allocated to Information Management that did not meet the criteria for presentation within discontinued operations of $8.8 for 2012. | ||||||||||
(2) Includes $22.8 of transaction costs related to the sale for 2012. | ||||||||||
HR Management | ||||||||||
In June 2010, the Company substantially completed the sale of the HR Management line of business to NorthgateArisno, the Human Resource division of Northgate Information Solutions Limited, for approximately $93.0. As a result of the sale, the operating results related to HR Management have been reflected as discontinued operations. During 2012, the Company recorded a tax benefit of $40.4, as certain contingencies and tax positions were settled or adjusted. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets and Long-Lived Assets | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Goodwill And Other Intangible Assets and Long-Lived Assets | GOODWILL AND OTHER INTANGIBLE AND LONG-LIVED ASSETS | |||||||||
Goodwill | ||||||||||
The Company tests goodwill for impairment annually as of October 1 and at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. Goodwill impairment testing is performed at the reporting unit level, one level below the business segment. The Company's reporting units are Customer Management - Agent Services and Customer Management - Customer Interaction Technology (CIT). As of December 31, 2014 and 2013, all goodwill was held by the Customer Management - Agent Services reporting unit, including 100% of the goodwill associated with the Stream acquisition. | ||||||||||
The most recent annual impairment test performed as of October 1, 2014, indicated that the fair value of the Customer Management - Agent Services reporting unit was substantially in excess of its carrying values. Despite that excess, however, impairment charges could still be required if a divestiture decision were made or other significant economic events occurred with respect to the reporting unit. Subsequent to our October 1, 2014 annual impairment test, no indications of an impairment were identified. | ||||||||||
During 2012, the sale of the Information Management business impacted the sale of certain products developed by the CIT reporting unit and co-marketed by CIT and the Information Management business. Due in part to this transition, the fair value of the CIT reporting unit was determined to be less than its carrying value. The conclusion of step two of the impairment analysis resulted in the impairment of the entire $46.0 goodwill balance of this reporting unit. The Company, therefore, recorded a $46.0 ($44.4 net of tax) goodwill impairment charge, included in asset impairment charges and other in the Consolidated Statements of Income during 2012. Fair value was determined based on discounted cash flow analysis which contains significant unobservable inputs that fell within Level 3 of the fair value hierarchy under U.S. GAAP. | ||||||||||
Below is a progression of goodwill for 2014 and 2013: | ||||||||||
Balance at December 31, 2012 | $ | 577.7 | ||||||||
Datacom acquisition | 12.2 | |||||||||
Foreign currency and other | (0.5 | ) | ||||||||
Balance at December 31, 2013 | $ | 589.4 | ||||||||
Stream acquisition | 277.5 | |||||||||
Foreign currency and other | (16.2 | ) | ||||||||
Balance at December 31, 2014 | $ | 850.7 | ||||||||
Other Intangible Assets | ||||||||||
The Company’s other intangible assets, primarily acquired through business combinations, are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. No impairment charges were recognized in any period presented. As of December 31, 2014 and 2013, the Company’s other intangible assets consisted of the following: | ||||||||||
2014 | Gross | Accumulated | Net | |||||||
Carrying | Amortization | |||||||||
Amount | ||||||||||
Software (classified with Property & Equipment) | $ | 41.3 | $ | (34.8 | ) | $ | 6.5 | |||
Trademarks | 26.5 | (13.4 | ) | 13.1 | ||||||
Customer relationships and other intangibles | 468.7 | (126.6 | ) | 342.1 | ||||||
Total | $ | 536.5 | $ | (174.8 | ) | $ | 361.7 | |||
2013 | ||||||||||
Software (classified with Property & Equipment) | $ | 41.3 | $ | (31.0 | ) | $ | 10.3 | |||
Trademarks | 10 | (10.0 | ) | — | ||||||
Customer relationships and other intangibles | 126.3 | (105.9 | ) | 20.4 | ||||||
Total | $ | 177.6 | $ | (146.9 | ) | $ | 30.7 | |||
The intangible assets are being amortized using the following amortizable lives: 5 to 8 years for software and 1 to 17 years for customer relationships and other intangibles. The remaining weighted average depreciation period for software is approximately 2.0 years. The remaining weighted average amortization period for customer relationships and other intangibles is approximately 15.0 years. Amortization of software is included within depreciation expense as the underlying assets are classified within property and equipment. | ||||||||||
Amortization expense for intangibles was $24.7 and $5.3 for the years ended December 31, 2014 and 2013, respectively and the related estimated expense for the five subsequent fiscal years is as follows: | ||||||||||
For the year ended 2015 | $ | 28 | ||||||||
For the year ended 2016 | 27 | |||||||||
For the year ended 2017 | 27 | |||||||||
For the year ended 2018 | 24 | |||||||||
For the year ended 2019 | 23 | |||||||||
Thereafter | 226 | |||||||||
Total | $ | 355 | ||||||||
Long-Lived Assets | ||||||||||
The Company evaluates its property and equipment when events or circumstances indicate a possible inability to recover their carrying amounts. During 2012, the Company committed to a plan to sell its Corporate office facilities in Cincinnati, Ohio. The facility met the "Held-for-Sale" criteria set forth in U.S. GAAP; the book value was adjusted to its fair value less costs to sell, resulting in an impairment charge of $42.6 ($27.0 after tax) recorded during the second quarter of 2012. During 2013, the Company committed to sell a facility in Dallas, Texas. During 2013, the Company recognized a net impairment loss of $1.5 to adjust both facilities to fair value less costs to sell at the date of sale to a third-party buyer. The Company measured assets held-for-sale at the lower of net book value or fair value less cost to sell. Fair value and cost to sell estimates were based on corroborative market data, which is a Level 2 input of the fair value hierarchy under U.S. GAAP. The Company completed the sale of these facilities in July 2013 resulting in cash collections of $47.6. |
Debt
Debt | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||
Debt | DEBT AND CAPITAL LEASE OBLIGATIONS | ||||||
Debt and capital lease obligations consists of the following: | |||||||
At December 31, | |||||||
2014 | 2013 | ||||||
Term Loan | $ | 261 | $ | — | |||
2029 Convertible Debentures | 60.7 | 59.5 | |||||
Capital Lease Obligations | 14.2 | 1.6 | |||||
Accounts Receivable Securitization | 40 | — | |||||
Total debt | 375.9 | 61.1 | |||||
Less current maturities | 7.5 | 0.9 | |||||
Long-term debt | $ | 368.4 | $ | 60.2 | |||
Weighted average effective interest rates: | |||||||
Term Loan | 1.9 | % | — | % | |||
Accounts Receivable Securitization | 1.2 | % | — | % | |||
2029 Convertible Debentures | 6.7 | % | 6.6 | % | |||
Credit Facility | |||||||
On February 28, 2014, the Company entered into a Credit Agreement establishing an unsecured credit facility in the aggregate amount of $650.0 (Credit Agreement). In connection with entering into the Credit Agreement, Convergys terminated the 300.0 Four-Year Competitive Advance and Revolving Credit Facility Agreement dated March 11, 2011 (the 2011 Credit Facility). The Credit Agreement consists of term loans (the Term Loan) in the aggregate amount of $350.0, and a revolving credit facility (the Revolving Credit Facility) in the amount of $300.0. The Company recorded the initial carrying amount of the Term Loan at 344.9, reflecting a discount of $5.1 resulting from fees paid directly to the lender at issuance. The discount will be amortized over the life of the Term Loan using the effective interest rate method (2.3% as of December 31, 2014), and is included in interest expense in the Consolidated Statements of Income. The conditions for the funding of the Term Loan and the Revolving Credit Facility were satisfied on March 3, 2014. Both mature on March 3, 2019, unless extended pursuant to the terms of the Credit Agreement. Outstanding amounts bear interest at one of the rates described in the Credit Agreement. During 2014, voluntary Term Loan principal payments of $85.0 were made by the Company. The next required principal payment is not due until September 30, 2017. While amounts borrowed and repaid under the Revolving Credit Facility may be re-borrowed, amounts repaid under the Term Loan may not be borrowed again under the Credit Agreement. Total borrowing capacity remaining under the Revolving Credit Facility was $300.0, with $265.0 outstanding principal on the Term Loan as of December 31, 2014. | |||||||
The Credit Agreement contains certain affirmative and negative covenants, as well as terms and conditions that are customary for credit facilities of this type, including financial covenants for leverage and interest coverage ratios. The Company’s interest coverage ratio cannot be less than 4.00 to 1.00 as determined as of the most recently ended period of four consecutive fiscal quarters. The Company’s net leverage ratio ratio cannot be greater than 3.00 to 1.00 at anytime on or after the effective date. In the event of default, the lenders may terminate the commitments and declare the amounts outstanding, and all accrued interest, fees and other obligations, immediately due and payable. The Company was in compliance with all covenants at December 31, 2014. | |||||||
Convertible Debentures | |||||||
In the fourth quarter of 2009, the Company announced an offer to exchange one thousand twenty dollars in principal amount of its 5.75% Junior Subordinated Convertible Debentures due September 2029 (2029 Convertible Debentures) for each one thousand dollars in principal amount of its 4.875% Unsecured Senior Notes (4.875% Senior Notes) due December 15, 2009. Convergys issued a total of $125.0 aggregate principal amount of the 2029 Convertible Debentures in exchange for $122.5 of the 4.875% Senior Notes. At the date of issuance, the Company recognized the liability component of the 2029 Convertible Debenture at its fair value of $56.3. The liability component is recognized as the fair value of a similar instrument that does not have a conversion feature at issuance. The equity component, which is the value of the conversion feature at issuance, was recognized as the difference between the proceeds from the issuance of the debentures and the fair value of the liability component, after adjusting for the deferred tax impact of $32.7. The 2029 Convertible Debentures were issued at a coupon rate of 5.75%, which was below that of a similar instrument that does not have a conversion feature. Therefore, the valuation of the debt component, using the income approach, resulted in a debt discount. The debt discount is being amortized over the life of a similar debt instrument without a conversion feature, which the Company determined to equal the contractual maturity of the 2029 Convertible Debentures. Amortization is based upon the effective interest rate method and is included in interest expense in the Consolidated Statements of Income. | |||||||
The 2029 Convertible Debentures, which pay a fixed rate of interest semi-annually, have a contingent interest component that will require the Company to pay interest based on the trading price of the Debentures exceeding a specified threshold at specified times, commencing on September 15, 2019, as outlined in the Indenture. The maximum amount of contingent interest that will accrue is 0.75% per annum of the average trading price of the Debentures during the periods specified in the Indenture. The fair value of this embedded derivative was not significant at December 31, 2014 or 2013. | |||||||
The Company is not entitled to redeem the 2029 Convertible Debentures prior to September 15, 2019. On or after September 15, 2019, the Company may redeem for cash all or part of the 2029 Convertible Debentures at par value plus accrued but unpaid interest if certain trading conditions of the Company’s common stock are satisfied. The holders of the 2029 Convertible Debentures have the option to require redemption at par value plus accrued but unpaid interest upon the occurrence of a fundamental change, a defined term in the Indenture. | |||||||
The 2029 Convertible Debentures are convertible at the option of the holders on or after September 15, 2028 and prior to that date only under the following circumstances: (1) during any calendar quarter commencing after December 31, 2009, if the last reported sales price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to 130% of the applicable conversion price (currently $15.15) for the 2029 Convertible Debentures on each applicable trading day (hereinafter referred to as the Sales Price Condition); (2) during the five business day period after any five consecutive trading day period (the Measurement Period) in which, as determined following a request by a holder of 2029 Convertible Debentures as provided in the Indenture, the trading price per $1,000 principal amount of 2029 Convertible Debentures for each trading day of such Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common shares and the applicable conversion rate for the 2029 Convertible Debentures on each such trading day; (3) if the Company elects to redeem any or all of the 2029 Convertible Debentures; or (4) upon the occurrence of specified corporate events pursuant to the terms of the Indenture. Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2029 Convertible Debentures to be converted and pay or deliver, as the case may be, cash, common shares of the Company or a combination of cash and common shares of the Company, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2029 Convertible Debentures being converted. | |||||||
The 2029 Convertible Debentures were initially convertible, subject to certain conditions, into common shares of the Company at an initial conversion price of approximately $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand dollars in principal amount of debentures. As of December 31, 2014, the implied conversion rate for the 2029 Convertible Debentures was $11.65 per share, or eighty-five and eighty-three hundredths per one thousand in principal amount of debentures. The conversion rate will be subject to adjustment for certain events outlined in the indenture governing the Debentures (the Indenture), including payment of dividends. The conversion rate will increase for a holder who elects to convert this Debenture in connection with certain share exchanges, mergers or consolidations involving the Company, as described in the Indenture. | |||||||
As of January 1, 2015 and 2014, the 2029 Convertible Debentures were convertible at the option of the holders. This conversion right was triggered upon satisfaction of the Sales Price Condition (the closing price of the Company’s common shares was greater than or equal to $15.15, 130% of the conversion price of the 2029 Convertible Debentures at December 31, 2014, for at least 20 of the last 30 consecutive trading days ending on December 31, 2014). As a result, the equity component of the 2029 Convertible Debentures equal to $64.3 (the difference between the par value and carrying value of the 2029 Convertible Debentures at December 31, 2014), has been classified as temporary equity within the December 31, 2014 Consolidated Balance Sheet since this amount was considered redeemable. The Company will reassess the convertibility of the 2029 Convertible Debentures and the related balance sheet classification on a prospective basis. There have been no conversions of the 2029 Convertible Debentures through the date of this filing. | |||||||
During 2014 , Convergys identified a reclassification adjustment impacting the December 31, 2013 Consolidated Balance Sheet and the Consolidated Statements of Shareholders' Equity for the year then ended, related to the classification of the equity component associated with the 2029 Convertible Debentures. As a result of the trading price of the Company’s common shares and satisfaction of the Sales Price Condition, the 2029 Convertible Debentures were initially convertible at the option of the holders at March 31, 2013 and have remained convertible at the option of the holder through December 31, 2014. Accordingly, a portion of the equity component of the 2029 Convertible Debentures, equal to $65.5 at December 31, 2013 (the difference between the par value and carrying value of the 2029 Convertible Debentures), should have been classified as temporary equity within the Consolidated Balance Sheets and the Consolidated Statements of Shareholders' Equity at December 31, 2013. These amounts were originally classified within total shareholders’ equity. Convergys assessed the quantitative and qualitative impact of this adjustment and determined the effects on prior period financial statements were immaterial. Convergys has adjusted the reported balances at December 31, 2013 to correct the classification resulting from this immaterial error. This prior period reclassification had no impact on the Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or retained earnings balance in any period. | |||||||
Based on quoted market prices at December 31, 2014, the fair value of the $125.0 aggregate principal amount of the Company’s 2029 Convertible Debentures is $249.7. | |||||||
Asset Securitization Facility | |||||||
During January 2014, the Company extended the terms of an asset securitization facility collateralized by accounts receivable of certain of the Company's subsidiaries, with a purchase limit to $150.0 expiring in January 2017. The asset securitization program is conducted through Convergys Funding Inc., a wholly-owned bankruptcy remote subsidiary of the Company. As of December 31, 2014, Convergys had drawn $40.0 in available funding from qualified receivables as part of the financing related to the acquisition of Stream. Amounts have been classified under this facility as long-term debt within the Consolidated Balance Sheets. As of December 31, 2013, this facility was undrawn. | |||||||
At December 31, 2014, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of a debt discounts) are as follows: | |||||||
2015 | $ | 7.5 | |||||
2016 | 3.9 | ||||||
2017 | 52.8 | ||||||
2018 | 35.6 | ||||||
2019 | 219.1 | ||||||
Thereafter | 125.3 | ||||||
Total | $ | 444.2 | |||||
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING |
2014 Restructuring | |
During 2014, the Company recorded severance charges of $11.0 related to the elimination of certain redundant executive and non-executive positions as a result of the Company's integration of the Stream business. These amounts are included within Transaction and integration costs in the Consolidated Statements of Income and are expected to be substantially paid in cash by June 30, 2015. The total remaining liability under these severance-related actions, which is included within Payables and other current liabilities on the Company's Consolidated Balance Sheets, was $2.6 as of December 31, 2014. | |
During 2014, the Company also recorded a severance charge of $1.7 related to restructuring actions impacting approximately 400 employees. These actions were initiated to continue the Company's efforts to refine its operating model and reduce costs. The severance charge is included in Restructuring charges on the Consolidated Statement of Income and is expected to be substantially paid in cash by June 30, 2015. The total remaining liability under this severance-related restructuring plan, which is included within Payables and other current liabilities on the Consolidated Balance Sheets, was $1.3 as of December 31, 2014. | |
2013 Restructuring | |
During 2013, the Company recorded a severance charge of $4.3, impacting approximately 800 employees. These actions were initiated to continue the Company's efforts to refine its operating model and reduce costs. The total remaining liability under this severance-related restructuring plan, which is included in Payables and other current liabilities on the Company's Consolidated Balance Sheets was $2.3 as of December 31, 2013. The Company also recorded other restructuring expense of $1.1 during 2013. These amounts were fully settled during 2014. | |
2012 Restructuring | |
During 2012, the Company recorded restructuring charges of $11.6, consisting of $11.4 of severance-related charges and $0.2 of facility-related charges, as described below. The $11.4 of severance-related charges impacted approximately 100 professional employees and reflects the changes in the Company's executive management team and realignment of Corporate overhead as a result of the sale of the Information Management business. As of December 31, 2012, the remaining liability under this severance-related restructuring plan, which was included within Payables and other current liabilities on the Company's Consolidated Balance Sheets was $5.2. This amount was fully settled during 2013. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS | ||||||||||||
Pensions | |||||||||||||
The Company sponsors a frozen defined benefit pension plan, which includes both a qualified and non-qualified portion, for all eligible employees (the cash balance plan) in the U.S and unfunded defined benefit plans for certain eligible employees in the Philippines, Malaysia and France (collectively, the defined benefit plans).The pension benefit formula for the cash balance plan is determined by a combination of compensation and age-based credits and annual guaranteed interest credits. Funding of the qualified portion of the cash balance plan has been achieved through contributions made to a trust fund. The contributions have been determined using the prescribed methods in accordance with the Pension Protection Act of 2006. | |||||||||||||
Based on the funded status of the cash balance plan and mandatory legislative requirements under the Pension Protection Act, beginning April 29, 2009, lump sum payments from the cash balance plan were partially restricted. In December 2012, the Company made contributions to the plan to satisfy funding requirements for 2013. Subsequently, on January 18, 2013, the Company received an Adjusted Funding Target Attainment Percentage (AFTAP) certification stating that the 2013 AFTAP for the defined benefit plan is 80 percent or higher. Accordingly, limitations on accelerated benefit distributions and benefit accruals no longer apply as of the date of the certification. The Company’s measurement date for all plans is December 31. The projected unit credit cost method is used for determining the unfunded executive pension cost for financial reporting purposes. The plan assumptions are evaluated annually and are updated as necessary. | |||||||||||||
Components of pension cost and other amounts recognized in other comprehensive income for the Company's defined benefit pension plans are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 7.1 | $ | 5 | $ | 3.7 | |||||||
Interest cost on projected benefit obligation | 10.5 | 10.8 | 11.6 | ||||||||||
Expected return on plan assets | (9.2 | ) | (10.0 | ) | (11.6 | ) | |||||||
Amortization and deferrals—net | 8.1 | 11.6 | 17.2 | ||||||||||
Curtailment benefit | — | — | (0.2 | ) | |||||||||
Settlement charge | 4.6 | 13.4 | 6.8 | ||||||||||
Total pension cost | $ | 21.1 | $ | 30.8 | $ | 27.5 | |||||||
Other comprehensive (loss) income | $ | (23.4 | ) | $ | 46.9 | $ | 11.8 | ||||||
During 2014 and 2013, the Company recognized non-cash pension settlement charges of $4.6 and $13.4, respectively, resulting from a high volume of lump sum distributions. The settlement loss of $6.8 and curtailment benefit of $0.2 in 2012 related to the impact of the sale of the Information Management business. Pension cost for the defined benefit plans related to discontinued operations included in the table above for 2012 was $1.6. | |||||||||||||
The reconciliation of the defined benefit plans' projected benefit obligation and the fair value of plan assets for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 228.1 | $ | 265.5 | |||||||||
Service costs | 7.1 | 5 | |||||||||||
Interest cost | 10.5 | 10.8 | |||||||||||
Assumed obligation from Stream | 2.6 | — | |||||||||||
Actuarial loss (gain) | 35.2 | (6.2 | ) | ||||||||||
Benefits paid | (23.9 | ) | (47.0 | ) | |||||||||
Benefit obligation at end of year | $ | 259.6 | $ | 228.1 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 162.9 | $ | 171.7 | |||||||||
Actual return on plan assets | 7.9 | 25.7 | |||||||||||
Employer contribution | 3.6 | 12.5 | |||||||||||
Benefits paid | (23.9 | ) | (47.0 | ) | |||||||||
Fair value of plan assets at end of year | $ | 150.5 | $ | 162.9 | |||||||||
Funded status | $ | (109.1 | ) | $ | (65.2 | ) | |||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Current liability | $ | (5.6 | ) | $ | (4.6 | ) | |||||||
Non-current liability | $ | (103.5 | ) | $ | (60.6 | ) | |||||||
Accumulated other comprehensive income (loss) | $ | (78.9 | ) | $ | (55.5 | ) | |||||||
Accumulated other comprehensive loss at December 31, 2014 and 2013 includes unrecognized actuarial losses of $78.9 ($47.2 net of tax) and $55.5 ($34.6 net of tax), respectively. The actuarial loss included in accumulated other comprehensive loss that is expected to be recognized in net periodic pension cost during 2015 is $10.2. The accumulated benefit obligation for the defined benefit plans was $259.6 and $228.1 at December 31, 2014 and 2013, respectively. | |||||||||||||
Estimated future benefit payments from the defined benefit plans are as follows: | |||||||||||||
2015 | $ | 15.8 | |||||||||||
2016 | 16.1 | ||||||||||||
2017 | 17 | ||||||||||||
2018 | 18.3 | ||||||||||||
2019 | 18.2 | ||||||||||||
2020 - 2024 | 90.1 | ||||||||||||
Total | $ | 175.5 | |||||||||||
The Company also sponsors a non-qualified, unfunded executive deferred compensation plan (the EDCP). The EDCP which permitted eligible participants, including executive officers, to defer receipt of certain income, was initially frozen as of December 31, 2011. Before the plan was frozen, the Company provided a match to a participant's deferred amounts (reduced by the Company match eligible to be received under the Company's Retirement and Savings Plan). On July 25, 2013, the Company's Board of Directors authorized the Company to reinstate the EDCP, effective January 1, 2014, for eligible participants, including executive officers. Under this authorization, the Company matches up to 100% of the first 3% of a participant's deferred amounts and 50% of a participant's next 2% of deferred amounts. The Company match under the EDCP will be reduced by the Company match eligible to be received under the Company's Retirement and Savings Plan. | |||||||||||||
Benefits for the EDCP are based on employee deferrals, matching contributions and investment earnings on participant accounts. As further described in Note 12, "Financial Instruments," in December 2011, the Company made investments in certain securities which are held in a grantor trust for the benefit of participants of the executive deferred compensation plan. This investment was made in securities reflecting the hypothetical investment balances of plan participants. | |||||||||||||
Components of pension cost and other amounts recognized in other comprehensive loss for the EDCP are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 1.3 | $ | — | $ | — | |||||||
Interest cost on projected benefit obligation | 0.5 | 0.4 | 1 | ||||||||||
Amortization and deferrals—net | — | 0.2 | (0.2 | ) | |||||||||
Curtailment loss, net | — | — | 0.1 | ||||||||||
Settlement gain | — | (0.3 | ) | (0.2 | ) | ||||||||
Total pension cost | $ | 1.8 | $ | 0.3 | $ | 0.7 | |||||||
Other comprehensive loss | $ | (0.8 | ) | $ | (1.0 | ) | $ | (1.9 | ) | ||||
The reconciliation of the EDCP projected benefit obligation for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 14.2 | $ | 21.1 | |||||||||
Service cost | 1.3 | — | |||||||||||
Interest cost | 0.5 | 0.4 | |||||||||||
Actuarial loss | 0.8 | 0.9 | |||||||||||
Benefits paid | (2.4 | ) | (8.2 | ) | |||||||||
Benefit obligation at end of year | $ | 14.4 | $ | 14.2 | |||||||||
Funded status | $ | (14.4 | ) | $ | (14.2 | ) | |||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Current liability | $ | (2.3 | ) | $ | (2.8 | ) | |||||||
Non-current liability | $ | (12.1 | ) | $ | (11.4 | ) | |||||||
Accumulated other comprehensive (loss) income | $ | (0.5 | ) | $ | 1.3 | ||||||||
Total benefits paid of $2.4 were made via employer contributions during 2014. | |||||||||||||
Accumulated other comprehensive loss at December 31, 2014 and 2013 includes unrecognized actuarial gains of $0.5 ($0.3 net of tax), and $1.3 ($0.8 net of tax). The accumulated benefit obligation for the EDCP was $14.4 and $14.2 at December 31, 2014 and 2013, respectively. There are no prior service cost expected to be recognized in net periodic pension cost during the year ending December 31, 2015. | |||||||||||||
Estimated future benefit payments from the EDCP are as follows: | |||||||||||||
2015 | $ | 2.3 | |||||||||||
2016 | 2 | ||||||||||||
2017 | 1.2 | ||||||||||||
2018 | 0.7 | ||||||||||||
2019 | 1.1 | ||||||||||||
2020 - 2024 | 6.7 | ||||||||||||
Total | $ | 14 | |||||||||||
The following weighted-average rates were used in determining the benefit obligations at December 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Discount rate—projected benefit obligation | 1.75% | - | 4.90% | 4.25% | - | 4.90% | |||||||
Future compensation growth rate | 2.87% | - | 4.00% | 2.50% | - | 4.00% | |||||||
Expected long-term rate of return on plan assets | 6.75% | - | 7.00% | 6.75% | - | 8.00% | |||||||
The following weighted-average rates were used in determining the pension cost for all years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate—projected benefit obligation | 1.75% | - | 4.90% | 3.00% | - | 4.61% | 5.20% | - | 7.80% | ||||
Future compensation growth rate | 2.50% | - | 4.00% | 4.00% | 4.00% | - | 5.50% | ||||||
Expected long-term rate of return on plan assets | 6.75% | - | 7.00% | 6.75% | - | 8.00% | 7.50% | - | 8.00% | ||||
The range of discount rates utilized in determining the pension cost and projected benefit obligation of the Company's defined benefit plans reflects a lower prevalent rate applicable to the frozen cash balance plan for eligible employees in U.S. and a higher applicable rate for the unfunded defined benefit plan for certain eligible employees in the Philippines, France and Malaysia. The plans outside U.S. represented approximately 15.4% and 13% of the Company's total projected benefit obligation for all plans as of December 31, 2014 and 2013, respectively. | |||||||||||||
As a result of new mortality tables issued in October 2014 by the Society of Actuaries, the Company adopted the new mortality tables that increased its benefit obligations. The new mortality tables increase the assumed life expectancy of participants in the Company’s benefit plans, thereby increasing the total expected benefit payments over a longer time horizon. The adoption of these mortality tables currently has no significant effect on the Company’s expected pension contributions over the next several years. | |||||||||||||
As of December 31, 2014 and 2013, plan assets for the cash balance plan consisted of common/collective trusts (of which approximately 63% are invested in equity backed funds and 37% in funds invested in fixed income instruments, including cash), a private equity fund and Convergys common stock. At December 31, 2014, the Company’s targeted allocation was 65% equity and 35% fixed income. Plan assets for the cash balance plan included $3.7 and $4.9 of the Company’s common shares at December 31, 2014 and 2013, respectively. The investment objectives for the plan assets are to generate returns that will enable the plan to meet its future obligations. The Company’s expected long-term rate of return was determined based on the asset mix of the plan, projected returns, past performance and other factors. The Company contributed $10.0 in 2013 to fund its cash balance plan, which satisfied its 2014 Employee Retirement Income Security Act of 1974 (ERISA) funding requirements. There were no current year contributions. No plan assets are expected to be returned to the Company during 2015. | |||||||||||||
The following table sets forth by level, within the fair value hierarchy, the cash balance plan’s assets at fair value as of December 31, 2014 and 2013: | |||||||||||||
Investments | December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
In Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Common/Collective trusts | $ | 143.4 | $ | — | $ | 143.4 | $ | — | |||||
Convergys common stock | 3.7 | 3.7 | — | — | |||||||||
Equity fund | 3.4 | — | — | 3.4 | |||||||||
Total investments | $ | 150.5 | $ | 3.7 | $ | 143.4 | $ | 3.4 | |||||
Investments | December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
In Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Common/Collective trusts | $ | 154.5 | $ | — | $ | 154.5 | $ | — | |||||
Convergys common stock | 4.9 | 4.9 | — | — | |||||||||
Equity fund | 3.5 | — | — | 3.5 | |||||||||
Total investments | $ | 162.9 | $ | 4.9 | $ | 154.5 | $ | 3.5 | |||||
There were no transfers between the three levels of the fair value hierarchy during the years ended December 31, 2014 and 2013. For additional information on the fair value hierarchy, see Note 13. | |||||||||||||
The Company's pension plan holds level 2 investments in common/collective trust funds that are public investment vehicles valued using a net asset value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV's unit price is quoted on a private market that may not be active. However, the NAV is based on the fair value of the underlying securities within the fund, which are traded on an active market, and valued at the closing price reported on the active market on which those individual securities are traded. The significant investment strategies of the funds are as described in the financial statements provided by each fund. There are no restrictions on redemptions from these funds. | |||||||||||||
The Company’s pension plan holds Level 3 investments within equity funds which primarily invests in domestic early stage capital funds. The fair value of these investments is based on the net asset value per share of the fund. The pension plan has approximately $0.2 in future funding requirements associated with this investment. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. The following table provides a reconciliation of the beginning and ending balances for the Level 3 assets: | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of year | $ | 3.5 | $ | 4.3 | |||||||||
Unrealized losses relating to instruments still held at the reporting date | (0.1 | ) | (0.8 | ) | |||||||||
Balance, end of year | $ | 3.4 | $ | 3.5 | |||||||||
Savings Plans | |||||||||||||
The Company sponsors a defined contribution plan covering substantially all U.S. employees. The Company’s contributions to the plan are based on matching a portion of the employee contributions. In 2014, the Company's matching contribution changed from 100% of the first 3% to 100% of the first 3% and 50% of the next 2% of eligible compensation deferred by the participant. As a result, total Company contributions to the defined contribution plan were $6.5 in 2014 compared to $5.5 and $6.7 for 2013 and 2012, respectively. Plan assets for these plans included 1.1 ($21.8) and 1.2 ($25.8) of Company’s common shares at December 31, 2014 and 2013, respectively. | |||||||||||||
Employee Postretirement Benefits Other Than Pensions | |||||||||||||
The Company sponsors postretirement health and life insurance plans for certain eligible employees. The plan provides eligible employees and retirees with the opportunity to direct an amount of their compensation or pension benefits to cover medical, dental and life insurance programs of their choice for their benefit and the benefit of their dependents. The plan covers both active and retired eligible employees of the Company and its subsidiaries. Employees’ eligibility to participate in the plan is based upon their date of hire. During the second quarter of 2011, the Company amended certain components of the postretirement health and life insurance plans to reduce certain benefits. The plan amendments constitute negative amendments. As a result of the plan amendments, the accumulated postretirement benefit obligation decreased approximately $20 from December 31, 2010, the impact of which was recognized as a reduction to net periodic benefit cost over the remaining future service years of the active participants over a weighted-average period of approximately 3 years. During 2012, the Company recognized a $3.8 curtailment benefit related to these plans as a result of the sale of the Information Management business. | |||||||||||||
The Company funds life insurance benefits of certain retirees through a Voluntary Employee Benefit Association (VEBA) trust. Contributions to the plan consist of (1) compensation or pension benefit deductions that the participant directs the Company, which is also the Plan Sponsor, to deposit into the plan on their behalf based on the coverage the participant has elected under the plan, and (2) amounts the Company pays to the plan that are in excess of the participant-directed deductions. Contributions to the VEBA are subject to IRS limitations developed using the aggregate cost method. At December 31, 2006, the Company eliminated the postretirement life insurance plan benefits for non-retirement eligible employees. The Company’s postretirement benefit plan benefit was $1.6, $4.3, and $9.5 for 2014, 2013 and 2012, respectively. The amounts included within accumulated other comprehensive loss related to these benefits were $2.8 and $4.6 at December 31, 2014 and 2013, respectively. | |||||||||||||
Components of other post-employment benefit plan cost and other amounts recognized in other comprehensive (loss) income for the postretirement health and life insurance plans are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||
Interest cost on projected benefit obligation | 0.2 | 0.2 | 0.3 | ||||||||||
Expected return on plan assets | (0.3 | ) | (0.4 | ) | (0.5 | ) | |||||||
Amortization and deferrals—net | (1.0 | ) | (3.8 | ) | (5.5 | ) | |||||||
Curtailment benefit | (0.5 | ) | (0.3 | ) | (3.8 | ) | |||||||
Total other benefit | $ | (1.6 | ) | $ | (4.3 | ) | $ | (9.5 | ) | ||||
Other comprehensive (loss) income | $ | (1.8 | ) | $ | (2.0 | ) | $ | 8.3 | |||||
The reconciliation of the postretirement health and life insurance plan’s projected benefit obligation and the fair value of plan assets for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 4.5 | $ | 6.9 | |||||||||
Interest cost | 0.2 | 0.2 | |||||||||||
Plan amendment | — | (1.3 | ) | ||||||||||
Actuarial loss (gain) | 0.1 | (0.9 | ) | ||||||||||
Benefits paid | (0.3 | ) | (0.4 | ) | |||||||||
Benefit obligation at end of year | $ | 4.5 | $ | 4.5 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 4.9 | $ | 6 | |||||||||
Actual return on plan assets | 0.1 | 0.1 | |||||||||||
Employer contribution | (0.5 | ) | (0.8 | ) | |||||||||
Benefits paid | (0.3 | ) | (0.4 | ) | |||||||||
Fair value of plan assets at end of year | $ | 4.2 | $ | 4.9 | |||||||||
Funded status | $ | (0.3 | ) | $ | 0.4 | ||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Non-current assets | $ | 0.3 | $ | 1.2 | |||||||||
Current liability | $ | (0.1 | ) | $ | (0.2 | ) | |||||||
Non-current liability | $ | (0.5 | ) | $ | (0.6 | ) | |||||||
Accumulated other comprehensive income | $ | 2.8 | $ | 4.6 | |||||||||
Estimated future benefit payments from the postretirement health and life plan are as follows: | |||||||||||||
2015 | $ | 0.3 | |||||||||||
2016 | 0.3 | ||||||||||||
2017 | 0.2 | ||||||||||||
2018 | 0.2 | ||||||||||||
2019 | 0.2 | ||||||||||||
2020 - 2024 | 1.1 | ||||||||||||
Total | $ | 2.3 | |||||||||||
Plan assets for the postretirement health and life plan of $4.2 and $4.9 at December 31, 2014 and 2013, respectively, are comprised of money market accounts, a Level 1 measure. The Company expects to make $0.1 in contributions in 2015 to fund its post retirement health and life plan. No plan assets are expected to be returned to the Company during 2015. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | STOCK-BASED COMPENSATION PLANS | |||||||||||||
At December 31, 2014, the Company had 38.0 common shares that were authorized for issuance under the Convergys Corporation 1998 Long-Term Incentive Plan (Convergys LTIP), as amended on January 28, 2011. The Company granted stock options in 2012 and 2011 with exercise prices that were no less than market value of the stock at the grant date and have a ten-year term and vesting terms of two to three years. The Company also grants certain employees and Directors restricted stock units. The restricted stock units do not possess voting rights and consist of both time-related and performance-related units. The restrictions for the time-related restricted stock units generally lapse one to three years after the grant date. The performance-related units vest upon the Company’s satisfaction of certain financial targets. Performance-related units that have not vested by the end of three years from the grant date (i.e., the performance conditions for vesting of those units have not been met within that period) are forfeited. | ||||||||||||||
The following table shows certain information as of December 31, 2014, with respect to compensation plans under which common shares are authorized for issuance: | ||||||||||||||
Shares (in millions) | Number of Common Shares to be Issued Upon Exercise | Weighted Average Exercise Price | Common Shares Available for Future Issuance | |||||||||||
Equity compensation plans approved by shareholders | ||||||||||||||
Stock options | 0.7 | $ | 13.24 | — | ||||||||||
Restricted stock units | 1.9 | — | — | |||||||||||
2.6 | $ | 13.24 | 8 | |||||||||||
The Company’s operating results reflect stock-based compensation expense of $10.2, $13.4 and $21.6 for 2014, 2013 and 2012, respectively. Expense in 2014 included $1.8 related to awards classified as liabilities that will ultimately settle in cash. Expense in 2012 included incentive plan expense that was paid in cash based on relative shareholder return. Stock-based compensation expense related to discontinued operations was $1.4 for 2012. | ||||||||||||||
Stock Options | ||||||||||||||
Presented below is a summary of Company stock option activity: | ||||||||||||||
Shares (in millions) | Shares | Weighted | ||||||||||||
Average | ||||||||||||||
Exercise | ||||||||||||||
Price | ||||||||||||||
Options outstanding at January 1, 2012 | 3.9 | $ | 23.9 | |||||||||||
Options exercisable at January 1, 2012 | 3.2 | 25.97 | ||||||||||||
Granted | 0.7 | 12.79 | ||||||||||||
Exercised | (1.0 | ) | 11.62 | |||||||||||
Forfeited | (2.4 | ) | 31.33 | |||||||||||
Options outstanding at December 31, 2012 | 1.2 | $ | 12.91 | |||||||||||
Options exercisable at December 31, 2012 | 0.3 | $ | 11.86 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.3 | ) | 12.24 | |||||||||||
Forfeited | (0.1 | ) | 13.31 | |||||||||||
Options outstanding at December 31, 2013 | 0.8 | $ | 13.11 | |||||||||||
Options exercisable at December 31, 2013 | 0.2 | $ | 13.14 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.1 | ) | 12.38 | |||||||||||
Forfeited | — | — | ||||||||||||
Options outstanding at December 31, 2014 | 0.7 | $ | 13.24 | |||||||||||
Options exercisable at December 31, 2014 | 0.5 | $ | 13.41 | |||||||||||
Approximately one-half of the stock options granted during 2012 and 2011 vested in two years and the remaining vest in three years. The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. For the 2012 grants, the weighted average fair value at grant date of $3.43 per option granted included assumptions of a strike price of $12.79, a 30.74% implied volatility, an expected term of 4.5 years, a risk-free rate of 0.76%, and a dividend yield of 0.00%. These 2012 option grants resulted in stock compensation expense of $0.2, $0.6 and $0.7 in 2014, 2013 and 2012, respectively. For the 2011 grants, the weighted average fair value at grant date of $4.06 per option granted included assumptions of a strike price of $13.79, a 31.11% implied volatility, an expected term of 4.5 years, a risk-free rate of 2.12%, and a dividend yield of 0.00%. These 2011 option grants resulted in stock compensation expense of $0.1 in 2014 and $0.3 in 2013 and 2012, respectively. Expected volatility is based on the unbiased standard deviation of the Company's common stock over the option term. The expected life of the options represents the period of time that the Company expects the options granted to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option for the expected term of the instrument. The dividend yield reflects an estimate of dividend payouts over the term of the award. | ||||||||||||||
The weighted average grant date fair value per share for the outstanding and exercisable options at December 31, 2014 was $3.72 and $3.84, respectively. | ||||||||||||||
The following table summarizes the status of the Company stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||
Shares (in millions) | Options Outstanding | Options Exercisable | ||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||
Average | Average | Average | Average | |||||||||||
Remaining | Exercise | Remaining | Exercise | |||||||||||
Contractual | Price | Contractual | Price | |||||||||||
Life (in years) | Life (in years) | |||||||||||||
$11.56 to $21.81 | 0.7 | 6.6 | 13.24 | 0.5 | 6.5 | 13.41 | ||||||||
Total | 0.7 | 6.6 | $ | 13.24 | 0.5 | 6.5 | $ | 13.41 | ||||||
The aggregate intrinsic value of stock options exercised was $1.1 in 2014, $1.3 in 2013 and $3.3 in 2012. The actual tax benefit realized from the exercised stock options was $0.2 in 2014, $0.3 in 2013 and $0.7 in 2012. As of December 31, 2014, the aggregate intrinsic value was $8.6 for both stock options outstanding and exercisable. Intrinsic value represents the Company's closing price on the last trading day of the year in excess of the weighted average exercise price for those tranches of options with a weighted average exercise price less than the closing price multiplied by the number of options outstanding or exercisable. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
Time-based Restricted Stock Units | ||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company granted 0.7, 0.6 and 1.0 shares, respectively, of time-based restricted stock units. The weighted average fair values of these grants were $20.55, $16.35 and $13.21, respectively. The 2014 and 2013 time-based grants are scheduled to vest 25% at the completion of year one after the grant date, 25% after year two and 50% after year three. The 2012 time-based grants vested 50% at the end of year two and 50% at the end of year three. | ||||||||||||||
The total compensation cost related to non-vested time-based restricted stock units not yet recognized as of December 31, 2014 was approximately $13.5, which is expected to be recognized over a weighted average of 1.0 years. Changes to non-vested time-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
Shares (in millions) | Number | Weighted | ||||||||||||
of | Average Fair | |||||||||||||
Shares | Value at Date | |||||||||||||
of Grant | ||||||||||||||
Non-vested at December 31, 2011 | 2.1 | $ | 11.72 | |||||||||||
Granted | 1 | 13.21 | ||||||||||||
Vested | (1.1 | ) | 10.69 | |||||||||||
Forfeited | (0.4 | ) | 12.94 | |||||||||||
Non-vested at December 31, 2012 | 1.6 | 13.04 | ||||||||||||
Granted | 0.6 | 16.35 | ||||||||||||
Vested | (0.7 | ) | 12.75 | |||||||||||
Forfeited | (0.1 | ) | 14.09 | |||||||||||
Non-vested at December 31, 2013 | 1.4 | 14.62 | ||||||||||||
Granted | 0.7 | 20.55 | ||||||||||||
Vested | (0.6 | ) | 14.33 | |||||||||||
Forfeited | (0.2 | ) | 18.85 | |||||||||||
Non-vested at December 31, 2014 | 1.3 | $ | 17.66 | |||||||||||
Performance-based Restricted Stock Units | ||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company granted 0.3, 0.4 and 0.6 shares, respectively, of performance-based restricted stock units. The 2014 and 2013 grants each include 0.3 shares that provide for payout based upon the extent to which the Company achieves certain EPS targets, as determined by the Compensation and Benefits Committee of the Board of Directors, over three-year periods. Payout levels range from 50% to 200% of award shares earned. No payout can be earned if performance is below the minimum threshold level. As the targets for the third year of 2013 grants and second and third years of 2014 grants have not yet been set, the key terms have not been effectively communicated to the recipients, and as such the expense related to these grants cannot be recognized until the key terms are established. These grants have been excluded from the table below. The remaining 0.1 of performance-based shares granted in 2013 vested immediately. | ||||||||||||||
Changes to non-vested performance-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
Shares (in millions) | Number | Weighted | ||||||||||||
of | Average Fair | |||||||||||||
Shares | Value at Date | |||||||||||||
of Grant | ||||||||||||||
Non-vested at December 31, 2011 | 1.8 | $ | 10.31 | |||||||||||
Granted | 0.6 | 12.95 | ||||||||||||
Vested | (1.1 | ) | 9.63 | |||||||||||
Forfeited | (0.3 | ) | 12.3 | |||||||||||
Non-vested at December 31, 2012 | 1 | 12.69 | ||||||||||||
Granted | 0.1 | 16.34 | ||||||||||||
Vested | (0.8 | ) | 13.32 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2013 | 0.3 | 12.9 | ||||||||||||
Granted | — | — | ||||||||||||
Vested | (0.3 | ) | 12.9 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2014 | — | $ | — | |||||||||||
The aggregate intrinsic value of non-vested restricted stock units was $27.9 at December 31, 2014. | ||||||||||||||
The following table shows certain information as of December 31, 2014, with respect to compensation plans under which common shares are authorized for issuance: | ||||||||||||||
Shares (in millions) | Number of Common Shares to be Issued Upon Exercise | Weighted Average Exercise Price | Common Shares Available for Future Issuance | |||||||||||
Equity compensation plans approved by shareholders | ||||||||||||||
Stock options | 0.7 | $ | 13.24 | — | ||||||||||
Restricted stock units | 1.9 | — | — | |||||||||||
2.6 | $ | 13.24 | 8 | |||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES | |||
Commitments | ||||
The Company leases certain facilities and equipment used in its operations. Total rent expense was $125.2, $81.0 and $66.0 in 2014, 2013 and 2012, respectively. | ||||
At December 31, 2014, the total minimum rental commitments under non-cancelable operating leases are as follows: | ||||
2015 | $ | 112.7 | ||
2016 | 87.4 | |||
2017 | 62.9 | |||
2018 | 42.2 | |||
2019 | 18.1 | |||
Thereafter | 25.1 | |||
Total | $ | 348.4 | ||
At December 31, 2014, the Company had outstanding letters of credit of $25.5 related to performance and payment guarantees, of which $8.8 is set to expire by the end of 2014, $16.5 is set to expire within one to three years and $0.2 is set to expire after three years. The Company also had other bond obligations of $2.6 related to performance and payment guarantees. | ||||
At December 31, 2014, the Company had an outstanding performance bond obligation of $30.0 related to a performance and payment guarantee for the Company’s former HR Management line of business which was sold in 2010 to NorthgateArinso. Subsequent to completion of the sale of the HR Management business, the Company continues to be responsible for this bond obligation. As part of the gain on disposition, the Company recognized a liability equal to the present value of probability weighted cash flows of potential outcomes, a Level 3 fair value measurement. Although the buyer is obligated to indemnify the Company for any and all losses, costs, liabilities and expenses incurred related to these performance bonds, as of December 31, 2014 the Company maintains a liability of $0.4 for these obligations. The Company's guarantee for this bond obligation expires in August 2016. | ||||
The Company also has future purchase commitments with telecommunication providers of $17.3 at December 31, 2014. | ||||
Contingencies | ||||
The Company from time to time is involved in various loss contingencies, including tax and legal contingencies that arise in the ordinary course of business. The Company accrues for a loss contingency when it is probable that a liability has been incurred and the amount of such loss can be reasonably estimated. At this time, the Company believes that the results of any such contingencies, either individually or in the aggregate, will not have a materially adverse effect on the Company’s results of operations or financial condition. However, the outcome of any litigation cannot be predicted with certainty. An unfavorable resolution of one or more pending matters could have a materially adverse impact on the Company’s results of operations or financial condition in the future. | ||||
In November 2011, one of the Company's call center clients, Hyundai Motor America (Hyundai), tendered a contractual indemnity claim to Convergys Customer Management Group Inc., a subsidiary of the Company, relating to a putative class action captioned Brandon Wheelock, individually and on behalf of a class and subclass of similarly situated individuals, v. Hyundai Motor America, Orange County Superior Court, California, Case No. 30-2011-00522293-CU-BT-CJC. The lawsuit alleges that Hyundai violated California's telephone recording laws by recording telephone calls with customer service representatives without providing a disclosure that the calls might be recorded. | ||||
Convergys Customer Management Group Inc. is not named as a defendant in the lawsuit, and there has been no determination as to whether Convergys Customer Management Group Inc. will be required to indemnify Hyundai. The Company believes Convergys Customer Management Group Inc. has meritorious defenses to Hyundai's demand for indemnification and also believes there are meritorious defenses to Plaintiff's claims in the lawsuit. Pursuant to a Memorandum of Understanding dated April 29, 2014, Hyundai, Plaintiff and Convergys Customer Management Group Inc. agreed in principle to settle the lawsuit. As contemplated under the agreement in principle, the three parties recently executed a formal settlement agreement that is subject to approval by the Court. As a result of the agreement in principle to settle the lawsuit, the Company's accrued liability at December 31, 2014 is representative of the best estimate of the loss expected to be incurred with the resolution of Hyundai’s contractual indemnity claim. The ultimate resolution of the indemnity claim is not expected to have a material impact on the Company’s liquidity, results of operations or financial condition. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Financial Instruments | FINANCIAL INSTRUMENTS | |||||||
Derivative Instruments | ||||||||
The Company is exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. Market risk is the potential loss arising from adverse changes in market rates and prices. The Company’s risk management strategy includes the use of derivative instruments to reduce the effects on its operating results and cash flows from fluctuations caused by volatility in currency exchange and interest rates. | ||||||||
The Company serves many of its U.S.-based clients using contact center capacity outside of the U.S., primarily in the Philippines, India, Canada, China, Malaysia, Costa Rica, Colombia, Dominican Republic, El Salvador, Nicaragua and Honduras. Although the contracts with these clients are typically priced in U.S. Dollars, a substantial portion of the costs incurred to render services under these contracts are denominated in the local currency of the country where services are provided, which represents a foreign exchange exposure. The Company has hedged a portion of its exposure related to the anticipated cash flow requirements denominated in these foreign currencies by entering into forward exchange contracts with several financial institutions to acquire a total of PHP 42,507.0 at a fixed price of $965.8 at various dates through September, 2017, INR 10,208.0 at a fixed price of $155.7 at various dates through December, 2017 and CAD 11.1 at a fixed price of $10.2 at various dates through December, 2015. These instruments mature within the next 36 months and had a notional value of $1,131.7 at December 31, 2014 and $965.5 at December 31, 2013. The derivative instruments discussed above are designated and are effective as cash flow hedges. The following table reflects the fair values of these derivative instruments: | ||||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Forward exchange contracts and options designated as hedging instruments: | ||||||||
Included within other current assets | $ | 1.7 | $ | 4.3 | ||||
Included within other non-current assets | 1.3 | 0.2 | ||||||
Included within other current liabilities | 21.4 | 21.2 | ||||||
Included within other long-term liabilities | 11.3 | 19.8 | ||||||
The Company recorded a deferred tax benefit of $11.3 and $14.1 related to these derivatives at December 31, 2014 and 2013, respectively. A total of $18.3 and $22.5 of deferred losses, net of tax, related to these cash flow hedges at December 31, 2014 and 2013, respectively, were included in accumulated other comprehensive loss (OCL). As of December 31, 2014, deferred losses of $19.6 ($12.1 net of tax), on derivative instruments included in accumulated OCL are expected to be reclassified into earnings during the next 12 months. The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during 2014 and 2013, respectively: | ||||||||
2014:00:00 | ||||||||
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) | Gain (Loss) | Location of | |||||
Recognized | Reclassified | Gain (Loss) | ||||||
in OCL on | from Accumulated | Reclassified from | ||||||
Derivative | OCL into Income | Accumulated OCL | ||||||
(Effective Portion) | (Effective Portion) | into Income | ||||||
(Effective Portion) | ||||||||
Foreign exchange contracts | $ | (7.5 | ) | $ | (14.3 | ) | Cost of providing services and products sold and Selling, general and administrative | |
2013:00:00 | ||||||||
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) | Gain (Loss) | Location of | |||||
Recognized | Reclassified | Gain (Loss) | ||||||
in OCL on | from Accumulated | Reclassified from | ||||||
Derivative | OCL into Income | Accumulated OCL | ||||||
(Effective Portion) | (Effective Portion) | into Income | ||||||
(Effective Portion) | ||||||||
Foreign exchange contracts | $ | (57.1 | ) | $ | (2.1 | ) | Cost of providing services and products sold and Selling, general and administrative | |
The gain/loss recognized related to the ineffective portion of the derivative instruments was immaterial for the years ended December 31, 2014 and 2013. | ||||||||
During 2014, 2013 and 2012, the Company recorded net losses of $14.3, and $2.1 and a net gain of $14.8, respectively, related to the settlement of forward contracts and options which were designated as cash flow hedges. | ||||||||
The Company also enters into derivative instruments (forwards) to economically hedge the foreign currency impact of assets and liabilities denominated in nonfunctional currencies. During the year ended December 31, 2014, a gain of $2.0 was recognized related to changes in fair value of these derivative instruments not designated as hedges, compared to a gain of $2.4 in the same period in 2013. The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. These gains and losses are classified within other income, net in the accompanying Consolidated Statements of Income. The fair value of these derivative instruments not designated as hedges at December 31, 2014, was $0.3. | ||||||||
The aggregate fair value of all derivative instruments in liability position at December 31, 2014 was $32.7 for which the Company has no posted collateral. | ||||||||
Short-term Investments | ||||||||
In December 2011, the Company made investments in certain securities, included within short-term investments in the Consolidated Balance Sheets, which are held in a grantor trust for the benefit of participants of the executive deferred compensation plan, which was frozen during the fourth quarter of 2011 and subsequently reopened, effective January 1, 2014. This investment reflects the hypothetical investment balances of plan participants. As of December 31, 2014 and 2013, the Company maintained investment securities with a fair value of $13.0 and $14.2, respectively, classified as trading securities. The investment securities include exchange-traded mutual funds, common stock of the Company and money market accounts. These securities are carried at fair value, with gains and losses, both realized and unrealized, reported in other income (expense), net in the Consolidated Statements of Income. The cost of securities sold is based upon the specific identification method. Interest and dividends on securities classified as trading are included in other income (expense), net. | ||||||||
Additionally, during 2013, the Company made investments in time deposits with maturities greater than 90 days and less than 180 days, included within short-term investments in the Consolidated Balance Sheets. As of December 31, 2014, no time deposits were held. The Company maintained short-term time deposits with a fair value of $68.7 as of December 31, 2013. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Disclosures | FAIR VALUE MEASUREMENTS | |||||||||||||||
U.S. GAAP defines a hierarchy which prioritizes the inputs in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | ||||||||||||||||
At December 31, 2014 and 2013, the Company had foreign currency forward contracts measured at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. There were no transfers between the three levels of the fair value hierarchy during the years ended December 31, 2014 and 2013. The derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||
December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Derivatives: | ||||||||||||||||
Foreign currency forward contracts (asset position) | $ | 3.3 | $ | — | $ | 3.3 | $ | — | ||||||||
Foreign currency forward contracts (liability position) | $ | 32.7 | $ | — | $ | 32.7 | $ | — | ||||||||
December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Derivatives: | ||||||||||||||||
Foreign currency forward contracts (asset position) | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||
Foreign currency forward contracts (liability position) | $ | 41 | $ | — | $ | 41 | $ | — | ||||||||
The Company also had investment securities held in a grantor trust for the benefit of participants of the executive deferred compensation plan measured at fair value at December 31, 2014 and December 31, 2013. The fair value of these instruments was measured using the quoted prices in active markets for identical assets (Level 1). There were no transfers between the three levels of the fair value hierarchy during the years ended December 31, 2014 and 2013. The assets measured at fair value on a recurring basis as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||
31-Dec-14 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Investment securities: | ||||||||||||||||
Mutual funds | $ | 10.3 | $ | 10.3 | $ | — | $ | — | ||||||||
Convergys common stock | 2.1 | 2.1 | — | — | ||||||||||||
Money market accounts | 0.6 | 0.6 | — | — | ||||||||||||
Total | $ | 13 | $ | 13 | $ | — | $ | — | ||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Investment securities: | ||||||||||||||||
Mutual funds | $ | 11 | $ | 11 | $ | — | $ | — | ||||||||
Convergys common stock | 2.3 | 2.3 | — | — | ||||||||||||
Money market accounts | 0.9 | 0.9 | — | — | ||||||||||||
Total | $ | 14.2 | $ | 14.2 | $ | — | $ | — | ||||||||
At December 31, 2013, the Company held time deposits with maturities greater than 90 days and less than 180 days measured at fair value. The valuation technique used to measure the fair value of the time deposits was based on observable market data. There were no transfers between the three levels of the fair value hierarchy. As of December 31, 2014, no time deposits were held. The assets measured at fair value on a recurring basis as of December 31, 2013 were as follows: | ||||||||||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Short-term Investments: | ||||||||||||||||
Cash time deposits | $ | 68.7 | $ | — | $ | 68.7 | $ | — | ||||||||
Total | $ | 68.7 | $ | — | $ | 68.7 | $ | — | ||||||||
Fair values of cash equivalents and current accounts receivable and payable approximate the carrying amounts because of their short-term nature. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes | INCOME TAXES | |||||||||
The Company’s provision for income taxes from continuing operations consists of the following: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current: | ||||||||||
United States federal | $ | 33.8 | $ | (3.1 | ) | $ | (0.9 | ) | ||
Foreign | 45.6 | 10.2 | 8 | |||||||
State and local | 1.1 | 1.5 | (1.8 | ) | ||||||
Total current | 80.5 | 8.6 | 5.3 | |||||||
Deferred: | ||||||||||
United States federal | (42.4 | ) | 30.7 | (4.7 | ) | |||||
Foreign | (27.5 | ) | 34 | (0.8 | ) | |||||
State and local | 2.2 | (0.8 | ) | 1.3 | ||||||
Total deferred | (67.7 | ) | 63.9 | (4.2 | ) | |||||
Total | $ | 12.8 | $ | 72.5 | $ | 1.1 | ||||
The Company’s combined pre-tax earnings from continuing operations relating to foreign subsidiaries or branches were $143.8, $99.1 and $77.1 during 2014, 2013 and 2012, respectively. | ||||||||||
The following is a reconciliation of the statutory federal income tax rate with the effective tax rate from continuing operations for the tax expense in 2014, 2013 and 2012, respectively: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
Permanent differences | 8.6 | 6.8 | 12.4 | |||||||
State and local income taxes, net of federal income tax | 1.7 | 0.4 | (3.4 | ) | ||||||
International rate differential, including tax holidays | (29.8 | ) | (14.0 | ) | (54.2 | ) | ||||
Foreign valuation allowances | 2.3 | — | (4.9 | ) | ||||||
Asset impairments and other | — | — | 46.5 | |||||||
Adjustments for uncertain tax positions | 1.2 | 2.3 | (1.8 | ) | ||||||
Restructuring | — | — | (9.2 | ) | ||||||
Tax credits and other | (4.5 | ) | (10.4 | ) | (16.6 | ) | ||||
Foreign repatriation, net of foreign tax credits | (4.6 | ) | 35.2 | — | ||||||
Effective rate | 9.9 | % | 55.3 | % | 3.8 | % | ||||
The decrease in the income tax rate in 2014 was driven by a shift in the geographical mix of worldwide income, in addition to expense of $46.4 recognized in 2013 to record a deferred tax liability associated with a change in classification for a portion of the undistributed earnings of the Company's foreign subsidiaries. In conjunction with the acquisition of Stream, the Company repatriated $125.1 of its accumulated foreign earnings in a taxable transaction. As a result of the Stream acquisition, the Company recognized a $6.0 benefit as it was able to utilize certain foreign tax credit attributes. These foreign tax credits could not be taken into account in calculating the Company’s tax on the book-to-tax basis difference of its foreign subsidiaries until the acquisition of Stream was complete. As of December 31, 2014, the Company had $334.9 of undistributed earnings of its foreign subsidiaries for which it has not provided for U.S. federal income taxes or foreign withholding taxes because such earnings are intended to be reinvested indefinitely. It is not practicable to determine the amount of applicable taxes that would be due if such earnings were distributed. | ||||||||||
The Company’s foreign taxes for 2014, 2013 and 2012 included $3.9, $2.5 and $3.5, respectively, of benefit derived from tax holidays in the Philippines, the Dominican Republic, Costa Rica, El Salvador, Malaysia and Tunisia. This resulted in a (3.0)%, (1.9)% and (11.6)% impact to the effective tax rate in 2014, 2013 and 2012, respectively. The tax holidays in the Philippines will expire in 2015 through 2018. The Company will apply to extend these tax holidays for additional terms of one to two years in accordance with local law. | ||||||||||
The components of deferred tax assets and liabilities are as follows: | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Loss and credit carryforwards | $ | 104.7 | $ | 66.6 | ||||||
Pension and employee benefits | 44.7 | 31.7 | ||||||||
Restructuring charges | 1.3 | 0.6 | ||||||||
Deferred revenue | 2.9 | 3.9 | ||||||||
Foreign currency hedges | 11.4 | 11.5 | ||||||||
Intercompany payables/receivables | 48.3 | — | ||||||||
Other | 47.9 | 28.9 | ||||||||
Valuation allowances | (39.3 | ) | (26.2 | ) | ||||||
Total deferred tax assets | 221.9 | 117 | ||||||||
Deferred tax liabilities: | ||||||||||
Depreciation and amortization | 291.4 | 161.4 | ||||||||
Deferred implementation costs | 0.6 | 1.3 | ||||||||
Contingent debt and accrued interest | 67.7 | 57.6 | ||||||||
Unremitted foreign earnings | 15.7 | 61.8 | ||||||||
Other | 7.3 | 8 | ||||||||
Total deferred tax liabilities | 382.7 | 290.1 | ||||||||
Net deferred tax liabilities | $ | (160.8 | ) | $ | (173.1 | ) | ||||
Deferred tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the Consolidated Balance Sheets at December 31, 2014 and 2013. | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Current deferred tax asset | $ | 107.2 | $ | 6.2 | ||||||
Non-current deferred tax asset | 8.2 | 8.9 | ||||||||
Current deferred tax liability | 0.6 | 37.4 | ||||||||
Non-current deferred tax liability | 275.6 | 150.8 | ||||||||
Total deferred tax liability | $ | (160.8 | ) | $ | (173.1 | ) | ||||
As of December 31, 2014 and 2013, $5.2 and $0.3, respectively, of the valuation allowances relate to the Company’s foreign operations. | ||||||||||
As of December 31, 2014, the Company has federal, state, and foreign operating loss carryforwards of $123.1, $752.8 and $46.5, respectively. The federal operating loss carryforwards and state operating loss carryforwards expire between 2017 and 2034. The foreign operating loss carryforwards include $11.9 with no expiration date; the remainder will expire between 2015 and 2032. The federal and state operating loss carryforwards include losses of $116.0 and $126.7, respectively, which were acquired in connection with business combinations. Utilization of the acquired federal and state tax loss carryforwards may be limited pursuant to Section 382 of the Internal Revenue Code of 1986. | ||||||||||
As of December 31, 2014 and 2013, the liability for unrecognized tax benefits was $59.9 and $52.1, respectively, including $24.0 and $19.5 of accrued interest and penalties, respectively, and is recorded in the other long-term liabilities in the Consolidated Balance Sheets. The total amount of net unrecognized tax benefits that would affect income tax expense, if ever recognized in the Consolidated Financial Statements, is $50.1. This amount includes net interest and penalties of $21.8. The Company’s policy is to recognize interest and penalties accrued on unrecognized tax benefits as part of income tax expense. During 2014, the Company recognized expense of $4.2 in interest and penalties, compared to $0.2 during 2013. | ||||||||||
A reconciliation of the beginning and ending total amounts of unrecognized tax benefits (exclusive of interest and penalties) is as follows: | ||||||||||
2014 | 2013 | |||||||||
Balance at January 1 | $ | 32.6 | $ | 34.9 | ||||||
Additions based on tax positions related to the current year | 0.4 | 0.3 | ||||||||
Additions for tax positions of Stream on the date of acquisition | 5.9 | — | ||||||||
Settlements | 0.5 | (0.2 | ) | |||||||
Reductions for tax positions of prior years | (0.7 | ) | (1.8 | ) | ||||||
Lapse of statutes | (1.6 | ) | (0.6 | ) | ||||||
Balance at December 31 | $ | 37.1 | $ | 32.6 | ||||||
The liability for unrecognized tax benefits related to discontinued operations at December 31, 2014 and 2013 was $11.8 and $10.5, respectively. | ||||||||||
The Company is currently attempting to resolve income tax audits relating to prior years in various jurisdictions. The Company has received assessments from these jurisdictions related to transfer pricing and deductibility of expenses. The Company believes that it is appropriately reserved with regard to these assessments as of December 31, 2014. Furthermore, the Company believes that it is reasonably possible that the total amounts of unrecognized tax benefits will decrease between $2.0 and $10.0 prior to December 31, 2015, based upon resolution of audits; however, actual developments could differ from those currently expected. | ||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With a few exceptions, the Company is no longer subject to examinations by tax authorities for years before 2002. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss): | ||||||||||||||||||
Foreign Currency | Derivative Financial Instruments | Pension Liability | Total | |||||||||||||||
Balance at December 31, 2012 | $ | 36.4 | $ | 11.4 | $ | (58.3 | ) | $ | (10.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications, net of tax | (1.3 | ) | (35.1 | ) | 10.3 | (26.1 | ) | |||||||||||
Settlement of pension obligation, net of tax | — | — | 8.4 | 8.4 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 1.2 | 7.5 | 8.7 | ||||||||||||||
Net current-period other comprehensive (loss) income | (1.3 | ) | (33.9 | ) | 26.2 | (9.0 | ) | |||||||||||
Balance at December 31, 2013 | $ | 35.1 | $ | (22.5 | ) | $ | (32.1 | ) | $ | (19.5 | ) | |||||||
Other comprehensive loss before reclassifications, net of tax | (36.2 | ) | (4.5 | ) | (21.9 | ) | (62.6 | ) | ||||||||||
Settlement of pension obligation, net of tax | — | — | 2.9 | 2.9 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 8.7 | 3.8 | 12.5 | ||||||||||||||
Net current-period other comprehensive (loss) income | (36.2 | ) | 4.2 | (15.2 | ) | (47.2 | ) | |||||||||||
Balance at December 31, 2014 | $ | (1.1 | ) | $ | (18.3 | ) | $ | (47.3 | ) | $ | (66.7 | ) | ||||||
The following table summarizes the reclassification out of accumulated other comprehensive income (loss): | ||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||
2014:00:00 | ||||||||||||||||||
Loss on derivative instruments | $ | (14.3 | ) | Cost of providing services and products sold and Selling, general and administrative | ||||||||||||||
Tax benefit | 5.6 | Income tax expense | ||||||||||||||||
Loss on derivative instruments, net of tax | (8.7 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Adjustments of pension and other post employment obligations | (10.7 | ) | Selling, general and administrative | |||||||||||||||
Tax benefit | 4 | Income tax expense | ||||||||||||||||
Adjustment of pension and other post employment obligations, net of tax | (6.7 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Total reclassifications for the period | $ | (15.4 | ) | |||||||||||||||
2013:00:00 | ||||||||||||||||||
Loss on derivative instruments | $ | (2.1 | ) | Cost of providing services and products sold and Selling, general and administrative | ||||||||||||||
Tax benefit | 0.9 | Income tax expense | ||||||||||||||||
Loss on derivative instruments, net of tax | (1.2 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Adjustment of pension and other post employment obligations | (24.9 | ) | Selling, general and administrative | |||||||||||||||
Tax benefit | 9 | Income tax expense | ||||||||||||||||
Adjustment of pension and other post employment obligations, net of tax | (15.9 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Total reclassifications for the period | $ | (17.1 | ) |
Additional_Financial_Informati
Additional Financial Information | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Additional Financial Information | ADDITIONAL FINANCIAL INFORMATION | ||||||
At December 31, | |||||||
2014 | 2013 | ||||||
Property and equipment, net: | |||||||
Land | $ | 6.9 | $ | 6.9 | |||
Buildings | 103.4 | 101.5 | |||||
Leasehold improvements | 285 | 189.3 | |||||
Equipment | 555.8 | 480.4 | |||||
Software | 339.2 | 311.9 | |||||
Construction in progress and other | 28.6 | 32 | |||||
1,318.90 | 1,122.00 | ||||||
Less: Accumulated depreciation | (951.1 | ) | (875.6 | ) | |||
$ | 367.8 | $ | 246.4 | ||||
Payables and other current liabilities: | |||||||
Accounts payable | $ | 40.1 | $ | 30.9 | |||
Deferred tax liability | 0.6 | 37.4 | |||||
Accrued income and other taxes | 34.6 | 22.3 | |||||
Accrued payroll-related expenses | 156.4 | 85.9 | |||||
Derivative liabilities | 21.4 | 21.2 | |||||
Accrued expenses, other | 84.5 | 68.9 | |||||
Restructuring and exit costs | 3.9 | 2.3 | |||||
Deferred revenue and government grants | 19.5 | 22.8 | |||||
$ | 361 | $ | 291.7 | ||||
Industry_Segments_and_Geograph
Industry Segments and Geographic Operations | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Industry Segments and Geographic Operations | INDUSTRY SEGMENT AND GEOGRAPHIC OPERATIONS | |||||||||
Industry Segment Information | ||||||||||
As a result of the change in classification of the Information Management business to discontinued operations, the change in our Chief Executive Officer in the fourth quarter of 2012, and in order to reflect the internal financial reporting structure and operating focus of our new management team and chief operating decision maker, we report operating results and assets and liabilities as a single segment on a consolidated basis. Segment information for previous periods has been reclassified to conform to the current reporting structure. | ||||||||||
Geographic Operations | ||||||||||
The following table presents certain geographic information regarding the Company’s operations: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues: | ||||||||||
North America | $ | 2,320.30 | $ | 1,860.80 | $ | 1,836.40 | ||||
Rest of World | 535.2 | 185.3 | 168.6 | |||||||
$ | 2,855.50 | $ | 2,046.10 | $ | 2,005.00 | |||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Long-lived Assets: | ||||||||||
North America | $ | 1,031.30 | $ | 762.9 | ||||||
Rest of World | 594.3 | 133.4 | ||||||||
$ | 1,625.60 | $ | 896.3 | |||||||
Concentrations | ||||||||||
The Company derives significant revenues from AT&T. Revenues from AT&T were 15.3%, 20.9% and 23.1% of the Company’s consolidated revenues from continuing operations for 2014, 2013 and 2012, respectively. Related accounts receivable from AT&T totaled $71.9 and $73.8 at December 31, 2014 and 2013, respectively. As of December 31, 2013 and 2012, the Company also derives significant revenues from DIRECTV and Comcast. Revenues from DIRECTV were 12.5% and 12.3% of the Company's consolidated revenues from continuing operations for 2013 and 2012, respectively. Revenues from Comcast were 12.4% and 12.4% of the Company's consolidated revenues from continuing operations for 2013 and 2012, respectively. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly Financial Information | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter (a) | |||||||||||||||||
2014:00:00 | ||||||||||||||||||||
Revenues | $ | 605.7 | $ | 736.4 | $ | 749.5 | $ | 763.9 | $ | 2,855.50 | ||||||||||
Operating Income | 22 | 36.9 | 42 | 49.9 | 150.8 | |||||||||||||||
Income from Continued Operations, net of tax | 13.7 | 24.9 | 30 | 48 | 116.5 | |||||||||||||||
Income (loss) from Discontinued Operations, net of tax | 0.5 | (0.2 | ) | 2.8 | 0.4 | 3.5 | ||||||||||||||
Net Income | 14.2 | 24.7 | 32.8 | 48.4 | 120 | |||||||||||||||
Basic Earnings Per Common Share: | ||||||||||||||||||||
Continuing Operations | $ | 0.14 | $ | 0.25 | $ | 0.3 | $ | 0.48 | $ | 1.16 | ||||||||||
Discontinued Operations | — | — | 0.03 | — | 0.03 | |||||||||||||||
Basic Earnings Per Common Share | $ | 0.14 | $ | 0.25 | $ | 0.33 | $ | 0.48 | $ | 1.19 | ||||||||||
Diluted Earnings Per Common Share | ||||||||||||||||||||
Continuing Operations | $ | 0.13 | $ | 0.23 | $ | 0.28 | $ | 0.46 | $ | 1.1 | ||||||||||
Discontinued Operations | — | — | 0.03 | — | 0.03 | |||||||||||||||
Diluted Earnings Per Common Share | $ | 0.13 | $ | 0.23 | $ | 0.31 | $ | 0.46 | $ | 1.13 | ||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter (b) | |||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Revenues | $ | 493.5 | $ | 504.3 | $ | 521 | $ | 527.3 | $ | 2,046.10 | ||||||||||
Operating Income | 36.5 | 30.1 | 31.3 | 39.5 | 137.4 | |||||||||||||||
Income (loss) from Continued Operations, net of tax | 30.2 | 22 | 28.2 | (21.9 | ) | 58.5 | ||||||||||||||
(Loss) income from Discontinued Operations, net of tax | (5.1 | ) | 1.4 | 5.7 | 0.4 | 2.4 | ||||||||||||||
Net Income (Loss) | 25.1 | 23.4 | 33.9 | (21.5 | ) | 60.9 | ||||||||||||||
Basic Earnings (Loss) Per Common Share: | ||||||||||||||||||||
Continuing Operations | $ | 0.28 | $ | 0.21 | $ | 0.27 | $ | (0.21 | ) | $ | 0.57 | |||||||||
Discontinued Operations | (0.04 | ) | 0.02 | 0.06 | — | 0.02 | ||||||||||||||
Basic Earnings (Loss) Per Common Share | $ | 0.24 | $ | 0.23 | $ | 0.33 | $ | (0.21 | ) | $ | 0.59 | |||||||||
Diluted Earnings (Loss) Per Common Share | ||||||||||||||||||||
Continuing Operations | $ | 0.27 | $ | 0.2 | $ | 0.26 | $ | (0.21 | ) | $ | 0.54 | |||||||||
Discontinued Operations | (0.04 | ) | 0.02 | 0.05 | — | 0.02 | ||||||||||||||
Basic Earnings (Loss) Per Common Share | $ | 0.23 | $ | 0.22 | $ | 0.31 | $ | (0.21 | ) | $ | 0.56 | |||||||||
(a) Fourth quarter 2014 includes a decrease in operating income of $16.7 resulting from $2.2 of integration related expenses associated with Convergys' acquisition of Stream, $1.7 of pension settlement charge, $5.6 of depreciation expense resulting from the fair value write-up of property and equipment acquired from Stream, and $7.2 of amortization expense related to acquired intangible assets. Fourth quarter 2014 also includes $4.5 of tax benefit for the difference between the tax previously accrued on foreign earnings and the current estimate as of December 31, 2014. | ||||||||||||||||||||
(b) Fourth quarter 2013 includes a decrease in operating income of $5.2 resulting from $2.7 of transaction expenses associated with Convergys' acquisition of Stream, $1.3 of amortization expense related to acquired intangible assets and $1.2 of net pension and other post employment benefit plan charges. The net pension and other post employment benefit plan charge consists of a $1.5 pension settlement charge and settlement gain of $0.3 related to the Executive Deferred Compensation Plan. Fourth quarter 2013 also includes $46.4 of tax expense to record the deferred tax liability associated with a change in classification for a portion of undistributed earnings of the Company's foreign subsidiaries. See Note 14 of the Notes to Consolidated Financial Statements for further information. | ||||||||||||||||||||
The sum of the quarterly earnings (loss) per common share may not equal the annual amounts reported because per share amounts are computed independently for each quarter and for full year based on respective weighted-average common shares outstanding and other dilutive potential common shares. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | CONVERGYS CORPORATION | ||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Additions | |||||||||||||||||||
Description | Balance at | Charged | Acquisition | Deductions | Balance | ||||||||||||||
Beginning | to | and Other | at End | ||||||||||||||||
of Period | Expense | Changes | of Period | ||||||||||||||||
Year 2014 | |||||||||||||||||||
Allowance for Doubtful Accounts | $ | 5.3 | $ | 14.5 | $ | 1.2 | $ | (15.2 | ) | [a] | $ | 5.8 | |||||||
Deferred Tax Asset Valuation Allowance | $ | 21.2 | $ | 10.2 | [b] | $ | 10.3 | $ | (2.4 | ) | [c] | $ | 39.3 | ||||||
Year 2013 | |||||||||||||||||||
Allowance for Doubtful Accounts | $ | 5.9 | $ | 12.2 | $ | — | $ | (12.8 | ) | [a] | $ | 5.3 | |||||||
Deferred Tax Asset Valuation Allowance | $ | 19.7 | $ | 6 | [d] | $ | — | $ | (4.5 | ) | [e] | $ | 21.2 | ||||||
Year 2012 | |||||||||||||||||||
Allowance for Doubtful Accounts | $ | 9.3 | $ | 11.9 | $ | — | $ | (15.3 | ) | [a] | $ | 5.9 | |||||||
Deferred Tax Asset Valuation Allowance | $ | 21.3 | $ | 4.2 | [b] | $ | — | $ | (5.8 | ) | [c] | $ | 19.7 | ||||||
[a] | Primarily includes amounts written-off as uncollectible. | ||||||||||||||||||
[b] | Amounts relate to valuation allowances recorded for state and foreign operating loss carryforwards and capital loss carryforwards. | ||||||||||||||||||
[c] | Primarily includes the release of foreign valuation allowances related to the utilization of foreign net operating losses in the current year and adjustments related to state tax credits. | ||||||||||||||||||
[d] | Amounts relate to valuation allowances recorded for state operating loss carryforwards and federal operating loss carryforwards. | ||||||||||||||||||
[e] | Primarily includes the release of state valuation allowances and adjustment of valuation related to state operating loss carryfowards. | ||||||||||||||||||
[f] | Primarily includes the release of foreign valuation allowances related to the utilization of foreign net operating losses in the current year and adjustment of valuation related to state tax credits. | ||||||||||||||||||
[g] | Primarily includes the release of state valuation allowances related to the utilization of state net operating losses in the current year, adjustment of valuation related to state tax credits and capital loss carryforwards. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Consolidation [Policy Text Block] | Principles of Consolidation and Basis of Presentation |
The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission regulations. The Consolidated Financial Statements include the accounts of the Company’s majority-owned subsidiaries. All material intercompany accounts and transactions are eliminated upon consolidation. | |
Reclassification, Policy [Policy Text Block] | Reclassification |
Certain prior year balances in the Consolidated Statements of Income have been reclassified to conform to the current year presentation. | |
Use of Estimates [Policy Text Block] | Use of Estimates, Risks and Uncertainties |
The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. These estimates include, but are not limited to, project completion dates, time and cost required to complete projects for purposes of revenue recognition and future revenue, expense and cash flow estimates for purposes of impairment analysis and loss contract evaluation. Actual results could differ from those estimates. | |
The Company’s results are affected by economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, and government fiscal policies, can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. | |
Foreign Currency [Policy Text Block] | Foreign Currency Translation |
Assets and liabilities of foreign operations are translated to U.S. Dollars at year-end exchange rates. Revenues and expenses are translated at average exchange rates for the year. Translation adjustments are accumulated and reflected as adjustments to other comprehensive (loss) income, a component of Shareholders’ Equity, and included in net earnings only upon sale or liquidation of the underlying foreign subsidiary. Gains or losses resulting from foreign exchange transactions related to balance sheet positions are recorded in the Consolidated Statements of Income within Other (expense) income, net. | |
Revenue Recognition [Policy Text Block] | Revenue Recognition |
Revenues mostly consist of fees generated from outsourced services provided to the Company’s clients. Approximately 94% of the Company's revenues are derived from agent-related services. The Company typically recognizes these revenues as services are performed based on staffing hours or the number of contacts handled by service agents using contractual rates. The remaining revenues are derived from the sale of premise-based and hosted automated self-care and technology solutions and provision of professional services. Revenues from the sale of these solutions and provision of services are typically recognized as services are provided over the duration of the contract using contractual rates. | |
Revenues are recognized only when the services are performed, there is evidence of an arrangement, the Company determines that the fee is fixed and determinable and collection of the fee included in the arrangement is considered probable. When determining whether the fee is considered fixed and determinable and collection is probable, the Company considers a number of factors including the creditworthiness of the client and the contractual payment terms. If a client is not considered creditworthy, all revenue under arrangements with that client is recognized upon receipt of cash. If payment terms extend beyond what is considered customary or standard in the related industry and geographic location, the related fees are considered extended and deferred until they become due and payable. | |
The Company considers the criteria established primarily by Accounting Standards Codification (ASC) Topic 605-45, “Principal Agent Considerations,” (ASC 605-45) in determining whether revenue should be recognized on a gross versus a net basis. Factors considered in determining if gross or net basis recognition is appropriate include whether the Company is primarily responsible to the client for the services, has discretion on vendor selection, or bears credit risk. The Company provides certain services to clients using third-party vendors. Typically, the costs incurred with third-party vendors related to these services are passed through to the clients. In consideration of the above mentioned criteria, the Company recognizes the net amount of total payments received from clients related to these services and total payments made by the Company to third-party vendors as cost of providing services and products sold. | |
The Company may earn supplemental revenues depending on the satisfaction of certain service levels or achievement of certain performance measurement targets. The supplemental revenues are recognized only after required measurement targets are met and the other criteria for recognition are satisified. | |
Stock Compensation [Policy Text Block] | Stock-Based Compensation |
The Company accounts for stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the Company. Stock-based compensation cost for restricted stock awards and restricted stock units and performance restricted stock units is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for stock options is estimated at the grant date based on each option's fair-value as calculated by the Black-Scholes option-pricing model. The Company recognizes stock-based compensation cost as expense for awards other than its performance-based restricted stock units ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost associated with its performance based restricted stock units over the requisite service period if it is probable that the performance conditions will be satisfied. The Company will recognize a benefit from stock-based compensation in equity if an incremental tax benefit is realized by following the ordering provisions of the tax law. Tax benefits related to stock compensation expense are reported as financing cash flow and tax expenses are reported as operating cash flow. Further, the Company applies an estimated forfeiture rate to unvested awards when computing the stock compensation-related expenses | |
Income Taxes [Policy Text Block] | Income Taxes |
The provision for income taxes includes taxes paid, currently payable or receivable, and those deferred. Under U.S. GAAP, the Company recognizes deferred tax assets and liabilities based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to be settled or realized. | |
The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance if it is more likely than not that some portion or all of a deferred tax asset will not be realized. The determination as to whether a deferred tax asset will be realized is made on a jurisdictional basis and is based on the evaluation of positive and negative evidence. This evidence includes historical pre-tax and taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The expected timing of the reversals of existing temporary differences is based on current tax law and the Company’s tax methods of accounting. | |
The Company also reviews its tax activities and evaluates uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit, which is the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company’s policy is to recognize interest and penalties accrued on unrecognized tax benefits as part of income tax expense. | |
Other Comprehensvie Income (Loss) [Policy Text Block] | Other Comprehensive Income (Loss) |
Components of other comprehensive (loss) income include currency translation adjustments, changes related to pension liabilities, net of tax, and unrealized (losses) gains on hedging activities, net of tax. Foreign currency translation adjustments generally are not adjusted for income taxes as they relate to indefinite investments in non-U.S. operations. Accumulated other comprehensive (loss) income also includes, net of tax, actuarial gains or losses, prior service costs or credits and transition assets and obligations that are not recognized currently as components of net periodic pension cost. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk |
In the normal course of business, the Company is exposed to credit risk. The principal concentrations of credit risk are cash and cash equivalents, short-term investments, accounts receivable and derivative instruments. The Company regularly monitors credit risk exposures and takes steps to mitigate the likelihood of these exposures resulting in a loss. Historically, credit losses on accounts receivable have not been material because of the large concentration of revenues with a small number of large, established companies. The Company does not require collateral or other security to support accounts receivable. The Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes, as discussed above, as well as through its ongoing collectability assessment processes for accounts receivable. The Company maintains an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific clients, historical trends and other information. The Company limits its counterparty credit risk exposures by entering into derivative contracts with financial institutions that are investment grade rated. | |
Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents |
Cash and cash equivalents consist of cash on hand and short-term, highly liquid investments with original maturities of three months or less. | |
Receivables [Policy Text Block] | Receivables and Allowance for Doubtful Accounts |
Trade receivables are comprised primarily of amounts owed to the Company by clients and are presented net of an allowance for doubtful accounts of $8.1 and $5.3 at December 31, 2014 and 2013, respectively. Contracts with individual clients determine when receivables are due, generally within 30-60 days, and whether interest is accrued on late payments. | |
The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company regularly reviews the adequacy of its allowance for doubtful accounts. The Company determines the allowance based on historical write-off experience and current economic conditions and also considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Property and Equipment [Policy Text Block] | Property and Equipment |
Property and equipment are stated at cost. Depreciation is based on the straight-line method over the estimated useful lives of the assets. Buildings are generally depreciated over a 30-year life, software over a three- to eight-year life and equipment generally over a three-to-five-year life. Leasehold improvements are depreciated over the shorter of their estimated useful life or the remaining term of the associated lease. Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Depreciation expense for assets held under captial lease is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease. Included within Property and equipment is initial cost of $64.6 related to assets under capital lease arrangements. | |
The Company reviews property and equipment asset groups for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company monitors these changes and events on at least a quarterly basis. Examples of events or changes in circumstances could include, but are not limited to, a prolonged economic downturn, current period operating or cash flow losses combined with a history of losses or a forecast of continuing losses associated with the use of an asset group, or a current expectation that an asset group will be sold or disposed of before the end of its previously estimated useful life. Recoverability is based upon projections of anticipated future undiscounted cash flows associated with the use and eventual disposal of the property and equipment asset groups, as well as specific appraisals in certain instances. Reviews occur at the lowest level for which identifiable cash flows are largely independent of cash flows associated with other property and equipment asset groups. If the future undiscounted cash flows result in a value that is less than the carrying value, then the long-lived asset is considered impaired and a loss is recognized based on the amount by which the carrying amount exceeds the estimated fair value. Various factors that the Company uses in determining the impact of these assessments include the expected useful lives of long-lived assets and our ability to realize any undiscounted cash flows in excess of the carrying amounts of such asset groups, and are affected primarily by changes in the expected use of the assets, changes in technology or development of alternative assets, changes in economic conditions, changes in operating performance and changes in expected future cash flows. Because judgment is involved in determining the fair value of property and equipment asset groups, there is risk that the carrying value of these assets may require adjustment in future periods. | |
Internal Use Software [Policy Text Block] | Internal Use Software |
The Company capitalizes certain expenditures for software that is purchased or internally developed for use in the business. During 2014, 2013, and 2012, internally developed software amounts capitalized were $4.9, $1.0 and $6.8, respectively. Amortization of internal use software begins when the software is ready for service and continues on the straight-line method over the estimated useful life. | |
Business Combinations Policy [Policy Text Block] | Business Combinations |
Accounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Refer to Note 3 of the Notes to the Consolidated Financial Statements for a discussion of the Stream acquisition. | |
Goodwill and Other Intangibles [Policy Text Block] | Goodwill and Other Intangibles |
As discussed more fully in Note 6, goodwill is reviewed at the reporting unit level for impairment as of October 1 each year and at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. | |
The first step compares the fair value of a reporting unit with its carrying amount, including the goodwill allocated to each reporting unit (Step 1). If the fair value of the reporting unit is in excess of the carrying value, the related goodwill is considered not to be impaired and no further analysis is necessary. If the carrying amount of the reporting unit exceeds the fair value, there is an indication of potential impairment and a second step of testing is performed to measure the amount of the impairment, if any, for that reporting unit. | |
When required, the second step compares the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of the net assets and identifiable intangibles as if the reporting unit were being acquired. Any excess of the carrying value of the reporting unit goodwill over the implied fair value of the reporting unit goodwill will be recorded as an impairment loss. An impairment charge recognized cannot exceed the amount of goodwill allocated to a reporting unit and cannot be reversed subsequently even if the fair value of the reporting unit recovers. | |
Fair value of the reporting unit is determined using a combination of the market approach and the income approach. Under the market approach, fair value is based on revenue and earnings multiples for guideline public companies in the reporting unit's peer group. The market approach requires significant judgment regarding the selection of guideline companies. Under the income approach, value is dependent on the present value of net cash flows to be derived from the ownership. The income approach requires significant judgment including estimates about future cash flows and discount rates. A combination of methodologies is used and weighted appropriately for reporting units with significant adverse changes in business climate. | |
Other intangibles, primarily customer relationship assets and trademarks, are amortized over a straight-line basis with estimated useful lives ranging from four to seventeen years and are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. | |
Postemployment Benefits [Policy Text Block] | Postemployment Benefits |
The funded status of the Company’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement. For active plans, the present value reflects estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligation is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates and mortality rates. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note 9. | |
The Company provides severance benefits to certain employees. The Company accrues the benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. | |
Government Grants [Policy Text Block] | Government Grants |
From time to time, the Company receives grants from local or state governments as an incentive to locate or retain operations in their jurisdictions. Depending on the arrangement, the grants are either received up-front or at the time the Company achieves the milestones set forth in the grant. The Company’s policy is to record the grant funds received as deferred credit and to amortize the deferred credit as a reduction of cost of providing services and products sold or selling, general and administrative expense as the milestones are met over the term of the grant. | |
Derivative Instruments [Policy Text Block] | Derivative Instruments |
The Company’s risk management strategy includes the use of derivative instruments to reduce the effects on its operating results and cash flows from fluctuations caused by volatility in currency exchange and interest rates. The Company currently uses only cash flow hedges. These instruments are hedges of forecasted transactions or of the variability of cash flows to be received or paid related to a recognized asset or liability. The Company generally enters into forward exchange contracts expiring within 36 months as hedges of anticipated cash flows denominated in foreign currencies. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates. In using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to counterparty credit risk. | |
All derivatives, including foreign currency exchange contracts, are recognized in the Consolidated Balance Sheets at fair value. Fair values for the Company’s derivative financial instruments are based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current assumptions. On the date the derivative contract is entered into, the Company determines whether the derivative contract qualifies for designation as a hedge. For derivatives that are designated as hedges, the Company further designates the hedge as either a fair value or cash flow hedge; all currently existing hedges have been designated as cash flow hedges. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are reported as a component of Other Comprehensive (Loss) Income and reclassified into earnings in the same line-item associated with the forecasted transaction and in the same periods during which the hedged transaction impacts earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to forecasted transactions, respectively. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. | |
The Company also periodically enters into forward exchange contracts that are not designated as hedges. The purpose of the majority of these derivative instruments is to protect the Company against foreign currency exposure pertaining to receivables, payables and intercompany transactions that are denominated in currencies different from the functional currencies of the Company or the respective subsidiaries. The Company records changes in the fair value of these derivative instruments in the Consolidated Statements of Income within Other income, net. | |
Equity-Method Investments [Policy Text Block] | Investments |
Management determines the appropriate classification of securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Currently all investment securities are classified as trading, and are reported within short-term investments in the Consolidated Balance Sheets. Trading securities are carried at fair value, with gains and losses, both realized and unrealized, reported in Other (expense) income, net in the Consolidated Statements of Income. The cost of securities sold is based upon the specific identification method. Interest and dividends on securities classified as trading is included in Other (expense) income, net. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements |
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements |
In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718)." This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition, and apply existing guidance under the Stock Compensation Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This update will be applied prospectively and is effective for interim and annual periods beginning after December 15, 2015. This standard is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The standard will apply one comprehensive revenue recognition model across all contracts, entities and sectors. The core principal of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Once effective, this ASU will replace most of the existing revenue recognition requirements in U.S. GAAP. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the effect that adoption of the new standard, including possible transition alternatives, will have on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This ASU changes the criteria for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new standard, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. Once adopted, this update will be applied prospectively and is effective for annual periods, and interim periods within those years, beginning after December 15, 2014. This standard is not expected to have a material effect on the Company's consolidated financial statements, but will impact the reporting of any future dispositions. | |
Earnings_Loss_Per_Share_and_Sh1
Earnings (Loss) Per Share and Shareholderbs Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations: | |||||||||||||||||
Continuing | Discontinued | Total | ||||||||||||||||
Operations | Operations | |||||||||||||||||
Shares (in Millions) | Shares | Net | Per | Net | Per | Per | ||||||||||||
Income | Share | Income | Share | Share | ||||||||||||||
Amount | Amount | Amount | ||||||||||||||||
2014:00:00 | ||||||||||||||||||
Basic EPS | 100.7 | $ | 116.5 | $ | 1.16 | $ | 3.5 | $ | 0.03 | $ | 1.19 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 1 | — | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Convertible Debt | 4.5 | — | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Diluted EPS | 106.2 | $ | 116.5 | $ | 1.1 | $ | 3.5 | $ | 0.03 | $ | 1.13 | |||||||
2013:00:00 | ||||||||||||||||||
Basic EPS | 103.3 | $ | 58.5 | $ | 0.57 | $ | 2.4 | $ | 0.02 | $ | 0.59 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 1.2 | — | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Convertible Debt | 4.7 | — | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Diluted EPS | 109.2 | $ | 58.5 | $ | 0.54 | $ | 2.4 | $ | 0.02 | $ | 0.56 | |||||||
2012:00:00 | ||||||||||||||||||
Basic EPS | 112.2 | $ | 28.2 | $ | 0.25 | $ | 72.4 | $ | 0.65 | $ | 0.9 | |||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock-based compensation arrangements | 2.1 | — | — | — | (0.01 | ) | (0.01 | ) | ||||||||||
Convertible Debt | 2.8 | — | (0.01 | ) | — | (0.02 | ) | (0.03 | ) | |||||||||
Diluted EPS | 117.1 | $ | 28.2 | $ | 0.24 | $ | 72.4 | $ | 0.62 | $ | 0.86 | |||||||
Share Repurchase Activity | Below is a summary of the Company’s share repurchases during 2014, 2013 and 2012: | |||||||||||||||||
Shares | Cost | |||||||||||||||||
2014 | 2.3 | $ | 46.3 | |||||||||||||||
2013 | 6.7 | $ | 119 | |||||||||||||||
2012 | 12.3 | $ | 184.4 | |||||||||||||||
Schedule of Dividends Declared and Paid [Line Items] | ||||||||||||||||||
Schedule of Dividends Declared and Paid [Table Text Block] | During 2013 and 2014, the Company's Board of Directors approved, and the Company has paid, the following dividends per common share: | |||||||||||||||||
Announcement Date | Record Date | Dividend Amount | Payment Date | |||||||||||||||
February 7, 2013 | March 22, 2013 | $0.06 | April 5, 2013 | |||||||||||||||
April 30, 2013 | June 21, 2013 | $0.06 | July 5, 2013 | |||||||||||||||
July 30, 2013 | September 20, 2013 | $0.06 | October 4, 2013 | |||||||||||||||
November 6, 2013 | December 27, 2013 | $0.06 | January 10, 2014 | |||||||||||||||
February 5, 2014 | March 21, 2014 | $0.06 | April 4, 2014 | |||||||||||||||
May 12, 2014 | June 19, 2014 | $0.07 | July 3, 2014 | |||||||||||||||
August 11, 2014 | September 19, 2014 | $0.07 | October 3, 2014 | |||||||||||||||
November 5, 2014 | December 26, 2014 | $0.07 | January 9, 2015 |
Business_Combination_Business_1
Business Combination Business Combination (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combination, Purchase Price Consideration [Line Items] | ||||
Business Combination, Purchase Price Consideration [Table Text Block] | The purchase price of Stream consisted of the following items: | |||
Cash consideration for Stream stock (1) | $ | 481 | ||
Cash consideration for Stream stock options (2) | 16.1 | |||
Cash consideration for repayment of Stream 11.25% Senior Secured Notes (3) | 243 | |||
Cash consideration for repayment of Stream 10.0% Promissory Notes (4) | 19.3 | |||
Cash consideration for repayment of Stream Revolving Credit Facility (5) | 63.4 | |||
Cash consideration for transaction expenses of Stream (6) | 7.8 | |||
Total cash consideration | 830.6 | |||
Cash acquired (7) | (28.0 | ) | ||
Net consideration transferred | $ | 802.6 | ||
-1 | The cash consideration for the outstanding shares of Stream's common stock, which includes final settlement for working capital. Stream outstanding common shares totaled 0.7 as of March 3, 2014. | |||
-2 | The cash consideration paid per share of "in the money" stock option awards. | |||
-3 | The cash consideration to repay Stream's 11.25% Senior Secured Notes due 2014, which reflects the aggregate principal and interest amounts of $230.0 and $13.0, respectively, as of March 3, 2014. | |||
-4 | The cash consideration to repay Stream's 10.0% Promissory Notes, which reflects the aggregate principal and interest amounts of $16.1 and $3.2, respectively, as of March 3, 2014. | |||
-5 | The cash consideration to repay Stream's Revolving Credit Facility, which reflects the aggregate principal and interest amounts of $63.1 and $0.3, respectively, as of March 3, 2014. | |||
-6 | Pursuant to the Merger Agreement, Convergys reimbursed the holders of Stream common stock for expenses incurred by Stream in connection with the merger. These expenses primarily related to third-party consulting services. | |||
-7 | Represents the Stream cash balance acquired at acquisition. |
Business_Combination_Purchase_
Business Combination Purchase Price Allocation (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary values of the assets acquired and liabilities assumed at the date of acquisition: | |||
3-Mar-14 | ||||
Assets: | ||||
Receivables | $ | 197.9 | ||
Other current assets | 13.5 | |||
Property and equipment | 159.3 | |||
Goodwill | 277.5 | |||
Intangible assets | 370.4 | |||
Other assets | 7.8 | |||
Liabilities: | ||||
Accounts payable | $ | (12.3 | ) | |
Accrued expenses | (100.3 | ) | ||
Other current liabilities | (3.8 | ) | ||
Debt | (34.6 | ) | ||
Deferred tax - net | (61.2 | ) | ||
Other long-term liabilities | (11.6 | ) | ||
Total purchase price | $ | 802.6 | ||
Business_Combination_Intangibl
Business Combination Intangible Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following details the total intangible assets identified: | ||||||
Intangible asset type | Value | Life (years) | |||||
Customer relationship | $ | 352 | 17 | ||||
Trade name | 17 | 4 | |||||
Favorable lease contract | 1.4 | 1 | - | 7 | |||
Total | $ | 370.4 | |||||
Business_Combination_Business_2
Business Combination Business Acquisition, Pro Forma Information (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | The following unaudited pro forma information assumes the acquisition of Stream occurred at the beginning of the respective periods presented. The unaudited pro forma information presented below is for illustrative purposes only and does not reflect future events that may occur after December 31, 2014 or any operating efficiencies or inefficiencies that may result from the Stream acquisition and related financing. Additionally, this unaudited pro forma information for the twelve months ended December 31, 2014 includes certain one-time costs associated with the Company's integration of the acquired Stream operations. Therefore, the information is not necessarily indicative of results that would have been achieved had the business been combined during the periods presented or the results that the Company will experience going forward. | ||||||
Year Ended December 31, | |||||||
Unaudited pro forma information | 2014 | 2013 | |||||
Revenues | $ | 3,026.90 | $ | 3,061.80 | |||
Income from Continuing Operations, net of tax | $ | 110.8 | $ | 56 | |||
Earnings from Continuing Operations per share | |||||||
Basic | $ | 1.1 | $ | 0.54 | |||
Diluted | $ | 1.04 | $ | 0.51 | |||
Weighted average common shares outstanding | |||||||
Basic | 100.7 | 103.3 | |||||
Diluted | 106.2 | 109.2 | |||||
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ||||||||||
Summarized operating results of the Information Management business are as follows: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenue | $ | — | $ | — | $ | 128.8 | ||||
Income before tax - Information Management operations (1) | — | — | 23.7 | |||||||
Gain (loss) on disposition (2) | 0.3 | (6.4 | ) | 99.8 | ||||||
Income (loss) before income taxes | 0.3 | (6.4 | ) | 123.5 | ||||||
Income tax (benefit) expense: | ||||||||||
Expense related to Information Management operations | — | — | 7.9 | |||||||
(Benefit) expense related to gain on disposition | (3.2 | ) | (8.8 | ) | 83.6 | |||||
Income from discontinued operations, net of tax | $ | 3.5 | $ | 2.4 | $ | 32 | ||||
(1) Excludes costs previously allocated to Information Management that did not meet the criteria for presentation within discontinued operations of $8.8 for 2012. | ||||||||||
(2) Includes $22.8 of transaction costs related to the sale for 2012. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets and Long-Lived Assets (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Schedule of Goodwill | ||||||||||
Below is a progression of goodwill for 2014 and 2013: | ||||||||||
Balance at December 31, 2012 | $ | 577.7 | ||||||||
Datacom acquisition | 12.2 | |||||||||
Foreign currency and other | (0.5 | ) | ||||||||
Balance at December 31, 2013 | $ | 589.4 | ||||||||
Stream acquisition | 277.5 | |||||||||
Foreign currency and other | (16.2 | ) | ||||||||
Balance at December 31, 2014 | $ | 850.7 | ||||||||
Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations | As of December 31, 2014 and 2013, the Company’s other intangible assets consisted of the following: | |||||||||
2014 | Gross | Accumulated | Net | |||||||
Carrying | Amortization | |||||||||
Amount | ||||||||||
Software (classified with Property & Equipment) | $ | 41.3 | $ | (34.8 | ) | $ | 6.5 | |||
Trademarks | 26.5 | (13.4 | ) | 13.1 | ||||||
Customer relationships and other intangibles | 468.7 | (126.6 | ) | 342.1 | ||||||
Total | $ | 536.5 | $ | (174.8 | ) | $ | 361.7 | |||
2013 | ||||||||||
Software (classified with Property & Equipment) | $ | 41.3 | $ | (31.0 | ) | $ | 10.3 | |||
Trademarks | 10 | (10.0 | ) | — | ||||||
Customer relationships and other intangibles | 126.3 | (105.9 | ) | 20.4 | ||||||
Total | $ | 177.6 | $ | (146.9 | ) | $ | 30.7 | |||
Schedule Of Estimated Amortization Expense | ||||||||||
Amortization expense for intangibles was $24.7 and $5.3 for the years ended December 31, 2014 and 2013, respectively and the related estimated expense for the five subsequent fiscal years is as follows: | ||||||||||
For the year ended 2015 | $ | 28 | ||||||||
For the year ended 2016 | 27 | |||||||||
For the year ended 2017 | 27 | |||||||||
For the year ended 2018 | 24 | |||||||||
For the year ended 2019 | 23 | |||||||||
Thereafter | 226 | |||||||||
Total | $ | 355 | ||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||
Schedule Of Debt And Capital Lease Obligations | Debt and capital lease obligations consists of the following: | ||||||
At December 31, | |||||||
2014 | 2013 | ||||||
Term Loan | $ | 261 | $ | — | |||
2029 Convertible Debentures | 60.7 | 59.5 | |||||
Capital Lease Obligations | 14.2 | 1.6 | |||||
Accounts Receivable Securitization | 40 | — | |||||
Total debt | 375.9 | 61.1 | |||||
Less current maturities | 7.5 | 0.9 | |||||
Long-term debt | $ | 368.4 | $ | 60.2 | |||
Weighted average effective interest rates: | |||||||
Term Loan | 1.9 | % | — | % | |||
Accounts Receivable Securitization | 1.2 | % | — | % | |||
2029 Convertible Debentures | 6.7 | % | 6.6 | % | |||
Schedule Of Future Minimum Payments | At December 31, 2014, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of a debt discounts) are as follows: | ||||||
2015 | $ | 7.5 | |||||
2016 | 3.9 | ||||||
2017 | 52.8 | ||||||
2018 | 35.6 | ||||||
2019 | 219.1 | ||||||
Thereafter | 125.3 | ||||||
Total | $ | 444.2 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Net Funded Status | The reconciliation of the defined benefit plans' projected benefit obligation and the fair value of plan assets for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 228.1 | $ | 265.5 | |||||||||
Service costs | 7.1 | 5 | |||||||||||
Interest cost | 10.5 | 10.8 | |||||||||||
Assumed obligation from Stream | 2.6 | — | |||||||||||
Actuarial loss (gain) | 35.2 | (6.2 | ) | ||||||||||
Benefits paid | (23.9 | ) | (47.0 | ) | |||||||||
Benefit obligation at end of year | $ | 259.6 | $ | 228.1 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 162.9 | $ | 171.7 | |||||||||
Actual return on plan assets | 7.9 | 25.7 | |||||||||||
Employer contribution | 3.6 | 12.5 | |||||||||||
Benefits paid | (23.9 | ) | (47.0 | ) | |||||||||
Fair value of plan assets at end of year | $ | 150.5 | $ | 162.9 | |||||||||
Funded status | $ | (109.1 | ) | $ | (65.2 | ) | |||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Current liability | $ | (5.6 | ) | $ | (4.6 | ) | |||||||
Non-current liability | $ | (103.5 | ) | $ | (60.6 | ) | |||||||
Accumulated other comprehensive income (loss) | $ | (78.9 | ) | $ | (55.5 | ) | |||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table provides a reconciliation of the beginning and ending balances for the Level 3 assets: | ||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of year | $ | 3.5 | $ | 4.3 | |||||||||
Unrealized losses relating to instruments still held at the reporting date | (0.1 | ) | (0.8 | ) | |||||||||
Balance, end of year | $ | 3.4 | $ | 3.5 | |||||||||
Schedule of Assumptions Used | The following weighted-average rates were used in determining the benefit obligations at December 31: | ||||||||||||
2014 | 2013 | ||||||||||||
Discount rate—projected benefit obligation | 1.75% | - | 4.90% | 4.25% | - | 4.90% | |||||||
Future compensation growth rate | 2.87% | - | 4.00% | 2.50% | - | 4.00% | |||||||
Expected long-term rate of return on plan assets | 6.75% | - | 7.00% | 6.75% | - | 8.00% | |||||||
The following weighted-average rates were used in determining the pension cost for all years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate—projected benefit obligation | 1.75% | - | 4.90% | 3.00% | - | 4.61% | 5.20% | - | 7.80% | ||||
Future compensation growth rate | 2.50% | - | 4.00% | 4.00% | 4.00% | - | 5.50% | ||||||
Expected long-term rate of return on plan assets | 6.75% | - | 7.00% | 6.75% | - | 8.00% | 7.50% | - | 8.00% | ||||
Schedule of Allocation of Plan Assets | The following table sets forth by level, within the fair value hierarchy, the cash balance plan’s assets at fair value as of December 31, 2014 and 2013: | ||||||||||||
Investments | December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
In Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Common/Collective trusts | $ | 143.4 | $ | — | $ | 143.4 | $ | — | |||||
Convergys common stock | 3.7 | 3.7 | — | — | |||||||||
Equity fund | 3.4 | — | — | 3.4 | |||||||||
Total investments | $ | 150.5 | $ | 3.7 | $ | 143.4 | $ | 3.4 | |||||
Investments | December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
In Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Common/Collective trusts | $ | 154.5 | $ | — | $ | 154.5 | $ | — | |||||
Convergys common stock | 4.9 | 4.9 | — | — | |||||||||
Equity fund | 3.5 | — | — | 3.5 | |||||||||
Total investments | $ | 162.9 | $ | 4.9 | $ | 154.5 | $ | 3.5 | |||||
Pension Plan [Member] | |||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of pension cost and other amounts recognized in other comprehensive income for the Company's defined benefit pension plans are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 7.1 | $ | 5 | $ | 3.7 | |||||||
Interest cost on projected benefit obligation | 10.5 | 10.8 | 11.6 | ||||||||||
Expected return on plan assets | (9.2 | ) | (10.0 | ) | (11.6 | ) | |||||||
Amortization and deferrals—net | 8.1 | 11.6 | 17.2 | ||||||||||
Curtailment benefit | — | — | (0.2 | ) | |||||||||
Settlement charge | 4.6 | 13.4 | 6.8 | ||||||||||
Total pension cost | $ | 21.1 | $ | 30.8 | $ | 27.5 | |||||||
Other comprehensive (loss) income | $ | (23.4 | ) | $ | 46.9 | $ | 11.8 | ||||||
Schedule of Expected Benefit Payments | Estimated future benefit payments from the defined benefit plans are as follows: | ||||||||||||
2015 | $ | 15.8 | |||||||||||
2016 | 16.1 | ||||||||||||
2017 | 17 | ||||||||||||
2018 | 18.3 | ||||||||||||
2019 | 18.2 | ||||||||||||
2020 - 2024 | 90.1 | ||||||||||||
Total | $ | 175.5 | |||||||||||
Other Pension Plan [Member] | |||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of pension cost and other amounts recognized in other comprehensive loss for the EDCP are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 1.3 | $ | — | $ | — | |||||||
Interest cost on projected benefit obligation | 0.5 | 0.4 | 1 | ||||||||||
Amortization and deferrals—net | — | 0.2 | (0.2 | ) | |||||||||
Curtailment loss, net | — | — | 0.1 | ||||||||||
Settlement gain | — | (0.3 | ) | (0.2 | ) | ||||||||
Total pension cost | $ | 1.8 | $ | 0.3 | $ | 0.7 | |||||||
Other comprehensive loss | $ | (0.8 | ) | $ | (1.0 | ) | $ | (1.9 | ) | ||||
Schedule of Expected Benefit Payments | Estimated future benefit payments from the EDCP are as follows: | ||||||||||||
2015 | $ | 2.3 | |||||||||||
2016 | 2 | ||||||||||||
2017 | 1.2 | ||||||||||||
2018 | 0.7 | ||||||||||||
2019 | 1.1 | ||||||||||||
2020 - 2024 | 6.7 | ||||||||||||
Total | $ | 14 | |||||||||||
Schedule of Changes in Projected Benefit Obligations | The reconciliation of the EDCP projected benefit obligation for the years ended December 31, 2014 and 2013 is as follows: | ||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 14.2 | $ | 21.1 | |||||||||
Service cost | 1.3 | — | |||||||||||
Interest cost | 0.5 | 0.4 | |||||||||||
Actuarial loss | 0.8 | 0.9 | |||||||||||
Benefits paid | (2.4 | ) | (8.2 | ) | |||||||||
Benefit obligation at end of year | $ | 14.4 | $ | 14.2 | |||||||||
Funded status | $ | (14.4 | ) | $ | (14.2 | ) | |||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Current liability | $ | (2.3 | ) | $ | (2.8 | ) | |||||||
Non-current liability | $ | (12.1 | ) | $ | (11.4 | ) | |||||||
Accumulated other comprehensive (loss) income | $ | (0.5 | ) | $ | 1.3 | ||||||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of other post-employment benefit plan cost and other amounts recognized in other comprehensive (loss) income for the postretirement health and life insurance plans are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||
Interest cost on projected benefit obligation | 0.2 | 0.2 | 0.3 | ||||||||||
Expected return on plan assets | (0.3 | ) | (0.4 | ) | (0.5 | ) | |||||||
Amortization and deferrals—net | (1.0 | ) | (3.8 | ) | (5.5 | ) | |||||||
Curtailment benefit | (0.5 | ) | (0.3 | ) | (3.8 | ) | |||||||
Total other benefit | $ | (1.6 | ) | $ | (4.3 | ) | $ | (9.5 | ) | ||||
Other comprehensive (loss) income | $ | (1.8 | ) | $ | (2.0 | ) | $ | 8.3 | |||||
Schedule of Net Funded Status | The reconciliation of the postretirement health and life insurance plan’s projected benefit obligation and the fair value of plan assets for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||
At December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 4.5 | $ | 6.9 | |||||||||
Interest cost | 0.2 | 0.2 | |||||||||||
Plan amendment | — | (1.3 | ) | ||||||||||
Actuarial loss (gain) | 0.1 | (0.9 | ) | ||||||||||
Benefits paid | (0.3 | ) | (0.4 | ) | |||||||||
Benefit obligation at end of year | $ | 4.5 | $ | 4.5 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 4.9 | $ | 6 | |||||||||
Actual return on plan assets | 0.1 | 0.1 | |||||||||||
Employer contribution | (0.5 | ) | (0.8 | ) | |||||||||
Benefits paid | (0.3 | ) | (0.4 | ) | |||||||||
Fair value of plan assets at end of year | $ | 4.2 | $ | 4.9 | |||||||||
Funded status | $ | (0.3 | ) | $ | 0.4 | ||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of: | |||||||||||||
Non-current assets | $ | 0.3 | $ | 1.2 | |||||||||
Current liability | $ | (0.1 | ) | $ | (0.2 | ) | |||||||
Non-current liability | $ | (0.5 | ) | $ | (0.6 | ) | |||||||
Accumulated other comprehensive income | $ | 2.8 | $ | 4.6 | |||||||||
Schedule of Expected Benefit Payments | Estimated future benefit payments from the postretirement health and life plan are as follows: | ||||||||||||
2015 | $ | 0.3 | |||||||||||
2016 | 0.3 | ||||||||||||
2017 | 0.2 | ||||||||||||
2018 | 0.2 | ||||||||||||
2019 | 0.2 | ||||||||||||
2020 - 2024 | 1.1 | ||||||||||||
Total | $ | 2.3 | |||||||||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | STOCK-BASED COMPENSATION PLANS | |||||||||||||
At December 31, 2014, the Company had 38.0 common shares that were authorized for issuance under the Convergys Corporation 1998 Long-Term Incentive Plan (Convergys LTIP), as amended on January 28, 2011. The Company granted stock options in 2012 and 2011 with exercise prices that were no less than market value of the stock at the grant date and have a ten-year term and vesting terms of two to three years. The Company also grants certain employees and Directors restricted stock units. The restricted stock units do not possess voting rights and consist of both time-related and performance-related units. The restrictions for the time-related restricted stock units generally lapse one to three years after the grant date. The performance-related units vest upon the Company’s satisfaction of certain financial targets. Performance-related units that have not vested by the end of three years from the grant date (i.e., the performance conditions for vesting of those units have not been met within that period) are forfeited. | ||||||||||||||
The following table shows certain information as of December 31, 2014, with respect to compensation plans under which common shares are authorized for issuance: | ||||||||||||||
Shares (in millions) | Number of Common Shares to be Issued Upon Exercise | Weighted Average Exercise Price | Common Shares Available for Future Issuance | |||||||||||
Equity compensation plans approved by shareholders | ||||||||||||||
Stock options | 0.7 | $ | 13.24 | — | ||||||||||
Restricted stock units | 1.9 | — | — | |||||||||||
2.6 | $ | 13.24 | 8 | |||||||||||
The Company’s operating results reflect stock-based compensation expense of $10.2, $13.4 and $21.6 for 2014, 2013 and 2012, respectively. Expense in 2014 included $1.8 related to awards classified as liabilities that will ultimately settle in cash. Expense in 2012 included incentive plan expense that was paid in cash based on relative shareholder return. Stock-based compensation expense related to discontinued operations was $1.4 for 2012. | ||||||||||||||
Stock Options | ||||||||||||||
Presented below is a summary of Company stock option activity: | ||||||||||||||
Shares (in millions) | Shares | Weighted | ||||||||||||
Average | ||||||||||||||
Exercise | ||||||||||||||
Price | ||||||||||||||
Options outstanding at January 1, 2012 | 3.9 | $ | 23.9 | |||||||||||
Options exercisable at January 1, 2012 | 3.2 | 25.97 | ||||||||||||
Granted | 0.7 | 12.79 | ||||||||||||
Exercised | (1.0 | ) | 11.62 | |||||||||||
Forfeited | (2.4 | ) | 31.33 | |||||||||||
Options outstanding at December 31, 2012 | 1.2 | $ | 12.91 | |||||||||||
Options exercisable at December 31, 2012 | 0.3 | $ | 11.86 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.3 | ) | 12.24 | |||||||||||
Forfeited | (0.1 | ) | 13.31 | |||||||||||
Options outstanding at December 31, 2013 | 0.8 | $ | 13.11 | |||||||||||
Options exercisable at December 31, 2013 | 0.2 | $ | 13.14 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.1 | ) | 12.38 | |||||||||||
Forfeited | — | — | ||||||||||||
Options outstanding at December 31, 2014 | 0.7 | $ | 13.24 | |||||||||||
Options exercisable at December 31, 2014 | 0.5 | $ | 13.41 | |||||||||||
Approximately one-half of the stock options granted during 2012 and 2011 vested in two years and the remaining vest in three years. The Company uses the Black-Scholes option pricing model to calculate the fair value of stock options granted. For the 2012 grants, the weighted average fair value at grant date of $3.43 per option granted included assumptions of a strike price of $12.79, a 30.74% implied volatility, an expected term of 4.5 years, a risk-free rate of 0.76%, and a dividend yield of 0.00%. These 2012 option grants resulted in stock compensation expense of $0.2, $0.6 and $0.7 in 2014, 2013 and 2012, respectively. For the 2011 grants, the weighted average fair value at grant date of $4.06 per option granted included assumptions of a strike price of $13.79, a 31.11% implied volatility, an expected term of 4.5 years, a risk-free rate of 2.12%, and a dividend yield of 0.00%. These 2011 option grants resulted in stock compensation expense of $0.1 in 2014 and $0.3 in 2013 and 2012, respectively. Expected volatility is based on the unbiased standard deviation of the Company's common stock over the option term. The expected life of the options represents the period of time that the Company expects the options granted to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option for the expected term of the instrument. The dividend yield reflects an estimate of dividend payouts over the term of the award. | ||||||||||||||
The weighted average grant date fair value per share for the outstanding and exercisable options at December 31, 2014 was $3.72 and $3.84, respectively. | ||||||||||||||
The following table summarizes the status of the Company stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||
Shares (in millions) | Options Outstanding | Options Exercisable | ||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||
Average | Average | Average | Average | |||||||||||
Remaining | Exercise | Remaining | Exercise | |||||||||||
Contractual | Price | Contractual | Price | |||||||||||
Life (in years) | Life (in years) | |||||||||||||
$11.56 to $21.81 | 0.7 | 6.6 | 13.24 | 0.5 | 6.5 | 13.41 | ||||||||
Total | 0.7 | 6.6 | $ | 13.24 | 0.5 | 6.5 | $ | 13.41 | ||||||
The aggregate intrinsic value of stock options exercised was $1.1 in 2014, $1.3 in 2013 and $3.3 in 2012. The actual tax benefit realized from the exercised stock options was $0.2 in 2014, $0.3 in 2013 and $0.7 in 2012. As of December 31, 2014, the aggregate intrinsic value was $8.6 for both stock options outstanding and exercisable. Intrinsic value represents the Company's closing price on the last trading day of the year in excess of the weighted average exercise price for those tranches of options with a weighted average exercise price less than the closing price multiplied by the number of options outstanding or exercisable. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
Time-based Restricted Stock Units | ||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company granted 0.7, 0.6 and 1.0 shares, respectively, of time-based restricted stock units. The weighted average fair values of these grants were $20.55, $16.35 and $13.21, respectively. The 2014 and 2013 time-based grants are scheduled to vest 25% at the completion of year one after the grant date, 25% after year two and 50% after year three. The 2012 time-based grants vested 50% at the end of year two and 50% at the end of year three. | ||||||||||||||
The total compensation cost related to non-vested time-based restricted stock units not yet recognized as of December 31, 2014 was approximately $13.5, which is expected to be recognized over a weighted average of 1.0 years. Changes to non-vested time-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
Shares (in millions) | Number | Weighted | ||||||||||||
of | Average Fair | |||||||||||||
Shares | Value at Date | |||||||||||||
of Grant | ||||||||||||||
Non-vested at December 31, 2011 | 2.1 | $ | 11.72 | |||||||||||
Granted | 1 | 13.21 | ||||||||||||
Vested | (1.1 | ) | 10.69 | |||||||||||
Forfeited | (0.4 | ) | 12.94 | |||||||||||
Non-vested at December 31, 2012 | 1.6 | 13.04 | ||||||||||||
Granted | 0.6 | 16.35 | ||||||||||||
Vested | (0.7 | ) | 12.75 | |||||||||||
Forfeited | (0.1 | ) | 14.09 | |||||||||||
Non-vested at December 31, 2013 | 1.4 | 14.62 | ||||||||||||
Granted | 0.7 | 20.55 | ||||||||||||
Vested | (0.6 | ) | 14.33 | |||||||||||
Forfeited | (0.2 | ) | 18.85 | |||||||||||
Non-vested at December 31, 2014 | 1.3 | $ | 17.66 | |||||||||||
Performance-based Restricted Stock Units | ||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company granted 0.3, 0.4 and 0.6 shares, respectively, of performance-based restricted stock units. The 2014 and 2013 grants each include 0.3 shares that provide for payout based upon the extent to which the Company achieves certain EPS targets, as determined by the Compensation and Benefits Committee of the Board of Directors, over three-year periods. Payout levels range from 50% to 200% of award shares earned. No payout can be earned if performance is below the minimum threshold level. As the targets for the third year of 2013 grants and second and third years of 2014 grants have not yet been set, the key terms have not been effectively communicated to the recipients, and as such the expense related to these grants cannot be recognized until the key terms are established. These grants have been excluded from the table below. The remaining 0.1 of performance-based shares granted in 2013 vested immediately. | ||||||||||||||
Changes to non-vested performance-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||
Shares (in millions) | Number | Weighted | ||||||||||||
of | Average Fair | |||||||||||||
Shares | Value at Date | |||||||||||||
of Grant | ||||||||||||||
Non-vested at December 31, 2011 | 1.8 | $ | 10.31 | |||||||||||
Granted | 0.6 | 12.95 | ||||||||||||
Vested | (1.1 | ) | 9.63 | |||||||||||
Forfeited | (0.3 | ) | 12.3 | |||||||||||
Non-vested at December 31, 2012 | 1 | 12.69 | ||||||||||||
Granted | 0.1 | 16.34 | ||||||||||||
Vested | (0.8 | ) | 13.32 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2013 | 0.3 | 12.9 | ||||||||||||
Granted | — | — | ||||||||||||
Vested | (0.3 | ) | 12.9 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2014 | — | $ | — | |||||||||||
The aggregate intrinsic value of non-vested restricted stock units was $27.9 at December 31, 2014. | ||||||||||||||
The following table shows certain information as of December 31, 2014, with respect to compensation plans under which common shares are authorized for issuance: | ||||||||||||||
Shares (in millions) | Number of Common Shares to be Issued Upon Exercise | Weighted Average Exercise Price | Common Shares Available for Future Issuance | |||||||||||
Equity compensation plans approved by shareholders | ||||||||||||||
Stock options | 0.7 | $ | 13.24 | — | ||||||||||
Restricted stock units | 1.9 | — | — | |||||||||||
2.6 | $ | 13.24 | 8 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Presented below is a summary of Company stock option activity: | |||||||||||||
Shares (in millions) | Shares | Weighted | ||||||||||||
Average | ||||||||||||||
Exercise | ||||||||||||||
Price | ||||||||||||||
Options outstanding at January 1, 2012 | 3.9 | $ | 23.9 | |||||||||||
Options exercisable at January 1, 2012 | 3.2 | 25.97 | ||||||||||||
Granted | 0.7 | 12.79 | ||||||||||||
Exercised | (1.0 | ) | 11.62 | |||||||||||
Forfeited | (2.4 | ) | 31.33 | |||||||||||
Options outstanding at December 31, 2012 | 1.2 | $ | 12.91 | |||||||||||
Options exercisable at December 31, 2012 | 0.3 | $ | 11.86 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.3 | ) | 12.24 | |||||||||||
Forfeited | (0.1 | ) | 13.31 | |||||||||||
Options outstanding at December 31, 2013 | 0.8 | $ | 13.11 | |||||||||||
Options exercisable at December 31, 2013 | 0.2 | $ | 13.14 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (0.1 | ) | 12.38 | |||||||||||
Forfeited | — | — | ||||||||||||
Options outstanding at December 31, 2014 | 0.7 | $ | 13.24 | |||||||||||
Options exercisable at December 31, 2014 | 0.5 | $ | 13.41 | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes the status of the Company stock options outstanding and exercisable at December 31, 2014: | |||||||||||||
Shares (in millions) | Options Outstanding | Options Exercisable | ||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||
Average | Average | Average | Average | |||||||||||
Remaining | Exercise | Remaining | Exercise | |||||||||||
Contractual | Price | Contractual | Price | |||||||||||
Life (in years) | Life (in years) | |||||||||||||
$11.56 to $21.81 | 0.7 | 6.6 | 13.24 | 0.5 | 6.5 | 13.41 | ||||||||
Total | 0.7 | 6.6 | $ | 13.24 | 0.5 | 6.5 | $ | 13.41 | ||||||
Performance Based Restricted Stock [Member] | ||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Changes to non-vested performance-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||
Shares (in millions) | Number | Weighted | ||||||||||||
of | Average Fair | |||||||||||||
Shares | Value at Date | |||||||||||||
of Grant | ||||||||||||||
Non-vested at December 31, 2011 | 1.8 | $ | 10.31 | |||||||||||
Granted | 0.6 | 12.95 | ||||||||||||
Vested | (1.1 | ) | 9.63 | |||||||||||
Forfeited | (0.3 | ) | 12.3 | |||||||||||
Non-vested at December 31, 2012 | 1 | 12.69 | ||||||||||||
Granted | 0.1 | 16.34 | ||||||||||||
Vested | (0.8 | ) | 13.32 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2013 | 0.3 | 12.9 | ||||||||||||
Granted | — | — | ||||||||||||
Vested | (0.3 | ) | 12.9 | |||||||||||
Forfeited | — | — | ||||||||||||
Non-vested at December 31, 2014 | — | $ | — | |||||||||||
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans Schedule of Non-Vested Restricted Stock Units Activity (Tables) (Time-Based Restricted Stock [Member]) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Time-Based Restricted Stock [Member] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Changes to non-vested time-based restricted stock and restricted stock units for the years ended December 31, 2014 and 2013 were as follows: | |||||
Shares (in millions) | Number | Weighted | ||||
of | Average Fair | |||||
Shares | Value at Date | |||||
of Grant | ||||||
Non-vested at December 31, 2011 | 2.1 | $ | 11.72 | |||
Granted | 1 | 13.21 | ||||
Vested | (1.1 | ) | 10.69 | |||
Forfeited | (0.4 | ) | 12.94 | |||
Non-vested at December 31, 2012 | 1.6 | 13.04 | ||||
Granted | 0.6 | 16.35 | ||||
Vested | (0.7 | ) | 12.75 | |||
Forfeited | (0.1 | ) | 14.09 | |||
Non-vested at December 31, 2013 | 1.4 | 14.62 | ||||
Granted | 0.7 | 20.55 | ||||
Vested | (0.6 | ) | 14.33 | |||
Forfeited | (0.2 | ) | 18.85 | |||
Non-vested at December 31, 2014 | 1.3 | $ | 17.66 | |||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2014, the total minimum rental commitments under non-cancelable operating leases are as follows: | |||
2015 | $ | 112.7 | ||
2016 | 87.4 | |||
2017 | 62.9 | |||
2018 | 42.2 | |||
2019 | 18.1 | |||
Thereafter | 25.1 | |||
Total | $ | 348.4 | ||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Fair Value Of Derivative Instruments | The following table reflects the fair values of these derivative instruments: | |||||||
At December 31, | ||||||||
2014 | 2013 | |||||||
Forward exchange contracts and options designated as hedging instruments: | ||||||||
Included within other current assets | $ | 1.7 | $ | 4.3 | ||||
Included within other non-current assets | 1.3 | 0.2 | ||||||
Included within other current liabilities | 21.4 | 21.2 | ||||||
Included within other long-term liabilities | 11.3 | 19.8 | ||||||
Effect Of Derivative Instruments On Consolidated Financial Statements | The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during 2014 and 2013, respectively: | |||||||
2014:00:00 | ||||||||
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) | Gain (Loss) | Location of | |||||
Recognized | Reclassified | Gain (Loss) | ||||||
in OCL on | from Accumulated | Reclassified from | ||||||
Derivative | OCL into Income | Accumulated OCL | ||||||
(Effective Portion) | (Effective Portion) | into Income | ||||||
(Effective Portion) | ||||||||
Foreign exchange contracts | $ | (7.5 | ) | $ | (14.3 | ) | Cost of providing services and products sold and Selling, general and administrative | |
2013:00:00 | ||||||||
Derivatives in Cash Flow Hedging Relationships | Gain (Loss) | Gain (Loss) | Location of | |||||
Recognized | Reclassified | Gain (Loss) | ||||||
in OCL on | from Accumulated | Reclassified from | ||||||
Derivative | OCL into Income | Accumulated OCL | ||||||
(Effective Portion) | (Effective Portion) | into Income | ||||||
(Effective Portion) | ||||||||
Foreign exchange contracts | $ | (57.1 | ) | $ | (2.1 | ) | Cost of providing services and products sold and Selling, general and administrative |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The derivative assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 were as follows: | |||||||||||||||
December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Derivatives: | ||||||||||||||||
Foreign currency forward contracts (asset position) | $ | 3.3 | $ | — | $ | 3.3 | $ | — | ||||||||
Foreign currency forward contracts (liability position) | $ | 32.7 | $ | — | $ | 32.7 | $ | — | ||||||||
December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Derivatives: | ||||||||||||||||
Foreign currency forward contracts (asset position) | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||
Foreign currency forward contracts (liability position) | $ | 41 | $ | — | $ | 41 | $ | — | ||||||||
Investments [Member] | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The assets measured at fair value on a recurring basis as of December 31, 2014 and 2013 were as follows: | |||||||||||||||
31-Dec-14 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Investment securities: | ||||||||||||||||
Mutual funds | $ | 10.3 | $ | 10.3 | $ | — | $ | — | ||||||||
Convergys common stock | 2.1 | 2.1 | — | — | ||||||||||||
Money market accounts | 0.6 | 0.6 | — | — | ||||||||||||
Total | $ | 13 | $ | 13 | $ | — | $ | — | ||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Investment securities: | ||||||||||||||||
Mutual funds | $ | 11 | $ | 11 | $ | — | $ | — | ||||||||
Convergys common stock | 2.3 | 2.3 | — | — | ||||||||||||
Money market accounts | 0.9 | 0.9 | — | — | ||||||||||||
Total | $ | 14.2 | $ | 14.2 | $ | — | $ | — | ||||||||
Interest-bearing Deposits [Member] | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The assets measured at fair value on a recurring basis as of December 31, 2013 were as follows: | |||||||||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Short-term Investments: | ||||||||||||||||
Cash time deposits | $ | 68.7 | $ | — | $ | 68.7 | $ | — | ||||||||
Total | $ | 68.7 | $ | — | $ | 68.7 | $ | — | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The Company’s provision for income taxes from continuing operations consists of the following: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current: | ||||||||||
United States federal | $ | 33.8 | $ | (3.1 | ) | $ | (0.9 | ) | ||
Foreign | 45.6 | 10.2 | 8 | |||||||
State and local | 1.1 | 1.5 | (1.8 | ) | ||||||
Total current | 80.5 | 8.6 | 5.3 | |||||||
Deferred: | ||||||||||
United States federal | (42.4 | ) | 30.7 | (4.7 | ) | |||||
Foreign | (27.5 | ) | 34 | (0.8 | ) | |||||
State and local | 2.2 | (0.8 | ) | 1.3 | ||||||
Total deferred | (67.7 | ) | 63.9 | (4.2 | ) | |||||
Total | $ | 12.8 | $ | 72.5 | $ | 1.1 | ||||
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate with the effective tax rate from continuing operations for the tax expense in 2014, 2013 and 2012, respectively: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
Permanent differences | 8.6 | 6.8 | 12.4 | |||||||
State and local income taxes, net of federal income tax | 1.7 | 0.4 | (3.4 | ) | ||||||
International rate differential, including tax holidays | (29.8 | ) | (14.0 | ) | (54.2 | ) | ||||
Foreign valuation allowances | 2.3 | — | (4.9 | ) | ||||||
Asset impairments and other | — | — | 46.5 | |||||||
Adjustments for uncertain tax positions | 1.2 | 2.3 | (1.8 | ) | ||||||
Restructuring | — | — | (9.2 | ) | ||||||
Tax credits and other | (4.5 | ) | (10.4 | ) | (16.6 | ) | ||||
Foreign repatriation, net of foreign tax credits | (4.6 | ) | 35.2 | — | ||||||
Effective rate | 9.9 | % | 55.3 | % | 3.8 | % | ||||
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: | |||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Loss and credit carryforwards | $ | 104.7 | $ | 66.6 | ||||||
Pension and employee benefits | 44.7 | 31.7 | ||||||||
Restructuring charges | 1.3 | 0.6 | ||||||||
Deferred revenue | 2.9 | 3.9 | ||||||||
Foreign currency hedges | 11.4 | 11.5 | ||||||||
Intercompany payables/receivables | 48.3 | — | ||||||||
Other | 47.9 | 28.9 | ||||||||
Valuation allowances | (39.3 | ) | (26.2 | ) | ||||||
Total deferred tax assets | 221.9 | 117 | ||||||||
Deferred tax liabilities: | ||||||||||
Depreciation and amortization | 291.4 | 161.4 | ||||||||
Deferred implementation costs | 0.6 | 1.3 | ||||||||
Contingent debt and accrued interest | 67.7 | 57.6 | ||||||||
Unremitted foreign earnings | 15.7 | 61.8 | ||||||||
Other | 7.3 | 8 | ||||||||
Total deferred tax liabilities | 382.7 | 290.1 | ||||||||
Net deferred tax liabilities | $ | (160.8 | ) | $ | (173.1 | ) | ||||
Deferred tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the Consolidated Balance Sheets at December 31, 2014 and 2013. | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Current deferred tax asset | $ | 107.2 | $ | 6.2 | ||||||
Non-current deferred tax asset | 8.2 | 8.9 | ||||||||
Current deferred tax liability | 0.6 | 37.4 | ||||||||
Non-current deferred tax liability | 275.6 | 150.8 | ||||||||
Total deferred tax liability | $ | (160.8 | ) | $ | (173.1 | ) | ||||
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending total amounts of unrecognized tax benefits (exclusive of interest and penalties) is as follows: | |||||||||
2014 | 2013 | |||||||||
Balance at January 1 | $ | 32.6 | $ | 34.9 | ||||||
Additions based on tax positions related to the current year | 0.4 | 0.3 | ||||||||
Additions for tax positions of Stream on the date of acquisition | 5.9 | — | ||||||||
Settlements | 0.5 | (0.2 | ) | |||||||
Reductions for tax positions of prior years | (0.7 | ) | (1.8 | ) | ||||||
Lapse of statutes | (1.6 | ) | (0.6 | ) | ||||||
Balance at December 31 | $ | 37.1 | $ | 32.6 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss): | ||||||||||||||||||
Foreign Currency | Derivative Financial Instruments | Pension Liability | Total | |||||||||||||||
Balance at December 31, 2012 | $ | 36.4 | $ | 11.4 | $ | (58.3 | ) | $ | (10.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications, net of tax | (1.3 | ) | (35.1 | ) | 10.3 | (26.1 | ) | |||||||||||
Settlement of pension obligation, net of tax | — | — | 8.4 | 8.4 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 1.2 | 7.5 | 8.7 | ||||||||||||||
Net current-period other comprehensive (loss) income | (1.3 | ) | (33.9 | ) | 26.2 | (9.0 | ) | |||||||||||
Balance at December 31, 2013 | $ | 35.1 | $ | (22.5 | ) | $ | (32.1 | ) | $ | (19.5 | ) | |||||||
Other comprehensive loss before reclassifications, net of tax | (36.2 | ) | (4.5 | ) | (21.9 | ) | (62.6 | ) | ||||||||||
Settlement of pension obligation, net of tax | — | — | 2.9 | 2.9 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 8.7 | 3.8 | 12.5 | ||||||||||||||
Net current-period other comprehensive (loss) income | (36.2 | ) | 4.2 | (15.2 | ) | (47.2 | ) | |||||||||||
Balance at December 31, 2014 | $ | (1.1 | ) | $ | (18.3 | ) | $ | (47.3 | ) | $ | (66.7 | ) | ||||||
The following table summarizes the reclassification out of accumulated other comprehensive income (loss): | ||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||
2014:00:00 | ||||||||||||||||||
Loss on derivative instruments | $ | (14.3 | ) | Cost of providing services and products sold and Selling, general and administrative | ||||||||||||||
Tax benefit | 5.6 | Income tax expense | ||||||||||||||||
Loss on derivative instruments, net of tax | (8.7 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Adjustments of pension and other post employment obligations | (10.7 | ) | Selling, general and administrative | |||||||||||||||
Tax benefit | 4 | Income tax expense | ||||||||||||||||
Adjustment of pension and other post employment obligations, net of tax | (6.7 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Total reclassifications for the period | $ | (15.4 | ) | |||||||||||||||
2013:00:00 | ||||||||||||||||||
Loss on derivative instruments | $ | (2.1 | ) | Cost of providing services and products sold and Selling, general and administrative | ||||||||||||||
Tax benefit | 0.9 | Income tax expense | ||||||||||||||||
Loss on derivative instruments, net of tax | (1.2 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Adjustment of pension and other post employment obligations | (24.9 | ) | Selling, general and administrative | |||||||||||||||
Tax benefit | 9 | Income tax expense | ||||||||||||||||
Adjustment of pension and other post employment obligations, net of tax | (15.9 | ) | Income from Continuing Operations, net of tax | |||||||||||||||
Total reclassifications for the period | $ | (17.1 | ) |
Additional_Financial_Informati1
Additional Financial Information (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Additional Financial Information | |||||||
At December 31, | |||||||
2014 | 2013 | ||||||
Property and equipment, net: | |||||||
Land | $ | 6.9 | $ | 6.9 | |||
Buildings | 103.4 | 101.5 | |||||
Leasehold improvements | 285 | 189.3 | |||||
Equipment | 555.8 | 480.4 | |||||
Software | 339.2 | 311.9 | |||||
Construction in progress and other | 28.6 | 32 | |||||
1,318.90 | 1,122.00 | ||||||
Less: Accumulated depreciation | (951.1 | ) | (875.6 | ) | |||
$ | 367.8 | $ | 246.4 | ||||
Payables and other current liabilities: | |||||||
Accounts payable | $ | 40.1 | $ | 30.9 | |||
Deferred tax liability | 0.6 | 37.4 | |||||
Accrued income and other taxes | 34.6 | 22.3 | |||||
Accrued payroll-related expenses | 156.4 | 85.9 | |||||
Derivative liabilities | 21.4 | 21.2 | |||||
Accrued expenses, other | 84.5 | 68.9 | |||||
Restructuring and exit costs | 3.9 | 2.3 | |||||
Deferred revenue and government grants | 19.5 | 22.8 | |||||
$ | 361 | $ | 291.7 | ||||
Industry_Segments_and_Geograph1
Industry Segments and Geographic Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table presents certain geographic information regarding the Company’s operations: | |||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues: | ||||||||||
North America | $ | 2,320.30 | $ | 1,860.80 | $ | 1,836.40 | ||||
Rest of World | 535.2 | 185.3 | 168.6 | |||||||
$ | 2,855.50 | $ | 2,046.10 | $ | 2,005.00 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
Long-lived Assets: | ||||||||||
North America | $ | 1,031.30 | $ | 762.9 | ||||||
Rest of World | 594.3 | 133.4 | ||||||||
$ | 1,625.60 | $ | 896.3 | |||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter (a) | |||||||||||||||||
2014:00:00 | ||||||||||||||||||||
Revenues | $ | 605.7 | $ | 736.4 | $ | 749.5 | $ | 763.9 | $ | 2,855.50 | ||||||||||
Operating Income | 22 | 36.9 | 42 | 49.9 | 150.8 | |||||||||||||||
Income from Continued Operations, net of tax | 13.7 | 24.9 | 30 | 48 | 116.5 | |||||||||||||||
Income (loss) from Discontinued Operations, net of tax | 0.5 | (0.2 | ) | 2.8 | 0.4 | 3.5 | ||||||||||||||
Net Income | 14.2 | 24.7 | 32.8 | 48.4 | 120 | |||||||||||||||
Basic Earnings Per Common Share: | ||||||||||||||||||||
Continuing Operations | $ | 0.14 | $ | 0.25 | $ | 0.3 | $ | 0.48 | $ | 1.16 | ||||||||||
Discontinued Operations | — | — | 0.03 | — | 0.03 | |||||||||||||||
Basic Earnings Per Common Share | $ | 0.14 | $ | 0.25 | $ | 0.33 | $ | 0.48 | $ | 1.19 | ||||||||||
Diluted Earnings Per Common Share | ||||||||||||||||||||
Continuing Operations | $ | 0.13 | $ | 0.23 | $ | 0.28 | $ | 0.46 | $ | 1.1 | ||||||||||
Discontinued Operations | — | — | 0.03 | — | 0.03 | |||||||||||||||
Diluted Earnings Per Common Share | $ | 0.13 | $ | 0.23 | $ | 0.31 | $ | 0.46 | $ | 1.13 | ||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter (b) | |||||||||||||||||
2013:00:00 | ||||||||||||||||||||
Revenues | $ | 493.5 | $ | 504.3 | $ | 521 | $ | 527.3 | $ | 2,046.10 | ||||||||||
Operating Income | 36.5 | 30.1 | 31.3 | 39.5 | 137.4 | |||||||||||||||
Income (loss) from Continued Operations, net of tax | 30.2 | 22 | 28.2 | (21.9 | ) | 58.5 | ||||||||||||||
(Loss) income from Discontinued Operations, net of tax | (5.1 | ) | 1.4 | 5.7 | 0.4 | 2.4 | ||||||||||||||
Net Income (Loss) | 25.1 | 23.4 | 33.9 | (21.5 | ) | 60.9 | ||||||||||||||
Basic Earnings (Loss) Per Common Share: | ||||||||||||||||||||
Continuing Operations | $ | 0.28 | $ | 0.21 | $ | 0.27 | $ | (0.21 | ) | $ | 0.57 | |||||||||
Discontinued Operations | (0.04 | ) | 0.02 | 0.06 | — | 0.02 | ||||||||||||||
Basic Earnings (Loss) Per Common Share | $ | 0.24 | $ | 0.23 | $ | 0.33 | $ | (0.21 | ) | $ | 0.59 | |||||||||
Diluted Earnings (Loss) Per Common Share | ||||||||||||||||||||
Continuing Operations | $ | 0.27 | $ | 0.2 | $ | 0.26 | $ | (0.21 | ) | $ | 0.54 | |||||||||
Discontinued Operations | (0.04 | ) | 0.02 | 0.05 | — | 0.02 | ||||||||||||||
Basic Earnings (Loss) Per Common Share | $ | 0.23 | $ | 0.22 | $ | 0.31 | $ | (0.21 | ) | $ | 0.56 | |||||||||
(a) Fourth quarter 2014 includes a decrease in operating income of $16.7 resulting from $2.2 of integration related expenses associated with Convergys' acquisition of Stream, $1.7 of pension settlement charge, $5.6 of depreciation expense resulting from the fair value write-up of property and equipment acquired from Stream, and $7.2 of amortization expense related to acquired intangible assets. Fourth quarter 2014 also includes $4.5 of tax benefit for the difference between the tax previously accrued on foreign earnings and the current estimate as of December 31, 2014. | ||||||||||||||||||||
(b) Fourth quarter 2013 includes a decrease in operating income of $5.2 resulting from $2.7 of transaction expenses associated with Convergys' acquisition of Stream, $1.3 of amortization expense related to acquired intangible assets and $1.2 of net pension and other post employment benefit plan charges. The net pension and other post employment benefit plan charge consists of a $1.5 pension settlement charge and settlement gain of $0.3 related to the Executive Deferred Compensation Plan. Fourth quarter 2013 also includes $46.4 of tax expense to record the deferred tax liability associated with a change in classification for a portion of undistributed earnings of the Company's foreign subsidiaries. See Note 14 of the Notes to Consolidated Financial Statements for further information. | ||||||||||||||||||||
Recovered_Sheet1
Background And Basis of Presentation (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2015 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $3.50 | $2.40 | $72.40 | ||||||
Business Acquisition, Transaction Costs | 14.7 | 2.7 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 802.6 | 15 | -802.6 | -16.4 | 0 | ||||
Number of Countries in which Entity Operates | 31 | ||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 253.3 | 834.8 | |||||||
Information Management [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Gain on sale of business segment, pre tax | 0.3 | -6.4 | [1] | 99.8 | |||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 3.5 | 2.4 | 32 | ||||||
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation | -3.2 | -8.8 | 83.6 | ||||||
HR Management [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Sale of business segment | 93 | ||||||||
Gain on sale of business segment, after tax | 40.4 | ||||||||
Number of Employees, Total [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Number of employees added in business acquisition | 40,000 | ||||||||
Entity Number of Employees | 125,000 | ||||||||
Geographical [Domain] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Number of Countries in which Entity Operates | 22 | ||||||||
Australian Dollars [Member] | |||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||
Business Acquisition, Transaction Costs | $20 | ||||||||
[1] | Includes $22.8 of transaction costs related to the sale for 2012. |
Accounting_Policies_Details
Accounting Policies (Details) (USD $) | 12 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Derivative instruments maturity period (in months) | 36 months | |||
Minimum Percent Likely To Be Recognized To Measure Tax Benefit | 50.00% | |||
Allowance for doubtful accounts receivable | $8.10 | $5.30 | ||
Capitalized Computer Software, Period Increase (Decrease) | 4.9 | 1 | 6.8 | |
Capital Leased Assets, Gross | $64.60 | |||
Minimum [Member] | ||||
Number Of Days Receivables Are Generally Due | 30 | |||
Maximum [Member] | ||||
Number Of Days Receivables Are Generally Due | 60 | |||
Customer Management [Member] | ||||
Percent Of Revenue Derived From Agents | 94.00% | |||
Building [Member] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 30 | |||
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 3 | |||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 8 | |||
Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 3 | |||
Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 5 | |||
Trademarks [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Trademarks [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Customer Relationships [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 1 year | |||
Customer Relationships [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 17 years | 17 years |
Earnings_Loss_Per_Share_and_Sh2
Earnings (Loss) Per Share and Shareholderbs Equity (Schedule Of Reconciliation Of The Numerator And Denominator Of The Basic And Diluted Earnings (Loss) Per Share (EPS) Computations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share | |||||||||||
Basic | 100.7 | 103.3 | 112.2 | ||||||||
Stock-based compensation arrangements | 1 | 1.2 | 2.1 | ||||||||
Convertible Debt, Share | 4.5 | 4.7 | 2.8 | ||||||||
Diluted EPS | 106.2 | 109.2 | 117.1 | ||||||||
Income from continuing operations | $48 | $30 | $24.90 | $13.70 | ($21.90) | $28.20 | $22 | $30.20 | $116.50 | $58.50 | $28.20 |
Income from continuing operations, Diluted EPS | 116.5 | 58.5 | 28.2 | ||||||||
Income (loss) from continuing operations, per basic share | $0.48 | $0.30 | $0.25 | $0.14 | ($0.21) | $0.27 | $0.21 | $0.28 | $1.16 | $0.57 | $0.25 |
Stock-based compensation arrangements continuing operations, per share | ($0.02) | ($0.01) | $0 | ||||||||
Convertible debt continuing operation, per share | ($0.04) | ($0.02) | ($0.01) | ||||||||
Income (loss) from continuing operations, per diluted share | $0.46 | $0.28 | $0.23 | $0.13 | ($0.21) | $0.26 | $0.20 | $0.27 | $1.10 | $0.54 | $0.24 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 3.5 | 2.4 | 72.4 | ||||||||
Income (loss) from discontinued operations, Diluted EPS | $3.50 | $2.40 | $72.40 | ||||||||
Income (loss) from discontinued operations, per basic share | $0 | $0.03 | $0 | $0 | $0 | $0.06 | $0.02 | ($0.04) | $0.03 | $0.02 | $0.65 |
Stock-based compensation arrangements discontinued operations, per share | $0 | $0 | ($0.01) | ||||||||
Convertible Debt, Discontinued Operations, Per Share | $0 | $0 | ($0.02) | ||||||||
Income (loss) from discontinued operations, per diluted share | $0 | $0.03 | $0 | $0 | $0 | $0.05 | $0.02 | ($0.04) | $0.03 | $0.02 | $0.62 |
Net basic earnings (loss) per share | $0.48 | $0.33 | $0.25 | $0.14 | ($0.21) | $0.33 | $0.23 | $0.24 | $1.19 | $0.59 | $0.90 |
Stock-based compensation arrangements per share, total | ($0.02) | ($0.01) | ($0.01) | ||||||||
Convertible debt discontinuing operation, per share, total | ($0.04) | ($0.02) | ($0.03) | ||||||||
Net diluted earnings (loss) per share | $0.46 | $0.31 | $0.23 | $0.13 | ($0.21) | $0.31 | $0.22 | $0.23 | $1.13 | $0.56 | $0.86 |
Earnings_Loss_Per_Share_and_Sh3
Earnings (Loss) Per Share and Shareholderbs Equity (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common Stock, Dividends, Per Share, Cash Paid | $0.07 | $0.07 | $0.07 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | |||||
Repurchase of shares | 0.5 | 2.3 | 6.7 | 12.3 | |||||||||
Repurchase of Common Shares | $9.50 | $46.30 | $119 | $184.40 | |||||||||
Stock repurchased but not settled in cash | 0.9 | ||||||||||||
Repurchase of shares, average price per share | $20.06 | $20 | |||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 4.5 | 4.7 | 2.8 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 250 | 250 | |||||||||||
Stock Repurchase Program, Authorized Amount | 87.1 | 87.1 | |||||||||||
Preferred Stock, Shares Authorized | 5 | 5 | 5 | 5 | |||||||||
Preferred Stock, With Voting Rights | 4 | 4 | |||||||||||
Common Stock, Dividends, Per Share, Declared | $0.27 | $0.24 | $0.15 | ||||||||||
Stock Options [Member] | |||||||||||||
Antidilutive securities excluded from diluted EPS | 0.5 | 0.6 | 1 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Antidilutive securities excluded from diluted EPS | 0.6 | ||||||||||||
5.75% Junior Subordinated Convertible Debentures [Member] | |||||||||||||
Aggregate principal amount convertible debentures | $125 | ||||||||||||
Interest rate on unsecured senior notes | 5.75% | ||||||||||||
Maturity date | 15-Sep-29 | ||||||||||||
Junior subordinated convertible debentures convertible conversion price | $11.65 | $11.65 | $12.07 | ||||||||||
Junior subordinated convertible debentures convertible equity instruments in conversion | 85.83 | 82.82 | |||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | 1000 | 1000 | |||||||||||
2014 Performance grants [Domain] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Antidilutive securities excluded from diluted EPS | 0.3 | ||||||||||||
2013 Performance grants [Domain] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Antidilutive securities excluded from diluted EPS | 0.3 |
Earnings_Loss_Per_Share_and_Sh4
Earnings (Loss) Per Share and Shareholderbs Equity Schedule of Dividends Declared and Paid (Details) (USD $) | 3 Months Ended | |||||||
Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |
Schedule of Dividends Declared and Paid [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $0.07 | $0.07 | $0.07 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 |
Business_Combination_Details
Business Combination (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 03, 2014 | Apr. 30, 2013 |
Business Acquisition [Line Items] | |||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $253.30 | $834.80 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 802.6 | 15 | -802.6 | -16.4 | 0 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 0.7 | ||||||||
Senior Notes | 230 | ||||||||
Business Acquisition, Transaction Costs | 14.7 | 14.7 | 2.7 | ||||||
Repayments of Assumed Debt | 5.3 | ||||||||
Goodwill, Acquired During Period | 277.5 | 12.2 | |||||||
Business Acquisition, Customer Relationship Intangible Assets Acquired | 7 | ||||||||
Interest Payable, Current | 13 | ||||||||
Interest Paid | 16.6 | 11.2 | 13.7 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 9.2 | 11.2 | |||||||
Business Acquisition, Effective Date of Acquisition | 3-Mar-14 | ||||||||
Australian Dollars [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition, Transaction Costs | 20 | ||||||||
United States of America, Dollars | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition, Transaction Costs | 20 | ||||||||
2014 Term Loan [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 350 | ||||||||
2014 Revolving Credit Facility [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | 300 | 300 | ||||||
Customer Relationships [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired Finite-Lived Intangible Asset, Useful Life | 8 years | ||||||||
Convertible Debt [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Repayments of Convertible Debt | 16.1 | ||||||||
Interest Paid | 3.2 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Interest Paid | 0.3 | ||||||||
Repayments of Lines of Credit | $63.10 |
Business_Combination_Purchase_1
Business Combination Purchase Price Consideration (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | |
Business Combination, Purchase Price Consideration [Line Items] | |||
Transaction Cost of Equity Method Investment Sold | $830.60 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 28 | [1] | |
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination | 802.6 | ||
Common Class A [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 481 | [2] | |
Stock Option Awards [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 16.1 | [3] | |
Senior Notes [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 243 | [4] | |
Convertible Debt [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 19.3 | [5] | |
Revolving Credit Facility [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Liabilities Incurred | 63.4 | [6] | |
Acquisition-related Costs [Member] | |||
Business Combination, Purchase Price Consideration [Line Items] | |||
Business Combination, Consideration Transferred, Liabilities Incurred | $7.80 | [7] | |
[1] | Represents the Stream cash balance acquired at acquisition. | ||
[2] | The cash consideration for the outstanding shares of Stream's common stock, which includes final settlement for working capital. Stream outstanding common shares totaledB 0.7B as of March 3, 2014. | ||
[3] | The cash consideration paid per share of "in the money" stock option awards. | ||
[4] | The cash consideration to repay Stream's 11.25% Senior Secured Notes due 2014, which reflects the aggregate principal and interest amounts ofB $230.0B andB $13.0, respectively, as of March 3, 2014. | ||
[5] | The cash consideration to repay Stream's 10.0% Promissory Notes, which reflects the aggregate principal and interest amounts ofB $16.1B andB $3.2, respectively, as of March 3, 2014. | ||
[6] | The cash consideration to repay Stream's Revolving Credit Facility, which reflects the aggregate principal and interest amounts ofB $63.1B andB $0.3, respectively, as of March 3, 2014. | ||
[7] | Pursuant to the Merger Agreement, Convergys reimbursed the holders of Stream common stock for expenses incurred by Stream in connection with the merger. These expenses primarily related to third-party consulting services. |
Business_Combination_Purchase_2
Business Combination Purchase Price Allocation (Details) (USD $) | Dec. 31, 2014 | Mar. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Business Combination Segment Allocation [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $197.90 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 13.5 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 159.3 | |||
Goodwill | 850.7 | 277.5 | 589.4 | 577.7 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 370.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 7.8 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | -12.3 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | -100.3 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | -3.8 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | -34.6 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | -61.2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | -11.6 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $802.60 |
Business_Combination_Intangibl1
Business Combination Intangible Assets (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 03, 2014 |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Fair Value Inputs, Discount Rate | 11.00% | ||||
Finite-Lived Intangible Assets, Gross | 536.5 | $177.60 | |||
Stream Acquisition [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 370.4 | ||||
Customer Relationships [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Customer Relationships, Gross | 352 | ||||
Trade Names [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Trade Names, Gross | 17 | ||||
Trademarks [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 26.5 | 10 | |||
Off-Market Favorable Lease [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | $1.40 | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 17 years | 17 years | |||
Maximum [Member] | Trademarks [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Maximum [Member] | Contract-Based Intangible Assets [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Minimum [Member] | Customer Relationships [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||||
Minimum [Member] | Trademarks [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Minimum [Member] | Contract-Based Intangible Assets [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 1 year |
Business_Combination_Proforma_
Business Combination Proforma Information (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Business Acquisition, Pro Forma Revenue | $3,026.90 | $3,061.80 | |
Business Acquisition, Pro Forma Net Income (Loss) | $110.80 | $56 | |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $1.10 | $0.54 | |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $1.04 | $0.51 | |
Weighted Average Number of Shares Outstanding, Basic | 100.7 | 103.3 | 112.2 |
Weighted Average Number of Shares Outstanding, Diluted | 106.2 | 109.2 | 117.1 |
Divestitures_Narrative_Details
Divestitures (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $3.50 | $2.40 | $72.40 | ||
Information Management [Member] | |||||
Transaction costs related to the sale of business | 22.8 | ||||
Gain on sale of business segment, pre tax | 0.3 | -6.4 | [1] | 99.8 | |
Federal, state and foreign income tax obligation | -3.2 | -8.8 | 83.6 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 3.5 | 2.4 | 32 | ||
Cost allocated for discontinued business segment included in continuing operations | 8.8 | ||||
Revenue under transition services agreements subsequent to close of sale | 8.2 | 17.1 | |||
HR Management [Member] | |||||
Sale of business segment | 93 | ||||
Gain on sale of business segment, after tax | $40.40 | ||||
[1] | Includes $22.8 of transaction costs related to the sale for 2012. |
Divestitures_Schedule_Of_Resul
Divestitures (Schedule Of Results Included In Discontinued Operations) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $3.50 | $2.40 | $72.40 | |
Information Management [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue from discontinued operations | 0 | 0 | 128.8 | |
Income (loss) before tax | 0 | 0 | [1] | 23.7 |
Gain (loss) on disposition | 0.3 | -6.4 | [2] | 99.8 |
Income (loss) before income taxes | 0.3 | -6.4 | 123.5 | |
Income tax on operations | 0 | 0 | 7.9 | |
Income tax on gain (loss) on dispostion | -3.2 | -8.8 | 83.6 | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $3.50 | $2.40 | $32 | |
[1] | Excludes costs previously allocated to Information Management that did not meet the criteria for presentation within discontinued operations of $8.8 for 2012 | |||
[2] | Includes $22.8 of transaction costs related to the sale for 2012. |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets and Long-Lived Assets (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 03, 2014 |
Goodwill, net | $850.70 | $589.40 | $577.70 | $277.50 | |||
Amortization | 24.7 | 5.3 | 6.3 | ||||
Business Acquisition, Transaction Costs | 14.7 | 2.7 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 802.6 | 15 | -802.6 | -16.4 | 0 | ||
Repayments of Assumed Debt | 5.3 | ||||||
Goodwill, Acquired During Period | 277.5 | 12.2 | |||||
Business Acquisition, Customer Relationship Intangible Assets Acquired | 7 | ||||||
Long Lived Assets Held-for-sale, Impairment Charge | 42.6 | ||||||
Long Lived Assets Held for Sale Impairment Charge, net of tax | 27 | ||||||
Asset Impairment Charges | -1.6 | 1.5 | 88.6 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 47.6 | ||||||
Software [Member] | |||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||
Customer Relationships [Member] | |||||||
Acquired Finite-Lived Intangible Asset, Useful Life | 8 years | ||||||
Weighted average amortization period | 15 years | ||||||
Customer Management - CIT [Member] | |||||||
Goodwill impairment charge | 46 | ||||||
Goodwill impairment charge, net of tax | $44.40 | ||||||
Minimum [Member] | Software [Member] | |||||||
Intangible assets, useful life, minimum | 5 years | ||||||
Minimum [Member] | Trademarks [Member] | |||||||
Intangible assets, useful life, minimum | 4 years | ||||||
Minimum [Member] | Customer Relationships [Member] | |||||||
Intangible assets, useful life, minimum | 1 year | ||||||
Maximum [Member] | Software [Member] | |||||||
Intangible assets, useful life, minimum | 8 years | ||||||
Maximum [Member] | Trademarks [Member] | |||||||
Intangible assets, useful life, minimum | 4 years | ||||||
Maximum [Member] | Customer Relationships [Member] | |||||||
Intangible assets, useful life, minimum | 17 years | 17 years |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 03, 2014 |
Goodwill [Line Items] | |||
Beginning Balance | $589.40 | $577.70 | $277.50 |
Acquisitions | 277.5 | 12.2 | |
Foreign currency and other | -16.2 | -0.5 | |
Ending Balance | $850.70 | $589.40 | $277.50 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Gross Carrying Value | $536.50 | $177.60 |
Accumulated Amortization | -174.8 | -146.9 |
Intangible assets, net | 361.7 | 30.7 |
Customer Relationships And Other Intangibles [Member] | ||
Gross Carrying Value | 468.7 | 126.3 |
Accumulated Amortization | -126.6 | -105.9 |
Intangible assets, net | 342.1 | 20.4 |
Software [Member] | ||
Gross Carrying Value | 41.3 | 41.3 |
Accumulated Amortization | -34.8 | -31 |
Intangible assets, net | 6.5 | 10.3 |
Trademarks [Member] | ||
Gross Carrying Value | 26.5 | 10 |
Accumulated Amortization | -13.4 | -10 |
Intangible assets, net | $13.10 | $0 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Estimated Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
For the year ended 2013 | $28 |
For the year ended 2014 | 27 |
For the year ended 2015 | 27 |
For the year ended 2016 | 24 |
For the year ended 2017 | 23 |
Thereafter | $226 |
Debt_Revolving_Credit_Facility
Debt (Revolving Credit Facility) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 03, 2014 | Mar. 11, 2013 |
Debt Instrument, Unused Borrowing Capacity, Amount | $150 | ||||
Proceeds from (Repayments of) Debt | 344.9 | 0 | 0 | ||
Debt Instrument, Unamortized Discount | 5.1 | ||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.023 | ||||
Repayments of Debt | 85 | ||||
Credit facility, amount outstanding | 261 | 0 | |||
Accounts Receivable Securitization | 40 | 0 | |||
2014 Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | 650 | ||||
2011 Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | 300 | ||||
2014 Term Loan [Member] | |||||
Line of credit, maximum borrowing capacity | 350 | ||||
Credit facility, amount outstanding | 265 | ||||
2014 Revolving Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | $300 | $300 | |||
Asset Securitization Facility [Member] | |||||
Asset Securitization Facility, Expiration Date | Jan-17 |
Debt_Convertible_Debentures_De
Debt (Convertible Debentures) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2013 |
Debt Instrument | ||||
Long-term Debt, Contingent Payment of Principal or Interest | 0.0075 | |||
Debt Instrument, Convertible, Threshold Trading Days | 20 | |||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | |||
Debt Instrument, Convertible, Stock Price Trigger | $15.15 | |||
Maximum percentage of debenture trading price | 98.00% | |||
Deferred tax impact on convertible debt | $275.60 | $150.80 | ||
Temporary Equity, Par Value | 64.3 | 65.5 | ||
5.75% Junior Subordinated Convertible Debentures [Member] | ||||
Debt Instrument | ||||
Fair value of convertible debt | 249.7 | 56.3 | ||
Deferred tax impact on convertible debt | 32.7 | |||
Debt Instrument, Convertible, Terms of Conversion Feature | 1000 | |||
4.875% Unsecured Senior Notes [Member] | ||||
Debt Instrument | ||||
Extinguishment of Debt, Amount | 122.5 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | |||
5.75% Junior Subordinated Convertible Debentures [Member] | ||||
Debt Instrument | ||||
Aggregate principal amount convertible debentures | $125 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
Maturity date | 15-Sep-29 | |||
Junior subordinated convertible debentures convertible conversion price | $11.65 | $12.07 | ||
Junior subordinated convertible debentures convertible equity instruments in conversion | 85.83 | 82.82 | ||
Debt Instrument, Convertible, Terms of Conversion Feature | 1000 | 1000 |
Debt_Schedule_Of_Debt_And_Capi
Debt (Schedule Of Debt And Capital Lease Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument | ||
Asset Securitization Facility | $150 | |
Revolving credit facility | 261 | 0 |
2029 Convertible debt | 60.7 | 59.5 |
Capital Lease Obligations | 14.2 | 1.6 |
Accounts Receivable Securitization | 40 | 0 |
Debt and Capital Lease Obligations | 375.9 | 61.1 |
Less current maturities | -7.5 | -0.9 |
Long-term debt | $368.40 | $60.20 |
Line of Credit [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 1.90% | 0.00% |
Asset Securitization Facility [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 1.20% | 0.00% |
5.75% Junior Subordinated Convertible Debentures [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 6.70% | 6.60% |
Debt_Schedule_Of_Future_Minimu
Debt (Schedule Of Future Minimum Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
2013 | $7.50 |
2014 | 3.9 |
2015 | 52.8 |
2016 | 35.6 |
2017 | 219.1 |
Thereafter | 125.3 |
Total | $444.20 |
Restructuring_2013_Restructuri
Restructuring 2013 Restructuring (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | $11 | $11.60 | |
Restructuring Reserve | 2.6 | ||
Other Restructuring Costs | 1.1 | ||
Restructuring Charges | 1.7 | 5.4 | 11.6 |
2013 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | 4.3 | ||
Employees affected | 800 | ||
Restructuring Reserve | $2.30 |
Restructuring_2012_Restructuri
Restructuring (2012 Restructuring) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $1.70 | $5.40 | $11.60 |
Severance Costs | 11 | 11.6 | |
Restructuring liability, ending balance | 2.6 | ||
2013 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | 4.3 | ||
Restructuring liability, ending balance | 2.3 | ||
Employees affected | 800 | ||
2012 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | 11.4 | ||
Restructuring liability, ending balance | 5.2 | ||
Employees affected | 100 | ||
Facility Charge [Domain] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | $0.20 |
Restructuring_2014_Restructuri
Restructuring 2014 Restructuring (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $11 | $11.60 |
Restructuring Reserve | 2.6 | |
2014 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 1.7 | |
Employees affected | 400 | |
Restructuring Reserve | $1.30 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Settlement (gain) loss recognized during the period | $1.70 | $1.20 | ||||
Accumulated other comprehensive income (loss), net of tax | 47.3 | 32.1 | 47.3 | 32.1 | 58.3 | |
Future funding requirements | 0.2 | 0.2 | ||||
Defined matching contribution plan | 50.00% | 100.00% | ||||
Eligible employee contributions | 2.00% | 3.00% | ||||
Contribtions to defined contribution plan | 6.5 | 5.5 | 6.7 | |||
Number of Company's common shares included in savings plan assets | 1.1 | 1.2 | 1.1 | 1.2 | ||
Value of Company's common shares included in plan assets | 21.8 | 25.8 | 21.8 | 25.8 | ||
Fair value of plan assets for postretirement health | 150.5 | 162.9 | 150.5 | 162.9 | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||||
Defined Contribution Plan, Contributions by Employee | 3.00% | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan, Benefits Paid | 23.9 | 47 | ||||
Settlement (gain) loss recognized during the period | 1.5 | 4.6 | 13.4 | 6.8 | ||
Pension cost (benefit) | 21.1 | 30.8 | 27.5 | |||
Accumulated other comprehensive income (loss) | -78.9 | -55.5 | -78.9 | -55.5 | ||
Accumulated other comprehensive income (loss), net of tax | -47.2 | -34.6 | -47.2 | -34.6 | ||
Accuarial loss included in accumulated other comprehensive loss | -10.2 | |||||
Accumulated benefit obligation | 259.6 | 228.1 | 259.6 | 228.1 | 265.5 | |
Curtailment (benefit) loss recognized during the period | 0 | 0 | -0.2 | |||
Employer contribution | 3.6 | 12.5 | ||||
Fair value of plan assets for postretirement health | 150.5 | 162.9 | 150.5 | 162.9 | 171.7 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||||||
Employer contribution | 10 | |||||
Common shares included in cash balance plan | 4.9 | 4.9 | ||||
Foreign Pension Plan, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Benefit Obligation, percentage | 15.40% | 13.00% | 15.40% | 13.00% | ||
Other Pension Plans, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Benefits Paid | 2.4 | 8.2 | ||||
Settlement (gain) loss recognized during the period | -0.3 | 0 | -0.3 | 0.2 | ||
Pension cost (benefit) | 1.8 | 0.3 | 0.7 | |||
Accumulated other comprehensive income (loss) | -0.5 | 1.3 | -0.5 | 1.3 | ||
Accumulated benefit obligation | 14.4 | 14.2 | 14.4 | 14.2 | 21.1 | |
Curtailment (benefit) loss recognized during the period | 0 | 0 | -0.1 | |||
Unrecognized actuarial gain | -0.5 | 1.3 | -0.5 | 1.3 | ||
Unrecognized actuarial gain, net of tax | -0.3 | 0.8 | -0.3 | 0.8 | ||
Accumulated benefit obligation | 14.4 | 14.2 | 14.4 | 14.2 | ||
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Benefits Paid | 0.3 | 0.4 | ||||
Pension cost (benefit) | -1.6 | -4.3 | -9.5 | |||
Accumulated other comprehensive income (loss) | -2.8 | -4.6 | -2.8 | -4.6 | ||
Accumulated other comprehensive income (loss), net of tax | -2.8 | -4.6 | -2.8 | -4.6 | ||
Accumulated benefit obligation | 4.5 | 4.5 | 4.5 | 4.5 | 6.9 | |
Curtailment (benefit) loss recognized during the period | -0.5 | -0.3 | -3.8 | |||
Employer contribution | -0.5 | -0.8 | ||||
Expected employer contributions during the next fiscal year | 0.1 | |||||
Decrease in accumulated benefit obligation due to plan amendments | 20 | |||||
Fair value of plan assets for postretirement health | 4.2 | 4.9 | 4.2 | 4.9 | 6 | |
Assets expected to be returned to the Company during 2013 | 0 | |||||
Segment, Discontinued Operations [Member] | Pension Plan [Member] | ||||||
Pension cost (benefit) | 1.6 | |||||
Fixed Income Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Actual Plan Asset Allocations | 37.00% | 37.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | |||||
Equity Funds [Member] | ||||||
Fair value of plan assets for postretirement health | $3.40 | $3.50 | $3.40 | $3.50 | ||
Equity Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Actual Plan Asset Allocations | 63.00% | 63.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | |||||
50% [Domain] | ||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |||||
2% [Domain] | ||||||
Defined Contribution Plan, Contributions by Employee | 2.00% |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Business Combinations and Acquisitions, Benefit Obligation | $2.60 | $0 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Settlement (gain) loss recognized during the period | 1.7 | 1.2 | |||
Other comprehensive income (loss) | -47.2 | -9 | 36.2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 162.9 | ||||
Fair value of plan assets at end of year | 150.5 | 162.9 | 150.5 | 162.9 | |
Non-current liability | 116.9 | 73.7 | 116.9 | 73.7 | |
Other Pension Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 1.3 | 0 | 0 | ||
Interest cost | 0.5 | 0.4 | 1 | ||
Amortization and deferrals - net | 0 | 0.2 | 0.2 | ||
Curtailment (benefit) loss recognized during the period | 0 | 0 | -0.1 | ||
Settlement (gain) loss recognized during the period | -0.3 | 0 | -0.3 | 0.2 | |
Pension cost | 1.8 | 0.3 | 0.7 | ||
Other comprehensive income (loss) | -0.8 | -1 | -1.9 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 14.2 | 21.1 | |||
Service cost | 1.3 | 0 | 0 | ||
Interest cost | 0.5 | 0.4 | 1 | ||
Actuarial loss (gain) | 0.8 | 0.9 | |||
Benefits paid | -2.4 | -8.2 | |||
Benefit obligation at end of year | 14.4 | 14.2 | 14.4 | 14.2 | 21.1 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Employer contribution | -14.4 | -14.2 | -14.4 | -14.2 | |
Funded status | -14.4 | -14.2 | -14.4 | -14.2 | |
Current liability | -2.3 | -2.8 | -2.3 | -2.8 | |
Non-current liability | -12.1 | -11.4 | -12.1 | -11.4 | |
Accumulated other comprehensive income (loss) | -0.5 | 1.3 | -0.5 | 1.3 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 2.3 | 2.3 | |||
2016 | 2 | 2 | |||
2017 | 1.2 | 1.2 | |||
2018 | 0.7 | 0.7 | |||
2019 | 1.1 | 1.1 | |||
2020-2024 | 6.7 | 6.7 | |||
Total | 14 | 14 | |||
Pension Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 7.1 | 5 | 3.7 | ||
Interest cost | 10.5 | 10.8 | 11.6 | ||
Expected return on plan assets | -9.2 | -10 | -11.6 | ||
Amortization and deferrals - net | 8.1 | 11.6 | 17.2 | ||
Curtailment (benefit) loss recognized during the period | 0 | 0 | -0.2 | ||
Settlement (gain) loss recognized during the period | 1.5 | 4.6 | 13.4 | 6.8 | |
Pension cost | 21.1 | 30.8 | 27.5 | ||
Other comprehensive income (loss) | -23.4 | 46.9 | 11.8 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 228.1 | 265.5 | |||
Service cost | 7.1 | 5 | 3.7 | ||
Interest cost | 10.5 | 10.8 | 11.6 | ||
Actuarial loss (gain) | 35.2 | -6.2 | |||
Benefits paid | -23.9 | -47 | |||
Benefit obligation at end of year | 259.6 | 228.1 | 259.6 | 228.1 | 265.5 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 162.9 | 171.7 | |||
Actual return on plan assets | 7.9 | 25.7 | |||
Employer contribution | -109.1 | -65.2 | -109.1 | -65.2 | |
Fair value of plan assets at end of year | 150.5 | 162.9 | 150.5 | 162.9 | 171.7 |
Funded status | -109.1 | -65.2 | -109.1 | -65.2 | |
Current liability | -5.6 | -4.6 | -5.6 | -4.6 | |
Non-current liability | -103.5 | -60.6 | -103.5 | -60.6 | |
Accumulated other comprehensive income (loss) | -78.9 | -55.5 | -78.9 | -55.5 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 15.8 | 15.8 | |||
2016 | 16.1 | 16.1 | |||
2017 | 17 | 17 | |||
2018 | 18.3 | 18.3 | |||
2019 | 18.2 | 18.2 | |||
2020-2024 | 90.1 | 90.1 | |||
Total | 175.5 | 175.5 | |||
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 0 | 0 | 0 | ||
Interest cost | 0.2 | 0.2 | 0.3 | ||
Expected return on plan assets | -0.3 | -0.4 | -0.5 | ||
Amortization and deferrals - net | -1 | -3.8 | -5.5 | ||
Curtailment (benefit) loss recognized during the period | -0.5 | -0.3 | -3.8 | ||
Pension cost | -1.6 | -4.3 | -9.5 | ||
Other comprehensive income (loss) | -1.8 | -2 | 8.3 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 4.5 | 6.9 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 0.2 | 0.2 | 0.3 | ||
Change in plan provisions | 0 | -1.3 | |||
Actuarial loss (gain) | 0.1 | -0.9 | |||
Benefits paid | -0.3 | -0.4 | |||
Benefit obligation at end of year | 4.5 | 4.5 | 4.5 | 4.5 | 6.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 4.9 | 6 | |||
Actual return on plan assets | 0.1 | 0.1 | |||
Employer contribution | -0.3 | 0.4 | -0.3 | 0.4 | |
Fair value of plan assets at end of year | 4.2 | 4.9 | 4.2 | 4.9 | 6 |
Funded status | -0.3 | 0.4 | -0.3 | 0.4 | |
Non-current assets | 0.3 | 1.2 | 0.3 | 1.2 | |
Current liability | -0.1 | -0.2 | -0.1 | -0.2 | |
Non-current liability | -0.5 | -0.6 | -0.5 | -0.6 | |
Accumulated other comprehensive income (loss) | -2.8 | -4.6 | -2.8 | -4.6 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 0.3 | 0.3 | |||
2016 | 0.3 | 0.3 | |||
2017 | 0.2 | 0.2 | |||
2018 | 0.2 | 0.2 | |||
2019 | 0.2 | 0.2 | |||
2020-2024 | 1.1 | 1.1 | |||
Minimum [Member] | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Discount rate -projected benefit obligation | 1.75% | 4.25% | 1.75% | 4.25% | |
Future compensation growth rate | 2.87% | 2.50% | 2.87% | 2.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount rate - projected benefit obligation | 1.75% | 3.00% | 5.20% | ||
Future compensation growth rate | 2.50% | 4.00% | 4.00% | ||
Expected long-term rate of return on plan assets | 6.75% | 6.75% | 7.50% | ||
Maximum [Member] | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Discount rate -projected benefit obligation | 4.90% | 4.90% | 4.90% | 4.90% | |
Future compensation growth rate | 4.00% | 4.00% | 4.00% | 4.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount rate - projected benefit obligation | 4.90% | 4.61% | 7.80% | ||
Future compensation growth rate | 4.00% | 5.50% | |||
Expected long-term rate of return on plan assets | 7.00% | 8.00% | 8.00% | ||
Segment, Discontinued Operations [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Pension cost | $1.60 |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan Amount of Employer Matching Contribution | 50.00% | 100.00% | |
Defined Contribution Plan Amount of Eligible Employee Contribution | 2.00% | 3.00% | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $162.90 | ||
Fair value of plan assets at end of year | 150.5 | ||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Amendments | 0 | -1.3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4.9 | 6 | |
Fair value of plan assets at end of year | 4.2 | 4.9 | |
Assets expected to be returned to the Company during 2013 | 0 | ||
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 150.5 | 171.7 | 162.9 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 3.7 | 4.9 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 143.4 | 154.5 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 3.5 | 4.3 | |
Unrealized gains relating to instruments still held at the reporting date | -0.1 | -0.8 | |
Fair value of plan assets at end of year | 3.4 | 3.5 | |
Private Equity Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 143.4 | 154.5 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 143.4 | 154.5 | |
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Common Stock [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 3.7 | 4.9 | |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 3.7 | 4.9 | |
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Equity Funds [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 3.4 | 3.5 | |
Equity Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 63.00% | ||
Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at end of year | $3.40 | $3.50 | |
Fixed Income Funds [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 37.00% |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common share authorized under Convergys LTIP | 38 | |||
Stock options, common shares to be issued upon exercise | 0.7 | 0.8 | 1.2 | 3.9 |
Total stock, common shares to be issued upon exercise | 2.6 | |||
Options approved, weighted average exercise price | $13.24 | $13.11 | $12.91 | $23.90 |
Options approved, common shares available, future issuance | 8 | |||
Long-term incentive plan expense related to discontinued operations | $1.40 | |||
Stock-based compensation expense | 10.2 | 13.4 | 21.6 | |
Stock Options [Member] | ||||
Stock options, common shares to be issued upon exercise | 0.7 | |||
Options approved, weighted average exercise price | $13.24 | |||
Options approved, common shares available, future issuance | 0 | |||
Weighted average grant date, fair value, options outstanding | $3.72 | |||
Weighted average grant date, fair value, options exercisable | $3.84 | |||
Aggregate intrinsic value, stock options exercised | 1.1 | 1.3 | 3.3 | |
Recognized tax benefit from exercised stock | 0.2 | 0.3 | 0.7 | |
Aggregate intrinsic value, stock options outstanding and exercisable | 8.6 | |||
Stock Options [Member] | Maximum [Member] | ||||
Award Vesting Period | 3 years | |||
Stock Options [Member] | Minimum [Member] | ||||
Award Vesting Period | 2 years | |||
Time-Based Restricted Stock [Member] | ||||
Restricted stock units, common shares to be issed upon exercise | 1.3 | 1.4 | 1.6 | 2.1 |
Granted, shares | 0.7 | 0.6 | 1 | |
Restricted stock units granted, weighted average fair value at date of grant | $20.55 | $16.35 | $13.21 | |
Total unrecognized compensation cost related to non-vested restricted stock and restricted stock units | 13.5 | |||
Weighted average recognition period (in years) | 1 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Restricted stock units, common shares to be issed upon exercise | 1.9 | |||
Options approved, weighted average exercise price | $0 | |||
Options approved, common shares available, future issuance | 0 | |||
Aggregate intrinsic value, non-vested restricted stock | 27.9 | |||
Performance Shares [Member] | ||||
Restricted stock units, common shares to be issed upon exercise | 0 | 0.3 | 1 | 1.8 |
Granted, shares | 0 | 0.1 | 0.6 | |
Restricted stock units granted, weighted average fair value at date of grant | $0 | $16.34 | $12.95 | |
Performance Shares [Member] | Maximum [Member] | ||||
Payout range | 200.00% | |||
Performance Shares [Member] | Minimum [Member] | ||||
Payout range | 50.00% | |||
Key terms not yet established [Member] | ||||
Granted, shares | 0.3 | |||
2012 Stock Option Grants [Member] | Stock Options [Member] | ||||
Stock option expense | 0.2 | 0.6 | 0.7 | |
Options granted, weighted-average grant date fair value | $3.43 | |||
Strike price | $12.79 | |||
Expected volatility | 30.74% | |||
Expected term (in years) | 4 years 6 months | |||
Risk-free interest rate | 0.76% | |||
Expected dividend rate | 0.00% | |||
2011 Stock Option Grants [Member] | Stock Options [Member] | ||||
Stock option expense | $0.10 | $0.30 | $0.30 | |
Options granted, weighted-average grant date fair value | $4.06 | |||
Strike price | $13.79 | |||
Expected volatility | 31.11% | |||
Expected term (in years) | 4 years 6 months | |||
Risk-free interest rate | 2.12% | |||
Expected dividend rate | 0.00% | |||
Performance-based grants that provide for payout contingent upon certain EPS targets [Member] | 2014 Performance grants [Domain] | ||||
Granted, shares | 0.3 | |||
Performance-based grants that provide for payout contingent upon certain EPS targets [Member] | 2013 Performance grants [Domain] | ||||
Granted, shares | 0.3 | |||
Various Dates [Domain] | Performance Shares [Member] | ||||
Granted, shares | 0.4 | |||
Vest Immediately [Member] | 2013 Performance grants [Domain] | ||||
Granted, shares | 0.1 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months 6 days | |||
Stock option activity, outstanding | ||||
Outstanding, beginning balance, shares | 0.8 | 1.2 | 3.9 | |
Exercisable, beginning balance, shares | 0.2 | 0.3 | 3.2 | |
Granted, shares | 0 | 0 | 0.7 | |
Exercised, shares | -0.1 | -0.3 | -1 | |
Forfeited/cancelled, shares | 0 | -0.1 | -2.4 | |
Outstanding, ending balance, shares | 0.7 | 0.8 | 1.2 | |
Exercisable, ending balance, shares | 0.5 | 0.2 | 0.3 | |
Granted, weighted average exercise price | $0 | $0 | $12.79 | |
Exercised, weighted average exercise price | $12.38 | $12.24 | $11.62 | |
Forfeited/cancelled, weighted average exercise price | $0 | $13.31 | $31.33 | |
Outstanding, weighted average exercise price | $13.24 | $13.11 | $12.91 | $23.90 |
Exercisable, weighted average exercise price | $13.41 | $13.14 | $11.86 | $25.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, shares | 0.7 | 0.8 | 1.2 | |
Outstanding, weighted average exercise price | $13.24 | $13.11 | $12.91 | $23.90 |
Exercisable, shares | 0.5 | 0.2 | 0.3 | |
Exercisable, weighted average exercise price | $13.41 | $13.14 | $11.86 | $25.97 |
$11.56 to $21.81 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 7 months 6 days | |||
Stock option activity, outstanding | ||||
Outstanding, ending balance, shares | 0.7 | |||
Exercisable, ending balance, shares | 0.5 | |||
Outstanding, weighted average exercise price | $13.24 | |||
Exercisable, weighted average exercise price | $13.41 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, shares | 0.7 | |||
Outstanding, weighted average exercise price | $13.24 | |||
Exercisable, shares | 0.5 | |||
Exercisable, weighted average exercise price | $13.41 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Restricted Stock Units) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Performance Shares [Member] | |||
Changes to non-vested restricted stock and restricted stock units | |||
Non-vested, beginning balance, shares | 0.3 | 1 | 1.8 |
Non-vested, beginning balance, weighted average fair value at date of grant | $12.90 | $12.69 | $10.31 |
Granted, shares | 0 | 0.1 | 0.6 |
Granted, weighted average fair value at date of grant | $0 | $16.34 | $12.95 |
Vested, shares | -0.3 | -0.8 | -1.1 |
Vested, weighted average fair value at date of grant | $12.90 | $13.32 | $9.63 |
Forfeited, shares | 0 | 0 | -0.3 |
Forfeited, weighted average fair value at date of grant | $0 | $0 | $12.30 |
Non-vested, ending balance, shares | 0 | 0.3 | 1 |
Non-vested, ending balance, weighted average fair value at date of grant | $0 | $12.90 | $12.69 |
Time-Based Restricted Stock [Member] | |||
Changes to non-vested restricted stock and restricted stock units | |||
Non-vested, beginning balance, shares | 1.4 | 1.6 | 2.1 |
Non-vested, beginning balance, weighted average fair value at date of grant | $14.62 | $13.04 | $11.72 |
Granted, shares | 0.7 | 0.6 | 1 |
Granted, weighted average fair value at date of grant | $20.55 | $16.35 | $13.21 |
Vested, shares | -0.6 | -0.7 | -1.1 |
Vested, weighted average fair value at date of grant | $14.33 | $12.75 | $10.69 |
Forfeited, shares | -0.2 | -0.1 | -0.4 |
Forfeited, weighted average fair value at date of grant | $18.85 | $14.09 | $12.94 |
Non-vested, ending balance, shares | 1.3 | 1.4 | 1.6 |
Non-vested, ending balance, weighted average fair value at date of grant | $17.66 | $14.62 | $13.04 |
Restricted Stock Units (RSUs) [Member] | |||
Changes to non-vested restricted stock and restricted stock units | |||
Non-vested, ending balance, shares | 1.9 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rent expense | $125.20 | $81 | $66 |
Letters of credit outstanding amount | 25.5 | ||
Guarantee | 2.6 | ||
Purchase Commitments | 17.3 | ||
HRM Performance Bond Obligations [Member] | |||
Guarantee | 30 | ||
Liability of obligations | 0.4 | ||
Letter Of Credits Expiration for the Current Year [Member] | |||
Letters of credit outstanding amount | 8.8 | ||
Letters of Credit Expiration for the Preceding One to Three Years [Member] | |||
Letters of credit outstanding amount | 16.5 | ||
Letters Of Credit Expiration After Three Years [Member] | |||
Letters of credit outstanding amount | $0.20 |
Commitments_And_Contingencies_2
Commitments And Contingencies Commitments And Contingencies (Future Minimum Lease Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2013 | $112.70 |
2014 | 87.4 |
2015 | 62.9 |
2016 | 42.2 |
2017 | 18.1 |
Thereafter | 25.1 |
Total | $348.40 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Forward Contracts PHP [Member] | Forward Contracts PHP [Member] | Forward Contracts INR [Member] | Forward Contracts INR [Member] | Forward Contracts CAD [Member] | Forward Contracts CAD [Member] | |
PHP | USD ($) | INR | USD ($) | PHP | USD ($) | ||||
Derivatives | |||||||||
Foreign currency acquired through forward exchange contracts | 42,507 | 10,208 | 11.1 | ||||||
Derivative, Notional Amount | 1,131.70 | 965.5 | 965.8 | 155.7 | 10.2 | ||||
Derivative instruments maturity period (in months) | 36 months | ||||||||
Deferred tax expense | -11.3 | -14.1 | |||||||
Deferred gains (losses), net of tax | -18.3 | 22.5 | -11.4 | ||||||
Deferred gain on derivative instruments reclassified from OCI to earnings during the next the next twelve months, before tax | -19.6 | ||||||||
Deferred gain on derivative instruments reclassified from OCI to earnings during next twelve months, net of tax | -12.1 | ||||||||
Net gain related to forward contracts | 14.8 | ||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain | 2 | 2.4 | |||||||
Net loss related to settlement of forward contracts | -14.3 | -2.1 | |||||||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0.3 | ||||||||
Aggregate fair value of derivative instruments in liability positions | 32.7 | ||||||||
Aggregate fair value of collateral already posted | 0 | ||||||||
Trading Securities, Fair Value Disclosure | 13 | 14.2 | |||||||
Short-term time desposits | $68.70 |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Value of Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | $1.70 | $4.30 |
Other Non-Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | 1.3 | 0.2 |
Other Current Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | 21.4 | 21.2 |
Other Long-Term Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | $11.30 | $19.80 |
Financial_Instruments_Effect_O
Financial Instruments (Effect Of Derivative Instruments On Consolidated Financial Statements) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) | |||
Foreign exchange contracts, Gain (Loss) Recognized in OCL | ($7.50) | ($57.10) | |
Foreign exchange contracts, Gain Reclassified from AOCL to Income | ($14.30) | ($2.10) | ($2.10) |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value assets | $13 | $14.20 |
Equity Funds [Member] | ||
Fair value assets | 10.3 | 11 |
Common Stock [Member] | ||
Fair value assets | 2.1 | 2.3 |
Money Market Funds [Member] | ||
Fair value assets | 0.6 | 0.9 |
Interest-bearing Deposits [Member] | ||
Fair value assets | 68.7 | |
Estimate Of Fair Value, Fair Value Disclosure [Member] | ||
Foreign currency forward contracts (asset position) | 3.3 | 4.5 |
Foreign currency forward contracts (liability position) | 32.7 | 41 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Foreign currency forward contracts (asset position) | 0 | 0 |
Foreign currency forward contracts (liability position) | 0 | 0 |
Fair value assets | 13 | 14.2 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Equity Funds [Member] | ||
Fair value assets | 10.3 | 11 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Common Stock [Member] | ||
Fair value assets | 2.1 | 2.3 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair value assets | 0.6 | 0.9 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Interest-bearing Deposits [Member] | ||
Fair value assets | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Foreign currency forward contracts (asset position) | 3.3 | 4.5 |
Foreign currency forward contracts (liability position) | 32.7 | 41 |
Fair value assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Funds [Member] | ||
Fair value assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | ||
Fair value assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Fair value assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Interest-bearing Deposits [Member] | ||
Fair value assets | 68.7 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Foreign currency forward contracts (asset position) | 0 | 0 |
Foreign currency forward contracts (liability position) | 0 | 0 |
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Funds [Member] | ||
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | ||
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ||
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest-bearing Deposits [Member] | ||
Fair value assets | $0 |
Income_Taxes_Income_Taxes_Prov
Income Taxes Income Taxes - Provision (Benefit) for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
United States federal | $33.80 | ($3.10) | ($0.90) |
Foreign | 45.6 | 10.2 | 8 |
State and local | 1.1 | 1.5 | -1.8 |
Total current | 80.5 | 8.6 | 5.3 |
Deferred: | |||
United States federal | -42.4 | 30.7 | -4.7 |
Foreign | -27.5 | 34 | -0.8 |
State and local | 2.2 | -0.8 | 1.3 |
Total deferred | -67.7 | 63.9 | -4.2 |
Total | $12.80 | $72.50 | $1.10 |
Income_Taxes_Income_Taxes_Reco
Income Taxes Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Permanent differences | 8.60% | 6.80% | 12.40% |
State and local income taxes, net of federal income tax | 1.70% | 0.40% | -3.40% |
International rate differential, including tax holidays | -29.80% | -14.00% | -54.20% |
Foreign valuation allowances | 2.30% | 0.00% | -4.90% |
Impairments | 0.00% | 0.00% | 46.50% |
Adjustments for uncertain tax positions | 1.20% | 2.30% | -1.80% |
Restructuring Charges | 0.00% | 0.00% | -9.20% |
Tax credits and other | -4.50% | -10.40% | -16.60% |
Unremitted earnings, net of foreign tax credits | -4.60% | 35.20% | 0.00% |
Effective rate | 9.90% | 55.30% | 3.80% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $6 | $46.40 | |||
Foreign Earnings Repatriated | -4.5 | 46.4 | 125.1 | ||
Earnings from continuing operations, foreign | 143.8 | 99.1 | 77.1 | ||
Valuation allowance | 39.3 | 26.2 | 39.3 | 26.2 | |
Undistributed foreign earnings | 334.9 | 334.9 | |||
Liability for unrecognized tax benefits | 59.9 | 52.1 | 59.9 | 52.1 | |
Accrued interest and penalties recorded in other long-term liabilities | 24 | 19.5 | 24 | 19.5 | |
Unrecognized tax benefits that would affect income tax expense | 50.1 | 50.1 | |||
Interest and penalties share in unrecognized tax benefits | 21.8 | ||||
Interest and penalties recognized | 4.2 | 0.2 | |||
Expected change in unrecognized tax benefits, lower | 2 | 2 | |||
Expected change in unrecognized tax benefits, upper | 10 | 10 | |||
Federal | |||||
Operating loss carryforwards | 123.1 | 123.1 | |||
Operating loss carryforward with no expiration | 11.9 | 11.9 | |||
State | |||||
Operating loss carryforwards | 752.8 | 752.8 | |||
Foreign | |||||
Valuation allowance | 5.2 | 0.3 | 5.2 | 0.3 | |
Operating loss carryforwards | 46.5 | 46.5 | |||
Philippines and India [Member] | |||||
Effective income tax rate recocilliation, tax holidays | -3.00% | -1.90% | -11.60% | ||
Philippines and India [Member] | Foreign | |||||
Income tax holiday | 3.9 | 2.5 | 3.5 | ||
Segment, Discontinued Operations [Member] | |||||
Liability for unrecognized tax benefits | 11.8 | 10.5 | 11.8 | 10.5 | |
Business combinations [Domain] | Federal | |||||
Operating loss carryforwards | 116 | 116 | |||
Business combinations [Domain] | State | |||||
Operating loss carryforwards | $126.70 | $126.70 |
Income_Taxes_Income_Taxes_Defe
Income Taxes Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Loss and credit carryforwards | $104.70 | $66.60 |
Pension and employee benefits | 44.7 | 31.7 |
Restructuring charges | 1.3 | 0.6 |
Deferred revenue | 2.9 | 3.9 |
Foreign currency hedge | 11.4 | 11.5 |
Intercompany payables/receivables | 48.3 | 0 |
Other | 47.9 | 28.9 |
Valuation allowances | -39.3 | -26.2 |
Total deferred tax asset | 221.9 | 117 |
Deferred tax liabilities: | ||
Depreciation and amortization | 291.4 | 161.4 |
Deferred implementation costs | 0.6 | 1.3 |
Contingent debt and accrued interest | 67.7 | 57.6 |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 15.7 | 61.8 |
Other | 7.3 | 8 |
Total deferred tax liability | 382.7 | 290.1 |
Net deferred tax (liability) / asset | -160.8 | -173.1 |
Deferred Tax Assets, Net of Valuation Allowance, Current | 107.2 | 6.2 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 8.2 | 8.9 |
Deferred Tax Liabilities, Net, Current | 0.6 | 37.4 |
Deferred Tax Liabilities, Net, Noncurrent | $275.60 | $150.80 |
Income_Taxes_Income_Taxes_Unre
Income Taxes Income Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance at January 1 | $32.60 | $34.90 |
Additions based on tax positions related to the current year | 0.4 | 0.3 |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 5.9 | 0 |
Reductions for tax positions of prior years | -0.7 | -1.8 |
Settlements | 0.5 | -0.2 |
Lapse of statutes | -1.6 | -0.6 |
Balance at December 31 | $37.10 | $32.60 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income/(Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($1.10) | $35.10 | $36.40 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -36.2 | -1.3 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | -36.2 | -1.3 | 22.3 |
Deferred gains (losses), net of tax | 18.3 | -22.5 | 11.4 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -4.5 | -35.1 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 8.7 | 1.2 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 4.2 | -33.9 | |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -47.3 | -32.1 | -58.3 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | -21.9 | 10.3 | |
Other Comprehensive Income (Loss), Settlement of Pension Obligation Arising During the Period, Net of Tax | 2.9 | 8.4 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax | 3.8 | 7.5 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -15.2 | 26.2 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -66.7 | -19.5 | -10.5 |
Other comprehensive income (loss) before relclassification | -62.6 | -26.1 | |
Amounts Reclassified from Accumulated Other Comprehensive Income due to Pension Settlement Obligation | 2.9 | 8.4 | |
Amounts reclassified from accumulated other comprehensive income | 12.5 | 8.7 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ($47.20) | ($9) | $36.20 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income/(Loss) Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | ($14.30) | ($2.10) | ($2.10) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 5.6 | 0.9 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -8.7 | -1.2 | |
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, before Tax | -10.7 | -24.9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, Tax | 4 | 9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, Net of Tax | -6.7 | -15.9 | |
Amounts Reclassifed from Accumulated Other Comprehensive Income, Net of Tax | ($15.40) | ($17.10) |
Additional_Financial_Informati2
Additional Financial Information (Schedule Of Payables And Other Current Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Additional Information [Line Items] | |||
Property and equipment, gross | $1,318.90 | $1,122 | |
Less: Accumulated depreciation | -951.1 | -875.6 | |
Property and equipment, net | 367.8 | 246.4 | |
Accounts payable | 40.1 | 30.9 | |
Deferred Tax Liabilities, Net, Current | 0.6 | 37.4 | |
Accrued taxes | 34.6 | 22.3 | |
Accrued payroll-related expenses | 156.4 | 85.9 | |
Derivative Liabilities | 21.4 | 21.2 | |
Accrued expenses, other | 84.5 | 68.9 | |
Restructuring and exit costs | 3.9 | 2.3 | |
Deferred revenue and government grants | 19.5 | 22.8 | |
Payables and other current liabilities, total | 361 | 291.7 | |
Foreign currency translation adjustments | -1.1 | 35.1 | 36.4 |
Pension liability, net of tax benefit of $35.1 and $35.7 | 47.3 | 32.1 | 58.3 |
Unrealized gain (loss) on hedging activities, net of tax (expense) benefit of ($7.1) and $1.0 | 18.3 | -22.5 | 11.4 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -66.7 | -19.5 | -10.5 |
Land [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | 6.9 | 6.9 | |
Building [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | 103.4 | 101.5 | |
Leasehold Improvements [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | 285 | 189.3 | |
Equipment [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | 555.8 | 480.4 | |
Computer Software, Intangible Asset [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | 339.2 | 311.9 | |
Construction in Progress [Member] | |||
Additional Information [Line Items] | |||
Property and equipment, gross | $28.60 | $32 |
Industry_Segments_and_Geograph2
Industry Segments and Geographic Operations (Schedule Of Business Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenues | $763.90 | $749.50 | $736.40 | $605.70 | $527.30 | $521 | $504.30 | $493.50 | $2,855.50 | $2,046.10 | $2,005 | ||
Depreciation | 142.9 | 85.5 | 82.4 | ||||||||||
Amortization | 24.7 | 5.3 | 6.3 | ||||||||||
Restructuring charges | 1.7 | 5.4 | 11.6 | ||||||||||
Asset impairment | -1.6 | 1.5 | 88.6 | ||||||||||
Operating income (loss) | 49.9 | [1] | 42 | 36.9 | 22 | 39.5 | [2] | 31.3 | 30.1 | 36.5 | 150.8 | 137.4 | 38.6 |
Assets | 2,516.50 | 1,956.70 | 2,516.50 | 1,956.70 | |||||||||
Long-Lived Assets | 1,625.60 | 896.3 | 1,625.60 | 896.3 | |||||||||
Geographical, Groups of Countries, Group One [Member] | |||||||||||||
Revenues | 2,320.30 | 1,860.80 | 1,836.40 | ||||||||||
Long-Lived Assets | 1,031.30 | 762.9 | 1,031.30 | 762.9 | |||||||||
Geographical, Groups of Countries, Group Two [Member] | |||||||||||||
Revenues | 535.2 | 185.3 | 168.6 | ||||||||||
Long-Lived Assets | 594.3 | 133.4 | 594.3 | 133.4 | |||||||||
At And T [Member] | Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | |||||||||||||
Concentration risk percent | 15.30% | 20.90% | 23.10% | ||||||||||
Accounts Receivable, Net | $71.90 | $73.80 | $71.90 | $73.80 | |||||||||
Directtv [Member] | Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | |||||||||||||
Concentration risk percent | 12.50% | 12.30% | |||||||||||
Comcast [Member] | Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | |||||||||||||
Concentration risk percent | 12.40% | 12.40% | |||||||||||
[1] | (a) Fourth quarter 2014 includes a decrease in operating income of $16.7 resulting from $2.2 of integration related expenses associated with Convergys' acquisition of Stream, $1.7 of pension settlement charge, $5.6 of depreciation expense resulting from the fair value write-up of property and equipment acquired from Stream, and $7.2 of amortization expense related to acquired intangible assets. Fourth quarter 2014 also includes $4.5 of tax benefit for the difference between the tax previously accrued on foreign earnings and the current estimate as of December 31, 2014. | ||||||||||||
[2] | (b) Fourth quarter 2013 includes a decrease in operating income of $5.2 resulting from $2.7 of transaction expenses associated with Convergys' acquisition of Stream, $1.3 of amortization expense related to acquired intangible assets and $1.2 of net pension and other post employment benefit plan charges. The net pension and other post employment benefit plan charge consists of a $1.5 pension settlement charge and settlement gain of $0.3 related to the Executive Deferred Compensation Plan. Fourth quarter 2013 also includes $46.4 of tax expense to record the deferred tax liability associated with a change in classification for a portion of undistributed earnings of the Company's foreign subsidiaries. See Note 14 of the Notes to Consolidated Financial Statements for further information. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Subsequent Event [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $802.60 | $15 | ($802.60) | ($16.40) | $0 |
Asset Securitization Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Asset Securitization Facility, Expiration Date | Jan-17 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Change in Operating Income | $16.70 | $5.20 | |||||||||||
Business Combination, Integration Related Costs | 2.2 | ||||||||||||
Business Combination, Acquisition Related Costs | 2.7 | ||||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | -1.7 | -1.2 | |||||||||||
Depreciation | 5.6 | ||||||||||||
Amortization of Intangible Assets | 7.2 | 1.3 | |||||||||||
Foreign Earnings Repatriated | -4.5 | 46.4 | 125.1 | ||||||||||
Revenues | 763.9 | 749.5 | 736.4 | 605.7 | 527.3 | 521 | 504.3 | 493.5 | 2,855.50 | 2,046.10 | 2,005 | ||
Operating income (loss) | 49.9 | [1] | 42 | 36.9 | 22 | 39.5 | [2] | 31.3 | 30.1 | 36.5 | 150.8 | 137.4 | 38.6 |
Net income (loss) from continuing operations | 48 | 30 | 24.9 | 13.7 | -21.9 | 28.2 | 22 | 30.2 | 116.5 | 58.5 | 28.2 | ||
Net income (loss) from discontinued operations | 0.4 | 2.8 | -0.2 | 0.5 | 0.4 | 5.7 | 1.4 | -5.1 | -3.5 | 2.4 | |||
Net (loss) income | 48.4 | 32.8 | 24.7 | 14.2 | -21.5 | 33.9 | 23.4 | 25.1 | 120 | 60.9 | 100.6 | ||
Basic earnings (loss) per share: | |||||||||||||
Continuing operations | $0.48 | $0.30 | $0.25 | $0.14 | ($0.21) | $0.27 | $0.21 | $0.28 | $1.16 | $0.57 | $0.25 | ||
Discontinued operations | $0 | $0.03 | $0 | $0 | $0 | $0.06 | $0.02 | ($0.04) | $0.03 | $0.02 | $0.65 | ||
Net basic earnings (loss) per common share | $0.48 | $0.33 | $0.25 | $0.14 | ($0.21) | $0.33 | $0.23 | $0.24 | $1.19 | $0.59 | $0.90 | ||
Diluted earnings (loss) per share | |||||||||||||
Continuing operations | $0.46 | $0.28 | $0.23 | $0.13 | ($0.21) | $0.26 | $0.20 | $0.27 | $1.10 | $0.54 | $0.24 | ||
Discontinued operations | $0 | $0.03 | $0 | $0 | $0 | $0.05 | $0.02 | ($0.04) | $0.03 | $0.02 | $0.62 | ||
Net basic earnings (loss) per common share | $0.46 | $0.31 | $0.23 | $0.13 | ($0.21) | $0.31 | $0.22 | $0.23 | $1.13 | $0.56 | $0.86 | ||
Pension Plan, Defined Benefit [Member] | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | -1.5 | -4.6 | -13.4 | -6.8 | |||||||||
Other Pension Plan, Defined Benefit [Member] | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $0.30 | $0 | $0.30 | ($0.20) | |||||||||
[1] | (a) Fourth quarter 2014 includes a decrease in operating income of $16.7 resulting from $2.2 of integration related expenses associated with Convergys' acquisition of Stream, $1.7 of pension settlement charge, $5.6 of depreciation expense resulting from the fair value write-up of property and equipment acquired from Stream, and $7.2 of amortization expense related to acquired intangible assets. Fourth quarter 2014 also includes $4.5 of tax benefit for the difference between the tax previously accrued on foreign earnings and the current estimate as of December 31, 2014. | ||||||||||||
[2] | (b) Fourth quarter 2013 includes a decrease in operating income of $5.2 resulting from $2.7 of transaction expenses associated with Convergys' acquisition of Stream, $1.3 of amortization expense related to acquired intangible assets and $1.2 of net pension and other post employment benefit plan charges. The net pension and other post employment benefit plan charge consists of a $1.5 pension settlement charge and settlement gain of $0.3 related to the Executive Deferred Compensation Plan. Fourth quarter 2013 also includes $46.4 of tax expense to record the deferred tax liability associated with a change in classification for a portion of undistributed earnings of the Company's foreign subsidiaries. See Note 14 of the Notes to Consolidated Financial Statements for further information. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $5.30 | $5.90 | $9.30 |
Charged to Expense | 14.5 | 12.2 | 11.9 |
Charged to Other Accounts | 1.2 | 0 | |
Deductions | -15.2 | -12.8 | -15.3 |
Balance at End of Period | 5.8 | 5.3 | 5.9 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 21.2 | 19.7 | 21.3 |
Charged to Expense | 10.2 | 6 | 4.2 |
Charged to Other Accounts | 10.3 | 0 | |
Deductions | -2.4 | -4.5 | -5.8 |
Balance at End of Period | $39.30 | $21.20 | $19.70 |