Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UIS | ||
Entity Registrant Name | UNISYS CORP | ||
Entity Central Index Key | 746,838 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 50,484,040 | ||
Entity Public Float | $ 639 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Services | $ 2,328.2 | $ 2,406.3 | $ 2,605.6 |
Technology | 413.6 | 414.4 | 409.5 |
Total revenue | 2,741.8 | 2,820.7 | 3,015.1 |
Cost of revenue: | |||
Services | 2,102.1 | 2,092.9 | 2,306.7 |
Technology | 161.4 | 169.2 | 167.5 |
Total cost of revenue | 2,263.5 | 2,262.1 | 2,474.2 |
Selling, general and administrative expenses | 426.5 | 455.6 | 519.6 |
Research and development expenses | 47.2 | 55.4 | 76.4 |
Total costs and expenses | 2,737.2 | 2,773.1 | 3,070.2 |
Operating income (loss) | 4.6 | 47.6 | (55.1) |
Interest expense | 52.8 | 27.4 | 11.9 |
Other income (expense), net | (23.9) | 0.3 | 8.2 |
Income (loss) before income taxes | (72.1) | 20.5 | (58.8) |
(Benefit) provision for income taxes | (5.5) | 57.2 | 44.4 |
Consolidated net loss | (66.6) | (36.7) | (103.2) |
Net income (loss) attributable to noncontrolling interests | (1.3) | 11 | 6.7 |
Net loss attributable to Unisys Corporation common shareholders | $ (65.3) | $ (47.7) | $ (109.9) |
Loss per common share attributable to Unisys Corporation | |||
Basic (in dollars per share) | $ (1.30) | $ (0.95) | $ (2.20) |
Diluted (in dollars per share) | $ (1.30) | $ (0.95) | $ (2.20) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net loss | $ (66.6) | $ (36.7) | $ (103.2) |
Other comprehensive income | |||
Foreign currency translation | 117.8 | (108.4) | (100.8) |
Postretirement adjustments, net of tax of $18.3 in 2017, $(13.3) in 2016 and $18.1 in 2015 | 265.1 | (137.6) | 265.7 |
Total other comprehensive income (loss) | 382.9 | (246) | 164.9 |
Comprehensive income (loss) | 316.3 | (282.7) | 61.7 |
Comprehensive income (loss) attributable to noncontrolling interests | (44.6) | 27.5 | (3.5) |
Comprehensive income (loss) attributable to Unisys Corporation | $ 271.7 | $ (255.2) | $ 58.2 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Postretirement adjustments, tax | $ 18.3 | $ (13.3) | $ 18.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Cash and cash equivalents | $ 733.9 | $ 370.6 | |
Accounts receivable, net | 503.3 | 505.8 | |
Inventories: | |||
Parts and finished equipment | 13.6 | 14 | |
Work in process and materials | 12.5 | 15 | |
Prepaid expenses and other current assets | 126.2 | 121.9 | |
Total current assets | 1,389.5 | 1,027.3 | |
Properties | 898.8 | 886.6 | |
Less – Accumulated depreciation and amortization | 756.3 | 741.3 | |
Properties, net | 142.5 | 145.3 | |
Outsourcing assets, net | 202.3 | 172.5 | |
Marketable software, net | 138.3 | 137 | |
Prepaid postretirement assets | 148.3 | 33.3 | |
Deferred income taxes | 119.9 | 146.1 | |
Goodwill | 180.8 | 178.6 | |
Restricted cash | 30.2 | 30.5 | [1] |
Other long-term assets | 190.6 | 151 | [1] |
Total assets | 2,542.4 | 2,021.6 | |
Current liabilities: | |||
Current maturities of long-term debt | 10.8 | 106 | |
Accounts payable | 241.8 | 189 | |
Deferred revenue | 327.5 | 337.4 | |
Other accrued liabilities | 391.5 | 349.2 | |
Total current liabilities | 971.6 | 981.6 | |
Long-term debt | 633.9 | 194 | |
Long-term postretirement liabilities | 2,004.4 | 2,292.6 | |
Long-term deferred revenue | 159 | 117.6 | |
Other long-term liabilities | 100 | 83.2 | |
Commitments and contingencies | |||
Deficit: | |||
Common stock, par value $.01 per share (150.0 million shares authorized; 53.4 million shares and 52.8 million shares issued) | 0.5 | 0.5 | |
Accumulated deficit | (1,963.1) | (1,893.4) | |
Treasury stock, at cost | (102.7) | (100.5) | |
Paid-in capital | 4,526.4 | 4,515.2 | |
Accumulated other comprehensive loss | (3,815.8) | (4,152.8) | |
Total Unisys stockholders’ deficit | (1,354.7) | (1,631) | |
Noncontrolling interests | 28.2 | (16.4) | |
Total deficit | (1,326.5) | (1,647.4) | |
Total liabilities and deficit | $ 2,542.4 | $ 2,021.6 | |
[1] | Amounts were changed to conform to the current-year presentation. See Note 5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,400,000 | 52,800,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Cash flows from operating activities | ||||||
Consolidated net loss | $ (66,600,000) | $ (36,700,000) | $ (103,200,000) | |||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | ||||||
Foreign currency transaction losses | 21,700,000 | 400,000 | 8,400,000 | |||
Non-cash interest expense | 9,500,000 | 7,000,000 | 0 | |||
Loss on debt extinguishment | 1,500,000 | 4,000,000 | 0 | |||
Employee stock compensation | 11,200,000 | 9,500,000 | 9,400,000 | |||
Depreciation and amortization of properties | 39,700,000 | 38,900,000 | 57,500,000 | |||
Depreciation and amortization of outsourcing assets | 53,700,000 | 51,900,000 | 55,700,000 | |||
Amortization of marketable software | 63,100,000 | 64,800,000 | 66,900,000 | |||
Other non-cash operating activities | 3,200,000 | 1,900,000 | 4,600,000 | |||
Loss on disposal of capital assets | 5,000,000 | 6,200,000 | 9,700,000 | |||
Pension contributions | (138,400,000) | (132,500,000) | (148,300,000) | |||
Pension expense | 92,400,000 | 82,700,000 | 108,700,000 | |||
Decrease in deferred income taxes, net | 3,400,000 | 2,700,000 | 1,200,000 | |||
Changes in operating assets and liabilities: | ||||||
Receivables, net | 5,900,000 | 87,300,000 | (11,500,000) | |||
Inventories | 4,100,000 | 15,300,000 | (3,700,000) | |||
Other assets | (27,500,000) | 16,500,000 | [1] | 18,100,000 | [1] | |
Accounts payable and other accrued liabilities | 48,600,000 | 7,500,000 | [1] | (60,300,000) | [1] | |
Other liabilities | 35,900,000 | (9,200,000) | (7,500,000) | |||
Net cash provided by operating activities | 166,400,000 | 218,200,000 | 5,700,000 | [1] | ||
Cash flows from investing activities | ||||||
Proceeds from investments | 4,717,200,000 | 4,455,900,000 | 3,831,600,000 | |||
Purchases of investments | (4,692,400,000) | (4,490,000,000) | (3,806,200,000) | |||
Capital additions of properties | (25,800,000) | (32,500,000) | (49,600,000) | |||
Capital additions of outsourcing assets | (86,300,000) | (51,300,000) | (102,000,000) | |||
Investment in marketable software | (64,400,000) | (63,300,000) | (62,100,000) | |||
Other | (800,000) | (900,000) | [1] | 7,000,000 | [1] | |
Net cash used for investing activities | (152,500,000) | (182,100,000) | [1] | (181,300,000) | [1] | |
Cash flows from financing activities | ||||||
Proceeds from issuance of long-term debt | 452,900,000 | 213,500,000 | 31,800,000 | |||
Payments for capped call transactions | 0 | (27,300,000) | 0 | |||
Issuance costs relating to long-term debt | (12,100,000) | (7,300,000) | 0 | |||
Payments of long-term debt | (107,500,000) | (129,800,000) | (10,400,000) | |||
Proceeds from exercise of stock options | 0 | 0 | 3,700,000 | |||
Net (payments) proceeds from short-term borrowings | 0 | (65,800,000) | 65,800,000 | |||
Financing fees | (1,100,000) | 0 | (300,000) | |||
Other | 2,300,000 | 400,000 | [1] | 800,000 | [1] | |
Net cash provided by (used for) financing activities | 329,900,000 | (17,100,000) | [1] | 89,800,000 | [1] | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 19,200,000 | (14,700,000) | [1] | (47,600,000) | [1] | |
Increase (decrease) in cash, cash equivalents and restricted cash | 363,000,000 | 4,300,000 | [1] | (133,400,000) | [1] | |
Cash, cash equivalents and restricted cash, beginning of year | [1] | 401,100,000 | 396,800,000 | 530,200,000 | ||
Cash, cash equivalents and restricted cash, end of year | $ 764,100,000 | $ 401,100,000 | [1] | $ 396,800,000 | [1] | |
[1] | Amounts were changed to conform to the current-year presentation. See Note 5 |
Consolidated Statements of Defi
Consolidated Statements of Deficit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ (1,647.4) | $ (1,378.6) | $ (1,452.4) |
Consolidated net income (loss) | (66.6) | (36.7) | (103.2) |
Stock-based compensation | 9 | 8.8 | 12.1 |
Discount on debt issuance | 33.6 | ||
Capped call on debt issuance | (27.3) | ||
Expenses of convertible notes | (1.2) | ||
Translation adjustments | 117.8 | (108.4) | (100.8) |
Postretirement plans | 265.1 | (137.6) | 265.7 |
Cumulative effect adjustment - ASU No. 2016-16 | (4.4) | ||
Ending Balance | (1,326.5) | (1,647.4) | (1,378.6) |
Total Unisys Corporation | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (1,631) | (1,389.7) | (1,460) |
Consolidated net income (loss) | (65.3) | (47.7) | (109.9) |
Stock-based compensation | 9 | 8.8 | 12.1 |
Discount on debt issuance | 33.6 | ||
Capped call on debt issuance | (27.3) | ||
Expenses of convertible notes | (1.2) | ||
Translation adjustments | 110.1 | (93.3) | (96) |
Postretirement plans | 226.9 | (114.2) | 264.1 |
Cumulative effect adjustment - ASU No. 2016-16 | (4.4) | ||
Ending Balance | (1,354.7) | (1,631) | (1,389.7) |
Common Stock Par Value | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 0.5 | 0.5 | 0.5 |
Ending Balance | 0.5 | 0.5 | 0.5 |
Accumulated Deficit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (1,893.4) | (1,845.7) | (1,735.8) |
Consolidated net income (loss) | (65.3) | (47.7) | (109.9) |
Cumulative effect adjustment - ASU No. 2016-16 | (4.4) | ||
Ending Balance | (1,963.1) | (1,893.4) | (1,845.7) |
Treasury Stock At Cost | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (100.5) | (100.1) | (99.6) |
Stock-based compensation | (2.2) | (0.4) | (0.5) |
Ending Balance | (102.7) | (100.5) | (100.1) |
Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 4,515.2 | 4,500.9 | 4,488.3 |
Stock-based compensation | 11.2 | 9.2 | 12.6 |
Discount on debt issuance | 33.6 | ||
Capped call on debt issuance | (27.3) | ||
Expenses of convertible notes | (1.2) | ||
Ending Balance | 4,526.4 | 4,515.2 | 4,500.9 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (4,152.8) | (3,945.3) | (4,113.4) |
Translation adjustments | 110.1 | (93.3) | (96) |
Postretirement plans | 226.9 | (114.2) | 264.1 |
Ending Balance | (3,815.8) | (4,152.8) | (3,945.3) |
Noncontrolling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (16.4) | 11.1 | 7.6 |
Consolidated net income (loss) | (1.3) | 11 | 6.7 |
Translation adjustments | 7.7 | (15.1) | (4.8) |
Postretirement plans | 38.2 | (23.4) | 1.6 |
Ending Balance | $ 28.2 | $ (16.4) | $ 11.1 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries. Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, assumptions used in the measurement of progress toward completion for systems integration projects, income taxes and retirement and other post-employment benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash and Cash equivalents Cash and cash equivalents consists of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily consists of cash the company is contractually obligated to maintain in accordance with the terms of its U.K. business process outsourcing joint venture agreement. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows. As of December 31, 2017 2016 Cash and cash equivalents $ 733.9 $ 370.6 Restricted cash 30.2 30.5 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 764.1 $ 401.1 Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method. Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method. The estimated lives used, in years, are as follows: buildings, 20 – 50 ; machinery and office equipment, 4 – 7 ; rental equipment, 4 ; and internal-use software, 3 – 10 . Advertising costs All advertising costs are expensed as incurred. The amount charged to expense during 2017 , 2016 and 2015 was $1.6 million , $2.7 million and $4.9 million , respectively. Shipping and handling Costs related to shipping and handling are included in cost of revenue. Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date. The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified. We estimate the fair value of each reporting unit using a combination of the income approach and market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit. The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, we gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long term growth prospects, among other factors. In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods. Revenue recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collectability is probable. Revenue from hardware sales with standard payment terms is recognized upon the passage of title and the transfer of risk of loss. Outside the United States, the company recognizes revenue even if it retains a form of title to products delivered to customers, provided the sole purpose is to enable the company to recover the products in the event of customer payment default and the arrangement does not prohibit the customer’s use of the product in the ordinary course of business. Revenue from software licenses with standard payment terms is recognized at the inception of the initial license term and upon execution of an extension to the license term. The company also enters into multiple-element arrangements, which may include any combination of software, hardware, or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple deliverables, with software and hardware delivered in one reporting period and the software support and hardware maintenance services delivered across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long term multiple year basis and periodically sell software and hardware products to the client. The services are provided on a continuous basis across multiple reporting periods and the software and hardware products are delivered in one reporting period. To the extent that a deliverable in a multiple-deliverable arrangement is subject to specific guidance, that deliverable is accounted for in accordance with such specific guidance. Examples of such arrangements may include leased hardware which is subject to specific leasing guidance or software which is subject to specific software revenue recognition guidance. In these transactions, the company allocates the total revenue to be earned under the arrangement among the various elements based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”) if available, third party evidence (“TPE”) if VSOE is not available, or the best estimated selling price (“ESP”) if neither VSOE nor TPE is available. VSOE of selling price is based upon the normal pricing and discounting practices for those services and products when sold separately. TPE of selling price is based on evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. ESP is established considering factors such as margin objectives, discounts off of list prices, market conditions, competition and other factors. ESP represents the price at which the company would transact for the deliverable if it were sold by the company regularly on a standalone basis. As mentioned above, some of the company’s multiple-element arrangements may include leased hardware which is subject to specific leasing guidance. Revenue under these arrangements is allocated considering the relative selling prices of the lease and non-lease elements. Lease deliverables include hardware, financing, maintenance and other executory costs, while non-lease deliverables generally consist of services other than maintenance. The determination of the amount of revenue allocated to the lease deliverables begins by allocating revenue to maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease. The remaining amounts are allocated to the hardware and financing elements. The amount allocated to hardware is recognized as revenue monthly over the term of the lease for those leases which are classified as operating leases and at the inception of the lease term for those leases which are classified as sales-type leases. The amount of finance income attributable to sales-type leases is recognized on the accrual basis using the effective interest method. For multiple-element arrangements that involve the licensing, selling or leasing of software, for software and software-related elements, the allocation of revenue is based on VSOE. There may be cases in which there is VSOE of fair value of the undelivered elements but no such evidence for the delivered elements. In these cases, the residual method is used to allocate the arrangement consideration. Under the residual method, the amount of consideration allocated to the delivered elements equals the total arrangement consideration less the aggregate VSOE of fair value of the undelivered elements. For multiple-element arrangements that include services or products that (a) do not include the licensing, selling or leasing of software, or (b) contain software that is incidental to the services or products as a whole or (c) contain software components that are sold, licensed or leased with tangible products when the software components and non-software components (i.e., the software and hardware) of the tangible product function together to deliver the tangible product’s essential functionality (e.g., sales of the company’s enterprise-class servers including software and hardware), or some combination of the above, the allocation of revenue is based on the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy, discussed above. For multiple-element arrangements that include both software and non-software deliverables, the company allocates arrangement consideration to the software group and to the non-software group based on the relative selling prices of the deliverables in the arrangement based on the selling price hierarchy discussed above. For the software group, arrangement consideration is further allocated using VSOE as described above. The company recognizes revenue on delivered elements only if: (a) any undelivered services or products are not essential to the functionality of the delivered services or products, (b) the company has an enforceable claim to receive the amount due in the event it does not deliver the undelivered services or products, (c) there is evidence of the selling price for each undelivered service or product, and (d) the revenue recognition criteria otherwise have been met for the delivered elements. Otherwise, revenue on delivered elements is recognized as the undelivered elements are delivered. The company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A delivered element constitutes a separate unit of accounting when it has standalone value and there is no customer-negotiated refund or return right for the delivered elements. If these criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and revenue recognition are determined for the combined unit as a single unit. Revenue from hardware sales and software licenses with extended payment terms is recognized as payments from customers become due (assuming that all other conditions for revenue recognition have been satisfied). Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term. Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred. Revenue and profit under systems integration contracts are recognized either on the percentage-of-completion method of accounting using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for on the percentage-of-completion basis, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident. Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract. Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income. The Tax Cuts & Jobs Act (“TCJA”) was enacted by the U.S. on December 22, 2017 and introduced a tax on “global intangible low-taxed income” (“GILTI”) effective in 2018. The company will treat GILTI as a period cost when included in U.S. taxable income. Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally not in excess of three years following product release. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue. Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above. Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above. Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates. Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net. For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net. Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses. Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income. At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 9), derivatives (see note 12) and to its postretirement plan assets (see note 16). Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services. |
Earnings per common share
Earnings per common share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per common share | Earnings per common share The following table shows how the loss per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2017 (shares in thousands). Year ended December 31, 2017 2016 2015 Basic earnings (loss) per common share computation: Net loss attributable to Unisys Corporation common shareholders $ (65.3 ) $ (47.7 ) $ (109.9 ) Weighted average shares 50,409 50,060 49,905 Basic loss per common share $ (1.30 ) $ (0.95 ) $ (2.20 ) Diluted earnings (loss) per common share computation: Net loss attributable to Unisys Corporation for diluted earnings per share $ (65.3 ) $ (47.7 ) $ (109.9 ) Weighted average shares 50,409 50,060 49,905 Diluted loss per common share $ (1.30 ) $ (0.95 ) $ (2.20 ) Anti-dilutive weighted-average stock options and restricted stock units (a) 2,206 3,553 2,915 Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes (a) 21,868 17,230 — (a) Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Cost reduction actions
Cost reduction actions | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Cost reduction actions | Cost reduction actions In 2015, the company initiated a restructuring plan in connection with organizational initiatives to create a more competitive cost structure and rebalance the company’s global skill set. The company recognized charges and other costs of $347.4 million through 2017 in connection with this plan, principally related to a reduction in employees. During 2015 , the company recognized charges of $118.5 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $78.8 million and were comprised of: (a) a charge of $27.9 million for 700 employees in the U.S. and (b) a charge of $50.9 million for 782 employees outside the U.S. In addition, the company recorded charges of $39.7 million comprised of $20.2 million for asset impairments and $19.5 million for other expenses related to the cost reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue - services, $52.3 million ; cost of revenue - technology, $0.3 million ; selling, general and administrative expenses, $53.5 million ; and research and development expenses, $12.4 million . During 2016 , the company recognized charges of $82.1 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $62.6 million , principally related to severance costs, and were comprised of: (a) a charge of $8.3 million for 351 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $58.6 million for 1,048 employees and $(3.0) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.5 million comprised of $1.4 million for idle leased facilities costs, $4.1 million for contract amendment and termination costs, $13.3 million for professional fees and other expenses related to the cost reduction effort and $0.7 million for net asset sales and write-offs. The charges were recorded in the following statement of income classifications: cost of revenue – services, $42.4 million ; selling, general and administrative expenses, $38.0 million ; and research and development expenses, $1.7 million . During 2017 , the company recognized charges of $146.8 million in connection with this plan. The charges related to work-force reductions were $117.9 million , principally related to severance costs, and were comprised of: (a) a charge of $9.4 million for 542 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $109.4 million for 2,274 employees, $8.2 million for additional benefits provided in 2017 and $(7.8) million for changes in estimates outside the U.S. In addition, the company recorded charges of $28.9 million comprised of $4.7 million for idle leased facilities costs, $5.4 million for contract amendment and termination costs, $5.2 million for professional fees and other expenses related to the cost reduction effort, $1.8 million for net asset sales and write-offs and $11.8 million for net foreign currency losses related to exiting foreign countries. The charges were recorded in the following statement of income classifications: cost of revenue - services, $99.6 million ; cost of revenue - technology, $0.4 million ; selling, general and administrative expenses, $33.6 million ; and research and development expenses, $1.4 million ; and other income (expense), net, $11.8 million . Liabilities and expected future payments related to these costs are as follows: Work-Force Reductions Idle Leased Total U.S. International Facilities Costs Charges for work-force reductions $ 78.8 $ 27.9 $ 50.9 $ — Payments (45.3 ) (23.7 ) (21.6 ) — Translation adjustments (0.5 ) (0.5 ) — Balance at December 31, 2015 33.0 4.2 28.8 — Additional Provisions 68.3 8.3 58.6 1.4 Payments (59.3 ) (9.4 ) (49.9 ) — Changes in estimates (4.3 ) (1.3 ) (3.0 ) — Translation adjustments (1.1 ) — (1.1 ) — Balance at December 31, 2016 36.6 1.8 33.4 1.4 Additional Provisions 131.2 9.4 117.6 4.2 Payments (49.3 ) (6.0 ) (41.3 ) (2.0 ) Changes in estimates (8.6 ) (1.3 ) (7.8 ) 0.5 Translation adjustments 7.9 — 7.7 0.2 Balance at December 31, 2017 $ 117.8 $ 3.9 $ 109.6 $ 4.3 Expected future payments on balance at December 31, 2017 In 2018 $ 87.7 $ 3.9 $ 82.0 $ 1.8 Beyond 2018 30.1 — 27.6 2.5 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the fourth quarter of 2017 , the company performed its annual impairment test of goodwill for all of our reporting units. The fair values of each of the reporting units exceeded their carrying values; therefore, no goodwill impairment was required. At December 31, 2017 , the amount of goodwill allocated to reporting units with negative net assets was as follows: Business Process Outsourcing Services, $10.8 . Changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows: Total Services Technology Balance at December 31, 2015 $ 177.4 $ 68.7 $ 108.7 Translation adjustments 1.2 1.2 — Balance at December 31, 2016 178.6 69.9 108.7 Translation adjustments 2.2 2.2 — Balance at December 31, 2017 $ 180.8 $ 72.1 $ 108.7 |
Recent accounting pronouncement
Recent accounting pronouncements and accounting changes | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent accounting pronouncements and accounting changes | Recent accounting pronouncements and accounting changes Accounting Pronouncements Adopted Effective January 1, 2017, the company adopted Accounting Standards Update (“ASU”) No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the Financial Accounting Standards Board (“FASB”) which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amended guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Adoption of this new guidance had no impact on the company’s consolidated results of operations and financial position. Effective January 1, 2017, the company adopted ASU No. 2016-18 Statement of Cash Flows (Topic 230) - Restricted Cash issued by the FASB which requires companies to include amounts generally described as restricted cash or restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance has been applied on retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. Amounts reclassified in the consolidated statements of cash flows for the years ended December 31, 2016 and 2015 are as follows: Year ended December 31, 2016 2015 Cash flows from operating activities Other assets $ (1.9 ) 2.60 $ 2.6 Cash flows from investing activities Other 1.6 (2.3 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.8 ) (4.6 ) Cash, cash equivalents and restricted cash, beginning of year 31.6 35.9 Cash, cash equivalents and restricted cash, end of year 30.5 31.6 Effective January 1, 2017, the company adopted ASU No. 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory issued by the FASB which allows the recognition of deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. The new guidance has been applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit. At January 1, 2017, the adjustment to accumulated deficit was an increase of $4.4 million . Effective January 1, 2017, the company adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , issued by the FASB which clarifies the treatment of several cash flow categories. In addition, the guidance also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The company previously reported premium payments on and proceeds from the settlement of corporate-owned life insurance policies as cash flows from operating activities in the company’s consolidated statement of cash flows. Under the new guidance, these amounts were reclassified to investing activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $1.5 million and $1.1 million , respectively, were reclassified from “other assets” in operating activities to “other” in investing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted ASU No. 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , issued by the FASB, which changes certain aspects of accounting for share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the standard requires all tax-related cash flows resulting from share-based payments to be reported as operating activities on the consolidated statement of cash flows, and any cash payments made to taxing authorities on an employee’s behalf as financing activities, which the company previously reported as operating activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $0.4 million and $0.8 million , respectively, were reclassified from “accounts payable and other accrued liabilities” in operating activities to “other” in financing activities in the company’s consolidated statements of cash flows. Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued ASU No. 2017-07 Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line items that include service cost and outside the subtotal of operating income. This update is effective for annual periods beginning after December 15, 2017, which for the company is January 1, 2018. Adoption of this new guidance will result in the reclassification of net periodic benefit cost, other than service costs ( $92.5 million and $81.6 million for the years ended December 31, 2017 and 2016, respectively), from operating income to non-operating income. There will be no overall impact on the company’s consolidated financial position. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, loans and other financial instruments. This update is effective for annual periods beginning after December 15, 2019, with earlier adoption permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) , which is intended to improve financial reporting about leasing transactions. The ASU requires organizations that lease assets, referred to as lessees, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods beginning after December 15, 2018, with earlier adoption permitted. The company will adopt the new guidance on January 1, 2019, and is currently evaluating the impact of the adoption on its consolidated results of operations and financial position. In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) , which establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. The standard, and its various amendments, is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. The new standard would require the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the current rules would allow and require the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the current rules would allow. The standard also requires significantly expanded disclosure requirements. The company will adopt the standard on January 1, 2018 using the modified retrospective method. The company does not believe there will be a material impact to its consolidated financial position upon adoption. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable Accounts receivable consist principally of trade accounts receivable from customers and are generally unsecured and due within 30 to 90 days. Credit losses relating to these receivables consistently have been within management’s expectations. Expected credit losses are recorded as an allowance for doubtful accounts in the consolidated balance sheets. Estimates of expected credit losses are based primarily on the aging of the accounts receivable balances. The company records a specific reserve for individual accounts when it becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The collection policies and procedures of the company vary by credit class and prior payment history of customers. Revenue recognized in excess of billings on services contracts, or unbilled accounts receivable, was $109.4 million and $98.0 million at December 31, 2017 and 2016 , respectively. As of December 31, 2017 , receivables under sales-type leases before the allowance for unearned income were collectible as follows: Year 2018 $ 45.5 2019 25.8 2020 16.3 2021 10.8 2022 9.7 Thereafter 19.1 Total $ 127.2 Unearned income, which is deducted from accounts receivable, was $12.5 million and $7.0 million at December 31, 2017 and 2016 , respectively. The allowance for doubtful accounts, which is reported as a deduction from accounts receivable, was $22.0 million and $22.8 million at December 31, 2017 and 2016 , respectively. The provision for doubtful accounts, which is reported in selling, general and administrative expenses in the consolidated statements of income, was expense of $3.1 million , $2.2 million and $3.0 million , in 2017 , 2016 and 2015 , respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2017 . Year ended December 31, 2017 2016 2015 Income (loss) before income taxes United States $ (152.7 ) $ (88.3 ) $ (130.6 ) Foreign 80.6 108.8 71.8 Total income (loss) before income taxes $ (72.1 ) $ 20.5 $ (58.8 ) Provision for income taxes Current United States $ (42.8 ) $ 6.7 $ 1.0 Foreign 33.9 47.7 42.2 State and local — — 0.3 Total (8.9 ) 54.4 43.5 Deferred Foreign 3.4 2.8 0.9 Total (benefit) provision for income taxes $ (5.5 ) $ 57.2 $ 44.4 Following is a reconciliation of the (benefit) provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported: Year ended December 31, 2017 2016 2015 United States statutory income tax provision (benefit) $ (25.2 ) $ 7.2 $ (20.6 ) Income and losses for which no provision or benefit has been recognized 70.3 65.5 69.1 Foreign rate differential and other foreign tax expense (11.3 ) (21.1 ) (15.9 ) Income tax withholdings 16.8 22.8 12.5 Permanent items (3.0 ) (4.7 ) (1.9 ) Enacted rate changes (0.4 ) 3.5 9.1 Change in uncertain tax positions 2.3 0.4 1.5 Change in valuation allowances due to changes in judgment (4.6 ) (16.4 ) (5.4 ) Income tax credits, U.S. (50.4 ) — (4.0 ) (Benefit) provision for income taxes $ (5.5 ) $ 57.2 $ 44.4 The TCJA was enacted by the U.S. on December 22, 2017. The TCJA eliminates the corporate Alternative Minimum Tax (“AMT”) beginning in 2018, and also provides for refunds of all remaining AMT credits. Consequently, the company recorded a benefit of $50.4 million in 2017. Of this total, $9.1 million was received in 2017, and approximately $7.2 million will be received in 2018 under Internal Revenue Code section 168(k)(4) of the prior tax law. The remainder, $34.1 million , will be refundable under the TCJA between 2019 and 2022. The 2016 and 2015 provision for income taxes included $3.5 million and $9.1 million due to a reduction in the UK income tax rate. The rate reductions were enacted in the third quarter of 2016 and the fourth quarter of 2015 and reduced the rate from 18% to 17% and from 20% to 18% effective April 1, 2020 and 2017, respectively. The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows: As of December 31, 2017 2016 Deferred tax assets Tax loss carryforwards $ 837.6 $ 889.6 Postretirement benefits 437.7 728.9 Foreign tax credit carryforwards 127.0 317.6 Other tax credit carryforwards 29.1 91.4 Deferred revenue 40.9 81.0 Employee benefits and compensation 35.2 49.1 Purchased capitalized software 22.2 32.6 Depreciation 24.5 28.3 Warranty, bad debts and other reserves 5.3 16.1 Capitalized costs 3.1 10.9 Other 39.3 27.7 1,601.9 2,273.2 Valuation allowance (1,441.1 ) (2,084.6 ) Total deferred tax assets $ 160.8 $ 188.6 Deferred tax liabilities Capitalized research and development $ 24.3 $ 20.3 Other 25.8 28.4 Total deferred tax liabilities $ 50.1 $ 48.7 Net deferred tax assets $ 110.7 $ 139.9 The TCJA reduced the U.S. federal tax rate from 35% to 21% effective in 2018. This rate decrease resulted in a remeasurement of U.S. deferred tax balances in 2017, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets. At December 31, 2017 , the company has tax effected U.S. Federal ( $319.5 million ), state and local ( $250.7 million ), and foreign ( $267.4 million ) tax loss carryforwards, the total of which is $837.6 million . These carryforwards will expire as follows: 2018 , $5.3 ; 2019 , $7.3 ; 2020 , $28.5 ; 2021 , $14.5 ; 2022 , $114.0 ; and $668.0 thereafter. The company also has available tax credit carryforwards of $127.0 million , which will expire as follows: 2018 , $10.1 ; 2019 , $10.2 ; 2020 , $20.9 ; 2021 , $8.7 ; 2022 , $7.7 ; and $69.4 thereafter. Failure to achieve forecasted taxable income might affect the ultimate realization of the company’s net deferred tax assets. Factors that may affect the company’s ability to achieve sufficient forecasted taxable income include, but are not limited to, the following: increased competition, a decline in sales or margins, loss of market share, the impact of the economic environment, delays in product availability and technological obsolescence. Under U.S. tax law effective through December 31, 2017, undistributed earnings of foreign subsidiaries were generally taxable upon repatriation to the U.S. shareholder. Under the TCJA, effective January 1, 2018, distributions from foreign subsidiaries to U.S. shareholders are generally exempt from taxation. As a part of the transition to this new participation exemption system of taxation, the TCJA requires a transition tax to be paid on the net accumulated post-1986 undistributed earnings of foreign subsidiaries. The company has determined that, due to accumulated deficits of foreign subsidiaries offsetting the accumulated earnings of foreign subsidiaries, the company will not incur a transition tax. With this change in U.S. taxation of earnings of foreign subsidiaries under the TCJA, future distributions of earnings from foreign subsidiaries will generally be exempt from U.S. taxation. Consequently, the deferred income tax liability on undistributed earnings is generally limited to any foreign withholding or other foreign taxes that will be imposed on such distributions. As the company currently intends to indefinitely reinvest the earnings of certain foreign subsidiaries, no provision has been made for income taxes that may become payable upon distribution of the earnings of such subsidiaries. The unrecognized deferred income tax liability at December 31, 2017 approximated $21.5 million . While subsequent to 2017, the U.S. will not generally tax distributions from foreign subsidiaries, the TCJA introduced a tax on GILTI. Beginning in 2018, U.S. taxable income will include GILTI, which essentially includes net foreign subsidiaries’ earnings above a routine 10% return on their aggregate specified tangible assets. The company has made an accounting policy election to treat the GILTI as a period cost when included in U.S. taxable income, and consequently GILTI has no impact on the 2017 financial statements. Cash paid for income taxes, net of refunds, during 2017 , 2016 and 2015 was $34.3 million , $46.4 million and $59.7 million , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year ended December 31, 2017 2016 2015 Balance at January 1 $ 35.8 $ 27.7 $ 35.0 Additions based on tax positions related to the current year 4.2 2.7 3.4 Changes for tax positions of prior years (11.2 ) 12.0 (4.0 ) Reductions as a result of a lapse of applicable statute of limitations (2.7 ) (2.8 ) (3.4 ) Settlements (0.2 ) (0.1 ) (0.9 ) Changes due to foreign currency 2.0 (3.7 ) (2.4 ) Balance at December 31 $ 27.9 $ 35.8 $ 27.7 The company recognizes penalties and interest accrued related to income tax liabilities in the provision for income taxes in its consolidated statements of income. At December 31, 2017 and 2016 , the company had an accrual of $2.3 million and $1.2 million , respectively, for the payment of penalties and interest. At December 31, 2017 , all of the company’s liability for unrecognized tax benefits, if recognized, would affect the company’s effective tax rate. Within the next 12 months , the company believes that it is reasonably possible that the amount of unrecognized tax benefits may significantly change; however, various events could cause this belief to change in the future. The company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Several U.S. state and foreign income tax audits are in process. The company is under an audit in India, for which years prior to 2006 are closed. For the most significant jurisdictions outside the U.S., the audit periods through 2012 are closed for Brazil, and the audit periods through 2013 are closed for the United Kingdom. All of the various ongoing income tax audits throughout the world are not expected to have a material impact on the company’s financial position. Internal Revenue Code Sections 382 and 383 provide annual limitations with respect to the ability of a corporation to utilize its net operating loss (as well as certain built-in losses) and tax credit carryforwards, respectively (“Tax Attributes”), against future U.S. taxable income, if the corporation experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. The company regularly monitors ownership changes (as calculated for purposes of Section 382). The company has determined that, for purposes of the rules of Section 382 described above, an ownership change occurred in February 2011. Any future transaction or transactions and the timing of such transaction or transactions could trigger additional ownership changes under Section 382. As a result of the February 2011 ownership change, utilization for certain of the company’s Tax Attributes, U.S. net operating losses and tax credits, is subject to an overall annual limitation of $70.6 million . The cumulative limitation as of December 31, 2017 is approximately $416.0 million . This limitation will be applied first to any recognized built in losses, then to any net operating losses, and then to any other Tax Attributes. Any unused limitation may be carried over to later years. Based on presently available information and the existence of tax planning strategies, the company does not expect to incur a U.S. cash tax liability in the near term. The company maintains a full valuation allowance against the realization of all U.S. deferred tax assets as well as certain foreign deferred tax assets in excess of deferred tax liabilities. |
Properties
Properties | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties | Properties Properties comprise the following: As of December 31, 2017 2016 Land $ 2.8 $ 2.7 Buildings 91.3 88.2 Machinery and office equipment 601.7 591.7 Internal-use software 157.4 145.9 Rental equipment 45.6 58.1 Total properties $ 898.8 $ 886.6 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt is comprised of the following: As of December 31, 2017 2016 10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $10.4 million at December 31, 2017) $ 429.6 $ — 5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $27.2 million and $34.4 million at December 31, 2017 and 2016, respectively) 186.3 179.1 6.25% senior notes — 94.7 Capital leases 7.5 10.1 Other debt 21.3 16.1 Total 644.7 300.0 Less – current maturities 10.8 106.0 Total long-term debt $ 633.9 $ 194.0 Long-term debt is carried at amortized cost and its estimated fair value is based on market prices classified as Level 2 in the fair value hierarchy. Presented below are the estimated fair values of long-term debt as of December 31, 2017 and 2016 . As of December 31, 2017 2016 10.75% senior secured notes due April 15, 2022 (a) $ 492.8 $ — 5.50% convertible senior notes due March 1, 2021 237.9 379.8 6.25% senior notes (b) — 97.8 (a) Issued in April 2017 (b) Retired in April 2017 Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows: Year Total Long-Term Debt Capital Leases 2018 $ 10.8 $ 8.2 $ 2.6 2019 1.4 — 1.4 2020 2.3 0.9 1.4 2021 189.5 188.1 1.4 2022 432.3 431.5 0.8 Thereafter 8.4 8.4 — Total $ 644.7 $ 637.1 $ 7.6 Cash paid for interest during 2017 , 2016 and 2015 was $39.9 million , $22.1 million and $14.4 million , respectively. Capitalized interest expense during 2017 , 2016 and 2015 was $4.2 million , $3.0 million and $3.1 million , respectively. On April 17, 2017, the company issued $440.0 million aggregate principal amount of 10.75% Senior Secured Notes due 2022 (the “Notes”). The Notes are initially fully and unconditionally guaranteed on a senior secured basis by Unisys Holding Corporation, Unisys AP Investment Company I and Unisys NPL, Inc. (together with the Company, the “Grantors”). In the future, the Notes will be guaranteed by each material domestic subsidiary and each restricted subsidiary that guarantees the secured revolving credit facility and other indebtedness of the company or another subsidiary guarantor. The Notes and the guarantees will rank equally in right of payment with all of the existing and future senior debt of the company and the subsidiary guarantors. The Notes and the guarantees will be structurally subordinated to all existing and future liabilities (including preferred stock, trade payables and pension liabilities) of the company’s subsidiaries that are not subsidiary guarantors. The Notes pay interest semiannually on April 15 and October 15, commencing on October 15, 2017, at an annual rate of 10.75% , and will mature on April 15, 2022, unless earlier repurchased or redeemed. The company may, at its option, redeem some or all of the Notes at any time on or after April 15, 2020 at a redemption price determined in accordance with the redemption schedule set forth in the indenture governing the Notes (the “indenture”), plus accrued and unpaid interest, if any. Prior to April 15, 2020, the company may, at its option, redeem some or all of the Notes at any time, at a price equal to 100% of the principal amount of the Notes redeemed plus a “make-whole” premium, plus accrued and unpaid interest, if any. The company may also redeem, at its option, up to 35% of the Notes at any time prior to April 15, 2020, using the proceeds of certain equity offerings at a redemption price of 110.75% of the principal amount thereof, plus accrued and unpaid interest, if any. In addition, the company may redeem all (but not less than all) of the Notes at any time that the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio (as such terms are described below and further defined in the indenture) at a price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if any. The indenture contains covenants that limit the ability of the company and its restricted subsidiaries to, among other things: (i) incur additional indebtedness and guarantee indebtedness; (ii) pay dividends or make other distributions or repurchase or redeem its capital stock; (iii) prepay, redeem or repurchase certain debt; (iv) make certain prepayments in respect of pension obligations; (v) issue certain preferred stock or similar equity securities; (vi) make loans and investments (including investments by the company and subsidiary guarantors in subsidiaries that are not guarantors); (vii) sell assets; (viii) create or incur liens; (ix) enter into transactions with affiliates; (x) enter into agreements restricting its subsidiaries’ ability to pay dividends; and (xi) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to several important limitations and exceptions. The indenture also includes a covenant requiring that the company maintain a Collateral Coverage Ratio of not less than 1.50 : 1.00 (the “Required Collateral Coverage Ratio”) as of any test date. The Collateral Coverage Ratio is based on the ratio of (A) Grantor unrestricted cash and cash equivalents plus 4.75 multiplied by of the greater of (x) Grantor EBITDA for the most recently ended four fiscal quarters and (y) (i) the average quarterly Grantor EBITDA for the most recently ended seven fiscal quarters, multiplied by (ii) four , to (B) secured indebtedness of the Grantors. The Collateral Coverage Ratio is tested quarterly. If the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio as of any test date, and the company has not redeemed the Notes within 90 days thereafter, this will be an event of default under the indenture. If the company experiences certain kinds of changes of control, it must offer to purchase the Notes at 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any. In addition, if the company sells assets under certain circumstances it must apply the proceeds towards an offer to repurchase the Notes at a price equal to par plus accrued and unpaid interest, if any. The indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Notes to be due and payable immediately. On May 8, 2017, the company redeemed all of its then outstanding 6.25% senior notes due 2017. As a result of this redemption, the company recognized a charge of $1.5 million in “Other income (expense), net” in the second quarter of 2017, which is comprised of $1.3 million of premium and expenses paid and $0.2 million for the write-off of unamortized discount and fees related to the portion of the notes redeemed. In 2016, the company issued $213.5 million aggregate principal amount of Convertible Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes, which are senior unsecured obligations, bear interest at a coupon rate of 5.50% (or 9.5% effective interest rate) per year until maturity, payable semiannually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016. The 2021 Notes are not redeemable prior to maturity and are convertible into shares of the company’s common stock. The conversion rate for the 2021 Notes is 102.4249 shares of the company’s common stock per $1,000 principal amount of the 2021 Notes (or a total amount of 21,867,716 shares), which is equivalent to an initial conversion price of approximately $9.76 per share of the company’s common stock. Upon any conversion, the company will settle its conversion obligation in cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. In connection with the issuance of the 2021 Notes, the company also paid $27.3 million to enter into privately negotiated capped call transactions with the initial purchasers and/or affiliates of the initial purchasers. The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the company’s common stock that will initially underlie the 2021 Notes. The capped call transactions will effectively raise the conversion premium on the 2021 Notes from approximately 22.5% to approximately 60% , which raises the initial conversion price from approximately $9.76 per share of common stock to approximately $12.75 per share of common stock. The capped call transactions are expected to reduce potential dilution to the company’s common stock and/or offset potential cash payments the company is required to make in excess of the principal amount upon any conversion of the 2021 Notes. Interest expense related to the 2021 Notes (a) is comprised of the following: Year ended December 31, 2017 2016 Contractual interest coupon $ 11.8 $ 9.2 Amortization of debt discount 6.0 4.3 Amortization of debt issuance costs 1.2 1.0 Total $ 19.0 $ 14.5 (a) Issued in 2016 The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit up to an aggregate amount of $125.0 million (with a limit on letters of credit of $30.0 million ). The Credit Agreement includes an accordion feature allowing for an increase in the amount of the facility up to $150.0 million . Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At December 31, 2017 , the company had no borrowings and $4.7 million of letters of credit outstanding, and availability under the facility was $110.5 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity (i) on the date that is 91 days prior to the maturity date of the 2021 Notes unless, on such date, certain conditions are met; or (ii) on the date that is 60 days prior to the maturity date of the Notes unless, by such date, such secured notes have not been redeemed or refinanced. The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility. The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15 million . The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million . At December 31, 2017 , the company has met all covenants and conditions under its various lending agreements. The company expects to continue to meet these covenants and conditions. The company’s principal sources of liquidity are cash on hand, cash from operations and its revolving credit facility, discussed above. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks. The company’s anticipated future cash expenditures include anticipated contributions to its defined benefit pension plans. The company believes that it has adequate sources of liquidity to meet its expected 2018 cash requirements. |
Other accrued liabilities
Other accrued liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other accrued liabilities | Other accrued liabilities Other accrued liabilities (current) are comprised of the following: As of December 31, 2017 2016 Payrolls and commissions $ 120.2 $ 110.6 Cost reduction 87.7 21.2 Accrued vacations 42.8 47.1 Taxes other than income taxes 29.1 25.4 Income taxes 26.0 35.3 Postretirement 18.5 19.3 Accrued interest 13.8 6.1 Other 53.4 84.2 Total other accrued liabilities $ 391.5 $ 349.2 |
Rental expense and commitments
Rental expense and commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rental expense and commitments | Rental expense and commitments Rental expense and income from subleases for the three years ended December 31, 2017 were as follows: Year ended December 31, 2017 2016 2015 Rental expense, less income from subleases $ 71.7 $ 77.4 $ 80.6 Income from subleases $ 4.4 $ 7.8 $ 9.1 Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2017 , substantially all of which relate to real properties, were as follows: Year 2018 $ 47.4 2019 41.3 2020 32.9 2021 21.5 2022 16.2 Thereafter 39.4 Total $ 198.7 Such rental commitments have been reduced by minimum sublease rentals of $7.2 million , due in the future under noncancelable subleases. At December 31, 2017 , the company had outstanding standby letters of credit and surety bonds totaling approximately $318 million related to performance and payment guarantees. On the basis of experience with these arrangements, the company believes that any obligations that may arise will not be material. In addition, at December 31, 2017 , the company had deposits and collateral of approximately $14 million in other long-term assets, principally related to tax contingencies in Brazil. |
Financial instruments and conce
Financial instruments and concentration of credit risks | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and concentration of credit risks | Financial instruments and concentration of credit risks Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. The company uses derivative financial instruments to reduce its exposure to market risks from changes in foreign currency exchange rates on such balances. The company enters into foreign exchange forward contracts, generally having maturities of three months or less, which have not been designated as hedging instruments. At December 31, 2017 and 2016 , the notional amount of these contracts was $514.0 million and $428.9 million , respectively. The fair value of these forward contracts is based on quoted prices for similar but not identical financial instruments; as such, the inputs are considered Level 2 inputs. The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2017 and 2016 . As of December 31, 2017 2016 Balance Sheet Location Prepaid expenses and other current assets $ 4.9 $ 2.4 Other accrued liabilities 1.6 1.9 Total fair value $ 3.3 0.5 $ 0.5 The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts for the three years ended December 31, 2017 . Year Ended December 31, 2017 2016 2015 Statement of Income Location Other income (expense), net $ 27.5 $ (29.1 ) $ 15.6 Financial instruments also include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits which may be withdrawn at any time at the discretion of the company without penalty. At December 31, 2017 and 2016 , the company’s cash equivalents principally have maturities of less than one month or can be withdrawn at any time at the discretion of the company without penalty. Due to the short maturities of these instruments, they are carried on the consolidated balance sheets at cost plus accrued interest, which approximates market value. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2017 and 2016 , the company had no significant concentrations of credit risk with any one customer. At December 31, 2017 and 2016 , the company had $75.8 million and $74.0 million , respectively, of receivables due from various U.S. federal governmental agencies. At December 31, 2017 and 2016 , the carrying amount of cash and cash equivalents approximated fair value. |
Foreign currency
Foreign currency | 12 Months Ended |
Dec. 31, 2017 | |
Foreign Currency [Abstract] | |
Foreign currency | Foreign currency During the years ended December 31, 2017 , 2016 and 2015 , the company recognized foreign exchange gains (losses) in “Other income (expense), net” in its consolidated statements of income of $(9.9) million , $2.3 million and $8.1 million , respectively. The year ended December 31, 2017 also includes $11.8 million of net foreign currency losses related to exiting foreign countries in connection with the company’s restructuring plan. |
Litigation and contingencies
Litigation and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and contingencies | Litigation and contingencies There are various lawsuits, claims, investigations and proceedings that have been brought or asserted against the company, which arise in the ordinary course of business, including actions with respect to commercial and government contracts, labor and employment, employee benefits, environmental matters, intellectual property, and non-income tax matters. The company records a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information and events pertinent to a particular matter. The company believes that it has valid defenses with respect to legal matters pending against it. Based on its experience, the company also believes that the damage amounts claimed in the lawsuits disclosed below are not a meaningful indicator of the company’s potential liability. Litigation is inherently unpredictable, however, and it is possible that the company’s results of operations or cash flows could be materially affected in any particular period by the resolution of one or more of the legal matters pending against it. In April 2007, the Ministry of Justice of Belgium sued Unisys Belgium SA-NV, a Unisys subsidiary (“Unisys Belgium”), in the Court of First Instance of Brussels. The Belgian government had engaged the company to design and develop software for a computerized system to be used to manage the Belgian court system. The Belgian State terminated the contract and in its lawsuit has alleged that the termination was justified because Unisys Belgium failed to deliver satisfactory software in a timely manner. It claims damages of approximately €28.0 million . Unisys Belgium filed its defense and counterclaim in April 2008, in the amount of approximately €18.5 million . The company believes it has valid defenses to the claims and contends that the Belgian State’s termination of the contract was unjustified. The company’s Brazilian operations, along with those of many other companies doing business in Brazil, are involved in various litigation matters, including numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax-related matters pertain to value added taxes, customs, duties, sales and other non-income related tax exposures. The labor-related matters include claims related to compensation. The company believes that appropriate accruals have been established for such matters based on information currently available. At December 31, 2017 , excluding those matters that have been assessed by management as being remote as to the likelihood of ultimately resulting in a loss, the amount related to unreserved tax-related matters, inclusive of any related interest, is estimated to be up to approximately $135.0 million . On June 26, 2014, the State of Louisiana filed a Petition for Damages against, among other defendants, the company and Molina Information Systems, LLC, in the Parish of East Baton Rouge, 19th Judicial District. The State alleged that between 1989 and 2012 the defendants, each acting successively as the State’s Medicaid fiscal intermediary, utilized an incorrect reimbursement formula for the payment of pharmaceutical claims causing the State to pay excessive amounts for prescription drugs. The State contends overpayments of approximately $68.0 million for the period January 2002 through July 2011 and is seeking data to identify the claims at issue for the remaining time period. The company believes that it has valid defenses to Louisiana’s claims and is asserting them in the pending litigation. With respect to the specific legal proceedings and claims described above, except as otherwise noted, either (i) the amount or range of possible losses in excess of amounts accrued, if any, is not reasonably estimable or (ii) the company believes that the amount or range of possible losses in excess of amounts accrued that are estimable would not be material. Litigation is inherently unpredictable and unfavorable resolutions could occur. Accordingly, it is possible that an adverse outcome from such matters could exceed the amounts accrued in an amount that could be material to the company’s financial condition, results of operations and cash flows in any particular reporting period. Notwithstanding that the ultimate results of the lawsuits, claims, investigations and proceedings that have been brought or asserted against the company are not currently determinable, the company believes that at December 31, 2017 , it has adequate provisions for any such matters. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Segment information The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segment are as follows: • Cloud and infrastructure services. This represents revenue from helping clients apply cloud and as-a-service delivery models to capitalize on business opportunities, make their end users more productive and manage and secure their IT infrastructure and operations more economically. • Application services. This represents revenue from helping clients transform their business processes by developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications. • Business process outsourcing (“BPO”) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs. • Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients reduce costs, improve security and flexibility and improve the efficiency of their data-center environments. The accounting policies of each business segment are the same as those followed by the company as a whole. Intersegment sales and transfers are priced as if the sales or transfers were to third parties. Accordingly, the Technology segment recognizes intersegment revenue and manufacturing profit on software and hardware shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profits on such shipments of company software and hardware to customers. The Services segment also includes the sale of software and hardware products sourced from third parties that are sold to customers through the company’s Services channels. In the company’s consolidated statements of income, the manufacturing costs of products sourced from the Technology segment and sold to Services customers are reported in cost of revenue for Services. Also included in the Technology segment’s sales and operating profit are sales of software and hardware sold to the Services segment for internal use in Services engagements. The amount of such profit included in operating income of the Technology segment for the years ended December 31, 2017 , 2016 and 2015 was $6.3 million , $0.7 million and $9.2 million , respectively. The profit on these transactions is eliminated in Corporate. The company evaluates business segment performance based on operating income exclusive of pension income or expense, restructuring charges and unusual and nonrecurring items, which are included in Corporate. All other corporate and centrally incurred costs are allocated to the business segments based principally on revenue, employees, square footage or usage. No single customer accounts for more than 10% of revenue. Revenue from various agencies of the U.S. Government, which is reported in both business segments, was approximately $571 million , $564 million and $569 million in 2017 , 2016 and 2015 , respectively. Corporate assets are principally cash and cash equivalents, prepaid postretirement assets and deferred income taxes. The expense or income related to corporate assets is allocated to the business segments. Customer revenue by classes of similar products or services, by segment, is presented below: Year ended December 31, 2017 2016 2015 Services Cloud & infrastructure services $ 1,317.0 $ 1,352.9 $ 1,513.1 Application services 808.3 859.0 868.9 BPO services 202.9 194.4 223.6 Total Services 2,328.2 2,406.3 2,605.6 Technology 413.6 414.4 409.5 Total customer revenue $ 2,741.8 $ 2,820.7 $ 3,015.1 Presented below is a reconciliation of segment operating income to consolidated income (loss) before income taxes: Year ended December 31, 2017 2016 2015 Total segment operating income $ 235.4 $ 208.4 $ 174.9 Interest expense (52.8 ) (27.4 ) (11.9 ) Other income (expense), net (23.9 ) 0.3 8.2 Cost reduction charges (a) (135.0 ) (82.1 ) (118.5 ) Corporate and eliminations (95.8 ) (78.7 ) (111.5 ) Total income (loss) before income taxes $ (72.1 ) $ 20.5 $ (58.8 ) (a) Year ended December 31, 2017 excludes $11.8 million for net foreign currency losses related to exiting foreign countries which are reported in Other income (expense), net in the consolidated statements of income. Presented below is a reconciliation of total business segment assets to consolidated assets: As of December 31, 2017 2016 2015 Total segment assets $ 1,364.5 $ 1,339.0 $ 1,486.0 Cash and cash equivalents 733.9 370.6 365.2 Deferred income taxes 119.9 146.1 127.4 Prepaid postretirement assets 148.3 33.3 45.1 Other corporate assets 175.8 132.6 106.3 Total assets $ 2,542.4 $ 2,021.6 $ 2,130.0 A summary of the company’s operations by business segment for 2017 , 2016 and 2015 is presented below: Total Corporate Services Technology 2017 Customer revenue $ 2,741.8 $ — $ 2,328.2 $ 413.6 Intersegment — (25.9 ) — 25.9 Total revenue $ 2,741.8 $ (25.9 ) $ 2,328.2 $ 439.5 Operating income (loss) $ 4.6 $ (230.8 ) $ 64.8 $ 170.6 Depreciation and amortization 156.5 — 84.6 71.9 Total assets 2,542.4 1,177.9 985.9 378.6 Capital expenditures 176.5 4.3 102.7 69.5 2016 Customer revenue $ 2,820.7 $ — $ 2,406.3 $ 414.4 Intersegment — (22.6 ) — 22.6 Total revenue $ 2,820.7 $ (22.6 ) $ 2,406.3 $ 437.0 Operating income (loss) $ 47.6 $ (160.8 ) $ 46.9 $ 161.5 Depreciation and amortization 155.6 — 81.8 73.8 Total assets 2,021.6 682.6 963.3 375.7 Capital expenditures 147.1 3.0 74.8 69.3 2015 Customer revenue $ 3,015.1 $ — $ 2,605.6 $ 409.5 Intersegment — (49.0 ) 0.1 48.9 Total revenue $ 3,015.1 $ (49.0 ) $ 2,605.7 $ 458.4 Operating income (loss) $ (55.1 ) $ (230.0 ) $ 61.2 $ 113.7 Depreciation and amortization 180.1 — 104.8 75.3 Total assets 2,130.0 644.0 1,081.7 404.3 Capital expenditures 213.7 1.9 143.3 68.5 Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below: Year ended December 31, 2017 2016 2015 Revenue United States $ 1,257.0 $ 1,309.3 $ 1,454.9 United Kingdom 315.8 348.0 375.8 Other foreign 1,169.0 1,163.4 1,184.4 Total Revenue $ 2,741.8 $ 2,820.7 $ 3,015.1 Properties, net United States $ 85.8 $ 91.4 $ 96.9 United Kingdom 16.7 15.1 18.8 Other foreign 40.0 38.8 38.1 Total Properties, net $ 142.5 $ 145.3 $ 153.8 Outsourcing assets, net United States $ 81.1 $ 105.1 $ 119.4 United Kingdom 89.9 39.0 36.6 Other foreign 31.3 28.4 26.0 Total Outsourcing assets, net $ 202.3 $ 172.5 $ 182.0 |
Employee plans
Employee plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee plans | Employee plans Stock plans Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units may be granted to officers, directors and other key employees. At December 31, 2017 , 3.2 million shares of unissued common stock of the company were available for granting under these plans. As of December 31, 2017 , the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost net of a forfeiture rate in selling, general and administrative expenses, and recognizes the compensation cost for only those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures. The company’s employee stock option grants include a provision that, if termination of employment occurs after the participant has attained age 55 and completed 5 years of service with the company, the participant shall continue to vest in each of his or her awards in accordance with the vesting schedule set forth in the applicable award agreement. Compensation expense for such awards is recognized over the period to the date the employee first becomes eligible for retirement. Time-based restricted stock unit grants for the company’s directors vest upon award and compensation expense for such awards is recognized upon grant. Options have been granted to purchase the company’s common stock at an exercise price equal to or greater than the fair market value at the date of grant, generally have a maximum duration of seven years for options issued in 2015 and later and five years for options issued before 2015, and become exercisable in annual installments over a three -year period following date of grant. During the years ended December 31, 2017 , 2016 and 2015 , the company recognized $11.2 million , $9.5 million and $9.4 million of share-based compensation expense, which is comprised of $10.1 million , $7.5 million and $4.7 million of restricted stock unit expense and $1.1 million , $2.0 million and $4.7 million of stock option expense, respectively. For stock options, the fair value is estimated at the date of grant using a Black-Scholes option pricing model. Principal assumptions used are as follows: (a) expected volatility for the company’s stock price is based on historical volatility and implied market volatility, (b) historical exercise data is used to estimate the options’ expected term, which represents the period of time that the options granted are expected to be outstanding, and (c) the risk-free interest rate is the rate on zero-coupon U.S. government issues with a remaining term equal to the expected life of the options. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period of the awards. The compensation expense recognized as of any date must be at least equal to the portion of the grant-date fair value that is vested at that date. There were no grants of stock option awards for the year ended December 31, 2017 . The fair value of stock option awards granted in 2016 and 2015 was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values as follows: Year Ended December 31, 2016 2015 Weighted-average fair value of grant $ 4.53 $ 8.92 Risk-free interest rate 1.29 % 1.28 % Expected volatility 51.30 % 45.46 % Expected life of options in years 4.90 4.92 Expected dividend yield — — A summary of stock option activity for the year ended December 31, 2017 follows (shares in thousands): Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($ in millions) Outstanding at December 31, 2016 2,099 $ 25.41 Granted — — Exercised (1 ) 10.65 Forfeited and expired (340 ) 20.59 Outstanding at December 31, 2017 1,758 26.35 1.56 $ — Expected to vest at December 31, 2017 198 23.20 3.42 $ — Exercisable at December 31, 2017 1,558 26.76 1.33 $ — The aggregate intrinsic value represents the total pretax value of the difference between the company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all option holders exercised their options on December 31, 2017 . The intrinsic value of the company’s stock options changes based on the closing price of the company’s stock. The total intrinsic value of options exercised for the year ended December 31, 2017 was immaterial, and for the years ended December 31, 2016 and 2015 was zero and $0.6 million , respectively. As of December 31, 2017 , $0.1 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 0.5 years. Restricted stock unit awards may contain time-based units, performance-based units or a combination of both. Each performance-based unit will vest into zero to 2.0 shares depending on the degree to which the performance goals are met. Compensation expense resulting from these awards is recognized as expense ratably for each installment from the date of grant until the date the restrictions lapse and is based on the fair market value at the date of grant and the probability of achievement of the specific performance-related goals. A summary of restricted stock unit activity for the year ended December 31, 2017 follows (shares in thousands): Restricted Stock Units Weighted-Average Grant-Date Fair Value Outstanding at December 31, 2016 1,454 $ 12.68 Granted 1,042 13.85 Vested (555 ) 13.31 Forfeited and expired (253 ) 11.88 Outstanding at December 31, 2017 1,688 13.39 The fair value of restricted stock units is determined based on the trading price of the company’s common shares on the date of grant. The aggregate weighted-average grant-date fair value of restricted stock units granted during the years ended December 31, 2017 , 2016 and 2015 was $14.4 million , $12.9 million and $10.2 million , respectively. As of December 31, 2017 , there was $9.8 million of total unrecognized compensation cost related to outstanding restricted stock units granted under the company’s plans. That cost is expected to be recognized over a weighted-average period of 1.9 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the years ended December 31, 2017 , 2016 and 2015 was $7.4 million , $3.5 million and $2.1 million , respectively. Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units are newly issued shares. Cash received from the exercise of stock options for the year ended December 31, 2017 was immaterial, and for the year ended December 31, 2016 was zero . During 2017 and 2016 , the company did not recognize any tax benefits from the exercise of stock options or upon issuance of stock upon lapse of restrictions on restricted stock units because of its tax position. Any such tax benefits resulting from tax deductions in excess of the compensation costs recognized are classified as operating cash flows. Defined contribution and compensation plans U.S. employees are eligible to participate in an employee savings plan. Under this plan, employees may contribute a percentage of their pay for investment in various investment alternatives. The company matches 50 percent of the first 6 percent of eligible pay contributed by participants to the plan on a before-tax basis (subject to IRS limits). The company funds the match with cash. The charge to income related to the company match for the years ended December 31, 2017 , 2016 and 2015 , was $10.8 million , $10.7 million and $9.9 million , respectively. The company has defined contribution plans in certain locations outside the United States. The charge to income related to these plans was $18.5 million , $19.0 million and $21.4 million , for the years ended December 31, 2017 , 2016 and 2015 , respectively. The company has non-qualified compensation plans, which allow certain highly compensated employees and directors to defer the receipt of a portion of their salary, bonus and fees. Participants can earn a return on their deferred balance that is based on hypothetical investments in various investment vehicles. Changes in the market value of these investments are reflected as an adjustment to the liability with an offset to expense. As of December 31, 2017 and 2016 , the liability to the participants of these plans was $13.4 million and $12.3 million , respectively. These amounts reflect the accumulated participant deferrals and earnings thereon as of that date. The company makes no contributions to the deferred compensation plans and remains contingently liable to the participants. Retirement benefits For the company’s more significant defined benefit pension plans, including the U.S., U.K. and the Netherlands, accrual of future benefits under the plans has ceased. The company adopted changes to a foreign defined benefit pension plan, which ended the accrual of future benefits, effective June 30, 2017. A curtailment gain of $5.4 million was recorded in 2017. In December 2016, the company completed a lump-sum offer for eligible former associates who had a deferred vested benefit under the company’s U.S. pension plan to receive the value of their entire pension benefit in a lump-sum payment. As a result, the pension plan trust made lump sum payments to approximately 5,800 former associates of $215.9 million . In accordance with accounting guidance on settlements of a pension benefit obligation, no settlement charges were recorded as a result of this action. Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2017 and 2016 follows: U.S. Plans International Plans As of December 31, 2017 2016 2017 2016 Change in projected benefit obligation Benefit obligation at beginning of year $ 4,972.0 $ 5,231.4 $ 3,076.2 $ 2,987.8 Service cost — — 5.1 7.4 Interest cost 211.3 231.3 72.8 87.8 Plan participants’ contributions — — 1.9 2.3 Plan amendment — — (52.5 ) — Plan curtailment — — (2.2 ) (3.7 ) Actuarial loss (gain) 177.0 87.2 (93.8 ) 502.2 Benefits paid (358.7 ) (577.9 ) (117.1 ) (110.0 ) Foreign currency translation adjustments — — 299.3 (397.6 ) Benefit obligation at end of year $ 5,001.6 $ 4,972.0 $ 3,189.7 $ 3,076.2 Change in plan assets Fair value of plan assets at beginning of year $ 3,452.1 $ 3,759.4 $ 2,429.7 $ 2,496.8 Actual return on plan assets 424.0 211.8 172.3 287.7 Employer contribution 61.0 58.8 77.4 73.7 Plan participants’ contributions — — 1.9 2.3 Benefits paid (358.7 ) (577.9 ) (117.1 ) (110.0 ) Foreign currency translation and other adjustments — — 269.7 (320.8 ) Fair value of plan assets at end of year $ 3,578.4 $ 3,452.1 $ 2,833.9 $ 2,429.7 Funded status at end of year $ (1,423.2 ) $ (1,519.9 ) $ (355.8 ) $ (646.5 ) Amounts recognized in the consolidated balance sheets consist of: Prepaid postretirement assets $ — $ — $ 147.4 $ 31.9 Other accrued liabilities (6.8 ) (6.7 ) (0.2 ) (0.2 ) Long-term postretirement liabilities (1,416.4 ) (1,513.2 ) (503.0 ) (678.2 ) Total funded status $ (1,423.2 ) $ (1,519.9 ) $ (355.8 ) $ (646.5 ) Accumulated other comprehensive loss, net of tax Net loss $ 2,690.6 $ 2,828.8 $ 1,067.8 $ 1,144.7 Prior service credit $ (39.8 ) $ (42.4 ) $ (69.8 ) $ (27.7 ) Accumulated benefit obligation $ 5,001.6 $ 4,972.0 $ 3,188.0 $ 3,072.1 Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 follows: As of December 31, 2017 2016 Accumulated benefit obligation $ 7,151.7 $ 7,551.8 Fair value of plan assets 5,227.0 5,357.2 Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2017 and 2016 follows: As of December 31, 2017 2016 Projected benefit obligation $ 7,153.4 $ 7,555.2 Fair value of plan assets 5,227.0 5,357.2 Net periodic pension cost (income) for 2017 , 2016 and 2015 includes the following components: U.S. Plans International Plans Year ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ — $ 5.1 $ 7.4 $ 8.7 Interest cost 211.3 231.3 224.1 72.8 87.8 94.1 Expected return on plan assets (235.2 ) (253.1 ) (254.8 ) (127.5 ) (139.5 ) (155.4 ) Amortization of prior service credit (2.5 ) (2.5 ) (2.4 ) (2.4 ) (3.0 ) (1.9 ) Recognized net actuarial loss 126.4 116.0 132.7 49.8 40.3 63.6 Curtailment gain — — — (5.4 ) (2.0 ) — Net periodic pension cost (income) $ 100.0 $ 91.7 $ 99.6 $ (7.6 ) $ (9.0 ) $ 9.1 Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows: U.S. Plans International Plans Year ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.38 % 4.56 % 4.09 % 2.34 % 3.30 % 3.05 % Rate of compensation increase N/A N/A N/A 1.66 % 1.66 % 1.68 % Expected long-term rate of return on assets 6.80 % 6.80 % 6.80 % 5.30 % 5.99 % 6.45 % Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: Discount rate 3.87 % 4.38 % 4.56 % 2.24 % 2.34 % 3.30 % Rate of compensation increase N/A N/A N/A 1.55 % 1.66 % 1.68 % The expected pretax amortization in 2018 of net periodic pension cost is as follows: net loss, $167.6 million ; and prior service credit, $(6.3) million . The amortization of these items is recorded as an element of pension expense. In 2017 , pension expense included amortization of $176.2 million of net losses and $(4.9) million of prior service credit. The company’s investment policy targets and ranges for each asset category are as follows: U.S. International Asset Category Target Range Target Range Equity securities 58 % 52-64% 24 % 18-30% Debt securities 36 % 33-39% 60 % 53-66% Real estate 6 % 3-9% 1 % 0-3% Cash — % 0-5% 1 % 0-5% Other — % — % 14 % 7-21% The company periodically reviews its asset allocation, taking into consideration plan liabilities, local regulatory requirements, plan payment streams and then-current capital market assumptions. The actual asset allocation for each plan is monitored at least quarterly, relative to the established policy targets and ranges. If the actual asset allocation is close to or out of any of the ranges, a review is conducted. Rebalancing will occur toward the target allocation, with due consideration given to the liquidity of the investments and transaction costs. The objectives of the company’s investment strategies are as follows: (a) to provide a total return that, over the long term, increases the ratio of plan assets to liabilities by maximizing investment return on assets, at a level of risk deemed appropriate, (b) to maximize return on assets by investing primarily in equity securities in the U.S. and for international plans by investing in appropriate asset classes, subject to the constraints of each plan design and local regulations, (c) to diversify investments within asset classes to reduce the impact of losses in single investments, and (d) for the U.S. plan to invest in compliance with the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended and any subsequent applicable regulations and laws, and for international plans to invest in a prudent manner in compliance with local applicable regulations and laws. The company sets the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. The company considered the current expectations for future returns and the actual historical returns of each asset class. Also, since the company’s investment policy is to actively manage certain asset classes where the potential exists to outperform the broader market, the expected returns for those asset classes were adjusted to reflect the expected additional returns. In 2018 , the company expects to make cash contributions of $149.7 million to its worldwide defined benefit pension plans, which are comprised of $63.4 million primarily for international defined benefit pension plans and $86.3 million for the company’s U.S. qualified defined benefit pension plan. As of December 31, 2017 , the following benefit payments, which reflect expected future service where applicable, are expected to be paid from the defined benefit pension plans: Year ending December 31, U.S. International 2018 $ 364.4 $ 98.7 2019 361.4 102.8 2020 359.3 106.9 2021 357.6 110.3 2022 355.1 117.5 2023 - 2027 1,693.6 642.5 Other postretirement benefits A reconciliation of the benefit obligation, fair value of the plan assets and the funded status of the postretirement benefit plan at December 31, 2017 and 2016 , follows: As of December 31, 2017 2016 Change in accumulated benefit obligation Benefit obligation at beginning of year $ 120.1 $ 131.5 Service cost 0.5 0.4 Interest cost 5.6 6.2 Plan participants’ contributions 3.5 3.8 Amendments (7.4 ) (3.3 ) Actuarial gain (4.3 ) (1.4 ) Federal drug subsidy 0.3 1.4 Benefits paid (15.7 ) (16.9 ) Foreign currency translation and other adjustments 0.6 (1.6 ) Benefit obligation at end of year $ 103.2 $ 120.1 Change in plan assets Fair value of plan assets at beginning of year $ 7.9 $ 7.7 Actual return on plan assets (0.3 ) (0.3 ) Employer contributions 12.2 13.6 Plan participants’ contributions 3.5 3.8 Benefits paid (15.7 ) (16.9 ) Fair value of plan assets at end of year $ 7.6 $ 7.9 Funded status at end of year $ (95.6 ) $ (112.2 ) Amounts recognized in the consolidated balance sheets consist of: Prepaid postretirement assets $ 0.9 $ 1.4 Other accrued liabilities (11.5 ) (12.4 ) Long-term postretirement liabilities (85.0 ) (101.2 ) Total funded status $ (95.6 ) $ (112.2 ) Accumulated other comprehensive loss, net of tax Net loss $ 14.9 $ 19.0 Prior service credit (9.8 ) (3.2 ) Net periodic postretirement benefit cost for 2017 , 2016 and 2015 , follows: Year ended December 31, 2017 2016 2015 Service cost $ 0.5 $ 0.4 $ 0.6 Interest cost 5.6 6.2 6.9 Expected return on assets (0.5 ) (0.4 ) (0.4 ) Amortization of prior service cost (0.7 ) — 1.1 Recognized net actuarial loss 0.8 0.5 1.8 Net periodic benefit cost $ 5.7 $ 6.7 $ 10.0 Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows: Year ended December 31, 2017 2016 2015 Discount rate 5.53 % 5.61 % 5.27 % Expected return on plan assets 5.50 % 5.50 % 5.50 % Weighted-average assumptions used to determine benefit obligation at December 31 were as follows: Year ended December 31, 2017 2016 2015 Discount rate 5.30 % 5.53 % 5.61 % The expected pretax amortization in 2018 of net periodic postretirement benefit cost is as follows: net loss, $1.2 million ; and prior service cost, $(1.6) million . The company reviews its asset allocation periodically, taking into consideration plan liabilities, plan payment streams and then-current capital market assumptions. The company sets the long-term expected return on asset assumption, based principally on the long-term expected return on debt securities. These return assumptions are based on a combination of current market conditions, capital market expectations of third-party investment advisors and actual historical returns of the asset classes. In 2018 , the company expects to contribute approximately $12 million to its postretirement benefit plan. Assumed health care cost trend rates at December 31, 2017 2016 Health care cost trend rate assumed for next year 6.6 % 5.8 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.8 % 4.8 % Year that the rate reaches the ultimate trend rate 2023 2023 A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-Percentage- Point Increase 1-Percentage- Point Decrease Effect on service and interest cost $ 0.1 $ (0.1 ) Effect on postretirement benefit obligation 2.0 (1.7 ) As of December 31, 2017 , the following benefits are expected to be paid to or from the company’s postretirement plan: Year ending December 31, Gross Medicare Part D Receipts Gross Expected Payments 2018 $ 0.1 $ 12.7 2019 — 10.5 2020 — 10.0 2021 — 9.4 2022 — 8.8 2023 – 2027 — 34.4 The following provides a description of the valuation methodologies and the levels of inputs used to measure fair value, and the general classification of investments in the company’s U.S. and international defined benefit pension plans, and the company’s other postretirement benefit plan. Level 1 – These investments include cash, common stocks, real estate investment trusts, exchange traded funds, futures and options and U.S. government securities. These investments are valued using quoted prices in an active market. Payables and receivables are also included as Level 1 investments and are valued at face value. Level 2 – These investments include the following: Pooled Funds – These investments are comprised of money market funds and fixed income securities. The money market funds are valued using the readily determinable fair value (“RDFV”) provided by trustees of the funds. The fixed income securities are valued based on quoted prices for identical or similar investments in markets that may not be active. Commingled Funds – These investments are comprised of debt, equity and other securities and are valued using the RDFV provided by trustees of the funds. The fair value per share for these funds are published and are the basis for current transactions. Other Fixed Income – These investments are comprised of corporate and government fixed income investments and asset and mortgage backed securities for which there are quoted prices for identical or similar investments in markets that may not be active. Derivatives – These investments include forward exchange contracts and options, which are traded on an active market, but not on an exchange; therefore, the inputs may not be readily observable. These investments also include fixed income futures and other derivative instruments. Level 3 – These investments include the following: Insurance Contracts – These investments are insurance contracts which are carried at book value, are not publicly traded and are reported at a fair value determined by the insurance provider. Certain investments are valued using net asset value (“NAV”) as a practical expedient. These investments may not be redeemable on a daily basis and may have redemption notice periods of up to 90 days. These investments include the following: Commingled Funds – These investments are comprised of debt, equity and other securities. Private Real Estate and Private Equity - These investments represent interests in limited partnerships which invest in privately held companies or privately held real estate or other real assets. Net asset values are developed and reported by the general partners that manage the partnerships. These valuations are based on property appraisals, utilization of market transactions that provide valuation information for comparable companies, discounted cash flows, and other methods. These valuations are reported quarterly and adjusted as necessary at year end based on cash flows within the most recent period. The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2017 . U.S. Plans International Plans As of December 31, 2017 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Pension plans Equity Securities Common Stocks $ 1,465.1 $ 1,461.9 $ 3.2 $ — $ — $ — $ — $ — Commingled Funds 584.4 584.4 84.0 84.0 Debt Securities U.S. Govt. Securities 139.8 139.8 Other Fixed Income 830.6 830.6 254.1 2.6 251.5 Insurance Contracts 135.8 135.8 Commingled Funds 267.5 267.5 Real Estate Real Estate Investment Trusts 113.5 113.5 1.4 0.4 1.0 Other Derivatives 2.6 13.1 (10.5 ) 1.2 1.2 Commingled Funds 357.1 357.1 Pooled Funds 228.0 228.0 29.2 29.2 Cash 34.8 34.8 25.1 25.1 Receivables 58.1 58.1 19.9 19.9 Payables (116.7 ) (116.7 ) (1.5 ) (1.5 ) Total plan assets in fair value hierarchy $ 3,340.2 $ 1,704.5 $ 1,635.7 $ — $ 1,173.8 $ 46.5 $ 991.5 $ 135.8 Plan assets measured using NAV as a practical expedient (a): Commingled Funds Equity $ — $ 780.7 Debt 19.8 837.7 Other 105.1 25.2 Private Real Estate 112.4 16.5 Private Equity 0.9 — Total pension plan assets $ 3,578.4 $ 2,833.9 Other postretirement plans Insurance Contracts $ 7.6 $ 7.6 (a) Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets. The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2016 . U.S. Plans International Plans As of December 31, 2016 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Pension plans Equity Securities Common Stocks $ 1,443.1 $ 1,438.3 $ 4.8 $ — $ — $ — $ — $ — Commingled Funds 517.9 517.9 76.0 76.0 Debt Securities U.S. Govt. Securities 158.5 158.5 Other Fixed Income 812.4 812.4 241.4 0.5 240.9 Insurance Contracts 116.2 116.2 Commingled Funds 242.8 242.8 Real Estate Real Estate Investment Trusts 156.2 156.2 1.6 1.2 0.4 Other Derivatives 3.1 (1.1 ) 4.2 4.9 4.9 Commingled Funds 294.5 294.5 Pooled Funds 272.0 272.0 6.7 6.7 Cash 12.2 12.2 11.4 11.4 Receivables 107.2 107.2 Payables (195.3 ) (195.3 ) Total plan assets in fair value hierarchy $ 3,287.3 $ 1,676.0 $ 1,611.3 $ — $ 995.5 $ 13.1 $ 866.2 $ 116.2 Plan assets measured using NAV as a practical expedient (a): Commingled Funds Equity $ — $ 726.7 Debt 18.6 640.0 Other 104.6 25.8 Private Real Estate 40.5 41.7 Private Equity 1.1 — Total pension plan assets $ 3,452.1 $ 2,429.7 Other postretirement plans Insurance Contracts $ 7.9 $ 7.9 (a) Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets. The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2017 . January 1, 2017 Realized gains (losses) Purchases or acquisitions Sales or dispositions Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017 December 31, 2017 U.S. plans Other postretirement plans Insurance Contracts $ 7.9 $ (0.2 ) $ 0.2 $ (0.3 ) $ — $ 7.6 International pension plans Insurance Contracts $ 116.2 $ — $ 10.8 $ (11.4 ) $ 20.2 $ 135.8 The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2016 . January 1, 2016 Realized gains (losses) Purchases or acquisitions Sales or dispositions Currency and unrealized gains (losses) relating to instruments still held at December 31, 2016 December 31, 2016 U.S. plans Other postretirement plans Insurance Contracts $ 7.7 $ (0.3 ) $ 0.5 $ — $ — $ 7.9 International pension plans Insurance Contracts $ 120.6 $ — $ 4.7 $ (11.0 ) $ 1.9 $ 116.2 The following table presents additional information about plan assets valued using the net asset value as a practical expedient within the fair value hierarchy table. 2017 2016 Fair Value Unfunded Commit-ments Redemption Frequency Redemption Notice Period Range Fair Value Unfunded Commit-ments Redemption Frequency Redemption Notice Period Range U.S. plans Commingled Funds Debt $ 19.8 $ — Daily 5 days $ 18.6 $ — Daily 5 days Other 105.1 — Monthly 5 days 104.6 — Monthly 5 days Private Real Estate (a) 112.4 — Quarterly Up to 90 days 40.5 — Quarterly 60 days Private Equity (b) 0.9 — 1.1 — Total $ 238.2 $ — $ 164.8 $ — International pension plans Commingled Funds Equity $ 780.7 $ — Weekly, Monthly Up to 30 days $ 726.7 $ — Weekly, Monthly Up to 90 days Debt 837.7 — Weekly, Biweekly, Bimonthly, Monthly Up to 30 days 640.0 — Weekly, Biweekly, Bimonthly, Monthly Up to 90 days Other 25.2 — Monthly Up to 30 days 25.8 — Monthly, Quarterly Up to 90 days Private Real Estate 16.5 — Monthly Up to 90 days 41.7 — Monthly, Quarterly Up to 90 days Total $ 1,660.1 $ — $ 1,434.2 $ — (a) Includes investments in private real estate funds and limited partnerships. The funds invest in U.S. real estate and allow redemptions quarterly, though queues, restrictions, and gates may extend the period. The limited partnerships include investments in primarily U.S. real estate, and can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years . (b) Includes investments in limited partnerships, which invest primarily in U.S. buyouts and venture capital. The investments can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years . |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders’ equity The company has 150 million authorized shares of common stock, par value $.01 per share, and 40 million shares of authorized preferred stock, par value $1 per share, issuable in series. At December 31, 2017 , 35.1 million shares of unissued common stock of the company were reserved for stock-based incentive plans and the company’s convertible senior notes. Accumulated other comprehensive income (loss) as of December 31, 2017 , 2016 and 2015 , is as follows: Total Translation Adjustments Postretirement Plans Balance at December 31, 2014 $ (4,113.4 ) $ (737.8 ) $ (3,375.6 ) Other comprehensive income before reclassifications 346.2 (96.0 ) 442.2 Amounts reclassified from accumulated other comprehensive income (178.1 ) — (178.1 ) Current period other comprehensive income 168.1 (96.0 ) 264.1 Balance at December 31, 2015 (3,945.3 ) (833.8 ) (3,111.5 ) Other comprehensive income before reclassifications (64.9 ) (93.3 ) 28.4 Amounts reclassified from accumulated other comprehensive income (142.6 ) — (142.6 ) Current period other comprehensive income (207.5 ) (93.3 ) (114.2 ) Balance at December 31, 2016 (4,152.8 ) (927.1 ) (3,225.7 ) Other comprehensive income before reclassifications 506.8 121.9 384.9 Amounts reclassified from accumulated other comprehensive income (169.8 ) (11.8 ) (158.0 ) Current period other comprehensive income 337.0 110.1 226.9 Balance at December 31, 2017 $ (3,815.8 ) $ (817.0 ) $ (2,998.8 ) Amounts reclassified out of accumulated other comprehensive income for the three years ended December 31, 2017 are as follows: Year ended December 31, 2017 2016 2015 Translation Adjustments: Adjustment for substantial completion of liquidation of foreign subsidiaries (a) $ (11.8 ) $ — $ — Postretirement Plans: Amortization of prior service cost (b) 5.6 5.6 3.1 Amortization of actuarial losses (b) (174.1 ) (155.2 ) (189.7 ) Curtailment gain (b) 5.4 2.0 — Total before tax (174.9 ) (147.6 ) (186.6 ) Income tax benefit 5.1 5.0 8.5 Total reclassifications for the period $ (169.8 ) $ (142.6 ) $ (178.1 ) (a) Reported in Other income (expense), net in the consolidated statements of income (b) These items are included in net periodic postretirement cost (see Note 16). The following table summarizes the changes in shares of common stock and treasury stock during the three years ended December 31, 2017 : Common Stock Treasury Stock Balance at December 31, 2014 52.4 2.7 Stock-based compensation 0.2 — Balance at December 31, 2015 52.6 2.7 Stock-based compensation 0.2 — Balance at December 31, 2016 52.8 2.7 Stock-based compensation 0.6 0.2 Balance at December 31, 2017 53.4 2.9 |
Quarterly financial information
Quarterly financial information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information (unaudited) | Quarterly financial information (unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter Year 2017 Revenue $ 664.5 $ 666.2 $ 666.3 $ 744.8 $ 2,741.8 Gross profit 120.2 102.5 86.1 169.5 478.3 Income (loss) before income taxes (16.8 ) (42.3 ) (40.4 ) 27.4 (72.1 ) Net income (loss) attributable to Unisys Corporation common shareholders (32.7 ) (42.0 ) (41.1 ) 50.5 (65.3 ) Earnings (loss) per common share attributable to Unisys Corporation Basic (0.65 ) (0.83 ) (0.81 ) 1.00 (1.30 ) Diluted (0.65 ) (0.83 ) (0.81 ) 0.76 (1.30 ) 2016 Revenue $ 666.8 $ 748.9 $ 683.3 $ 721.7 $ 2,820.7 Gross profit 98.5 178.3 121.6 160.2 558.6 Income (loss) before income taxes (33.2 ) 44.3 (15.2 ) 24.6 20.5 Net income (loss) attributable to Unisys Corporation common shareholders (39.9 ) 21.6 (28.2 ) (1.2 ) (47.7 ) Earnings (loss) per common share attributable to Unisys Corporation Basic (0.80 ) 0.43 (0.56 ) (0.02 ) (0.95 ) Diluted (0.80 ) 0.36 (0.56 ) (0.02 ) (0.95 ) In the first, second, third and fourth quarters of 2017, the company recorded pretax cost-reduction and other charges of $25.4 million , $27.5 million , $46.1 million and $47.8 million , respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements. In the first, second, third and fourth quarters of 2016, the company recorded pretax cost-reduction and other charges of $26.9 million , $10.2 million , $31.9 million and $13.1 million , respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements. The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Millions) Description Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions (a) Balance at End of Period Allowance for doubtful accounts (deducted from accounts receivable): Year Ended December 31, 2015 $ 30.1 $ 3.0 $ (12.0 ) $ 21.1 Year Ended December 31, 2016 $ 21.1 $ 2.2 $ (0.5 ) $ 22.8 Year Ended December 31, 2017 $ 22.8 $ 3.1 $ (3.9 ) $ 22.0 (a) Includes write-off of bad debts less recoveries, reclassifications from other current liabilities and foreign currency translation adjustments. |
Summary of significant accoun28
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, assumptions used in the measurement of progress toward completion for systems integration projects, income taxes and retirement and other post-employment benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash and Cash equivalents | Cash and Cash equivalents Cash and cash equivalents consists of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty. Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily consists of cash the company is contractually obligated to maintain in accordance with the terms of its U.K. business process outsourcing joint venture agreement. |
Inventories | Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method. |
Properties | Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method. |
Advertising costs | Advertising costs All advertising costs are expensed as incurred. |
Shipping and handling | Shipping and handling Costs related to shipping and handling are included in cost of revenue. |
Goodwill | Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date. The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified. We estimate the fair value of each reporting unit using a combination of the income approach and market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit. The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, we gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long term growth prospects, among other factors. In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods. |
Revenue recognition | Revenue recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collectability is probable. Revenue from hardware sales with standard payment terms is recognized upon the passage of title and the transfer of risk of loss. Outside the United States, the company recognizes revenue even if it retains a form of title to products delivered to customers, provided the sole purpose is to enable the company to recover the products in the event of customer payment default and the arrangement does not prohibit the customer’s use of the product in the ordinary course of business. Revenue from software licenses with standard payment terms is recognized at the inception of the initial license term and upon execution of an extension to the license term. The company also enters into multiple-element arrangements, which may include any combination of software, hardware, or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple deliverables, with software and hardware delivered in one reporting period and the software support and hardware maintenance services delivered across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long term multiple year basis and periodically sell software and hardware products to the client. The services are provided on a continuous basis across multiple reporting periods and the software and hardware products are delivered in one reporting period. To the extent that a deliverable in a multiple-deliverable arrangement is subject to specific guidance, that deliverable is accounted for in accordance with such specific guidance. Examples of such arrangements may include leased hardware which is subject to specific leasing guidance or software which is subject to specific software revenue recognition guidance. In these transactions, the company allocates the total revenue to be earned under the arrangement among the various elements based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”) if available, third party evidence (“TPE”) if VSOE is not available, or the best estimated selling price (“ESP”) if neither VSOE nor TPE is available. VSOE of selling price is based upon the normal pricing and discounting practices for those services and products when sold separately. TPE of selling price is based on evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. ESP is established considering factors such as margin objectives, discounts off of list prices, market conditions, competition and other factors. ESP represents the price at which the company would transact for the deliverable if it were sold by the company regularly on a standalone basis. As mentioned above, some of the company’s multiple-element arrangements may include leased hardware which is subject to specific leasing guidance. Revenue under these arrangements is allocated considering the relative selling prices of the lease and non-lease elements. Lease deliverables include hardware, financing, maintenance and other executory costs, while non-lease deliverables generally consist of services other than maintenance. The determination of the amount of revenue allocated to the lease deliverables begins by allocating revenue to maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease. The remaining amounts are allocated to the hardware and financing elements. The amount allocated to hardware is recognized as revenue monthly over the term of the lease for those leases which are classified as operating leases and at the inception of the lease term for those leases which are classified as sales-type leases. The amount of finance income attributable to sales-type leases is recognized on the accrual basis using the effective interest method. For multiple-element arrangements that involve the licensing, selling or leasing of software, for software and software-related elements, the allocation of revenue is based on VSOE. There may be cases in which there is VSOE of fair value of the undelivered elements but no such evidence for the delivered elements. In these cases, the residual method is used to allocate the arrangement consideration. Under the residual method, the amount of consideration allocated to the delivered elements equals the total arrangement consideration less the aggregate VSOE of fair value of the undelivered elements. For multiple-element arrangements that include services or products that (a) do not include the licensing, selling or leasing of software, or (b) contain software that is incidental to the services or products as a whole or (c) contain software components that are sold, licensed or leased with tangible products when the software components and non-software components (i.e., the software and hardware) of the tangible product function together to deliver the tangible product’s essential functionality (e.g., sales of the company’s enterprise-class servers including software and hardware), or some combination of the above, the allocation of revenue is based on the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy, discussed above. For multiple-element arrangements that include both software and non-software deliverables, the company allocates arrangement consideration to the software group and to the non-software group based on the relative selling prices of the deliverables in the arrangement based on the selling price hierarchy discussed above. For the software group, arrangement consideration is further allocated using VSOE as described above. The company recognizes revenue on delivered elements only if: (a) any undelivered services or products are not essential to the functionality of the delivered services or products, (b) the company has an enforceable claim to receive the amount due in the event it does not deliver the undelivered services or products, (c) there is evidence of the selling price for each undelivered service or product, and (d) the revenue recognition criteria otherwise have been met for the delivered elements. Otherwise, revenue on delivered elements is recognized as the undelivered elements are delivered. The company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A delivered element constitutes a separate unit of accounting when it has standalone value and there is no customer-negotiated refund or return right for the delivered elements. If these criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and revenue recognition are determined for the combined unit as a single unit. Revenue from hardware sales and software licenses with extended payment terms is recognized as payments from customers become due (assuming that all other conditions for revenue recognition have been satisfied). Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term. Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred. Revenue and profit under systems integration contracts are recognized either on the percentage-of-completion method of accounting using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for on the percentage-of-completion basis, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident. Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract. |
Income taxes | Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income. |
Marketable software | Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally not in excess of three years following product release. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue. |
Internal-use software | Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above. |
Outsourcing assets | Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above. Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates. |
Translation of foreign currency | Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net. For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net. |
Stock-based compensation plans | Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses. |
Retirement benefits | Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income. At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 9), derivatives (see note 12) and to its postretirement plan assets (see note 16). |
Noncontrolling interest | Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services. |
Recent accounting pronouncements and accounting changes | Accounting Pronouncements Adopted Effective January 1, 2017, the company adopted Accounting Standards Update (“ASU”) No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the Financial Accounting Standards Board (“FASB”) which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amended guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Adoption of this new guidance had no impact on the company’s consolidated results of operations and financial position. Effective January 1, 2017, the company adopted ASU No. 2016-18 Statement of Cash Flows (Topic 230) - Restricted Cash issued by the FASB which requires companies to include amounts generally described as restricted cash or restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance has been applied on retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. Amounts reclassified in the consolidated statements of cash flows for the years ended December 31, 2016 and 2015 are as follows: Year ended December 31, 2016 2015 Cash flows from operating activities Other assets $ (1.9 ) 2.60 $ 2.6 Cash flows from investing activities Other 1.6 (2.3 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.8 ) (4.6 ) Cash, cash equivalents and restricted cash, beginning of year 31.6 35.9 Cash, cash equivalents and restricted cash, end of year 30.5 31.6 Effective January 1, 2017, the company adopted ASU No. 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory issued by the FASB which allows the recognition of deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. The new guidance has been applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit. At January 1, 2017, the adjustment to accumulated deficit was an increase of $4.4 million . Effective January 1, 2017, the company adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , issued by the FASB which clarifies the treatment of several cash flow categories. In addition, the guidance also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The company previously reported premium payments on and proceeds from the settlement of corporate-owned life insurance policies as cash flows from operating activities in the company’s consolidated statement of cash flows. Under the new guidance, these amounts were reclassified to investing activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $1.5 million and $1.1 million , respectively, were reclassified from “other assets” in operating activities to “other” in investing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted ASU No. 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , issued by the FASB, which changes certain aspects of accounting for share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the standard requires all tax-related cash flows resulting from share-based payments to be reported as operating activities on the consolidated statement of cash flows, and any cash payments made to taxing authorities on an employee’s behalf as financing activities, which the company previously reported as operating activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $0.4 million and $0.8 million , respectively, were reclassified from “accounts payable and other accrued liabilities” in operating activities to “other” in financing activities in the company’s consolidated statements of cash flows. Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued ASU No. 2017-07 Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line items that include service cost and outside the subtotal of operating income. This update is effective for annual periods beginning after December 15, 2017, which for the company is January 1, 2018. Adoption of this new guidance will result in the reclassification of net periodic benefit cost, other than service costs ( $92.5 million and $81.6 million for the years ended December 31, 2017 and 2016, respectively), from operating income to non-operating income. There will be no overall impact on the company’s consolidated financial position. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, loans and other financial instruments. This update is effective for annual periods beginning after December 15, 2019, with earlier adoption permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) , which is intended to improve financial reporting about leasing transactions. The ASU requires organizations that lease assets, referred to as lessees, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods beginning after December 15, 2018, with earlier adoption permitted. The company will adopt the new guidance on January 1, 2019, and is currently evaluating the impact of the adoption on its consolidated results of operations and financial position. In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) , which establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. The standard, and its various amendments, is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. The new standard would require the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the current rules would allow and require the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the current rules would allow. The standard also requires significantly expanded disclosure requirements. The company will adopt the standard on January 1, 2018 using the modified retrospective method. The company does not believe there will be a material impact to its consolidated financial position upon adoption. |
Summary of significant accoun29
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows. As of December 31, 2017 2016 Cash and cash equivalents $ 733.9 $ 370.6 Restricted cash 30.2 30.5 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 764.1 $ 401.1 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows. As of December 31, 2017 2016 Cash and cash equivalents $ 733.9 $ 370.6 Restricted cash 30.2 30.5 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 764.1 $ 401.1 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings (Loss) Per Common Share Attributable to Unisys Corporation | The following table shows how the loss per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2017 (shares in thousands). Year ended December 31, 2017 2016 2015 Basic earnings (loss) per common share computation: Net loss attributable to Unisys Corporation common shareholders $ (65.3 ) $ (47.7 ) $ (109.9 ) Weighted average shares 50,409 50,060 49,905 Basic loss per common share $ (1.30 ) $ (0.95 ) $ (2.20 ) Diluted earnings (loss) per common share computation: Net loss attributable to Unisys Corporation for diluted earnings per share $ (65.3 ) $ (47.7 ) $ (109.9 ) Weighted average shares 50,409 50,060 49,905 Diluted loss per common share $ (1.30 ) $ (0.95 ) $ (2.20 ) Anti-dilutive weighted-average stock options and restricted stock units (a) 2,206 3,553 2,915 Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes (a) 21,868 17,230 — (a) Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Cost reduction actions (Tables)
Cost reduction actions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of Liabilities and Expected Future Payments | Liabilities and expected future payments related to these costs are as follows: Work-Force Reductions Idle Leased Total U.S. International Facilities Costs Charges for work-force reductions $ 78.8 $ 27.9 $ 50.9 $ — Payments (45.3 ) (23.7 ) (21.6 ) — Translation adjustments (0.5 ) (0.5 ) — Balance at December 31, 2015 33.0 4.2 28.8 — Additional Provisions 68.3 8.3 58.6 1.4 Payments (59.3 ) (9.4 ) (49.9 ) — Changes in estimates (4.3 ) (1.3 ) (3.0 ) — Translation adjustments (1.1 ) — (1.1 ) — Balance at December 31, 2016 36.6 1.8 33.4 1.4 Additional Provisions 131.2 9.4 117.6 4.2 Payments (49.3 ) (6.0 ) (41.3 ) (2.0 ) Changes in estimates (8.6 ) (1.3 ) (7.8 ) 0.5 Translation adjustments 7.9 — 7.7 0.2 Balance at December 31, 2017 $ 117.8 $ 3.9 $ 109.6 $ 4.3 Expected future payments on balance at December 31, 2017 In 2018 $ 87.7 $ 3.9 $ 82.0 $ 1.8 Beyond 2018 30.1 — 27.6 2.5 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the years ended December 31, 2017 and 2016 were as follows: Total Services Technology Balance at December 31, 2015 $ 177.4 $ 68.7 $ 108.7 Translation adjustments 1.2 1.2 — Balance at December 31, 2016 178.6 69.9 108.7 Translation adjustments 2.2 2.2 — Balance at December 31, 2017 $ 180.8 $ 72.1 $ 108.7 |
Recent accounting pronounceme33
Recent accounting pronouncements and accounting changes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Amounts Reclassified in Consolidated Statements of Cash Flows | Amounts reclassified in the consolidated statements of cash flows for the years ended December 31, 2016 and 2015 are as follows: Year ended December 31, 2016 2015 Cash flows from operating activities Other assets $ (1.9 ) 2.60 $ 2.6 Cash flows from investing activities Other 1.6 (2.3 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.8 ) (4.6 ) Cash, cash equivalents and restricted cash, beginning of year 31.6 35.9 Cash, cash equivalents and restricted cash, end of year 30.5 31.6 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Receivables Under Sales-Type Lease | As of December 31, 2017 , receivables under sales-type leases before the allowance for unearned income were collectible as follows: Year 2018 $ 45.5 2019 25.8 2020 16.3 2021 10.8 2022 9.7 Thereafter 19.1 Total $ 127.2 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Total Income (Loss) Before Income Taxes and Provision for Income Taxes | Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2017 . Year ended December 31, 2017 2016 2015 Income (loss) before income taxes United States $ (152.7 ) $ (88.3 ) $ (130.6 ) Foreign 80.6 108.8 71.8 Total income (loss) before income taxes $ (72.1 ) $ 20.5 $ (58.8 ) Provision for income taxes Current United States $ (42.8 ) $ 6.7 $ 1.0 Foreign 33.9 47.7 42.2 State and local — — 0.3 Total (8.9 ) 54.4 43.5 Deferred Foreign 3.4 2.8 0.9 Total (benefit) provision for income taxes $ (5.5 ) $ 57.2 $ 44.4 |
Reconciliation of the Provision for Income Taxes | Following is a reconciliation of the (benefit) provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported: Year ended December 31, 2017 2016 2015 United States statutory income tax provision (benefit) $ (25.2 ) $ 7.2 $ (20.6 ) Income and losses for which no provision or benefit has been recognized 70.3 65.5 69.1 Foreign rate differential and other foreign tax expense (11.3 ) (21.1 ) (15.9 ) Income tax withholdings 16.8 22.8 12.5 Permanent items (3.0 ) (4.7 ) (1.9 ) Enacted rate changes (0.4 ) 3.5 9.1 Change in uncertain tax positions 2.3 0.4 1.5 Change in valuation allowances due to changes in judgment (4.6 ) (16.4 ) (5.4 ) Income tax credits, U.S. (50.4 ) — (4.0 ) (Benefit) provision for income taxes $ (5.5 ) $ 57.2 $ 44.4 |
Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows: As of December 31, 2017 2016 Deferred tax assets Tax loss carryforwards $ 837.6 $ 889.6 Postretirement benefits 437.7 728.9 Foreign tax credit carryforwards 127.0 317.6 Other tax credit carryforwards 29.1 91.4 Deferred revenue 40.9 81.0 Employee benefits and compensation 35.2 49.1 Purchased capitalized software 22.2 32.6 Depreciation 24.5 28.3 Warranty, bad debts and other reserves 5.3 16.1 Capitalized costs 3.1 10.9 Other 39.3 27.7 1,601.9 2,273.2 Valuation allowance (1,441.1 ) (2,084.6 ) Total deferred tax assets $ 160.8 $ 188.6 Deferred tax liabilities Capitalized research and development $ 24.3 $ 20.3 Other 25.8 28.4 Total deferred tax liabilities $ 50.1 $ 48.7 Net deferred tax assets $ 110.7 $ 139.9 |
Reconciliation of Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year ended December 31, 2017 2016 2015 Balance at January 1 $ 35.8 $ 27.7 $ 35.0 Additions based on tax positions related to the current year 4.2 2.7 3.4 Changes for tax positions of prior years (11.2 ) 12.0 (4.0 ) Reductions as a result of a lapse of applicable statute of limitations (2.7 ) (2.8 ) (3.4 ) Settlements (0.2 ) (0.1 ) (0.9 ) Changes due to foreign currency 2.0 (3.7 ) (2.4 ) Balance at December 31 $ 27.9 $ 35.8 $ 27.7 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Properties | Properties comprise the following: As of December 31, 2017 2016 Land $ 2.8 $ 2.7 Buildings 91.3 88.2 Machinery and office equipment 601.7 591.7 Internal-use software 157.4 145.9 Rental equipment 45.6 58.1 Total properties $ 898.8 $ 886.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt is comprised of the following: As of December 31, 2017 2016 10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $10.4 million at December 31, 2017) $ 429.6 $ — 5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $27.2 million and $34.4 million at December 31, 2017 and 2016, respectively) 186.3 179.1 6.25% senior notes — 94.7 Capital leases 7.5 10.1 Other debt 21.3 16.1 Total 644.7 300.0 Less – current maturities 10.8 106.0 Total long-term debt $ 633.9 $ 194.0 |
Estimated Fair Values of Long-term Debt | Presented below are the estimated fair values of long-term debt as of December 31, 2017 and 2016 . As of December 31, 2017 2016 10.75% senior secured notes due April 15, 2022 (a) $ 492.8 $ — 5.50% convertible senior notes due March 1, 2021 237.9 379.8 6.25% senior notes (b) — 97.8 (a) Issued in April 2017 (b) Retired in April 2017 |
Schedule of Maturities of Long-term Debt, Including Capital Leases | Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows: Year Total Long-Term Debt Capital Leases 2018 $ 10.8 $ 8.2 $ 2.6 2019 1.4 — 1.4 2020 2.3 0.9 1.4 2021 189.5 188.1 1.4 2022 432.3 431.5 0.8 Thereafter 8.4 8.4 — Total $ 644.7 $ 637.1 $ 7.6 |
Schedule of Interest Expense | Interest expense related to the 2021 Notes (a) is comprised of the following: Year ended December 31, 2017 2016 Contractual interest coupon $ 11.8 $ 9.2 Amortization of debt discount 6.0 4.3 Amortization of debt issuance costs 1.2 1.0 Total $ 19.0 $ 14.5 (a) Issued in 2016 |
Other accrued liabilities (Tabl
Other accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities (Current) | Other accrued liabilities (current) are comprised of the following: As of December 31, 2017 2016 Payrolls and commissions $ 120.2 $ 110.6 Cost reduction 87.7 21.2 Accrued vacations 42.8 47.1 Taxes other than income taxes 29.1 25.4 Income taxes 26.0 35.3 Postretirement 18.5 19.3 Accrued interest 13.8 6.1 Other 53.4 84.2 Total other accrued liabilities $ 391.5 $ 349.2 |
Rental expense and commitments
Rental expense and commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rental Expense and Income from Subleases | Rental expense and income from subleases for the three years ended December 31, 2017 were as follows: Year ended December 31, 2017 2016 2015 Rental expense, less income from subleases $ 71.7 $ 77.4 $ 80.6 Income from subleases $ 4.4 $ 7.8 $ 9.1 |
Schedule of Minimum Net Rental Commitments Under Noncancelable Operating Leases | Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2017 , substantially all of which relate to real properties, were as follows: Year 2018 $ 47.4 2019 41.3 2020 32.9 2021 21.5 2022 16.2 Thereafter 39.4 Total $ 198.7 |
Financial instruments and con40
Financial instruments and concentration of credit risks (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Foreign Exchange Forward Contracts by Balance Sheet Location | The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2017 and 2016 . As of December 31, 2017 2016 Balance Sheet Location Prepaid expenses and other current assets $ 4.9 $ 2.4 Other accrued liabilities 1.6 1.9 Total fair value $ 3.3 0.5 $ 0.5 |
Gains and Losses Recognized on Foreign Exchange Forward Contracts | The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts for the three years ended December 31, 2017 . Year Ended December 31, 2017 2016 2015 Statement of Income Location Other income (expense), net $ 27.5 $ (29.1 ) $ 15.6 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Customer Revenue by Classes of Similar Products or Services | Customer revenue by classes of similar products or services, by segment, is presented below: Year ended December 31, 2017 2016 2015 Services Cloud & infrastructure services $ 1,317.0 $ 1,352.9 $ 1,513.1 Application services 808.3 859.0 868.9 BPO services 202.9 194.4 223.6 Total Services 2,328.2 2,406.3 2,605.6 Technology 413.6 414.4 409.5 Total customer revenue $ 2,741.8 $ 2,820.7 $ 3,015.1 |
Reconciliation of Segment Operating Income to Consolidated Income (Loss) Before Income Taxes | Presented below is a reconciliation of segment operating income to consolidated income (loss) before income taxes: Year ended December 31, 2017 2016 2015 Total segment operating income $ 235.4 $ 208.4 $ 174.9 Interest expense (52.8 ) (27.4 ) (11.9 ) Other income (expense), net (23.9 ) 0.3 8.2 Cost reduction charges (a) (135.0 ) (82.1 ) (118.5 ) Corporate and eliminations (95.8 ) (78.7 ) (111.5 ) Total income (loss) before income taxes $ (72.1 ) $ 20.5 $ (58.8 ) (a) Year ended December 31, 2017 excludes $11.8 million for net foreign currency losses related to exiting foreign countries which are reported in Other income (expense), net in the consolidated statements of income. |
Reconciliation of Total Business Segment Assets to Consolidated Assets | Presented below is a reconciliation of total business segment assets to consolidated assets: As of December 31, 2017 2016 2015 Total segment assets $ 1,364.5 $ 1,339.0 $ 1,486.0 Cash and cash equivalents 733.9 370.6 365.2 Deferred income taxes 119.9 146.1 127.4 Prepaid postretirement assets 148.3 33.3 45.1 Other corporate assets 175.8 132.6 106.3 Total assets $ 2,542.4 $ 2,021.6 $ 2,130.0 |
Summary of Operations by Business Segment | A summary of the company’s operations by business segment for 2017 , 2016 and 2015 is presented below: Total Corporate Services Technology 2017 Customer revenue $ 2,741.8 $ — $ 2,328.2 $ 413.6 Intersegment — (25.9 ) — 25.9 Total revenue $ 2,741.8 $ (25.9 ) $ 2,328.2 $ 439.5 Operating income (loss) $ 4.6 $ (230.8 ) $ 64.8 $ 170.6 Depreciation and amortization 156.5 — 84.6 71.9 Total assets 2,542.4 1,177.9 985.9 378.6 Capital expenditures 176.5 4.3 102.7 69.5 2016 Customer revenue $ 2,820.7 $ — $ 2,406.3 $ 414.4 Intersegment — (22.6 ) — 22.6 Total revenue $ 2,820.7 $ (22.6 ) $ 2,406.3 $ 437.0 Operating income (loss) $ 47.6 $ (160.8 ) $ 46.9 $ 161.5 Depreciation and amortization 155.6 — 81.8 73.8 Total assets 2,021.6 682.6 963.3 375.7 Capital expenditures 147.1 3.0 74.8 69.3 2015 Customer revenue $ 3,015.1 $ — $ 2,605.6 $ 409.5 Intersegment — (49.0 ) 0.1 48.9 Total revenue $ 3,015.1 $ (49.0 ) $ 2,605.7 $ 458.4 Operating income (loss) $ (55.1 ) $ (230.0 ) $ 61.2 $ 113.7 Depreciation and amortization 180.1 — 104.8 75.3 Total assets 2,130.0 644.0 1,081.7 404.3 Capital expenditures 213.7 1.9 143.3 68.5 |
Revenue by Geographic Segment | Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below: Year ended December 31, 2017 2016 2015 Revenue United States $ 1,257.0 $ 1,309.3 $ 1,454.9 United Kingdom 315.8 348.0 375.8 Other foreign 1,169.0 1,163.4 1,184.4 Total Revenue $ 2,741.8 $ 2,820.7 $ 3,015.1 Properties, net United States $ 85.8 $ 91.4 $ 96.9 United Kingdom 16.7 15.1 18.8 Other foreign 40.0 38.8 38.1 Total Properties, net $ 142.5 $ 145.3 $ 153.8 Outsourcing assets, net United States $ 81.1 $ 105.1 $ 119.4 United Kingdom 89.9 39.0 36.6 Other foreign 31.3 28.4 26.0 Total Outsourcing assets, net $ 202.3 $ 172.5 $ 182.0 |
Employee plans (Tables)
Employee plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value Assumptions on Stock Options | The fair value of stock option awards granted in 2016 and 2015 was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values as follows: Year Ended December 31, 2016 2015 Weighted-average fair value of grant $ 4.53 $ 8.92 Risk-free interest rate 1.29 % 1.28 % Expected volatility 51.30 % 45.46 % Expected life of options in years 4.90 4.92 Expected dividend yield — — |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2017 follows (shares in thousands): Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($ in millions) Outstanding at December 31, 2016 2,099 $ 25.41 Granted — — Exercised (1 ) 10.65 Forfeited and expired (340 ) 20.59 Outstanding at December 31, 2017 1,758 26.35 1.56 $ — Expected to vest at December 31, 2017 198 23.20 3.42 $ — Exercisable at December 31, 2017 1,558 26.76 1.33 $ — |
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the year ended December 31, 2017 follows (shares in thousands): Restricted Stock Units Weighted-Average Grant-Date Fair Value Outstanding at December 31, 2016 1,454 $ 12.68 Granted 1,042 13.85 Vested (555 ) 13.31 Forfeited and expired (253 ) 11.88 Outstanding at December 31, 2017 1,688 13.39 |
Schedule of Accumulated Benefit Obligation in Excess of Plan Assets | Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2017 and 2016 follows: As of December 31, 2017 2016 Accumulated benefit obligation $ 7,151.7 $ 7,551.8 Fair value of plan assets 5,227.0 5,357.2 |
Schedule of Projected Benefit Obligation in Excess of Plan Assets | Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2017 and 2016 follows: As of December 31, 2017 2016 Projected benefit obligation $ 7,153.4 $ 7,555.2 Fair value of plan assets 5,227.0 5,357.2 |
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine benefit obligation at December 31 were as follows: Year ended December 31, 2017 2016 2015 Discount rate 5.30 % 5.53 % 5.61 % |
Company's Investment Policy Targets and Ranges for Each Asset Category | The company’s investment policy targets and ranges for each asset category are as follows: U.S. International Asset Category Target Range Target Range Equity securities 58 % 52-64% 24 % 18-30% Debt securities 36 % 33-39% 60 % 53-66% Real estate 6 % 3-9% 1 % 0-3% Cash — % 0-5% 1 % 0-5% Other — % — % 14 % 7-21% |
Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31, 2017 2016 Health care cost trend rate assumed for next year 6.6 % 5.8 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.8 % 4.8 % Year that the rate reaches the ultimate trend rate 2023 2023 |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: 1-Percentage- Point Increase 1-Percentage- Point Decrease Effect on service and interest cost $ 0.1 $ (0.1 ) Effect on postretirement benefit obligation 2.0 (1.7 ) |
Schedule of Plans' Assets (Liabilities) at Fair Value | The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2017 . U.S. Plans International Plans As of December 31, 2017 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Pension plans Equity Securities Common Stocks $ 1,465.1 $ 1,461.9 $ 3.2 $ — $ — $ — $ — $ — Commingled Funds 584.4 584.4 84.0 84.0 Debt Securities U.S. Govt. Securities 139.8 139.8 Other Fixed Income 830.6 830.6 254.1 2.6 251.5 Insurance Contracts 135.8 135.8 Commingled Funds 267.5 267.5 Real Estate Real Estate Investment Trusts 113.5 113.5 1.4 0.4 1.0 Other Derivatives 2.6 13.1 (10.5 ) 1.2 1.2 Commingled Funds 357.1 357.1 Pooled Funds 228.0 228.0 29.2 29.2 Cash 34.8 34.8 25.1 25.1 Receivables 58.1 58.1 19.9 19.9 Payables (116.7 ) (116.7 ) (1.5 ) (1.5 ) Total plan assets in fair value hierarchy $ 3,340.2 $ 1,704.5 $ 1,635.7 $ — $ 1,173.8 $ 46.5 $ 991.5 $ 135.8 Plan assets measured using NAV as a practical expedient (a): Commingled Funds Equity $ — $ 780.7 Debt 19.8 837.7 Other 105.1 25.2 Private Real Estate 112.4 16.5 Private Equity 0.9 — Total pension plan assets $ 3,578.4 $ 2,833.9 Other postretirement plans Insurance Contracts $ 7.6 $ 7.6 (a) Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets. The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2016 . U.S. Plans International Plans As of December 31, 2016 Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Pension plans Equity Securities Common Stocks $ 1,443.1 $ 1,438.3 $ 4.8 $ — $ — $ — $ — $ — Commingled Funds 517.9 517.9 76.0 76.0 Debt Securities U.S. Govt. Securities 158.5 158.5 Other Fixed Income 812.4 812.4 241.4 0.5 240.9 Insurance Contracts 116.2 116.2 Commingled Funds 242.8 242.8 Real Estate Real Estate Investment Trusts 156.2 156.2 1.6 1.2 0.4 Other Derivatives 3.1 (1.1 ) 4.2 4.9 4.9 Commingled Funds 294.5 294.5 Pooled Funds 272.0 272.0 6.7 6.7 Cash 12.2 12.2 11.4 11.4 Receivables 107.2 107.2 Payables (195.3 ) (195.3 ) Total plan assets in fair value hierarchy $ 3,287.3 $ 1,676.0 $ 1,611.3 $ — $ 995.5 $ 13.1 $ 866.2 $ 116.2 Plan assets measured using NAV as a practical expedient (a): Commingled Funds Equity $ — $ 726.7 Debt 18.6 640.0 Other 104.6 25.8 Private Real Estate 40.5 41.7 Private Equity 1.1 — Total pension plan assets $ 3,452.1 $ 2,429.7 Other postretirement plans Insurance Contracts $ 7.9 $ 7.9 (a) Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets. |
Summary of Changes in the Fair Value of the Plans' Level 3 Assets | The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2017 . January 1, 2017 Realized gains (losses) Purchases or acquisitions Sales or dispositions Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017 December 31, 2017 U.S. plans Other postretirement plans Insurance Contracts $ 7.9 $ (0.2 ) $ 0.2 $ (0.3 ) $ — $ 7.6 International pension plans Insurance Contracts $ 116.2 $ — $ 10.8 $ (11.4 ) $ 20.2 $ 135.8 The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2016 . January 1, 2016 Realized gains (losses) Purchases or acquisitions Sales or dispositions Currency and unrealized gains (losses) relating to instruments still held at December 31, 2016 December 31, 2016 U.S. plans Other postretirement plans Insurance Contracts $ 7.7 $ (0.3 ) $ 0.5 $ — $ — $ 7.9 International pension plans Insurance Contracts $ 120.6 $ — $ 4.7 $ (11.0 ) $ 1.9 $ 116.2 |
Schedule of Additional Information About Plan Assets Valued Using Net Asset Value | The following table presents additional information about plan assets valued using the net asset value as a practical expedient within the fair value hierarchy table. 2017 2016 Fair Value Unfunded Commit-ments Redemption Frequency Redemption Notice Period Range Fair Value Unfunded Commit-ments Redemption Frequency Redemption Notice Period Range U.S. plans Commingled Funds Debt $ 19.8 $ — Daily 5 days $ 18.6 $ — Daily 5 days Other 105.1 — Monthly 5 days 104.6 — Monthly 5 days Private Real Estate (a) 112.4 — Quarterly Up to 90 days 40.5 — Quarterly 60 days Private Equity (b) 0.9 — 1.1 — Total $ 238.2 $ — $ 164.8 $ — International pension plans Commingled Funds Equity $ 780.7 $ — Weekly, Monthly Up to 30 days $ 726.7 $ — Weekly, Monthly Up to 90 days Debt 837.7 — Weekly, Biweekly, Bimonthly, Monthly Up to 30 days 640.0 — Weekly, Biweekly, Bimonthly, Monthly Up to 90 days Other 25.2 — Monthly Up to 30 days 25.8 — Monthly, Quarterly Up to 90 days Private Real Estate 16.5 — Monthly Up to 90 days 41.7 — Monthly, Quarterly Up to 90 days Total $ 1,660.1 $ — $ 1,434.2 $ — (a) Includes investments in private real estate funds and limited partnerships. The funds invest in U.S. real estate and allow redemptions quarterly, though queues, restrictions, and gates may extend the period. The limited partnerships include investments in primarily U.S. real estate, and can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years . (b) Includes investments in limited partnerships, which invest primarily in U.S. buyouts and venture capital. The investments can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years . |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet | Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2017 and 2016 follows: U.S. Plans International Plans As of December 31, 2017 2016 2017 2016 Change in projected benefit obligation Benefit obligation at beginning of year $ 4,972.0 $ 5,231.4 $ 3,076.2 $ 2,987.8 Service cost — — 5.1 7.4 Interest cost 211.3 231.3 72.8 87.8 Plan participants’ contributions — — 1.9 2.3 Plan amendment — — (52.5 ) — Plan curtailment — — (2.2 ) (3.7 ) Actuarial loss (gain) 177.0 87.2 (93.8 ) 502.2 Benefits paid (358.7 ) (577.9 ) (117.1 ) (110.0 ) Foreign currency translation adjustments — — 299.3 (397.6 ) Benefit obligation at end of year $ 5,001.6 $ 4,972.0 $ 3,189.7 $ 3,076.2 Change in plan assets Fair value of plan assets at beginning of year $ 3,452.1 $ 3,759.4 $ 2,429.7 $ 2,496.8 Actual return on plan assets 424.0 211.8 172.3 287.7 Employer contribution 61.0 58.8 77.4 73.7 Plan participants’ contributions — — 1.9 2.3 Benefits paid (358.7 ) (577.9 ) (117.1 ) (110.0 ) Foreign currency translation and other adjustments — — 269.7 (320.8 ) Fair value of plan assets at end of year $ 3,578.4 $ 3,452.1 $ 2,833.9 $ 2,429.7 Funded status at end of year $ (1,423.2 ) $ (1,519.9 ) $ (355.8 ) $ (646.5 ) Amounts recognized in the consolidated balance sheets consist of: Prepaid postretirement assets $ — $ — $ 147.4 $ 31.9 Other accrued liabilities (6.8 ) (6.7 ) (0.2 ) (0.2 ) Long-term postretirement liabilities (1,416.4 ) (1,513.2 ) (503.0 ) (678.2 ) Total funded status $ (1,423.2 ) $ (1,519.9 ) $ (355.8 ) $ (646.5 ) Accumulated other comprehensive loss, net of tax Net loss $ 2,690.6 $ 2,828.8 $ 1,067.8 $ 1,144.7 Prior service credit $ (39.8 ) $ (42.4 ) $ (69.8 ) $ (27.7 ) Accumulated benefit obligation $ 5,001.6 $ 4,972.0 $ 3,188.0 $ 3,072.1 |
Components of Net Periodic Cost | Net periodic pension cost (income) for 2017 , 2016 and 2015 includes the following components: U.S. Plans International Plans Year ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ — $ — $ — $ 5.1 $ 7.4 $ 8.7 Interest cost 211.3 231.3 224.1 72.8 87.8 94.1 Expected return on plan assets (235.2 ) (253.1 ) (254.8 ) (127.5 ) (139.5 ) (155.4 ) Amortization of prior service credit (2.5 ) (2.5 ) (2.4 ) (2.4 ) (3.0 ) (1.9 ) Recognized net actuarial loss 126.4 116.0 132.7 49.8 40.3 63.6 Curtailment gain — — — (5.4 ) (2.0 ) — Net periodic pension cost (income) $ 100.0 $ 91.7 $ 99.6 $ (7.6 ) $ (9.0 ) $ 9.1 |
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows: U.S. Plans International Plans Year ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.38 % 4.56 % 4.09 % 2.34 % 3.30 % 3.05 % Rate of compensation increase N/A N/A N/A 1.66 % 1.66 % 1.68 % Expected long-term rate of return on assets 6.80 % 6.80 % 6.80 % 5.30 % 5.99 % 6.45 % Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: Discount rate 3.87 % 4.38 % 4.56 % 2.24 % 2.34 % 3.30 % Rate of compensation increase N/A N/A N/A 1.55 % 1.66 % 1.68 % |
Expected Future Benefit Payments | As of December 31, 2017 , the following benefit payments, which reflect expected future service where applicable, are expected to be paid from the defined benefit pension plans: Year ending December 31, U.S. International 2018 $ 364.4 $ 98.7 2019 361.4 102.8 2020 359.3 106.9 2021 357.6 110.3 2022 355.1 117.5 2023 - 2027 1,693.6 642.5 |
Other Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet | A reconciliation of the benefit obligation, fair value of the plan assets and the funded status of the postretirement benefit plan at December 31, 2017 and 2016 , follows: As of December 31, 2017 2016 Change in accumulated benefit obligation Benefit obligation at beginning of year $ 120.1 $ 131.5 Service cost 0.5 0.4 Interest cost 5.6 6.2 Plan participants’ contributions 3.5 3.8 Amendments (7.4 ) (3.3 ) Actuarial gain (4.3 ) (1.4 ) Federal drug subsidy 0.3 1.4 Benefits paid (15.7 ) (16.9 ) Foreign currency translation and other adjustments 0.6 (1.6 ) Benefit obligation at end of year $ 103.2 $ 120.1 Change in plan assets Fair value of plan assets at beginning of year $ 7.9 $ 7.7 Actual return on plan assets (0.3 ) (0.3 ) Employer contributions 12.2 13.6 Plan participants’ contributions 3.5 3.8 Benefits paid (15.7 ) (16.9 ) Fair value of plan assets at end of year $ 7.6 $ 7.9 Funded status at end of year $ (95.6 ) $ (112.2 ) Amounts recognized in the consolidated balance sheets consist of: Prepaid postretirement assets $ 0.9 $ 1.4 Other accrued liabilities (11.5 ) (12.4 ) Long-term postretirement liabilities (85.0 ) (101.2 ) Total funded status $ (95.6 ) $ (112.2 ) Accumulated other comprehensive loss, net of tax Net loss $ 14.9 $ 19.0 Prior service credit (9.8 ) (3.2 ) |
Components of Net Periodic Cost | Net periodic postretirement benefit cost for 2017 , 2016 and 2015 , follows: Year ended December 31, 2017 2016 2015 Service cost $ 0.5 $ 0.4 $ 0.6 Interest cost 5.6 6.2 6.9 Expected return on assets (0.5 ) (0.4 ) (0.4 ) Amortization of prior service cost (0.7 ) — 1.1 Recognized net actuarial loss 0.8 0.5 1.8 Net periodic benefit cost $ 5.7 $ 6.7 $ 10.0 |
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows: Year ended December 31, 2017 2016 2015 Discount rate 5.53 % 5.61 % 5.27 % Expected return on plan assets 5.50 % 5.50 % 5.50 % |
Expected Future Benefit Payments | As of December 31, 2017 , the following benefits are expected to be paid to or from the company’s postretirement plan: Year ending December 31, Gross Medicare Part D Receipts Gross Expected Payments 2018 $ 0.1 $ 12.7 2019 — 10.5 2020 — 10.0 2021 — 9.4 2022 — 8.8 2023 – 2027 — 34.4 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) as of December 31, 2017 , 2016 and 2015 , is as follows: Total Translation Adjustments Postretirement Plans Balance at December 31, 2014 $ (4,113.4 ) $ (737.8 ) $ (3,375.6 ) Other comprehensive income before reclassifications 346.2 (96.0 ) 442.2 Amounts reclassified from accumulated other comprehensive income (178.1 ) — (178.1 ) Current period other comprehensive income 168.1 (96.0 ) 264.1 Balance at December 31, 2015 (3,945.3 ) (833.8 ) (3,111.5 ) Other comprehensive income before reclassifications (64.9 ) (93.3 ) 28.4 Amounts reclassified from accumulated other comprehensive income (142.6 ) — (142.6 ) Current period other comprehensive income (207.5 ) (93.3 ) (114.2 ) Balance at December 31, 2016 (4,152.8 ) (927.1 ) (3,225.7 ) Other comprehensive income before reclassifications 506.8 121.9 384.9 Amounts reclassified from accumulated other comprehensive income (169.8 ) (11.8 ) (158.0 ) Current period other comprehensive income 337.0 110.1 226.9 Balance at December 31, 2017 $ (3,815.8 ) $ (817.0 ) $ (2,998.8 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified out of accumulated other comprehensive income for the three years ended December 31, 2017 are as follows: Year ended December 31, 2017 2016 2015 Translation Adjustments: Adjustment for substantial completion of liquidation of foreign subsidiaries (a) $ (11.8 ) $ — $ — Postretirement Plans: Amortization of prior service cost (b) 5.6 5.6 3.1 Amortization of actuarial losses (b) (174.1 ) (155.2 ) (189.7 ) Curtailment gain (b) 5.4 2.0 — Total before tax (174.9 ) (147.6 ) (186.6 ) Income tax benefit 5.1 5.0 8.5 Total reclassifications for the period $ (169.8 ) $ (142.6 ) $ (178.1 ) (a) Reported in Other income (expense), net in the consolidated statements of income (b) These items are included in net periodic postretirement cost (see Note 16). |
Changes in Common Stock and Treasury Stock | The following table summarizes the changes in shares of common stock and treasury stock during the three years ended December 31, 2017 : Common Stock Treasury Stock Balance at December 31, 2014 52.4 2.7 Stock-based compensation 0.2 — Balance at December 31, 2015 52.6 2.7 Stock-based compensation 0.2 — Balance at December 31, 2016 52.8 2.7 Stock-based compensation 0.6 0.2 Balance at December 31, 2017 53.4 2.9 |
Quarterly financial informati44
Quarterly financial information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | First Quarter Second Quarter Third Quarter Fourth Quarter Year 2017 Revenue $ 664.5 $ 666.2 $ 666.3 $ 744.8 $ 2,741.8 Gross profit 120.2 102.5 86.1 169.5 478.3 Income (loss) before income taxes (16.8 ) (42.3 ) (40.4 ) 27.4 (72.1 ) Net income (loss) attributable to Unisys Corporation common shareholders (32.7 ) (42.0 ) (41.1 ) 50.5 (65.3 ) Earnings (loss) per common share attributable to Unisys Corporation Basic (0.65 ) (0.83 ) (0.81 ) 1.00 (1.30 ) Diluted (0.65 ) (0.83 ) (0.81 ) 0.76 (1.30 ) 2016 Revenue $ 666.8 $ 748.9 $ 683.3 $ 721.7 $ 2,820.7 Gross profit 98.5 178.3 121.6 160.2 558.6 Income (loss) before income taxes (33.2 ) 44.3 (15.2 ) 24.6 20.5 Net income (loss) attributable to Unisys Corporation common shareholders (39.9 ) 21.6 (28.2 ) (1.2 ) (47.7 ) Earnings (loss) per common share attributable to Unisys Corporation Basic (0.80 ) 0.43 (0.56 ) (0.02 ) (0.95 ) Diluted (0.80 ) 0.36 (0.56 ) (0.02 ) (0.95 ) In the first, second, third and fourth quarters of 2017, the company recorded pretax cost-reduction and other charges of $25.4 million , $27.5 million , $46.1 million and $47.8 million , respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements. In the first, second, third and fourth quarters of 2016, the company recorded pretax cost-reduction and other charges of $26.9 million , $10.2 million , $31.9 million and $13.1 million , respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements. The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share. |
Summary of significant accoun45
Summary of significant accounting policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [2] | ||
Accounting Policies [Abstract] | |||||||
Cash and cash equivalents | $ 733.9 | $ 370.6 | $ 365.2 | ||||
Restricted cash | 30.2 | 30.5 | [1] | ||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 764.1 | $ 401.1 | [2] | $ 396.8 | [2] | $ 530.2 | |
[1] | Amounts were changed to conform to the current-year presentation. See Note 5 | ||||||
[2] | Amounts were changed to conform to the current-year presentation. See Note 5 |
Summary of significant accoun46
Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Advertising costs incurred | $ 1.6 | $ 2.7 | $ 4.9 |
Maximum estimated revenue-producing lives of computer software products from the date of release | 3 years | ||
Period of recognition in changes in fair value of plan assets | 4 years | ||
Intelligent Processing Solutions Ltd. | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of ownership interest | 51.00% | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 50 years | ||
Machinery and office equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 4 years | ||
Machinery and office equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Rental equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 4 years | ||
Internal-use software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Internal-use software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Earnings per common share - Com
Earnings per common share - Computation of Earnings Per Common Share Attributable to Unisys Corporation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings (loss) per common share computation: | |||||||||||
Net loss attributable to Unisys Corporation common shareholders | $ (65.3) | $ (47.7) | $ (109.9) | ||||||||
Weighted average shares (in shares) | 50,409 | 50,060 | 49,905 | ||||||||
Basic loss per common share (in dollars per share) | $ 1 | $ (0.81) | $ (0.83) | $ (0.65) | $ (0.02) | $ (0.56) | $ 0.43 | $ (0.80) | $ (1.30) | $ (0.95) | $ (2.20) |
Diluted earnings (loss) per common share computation: | |||||||||||
Net loss attributable to Unisys Corporation for diluted earnings per share | $ (65.3) | $ (47.7) | $ (109.9) | ||||||||
Weighted average shares (in shares) | 50,409 | 50,060 | 49,905 | ||||||||
Diluted loss per common share (in dollars per share) | $ 0.76 | $ (0.81) | $ (0.83) | $ (0.65) | $ (0.02) | $ (0.56) | $ 0.36 | $ (0.80) | $ (1.30) | $ (0.95) | $ (2.20) |
Stock options and restricted stock units | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive weighted-average securities (in shares) | 2,206 | 3,553 | 2,915 | ||||||||
5.50% convertible senior notes | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive weighted-average securities (in shares) | 21,868 | 17,230 | 0 | ||||||||
Convertible senior notes interest rate | 5.50% | 5.50% |
Cost reduction actions - Additi
Cost reduction actions - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($)employee | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 47.8 | $ 46.1 | $ 27.5 | $ 25.4 | $ 13.1 | $ 31.9 | $ 10.2 | $ 26.9 | $ 146.8 | $ 82.1 | $ 118.5 | $ 347.4 |
Severance costs | 117.9 | 62.6 | 78.8 | |||||||||
Other expenses related to the cost reduction effort | 28.9 | 19.5 | 39.7 | |||||||||
Asset impairment charges | 20.2 | |||||||||||
Cost of revenue | Services | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 99.6 | 42.4 | 52.3 | |||||||||
Cost of revenue | Technology | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 0.4 | 0.3 | ||||||||||
Selling, general and administrative expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 33.6 | 38 | 53.5 | |||||||||
Research and development expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 1.4 | 1.7 | 12.4 | |||||||||
Other income (expense), net | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 11.8 | |||||||||||
Idle leased facilities | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 4.2 | 1.4 | 0 | |||||||||
Other expenses related to the cost reduction effort | 4.7 | 1.4 | ||||||||||
Contract amendment and termination | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Other expenses related to the cost reduction effort | 5.4 | 4.1 | ||||||||||
Professional fees and other expenses related to the cost reduction effort | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Other expenses related to the cost reduction effort | 5.2 | 13.3 | 19.5 | |||||||||
Net asset sales and write-offs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Other expenses related to the cost reduction effort | 1.8 | 0.7 | ||||||||||
Net foreign currency translation adjustment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Other expenses related to the cost reduction effort | 11.8 | |||||||||||
Net foreign currency translation adjustment | Other income (expense), net | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 11.8 | |||||||||||
United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Severance costs | $ 9.4 | $ 8.3 | $ 27.9 | |||||||||
Number of employees | employee | 542 | 351 | 700 | |||||||||
United States | Changes in estimates | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Severance costs | $ (1.3) | $ (1.3) | ||||||||||
Non-US | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Severance costs | $ 109.4 | $ 58.6 | $ 50.9 | |||||||||
Number of employees | employee | 2,274 | 1,048 | 782 | |||||||||
Non-US | Changes in estimates | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Severance costs | $ (7.8) | $ (3) | ||||||||||
Non-US | Additional benefits provided in 2017 | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Severance costs | $ 8.2 |
Cost reduction actions - Reconc
Cost reduction actions - Reconciliation of Liabilities and Expected Future Payments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||||||||||
Charges for work-force reductions / Additional provisions | $ 47.8 | $ 46.1 | $ 27.5 | $ 25.4 | $ 13.1 | $ 31.9 | $ 10.2 | $ 26.9 | $ 146.8 | $ 82.1 | $ 118.5 | $ 347.4 | |
Work-Force Reductions | United States | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Balance at beginning of period | 1.8 | 4.2 | $ 3.9 | 1.8 | 4.2 | ||||||||
Charges for work-force reductions / Additional provisions | 9.4 | 8.3 | 27.9 | ||||||||||
Payments | (6) | (9.4) | (23.7) | ||||||||||
Changes in estimates | (1.3) | (1.3) | |||||||||||
Translation adjustments | 0 | 0 | |||||||||||
Balance at end of period | 3.9 | 1.8 | 3.9 | 1.8 | 4.2 | 3.9 | |||||||
In 2,018 | 6 | 9.4 | 23.7 | ||||||||||
Work-Force Reductions | United States | Scenario, Forecast | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Payments | (3.9) | ||||||||||||
In 2,018 | 3.9 | ||||||||||||
Expected future payments on balance at December 31, 2017 | 0 | ||||||||||||
Work-Force Reductions | International | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Balance at beginning of period | 33.4 | 28.8 | 109.6 | 33.4 | 28.8 | ||||||||
Charges for work-force reductions / Additional provisions | 117.6 | 58.6 | 50.9 | ||||||||||
Payments | (41.3) | (49.9) | (21.6) | ||||||||||
Changes in estimates | (7.8) | (3) | |||||||||||
Translation adjustments | 7.7 | (1.1) | (0.5) | ||||||||||
Balance at end of period | 109.6 | 33.4 | 109.6 | 33.4 | 28.8 | 109.6 | |||||||
In 2,018 | 41.3 | 49.9 | 21.6 | ||||||||||
Work-Force Reductions | International | Scenario, Forecast | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Payments | (82) | ||||||||||||
In 2,018 | 82 | ||||||||||||
Expected future payments on balance at December 31, 2017 | 27.6 | ||||||||||||
Idle Leased Facilities Costs | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Balance at beginning of period | 1.4 | 0 | 4.3 | 1.4 | 0 | ||||||||
Charges for work-force reductions / Additional provisions | 4.2 | 1.4 | 0 | ||||||||||
Payments | (2) | 0 | 0 | ||||||||||
Changes in estimates | 0.5 | 0 | |||||||||||
Translation adjustments | 0.2 | 0 | 0 | ||||||||||
Balance at end of period | 4.3 | 1.4 | 4.3 | 1.4 | 0 | 4.3 | |||||||
In 2,018 | 2 | 0 | 0 | ||||||||||
Idle Leased Facilities Costs | Scenario, Forecast | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Payments | (1.8) | ||||||||||||
In 2,018 | 1.8 | ||||||||||||
Expected future payments on balance at December 31, 2017 | 2.5 | ||||||||||||
Total | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Balance at beginning of period | $ 36.6 | $ 33 | 117.8 | 36.6 | 33 | ||||||||
Charges for work-force reductions / Additional provisions | 131.2 | 68.3 | 78.8 | ||||||||||
Payments | (49.3) | (59.3) | (45.3) | ||||||||||
Changes in estimates | (8.6) | (4.3) | |||||||||||
Translation adjustments | 7.9 | (1.1) | (0.5) | ||||||||||
Balance at end of period | $ 117.8 | $ 36.6 | 117.8 | 36.6 | 33 | $ 117.8 | |||||||
In 2,018 | $ 49.3 | $ 59.3 | $ 45.3 | ||||||||||
Total | Scenario, Forecast | |||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||
Payments | (87.7) | ||||||||||||
In 2,018 | 87.7 | ||||||||||||
Expected future payments on balance at December 31, 2017 | $ 30.1 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | ||
Goodwill [Line Items] | |||
Goodwill | 180,800,000 | $ 178,600,000 | $ 177,400,000 |
Services | |||
Goodwill [Line Items] | |||
Goodwill | 72,100,000 | $ 69,900,000 | $ 68,700,000 |
BPO services | Services | |||
Goodwill [Line Items] | |||
Goodwill | $ 10,800,000 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 178.6 | $ 177.4 |
Translation adjustments | 2.2 | 1.2 |
Balance at end of year | 180.8 | 178.6 |
Services | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 69.9 | 68.7 |
Translation adjustments | 2.2 | 1.2 |
Balance at end of year | 72.1 | 69.9 |
Technology | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 108.7 | 108.7 |
Translation adjustments | 0 | 0 |
Balance at end of year | $ 108.7 | $ 108.7 |
Recent accounting pronounceme52
Recent accounting pronouncements and accounting changes - Schedule of Amounts Reclassified in Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Cash flows from operating activities | ||||||
Other assets | $ (27.5) | $ 16.5 | [1] | $ 18.1 | [1] | |
Cash flows from investing activities | ||||||
Other | (0.8) | (0.9) | [1] | 7 | [1] | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 19.2 | (14.7) | [1] | (47.6) | [1] | |
Cash, cash equivalents and restricted cash, beginning of year | [1] | 401.1 | 396.8 | 530.2 | ||
Cash, cash equivalents and restricted cash, end of year | 764.1 | 401.1 | [1] | 396.8 | [1] | |
Accounting Standards Update 2016-18 | ||||||
Cash flows from operating activities | ||||||
Other assets | (1.9) | 2.6 | ||||
Cash flows from investing activities | ||||||
Other | 1.6 | (2.3) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.8) | (4.6) | ||||
Cash, cash equivalents and restricted cash, beginning of year | $ 30.5 | 31.6 | 35.9 | |||
Cash, cash equivalents and restricted cash, end of year | $ 30.5 | $ 31.6 | ||||
[1] | Amounts were changed to conform to the current-year presentation. See Note 5 |
Recent accounting pronounceme53
Recent accounting pronouncements and accounting changes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment | $ 4.4 | ||||
Reclassification from operating activities, Other assets | 27.5 | $ (16.5) | [1] | $ (18.1) | [1] |
Reclassification to investing activities, Other | (0.8) | (0.9) | [1] | 7 | [1] |
Reclassification from operating activities, Accounts payable and other accrued liabilities | 48.6 | 7.5 | [1] | (60.3) | [1] |
Reclassification to financing activities, Other | 2.3 | 0.4 | [1] | 0.8 | [1] |
Accounting Standards Update 2016-15 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification from operating activities, Other assets | 1.5 | 1.1 | |||
Reclassification to investing activities, Other | 1.5 | 1.1 | |||
Accounting Standards Update 2016-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification from operating activities, Accounts payable and other accrued liabilities | 0.4 | 0.8 | |||
Reclassification to financing activities, Other | 0.4 | $ 0.8 | |||
Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit cost, other than service cost | 92.5 | 81.6 | |||
Accumulated Deficit | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment | $ 4.4 | ||||
Accumulated Deficit | Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment | $ 4.4 | ||||
[1] | Amounts were changed to conform to the current-year presentation. See Note 5 |
Accounts receivable - Additiona
Accounts receivable - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Revenue recognized in excess of billings on services contracts or unbilled accounts receivable | $ 109.4 | $ 98 | |
Unearned income deducted from accounts and notes receivable | 12.5 | 7 | |
Allowance for doubtful accounts | 22 | 22.8 | |
Provision expense for doubtful accounts reported in selling, general and administrative expenses | $ 3.1 | $ 2.2 | $ 3 |
Accounts receivable - Schedule
Accounts receivable - Schedule of Receivables Under Sales-Type Lease (Details) $ in Millions | Dec. 31, 2017USD ($) |
Receivables [Abstract] | |
2,018 | $ 45.5 |
2,019 | 25.8 |
2,020 | 16.3 |
2,021 | 10.8 |
2,022 | 9.7 |
Thereafter | 19.1 |
Total | $ 127.2 |
Income taxes - Total Income Bef
Income taxes - Total Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) before income taxes | |||||||||||
United States | $ (152.7) | $ (88.3) | $ (130.6) | ||||||||
Foreign | 80.6 | 108.8 | 71.8 | ||||||||
Income (loss) before income taxes | $ 27.4 | $ (40.4) | $ (42.3) | $ (16.8) | $ 24.6 | $ (15.2) | $ 44.3 | $ (33.2) | (72.1) | 20.5 | (58.8) |
Current | |||||||||||
United States | (42.8) | 6.7 | 1 | ||||||||
Foreign | 33.9 | 47.7 | 42.2 | ||||||||
State and local | 0 | 0 | 0.3 | ||||||||
Total | (8.9) | 54.4 | 43.5 | ||||||||
Deferred | |||||||||||
Foreign | 3.4 | 2.8 | 0.9 | ||||||||
(Benefit) provision for income taxes | $ (5.5) | $ 57.2 | $ 44.4 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States statutory income tax provision (benefit) | $ (25.2) | $ 7.2 | $ (20.6) |
Income and losses for which no provision or benefit has been recognized | 70.3 | 65.5 | 69.1 |
Foreign rate differential and other foreign tax expense | (11.3) | (21.1) | (15.9) |
Income tax withholdings | 16.8 | 22.8 | 12.5 |
Permanent items | (3) | (4.7) | (1.9) |
Enacted rate changes | (0.4) | 3.5 | 9.1 |
Change in uncertain tax positions | 2.3 | 0.4 | 1.5 |
Change in valuation allowances due to changes in judgment | (4.6) | (16.4) | (5.4) |
Income tax credits, U.S. | (50.4) | 0 | (4) |
(Benefit) provision for income taxes | $ (5.5) | $ 57.2 | $ 44.4 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) $ in Millions | Apr. 01, 2020 | Apr. 01, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Tax Credit Carryforward [Line Items] | |||||||
Income tax benefit, due to Tax Cuts and Jobs Act | $ 50.4 | ||||||
Income tax benefit, due to Tax Cuts and Jobs Act, received in 2017 | 9.1 | ||||||
Income tax benefit, due to Tax Cuts and Jobs Act, receivable in 2018 | 7.2 | ||||||
Income tax benefit, due to Tax Cuts and Jobs Act, receivable between 2019-2022 | 34.1 | ||||||
Rate change in the company's income tax provision | (0.4) | $ 3.5 | $ 9.1 | ||||
U.S. Federal tax loss carryforwards | 319.5 | ||||||
State and local tax loss carryforwards | 250.7 | ||||||
Foreign tax loss carryforwards | 267.4 | ||||||
Total tax loss carryforwards | 837.6 | 889.6 | |||||
Tax credit carryforwards | 127 | ||||||
Unrecognized Deferred Income Tax Liability, Tax Cuts and Jobs Act | 21.5 | ||||||
Cash paid, net of refunds | 34.3 | 46.4 | 59.7 | ||||
Penalties and interest accrued related to income tax liabilities | 2.3 | 1.2 | |||||
Utilization of tax attributes, annual limitation | 70.6 | ||||||
Utilization of tax attributes, cumulative limitation | $ 416 | ||||||
Minimum | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Expected change in ownership percentage | 50.00% | ||||||
2,018 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | $ 5.3 | ||||||
Tax credit carryforwards, set to expire | 10.1 | ||||||
2,019 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | 7.3 | ||||||
Tax credit carryforwards, set to expire | 10.2 | ||||||
2,020 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | 28.5 | ||||||
Tax credit carryforwards, set to expire | 20.9 | ||||||
2,021 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | 14.5 | ||||||
Tax credit carryforwards, set to expire | 8.7 | ||||||
2,022 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | 114 | ||||||
Tax credit carryforwards, set to expire | 7.7 | ||||||
Thereafter | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax loss carryforwards, set to expire | 668 | ||||||
Tax credit carryforwards, set to expire | $ 69.4 | ||||||
United Kingdom | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Rate change in the company's income tax provision | $ 3.5 | $ 9.1 | |||||
Income tax rate | 18.00% | 18.00% | 20.00% | ||||
United Kingdom | Scenario, Forecast | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Income tax rate | 17.00% | ||||||
India | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax audit for the years | 2,006 | ||||||
Brazil | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax audit for the years | 2,010 |
Income taxes - Significant Port
Income taxes - Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Tax loss carryforwards | $ 837.6 | $ 889.6 |
Postretirement benefits | 437.7 | 728.9 |
Foreign tax credit carryforwards | 127 | 317.6 |
Other tax credit carryforwards | 29.1 | 91.4 |
Deferred revenue | 40.9 | 81 |
Employee benefits and compensation | 35.2 | 49.1 |
Purchased capitalized software | 22.2 | 32.6 |
Depreciation | 24.5 | 28.3 |
Warranty, bad debts and other reserves | 5.3 | 16.1 |
Capitalized costs | 3.1 | 10.9 |
Other | 39.3 | 27.7 |
Total deferred tax assets, gross | 1,601.9 | 2,273.2 |
Valuation allowance | (1,441.1) | (2,084.6) |
Total deferred tax assets | 160.8 | 188.6 |
Deferred tax liabilities | ||
Capitalized research and development | 24.3 | 20.3 |
Other | 25.8 | 28.4 |
Total deferred tax liabilities | 50.1 | 48.7 |
Net deferred tax assets | $ 110.7 | $ 139.9 |
Income taxes - Reconciliation60
Income taxes - Reconciliation of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 35.8 | $ 27.7 | $ 35 |
Additions based on tax positions related to the current year | 4.2 | 2.7 | 3.4 |
Changes for tax positions of prior years | (11.2) | 12 | (4) |
Reductions as a result of a lapse of applicable statute of limitations | (2.7) | (2.8) | (3.4) |
Settlements | (0.2) | (0.1) | (0.9) |
Changes due to foreign currency | 2 | 3.7 | 2.4 |
Balance at December 31 | $ 27.9 | $ 35.8 | $ 27.7 |
Properties - Components of Prop
Properties - Components of Properties (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total properties | $ 898.8 | $ 886.6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 2.8 | 2.7 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 91.3 | 88.2 |
Machinery and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 601.7 | 591.7 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 157.4 | 145.9 |
Rental equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | $ 45.6 | $ 58.1 |
Debt - Components of Long-term
Debt - Components of Long-term Debt (Details) - USD ($) | Dec. 31, 2017 | May 08, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 637,100,000 | ||
Other debt | 21,300,000 | $ 16,100,000 | |
Total | 644,700,000 | 300,000,000 | |
Less – current maturities | 10,800,000 | 106,000,000 | |
Total long-term debt | $ 633,900,000 | 194,000,000 | |
5.50% convertible senior notes due March 1, 2021 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 1,000 | ||
Senior Notes | 10.75% senior secured notes due April 15, 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate | 10.75% | ||
Long-term debt | $ 429,600,000 | $ 0 | |
Aggregate principal amount | 440,000,000 | ||
Debt Instrument, Unamortized Discount | $ 10,400,000 | ||
Senior Notes | 5.50% convertible senior notes due March 1, 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | 5.50% | |
Long-term debt | $ 186,300,000 | $ 179,100,000 | |
Aggregate principal amount | 213,500,000 | 213,500,000 | |
Debt Instrument, Unamortized Discount | $ 27,200,000 | 34,400,000 | |
Senior Notes | 6.25% senior notes due August 15, 2017 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.25% | 6.25% | |
Long-term debt | $ 0 | 94,700,000 | |
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Capital leases | $ 7,500,000 | $ 10,100,000 |
Debt - Estimated Fair Values of
Debt - Estimated Fair Values of Long-term Debt (Details) - Senior Notes - USD ($) $ in Millions | Dec. 31, 2017 | May 08, 2017 | Dec. 31, 2016 |
10.75% senior secured notes due April 15, 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate | 10.75% | ||
5.50% convertible senior notes due March 1, 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | 5.50% | |
6.25% senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.25% | 6.25% | |
Estimated Fair Value | 10.75% senior secured notes due April 15, 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 492.8 | $ 0 | |
Estimated Fair Value | 5.50% convertible senior notes due March 1, 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 237.9 | 379.8 | |
Estimated Fair Value | 6.25% senior notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 97.8 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt, Including Capital Leases (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Term Debt | ||
2,018 | $ 8.2 | |
2,019 | 0 | |
2,020 | 0.9 | |
2,021 | 188.1 | |
2,022 | 431.5 | |
Thereafter | 8.4 | |
Long-term debt | 637.1 | |
Capital Leases | ||
2,018 | 2.6 | |
2,019 | 1.4 | |
2,020 | 1.4 | |
2,021 | 1.4 | |
2,022 | 0.8 | |
Thereafter | 0 | |
Total | 7.6 | |
Total | ||
2,018 | 10.8 | |
2,019 | 1.4 | |
2,020 | 2.3 | |
2,021 | 189.5 | |
2,022 | 432.3 | |
Thereafter | 8.4 | |
Total | $ 644.7 | $ 300 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - Senior Notes - Convertible Senior Notes 2021 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Contractual interest coupon | $ 11.8 | $ 9.2 |
Amortization of debt discount | 6 | 4.3 |
Amortization of debt issuance costs | 1.2 | 1 |
Total | $ 19 | $ 14.5 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Oct. 05, 2017USD ($) | Apr. 17, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)shares$ / shares | Dec. 31, 2015USD ($) | May 08, 2017 |
Debt Instrument [Line Items] | |||||||
Cash paid for interest | $ 39,900,000 | $ 22,100,000 | $ 14,400,000 | ||||
Capitalized interest expense | 4,200,000 | 3,000,000 | 3,100,000 | ||||
Charge recognized as a result of redemption | 1,500,000 | 4,000,000 | 0 | ||||
Payments for capped call transactions | 0 | 27,300,000 | $ 0 | ||||
Convertible Senior Notes 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 1,000 | ||||||
Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Accordion feature increase limit | $ 150,000,000 | ||||||
Borrowings outstanding | 0 | ||||||
Availability under the facility, net of letters of credit issued | 110,500,000 | ||||||
Springing maturity, period prior to maturity date of convertible senior notes due 2021 | 91 days | ||||||
Springing maturity, period prior to maturity date of secured notes due 2022 | 60 days | ||||||
Credit Agreement | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 30,000,000 | ||||||
Letters of credit outstanding | $ 4,700,000 | ||||||
Senior Notes | Senior Secured Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 440,000,000 | ||||||
Interest rate | 10.75% | ||||||
Redemption price, percent of principal amount of notes redeemed | 100.00% | ||||||
Percent of notes with option to redeem | 35.00% | ||||||
Redemption price, percentage of principal amount | 110.75% | ||||||
Redemption price if required collateral coverage ratio not met, percentage of principal amount | 100.00% | ||||||
Minimum collateral coverage ratio | 1.50 | ||||||
Collateral coverage ratio, amount added to cash and cash equivalents | 4.75 | ||||||
Collateral coverage ratio, multiplier for Average Grantor EBITDA for seven most recent fiscal quarters | 4 | ||||||
Period to redeem notes without default if required collateral coverage ratio not met | 90 days | ||||||
Redemption price if company experiences change of control, percent of principal amount | 101.00% | ||||||
Senior Notes | 6.25% senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.25% | 6.25% | |||||
Charge recognized as a result of redemption | $ 1,500,000 | ||||||
Premium and expenses paid for redemption of debt | 1,300,000 | ||||||
Write off of unamortized discount and fees related to the portion of the notes redeemed | $ 200,000 | ||||||
Senior Notes | Convertible Senior Notes 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 213,500,000 | $ 213,500,000 | |||||
Interest rate | 5.50% | 5.50% | |||||
Effective interest rate | 9.50% | ||||||
Conversion rate (in shares) | shares | 102.4249 | ||||||
Total amount of conversion (in shares) | shares | 21,867,716 | ||||||
Conversion price (in usd per share) | $ / shares | $ 12.75 | $ 9.76 | |||||
Payments for capped call transactions | $ 27,300,000 | ||||||
Conversion premium | 60.00% | 22.50% | |||||
Line of Credit | Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Requirement to maintain fixed charge coverage ratio, availability threshold, percent of lender commitments under facility | 10.00% | ||||||
Requirement to maintain fixed charge coverage ratio, availability threshold | $ 15,000,000 | ||||||
Amount of aggregate default under other debt that would trigger event of default | $ 50,000,000 |
Other accrued liabilities (Deta
Other accrued liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Payrolls and commissions | $ 120.2 | $ 110.6 |
Cost reduction | 87.7 | 21.2 |
Accrued vacations | 42.8 | 47.1 |
Taxes other than income taxes | 29.1 | 25.4 |
Income taxes | 26 | 35.3 |
Postretirement | 18.5 | 19.3 |
Accrued interest | 13.8 | 6.1 |
Other | 53.4 | 84.2 |
Total other accrued liabilities | $ 391.5 | $ 349.2 |
Rental expense and commitment68
Rental expense and commitments - Schedule of Rental Expense and Income from Subleases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense, less income from subleases | $ 71.7 | $ 77.4 | $ 80.6 |
Income from subleases | $ 4.4 | $ 7.8 | $ 9.1 |
Rental expense and commitment69
Rental expense and commitments - Schedule of Minimum Net Rental Commitments Under Noncancelable Operating Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 47.4 |
2,019 | 41.3 |
2,020 | 32.9 |
2,021 | 21.5 |
2,022 | 16.2 |
Thereafter | 39.4 |
Total | $ 198.7 |
Rental expense and commitment70
Rental expense and commitments - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum sublease rentals | $ 7.2 |
Standby letters of credit and surety bonds outstanding | 318 |
Deposits and collateralized assets | $ 14 |
Financial instruments and con71
Financial instruments and concentration of credit risks - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements Disclosure [Line Items] | ||
Maturity period limit of foreign currency exchange instruments (in months) | 3 months | |
Receivables due from U.S. federal governmental agencies | $ 75.8 | $ 74 |
Foreign Exchange Forward Contract | ||
Fair Value Measurements Disclosure [Line Items] | ||
Notional amount of foreign exchange forward contracts not designated as hedging instruments | $ 514 | $ 428.9 |
Financial instruments and con72
Financial instruments and concentration of credit risks - Fair Value of Foreign Exchange Forward Contracts by Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total fair value | $ 3.3 | $ 0.5 |
Prepaid expenses and other current assets | Foreign Exchange Forward Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 4.9 | 2.4 |
Other accrued liabilities | Foreign Exchange Forward Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ 1.6 | $ 1.9 |
Financial instruments and con73
Financial instruments and concentration of credit risks - Gains and Losses Recognized on Foreign Exchange Forward Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other income (expense), net | |||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | |||
Amount of gain (loss) recognized | $ 27.5 | $ (29.1) | $ 15.6 |
Foreign currency - Additional I
Foreign currency - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intercompany Foreign Currency Balance [Line Items] | |||
Gain (loss) recognized on foreign exchange | $ (9.9) | $ 2.3 | $ 8.1 |
Facility Closing | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Gain (loss) recognized on foreign exchange | $ (11.8) |
Litigation and contingencies -
Litigation and contingencies - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 115 Months Ended | ||
Apr. 30, 2007EUR (€) | Jul. 31, 2011USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2008EUR (€) | |
Loss Contingencies [Line Items] | ||||
Amount related to unreserved tax-related matters, inclusive of interest | $ | $ 135 | |||
Ministry Of Justice Of Belgium | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | € | € 28 | |||
Counterclaim against termination of contract | € | € 18.5 | |||
Pharmaceutical Claims | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | $ | $ 68 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segmentcustomer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of business segments | segment | 2 | ||||||||||
Operating profit (loss) | $ 4.6 | $ 47.6 | $ (55.1) | ||||||||
Number of customers accounted for more than 10% of revenue | customer | 0 | ||||||||||
Revenue | $ 744.8 | $ 666.3 | $ 666.2 | $ 664.5 | $ 721.7 | $ 683.3 | $ 748.9 | $ 666.8 | $ 2,741.8 | 2,820.7 | 3,015.1 |
Various Agencies Of U.S. Government | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 571 | 564 | 569 | ||||||||
Other Technology | Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit (loss) | $ 6.3 | $ 0.7 | $ 9.2 |
Segment information - Customer
Segment information - Customer Revenue by Classes of Similar Products or Services (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 744.8 | $ 666.3 | $ 666.2 | $ 664.5 | $ 721.7 | $ 683.3 | $ 748.9 | $ 666.8 | $ 2,741.8 | $ 2,820.7 | $ 3,015.1 |
Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 2,328.2 | 2,406.3 | 2,605.6 | ||||||||
Technology | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 413.6 | 414.4 | 409.5 | ||||||||
Cloud & infrastructure services | Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 1,317 | 1,352.9 | 1,513.1 | ||||||||
Application services | Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 808.3 | 859 | 868.9 | ||||||||
BPO services | Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 202.9 | $ 194.4 | $ 223.6 |
Segment information - Reconcili
Segment information - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | $ 4.6 | $ 47.6 | $ (55.1) | |||||||||
Interest expense | (52.8) | (27.4) | (11.9) | |||||||||
Other income (expense), net | (23.9) | 0.3 | 8.2 | |||||||||
Cost reduction charges | $ (47.8) | $ (46.1) | $ (27.5) | $ (25.4) | $ (13.1) | $ (31.9) | $ (10.2) | $ (26.9) | (146.8) | (82.1) | (118.5) | $ (347.4) |
Income (loss) before income taxes | $ 27.4 | $ (40.4) | $ (42.3) | $ (16.8) | $ 24.6 | $ (15.2) | $ 44.3 | $ (33.2) | (72.1) | 20.5 | (58.8) | |
Operating Segments | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | 235.4 | 208.4 | 174.9 | |||||||||
Segment Reconciling Items | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Cost reduction charges | (135) | (82.1) | (118.5) | |||||||||
Corporate and eliminations | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | (95.8) | $ (78.7) | $ (111.5) | |||||||||
Other income (expense), net | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Cost reduction charges | (11.8) | |||||||||||
Other income (expense), net | Net foreign currency translation adjustment | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Cost reduction charges | $ (11.8) |
Segment information - Reconci79
Segment information - Reconciliation of Total Business Segment Assets to Consolidated Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 2,542.4 | $ 2,021.6 | $ 2,130 |
Cash and cash equivalents | 733.9 | 370.6 | 365.2 |
Deferred income taxes | 119.9 | 146.1 | 127.4 |
Prepaid postretirement assets | 148.3 | 33.3 | 45.1 |
Operating Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,364.5 | 1,339 | 1,486 |
Corporate | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,177.9 | 682.6 | 644 |
Other corporate assets | $ 175.8 | $ 132.6 | $ 106.3 |
Segment information - Summary o
Segment information - Summary of Operations by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 744.8 | $ 666.3 | $ 666.2 | $ 664.5 | $ 721.7 | $ 683.3 | $ 748.9 | $ 666.8 | $ 2,741.8 | $ 2,820.7 | $ 3,015.1 |
Operating income (loss) | 4.6 | 47.6 | (55.1) | ||||||||
Depreciation and amortization | 156.5 | 155.6 | 180.1 | ||||||||
Total assets | 2,542.4 | 2,021.6 | 2,542.4 | 2,021.6 | 2,130 | ||||||
Capital expenditures | 176.5 | 147.1 | 213.7 | ||||||||
Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (25.9) | (22.6) | (49) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | 235.4 | 208.4 | 174.9 | ||||||||
Total assets | 1,364.5 | 1,339 | 1,364.5 | 1,339 | 1,486 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (25.9) | (22.6) | (49) | ||||||||
Operating income (loss) | (230.8) | (160.8) | (230) | ||||||||
Total assets | 1,177.9 | 682.6 | 1,177.9 | 682.6 | 644 | ||||||
Capital expenditures | 4.3 | 3 | 1.9 | ||||||||
Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,328.2 | 2,406.3 | 2,605.6 | ||||||||
Operating income (loss) | 64.8 | 46.9 | 61.2 | ||||||||
Depreciation and amortization | 84.6 | 81.8 | 104.8 | ||||||||
Total assets | 985.9 | 963.3 | 985.9 | 963.3 | 1,081.7 | ||||||
Capital expenditures | 102.7 | 74.8 | 143.3 | ||||||||
Services | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 0 | 0 | 0.1 | ||||||||
Services | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,328.2 | 2,406.3 | 2,605.7 | ||||||||
Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 413.6 | 414.4 | 409.5 | ||||||||
Operating income (loss) | 170.6 | 161.5 | 113.7 | ||||||||
Depreciation and amortization | 71.9 | 73.8 | 75.3 | ||||||||
Total assets | $ 378.6 | $ 375.7 | 378.6 | 375.7 | 404.3 | ||||||
Capital expenditures | 69.5 | 69.3 | 68.5 | ||||||||
Technology | Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 25.9 | 22.6 | 48.9 | ||||||||
Technology | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 439.5 | $ 437 | $ 458.4 |
Segment information - Revenue,
Segment information - Revenue, Properties and Outsourcing Assets by Geographic Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 744.8 | $ 666.3 | $ 666.2 | $ 664.5 | $ 721.7 | $ 683.3 | $ 748.9 | $ 666.8 | $ 2,741.8 | $ 2,820.7 | $ 3,015.1 |
Properties, net | 142.5 | 145.3 | 142.5 | 145.3 | 153.8 | ||||||
Outsourcing assets, net | 202.3 | 172.5 | 202.3 | 172.5 | 182 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,257 | 1,309.3 | 1,454.9 | ||||||||
Properties, net | 85.8 | 91.4 | 85.8 | 91.4 | 96.9 | ||||||
Outsourcing assets, net | 81.1 | 105.1 | 81.1 | 105.1 | 119.4 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 315.8 | 348 | 375.8 | ||||||||
Properties, net | 16.7 | 15.1 | 16.7 | 15.1 | 18.8 | ||||||
Outsourcing assets, net | 89.9 | 39 | 89.9 | 39 | 36.6 | ||||||
Other foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,169 | 1,163.4 | 1,184.4 | ||||||||
Properties, net | 40 | 38.8 | 40 | 38.8 | 38.1 | ||||||
Outsourcing assets, net | $ 31.3 | $ 28.4 | $ 31.3 | $ 28.4 | $ 26 |
Employee plans - Additional Inf
Employee plans - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($)Employee | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of unissued common stock available for grant under the plans (in shares) | shares | 3,200,000 | |||
Age requirement for vesting provision, minimum | 55 years | |||
Completion of service period (in years) for stock awards | 5 years | |||
Option vesting period (in years) | 3 years | |||
Share-based compensation expense | $ 11,200,000 | $ 9,500,000 | $ 9,400,000 | |
Grants of stock option awards (in shares) | shares | 0 | |||
Proceeds from exercise of stock options | $ 0 | 0 | 3,700,000 | |
Matching contribution by the company as percentage of participants' contribution | 50.00% | |||
Percentage of eligible pay contributed by participants that will be matched | 6.00% | |||
Cost recognized for contribution plans | $ 10,800,000 | 10,700,000 | 9,900,000 | |
Deferred compensation liability | $ 12,300,000 | 13,400,000 | 12,300,000 | |
Number of former associates | Employee | 5,800 | |||
Lump sum payments made to former associates | $ 215,900,000 | |||
International Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost recognized for contribution plans | 18,500,000 | 19,000,000 | 21,400,000 | |
Pension Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected pretax amortization of net loss in 2017 | 167,600,000 | |||
Expected pretax amortization of prior service cost (credit) in 2017 | 6,300,000 | |||
Amortization of net loss | 176,200,000 | |||
Amortization of prior service credit | (4,900,000) | |||
Estimated cash contributions by the company in 2017 | 149,700,000 | |||
Pension Plans | U.S. Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Curtailment gain | 0 | 0 | 0 | |
Amortization of net loss | 126,400,000 | 116,000,000 | 132,700,000 | |
Amortization of prior service credit | (2,500,000) | (2,500,000) | (2,400,000) | |
Estimated cash contributions by the company in 2017 | 86,300,000 | |||
Pension Plans | International Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Curtailment gain | 5,400,000 | 2,000,000 | 0 | |
Amortization of net loss | 49,800,000 | 40,300,000 | 63,600,000 | |
Amortization of prior service credit | (2,400,000) | (3,000,000) | (1,900,000) | |
Estimated cash contributions by the company in 2017 | 63,400,000 | |||
Other Postretirement Benefit Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected pretax amortization of net loss in 2017 | 1,200,000 | |||
Expected pretax amortization of prior service cost (credit) in 2017 | (1,600,000) | |||
Amortization of net loss | 800,000 | 500,000 | 1,800,000 | |
Amortization of prior service credit | (700,000) | 0 | 1,100,000 | |
Estimated cash contributions by the company in 2017 | 12,000,000 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 10,100,000 | 7,500,000 | 4,700,000 | |
Total unrecognized compensation cost | $ 9,800,000 | |||
Unrecognized compensation cost, Weighted-average recognition period | 1 year 10 months 25 days | |||
Aggregate weighted-average grant-date fair value of units granted | $ 14,400,000 | 12,900,000 | 10,200,000 | |
Aggregate weighted-average grant-date fair value of units vested | 7,400,000 | 3,500,000 | 2,100,000 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,100,000 | $ 2,000,000 | 4,700,000 | |
Total intrinsic value of options exercised | 0 | $ 600,000 | ||
Total unrecognized compensation cost | $ 100,000 | |||
Unrecognized compensation cost, Weighted-average recognition period | 6 months | |||
Performance-Based Unit | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares which will vest after achievement of goals (in shares) | shares | 0 | |||
Performance-Based Unit | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares which will vest after achievement of goals (in shares) | shares | 2 | |||
Options Issued in 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum contractual term of options granted (in years) | 7 years | |||
Options Issued Before 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum contractual term of options granted (in years) | 5 years |
Employee plans - Fair Value Ass
Employee plans - Fair Value Assumptions on Stock Option (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | ||
Weighted-average fair value of grant (in dollars per share) | $ 4.53 | $ 8.92 |
Risk-free interest rate | 1.29% | 1.28% |
Expected volatility | 51.30% | 45.46% |
Expected life of options in years | 4 years 10 months 25 days | 4 years 11 months 1 day |
Expected dividend yield | 0.00% | 0.00% |
Employee plans - Summary of Sto
Employee plans - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 2,099,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (1,000) |
Forfeited and expired (in shares) | shares | (340,000) |
Outstanding at end of period (in shares) | shares | 1,758,000 |
Expected to vest at end of period (in shares) | shares | 198,000 |
Exercisable at end of period (in shares) | shares | 1,558,000 |
Weighted- Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 25.41 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 10.65 |
Forfeited and expired (in dollars per share) | $ / shares | 20.59 |
Outstanding at end of period (in dollars per share) | $ / shares | 26.35 |
Expected to vest at end of period (in dollars per share) | $ / shares | 23.20 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 26.76 |
Weighted- Average Remaining Contractual Term (years) | |
Outstanding at end of period | 1 year 6 months 21 days |
Expected to vest at end of period | 3 years 5 months 1 day |
Exercisable at end of period | 1 year 3 months 29 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 0 |
Expected to vest at end of period | $ | 0 |
Exercisable at end of period | $ | $ 0 |
Employee plans - Summary of Res
Employee plans - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 1,454 |
Granted (in shares) | shares | 1,042 |
Vested (in shares) | shares | (555) |
Forfeited and expired (in shares) | shares | (253) |
Outstanding at end of period (in shares) | shares | 1,688 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 12.68 |
Granted (in dollars per share) | $ / shares | 13.85 |
Vested (in dollars per share) | $ / shares | 13.31 |
Forfeited and expired (in dollars per share) | $ / shares | 11.88 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 13.39 |
Employee plans - Funded Status
Employee plans - Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | $ 148.3 | $ 33.3 | $ 45.1 |
Other accrued liabilities | (18.5) | (19.3) | |
Long-term postretirement liabilities | (2,004.4) | (2,292.6) | |
Pension Plans | U.S. Plans | |||
Change in projected benefit obligation | |||
Benefit obligation at beginning of year | 4,972 | 5,231.4 | |
Service cost | 0 | 0 | 0 |
Interest cost | 211.3 | 231.3 | 224.1 |
Plan participants’ contributions | 0 | 0 | |
Plan amendment | 0 | 0 | |
Plan curtailment | 0 | 0 | |
Actuarial loss (gain) | 177 | 87.2 | |
Benefits paid | (358.7) | (577.9) | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 5,001.6 | 4,972 | 5,231.4 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 3,452.1 | 3,759.4 | |
Actual return on plan assets | 424 | 211.8 | |
Employer contribution | 61 | 58.8 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (358.7) | (577.9) | |
Foreign currency translation and other adjustments | 0 | 0 | |
Fair value of plan assets at end of year | 3,578.4 | 3,452.1 | 3,759.4 |
Funded status at end of year | (1,423.2) | (1,519.9) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | 0 | 0 | |
Other accrued liabilities | (6.8) | (6.7) | |
Long-term postretirement liabilities | (1,416.4) | (1,513.2) | |
Total funded status | (1,423.2) | (1,519.9) | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 2,690.6 | 2,828.8 | |
Prior service credit | (39.8) | (42.4) | |
Accumulated benefit obligation | 5,001.6 | 4,972 | |
Pension Plans | International Plans | |||
Change in projected benefit obligation | |||
Benefit obligation at beginning of year | 3,076.2 | 2,987.8 | |
Service cost | 5.1 | 7.4 | 8.7 |
Interest cost | 72.8 | 87.8 | 94.1 |
Plan participants’ contributions | 1.9 | 2.3 | |
Plan amendment | (52.5) | 0 | |
Plan curtailment | (2.2) | (3.7) | |
Actuarial loss (gain) | (93.8) | 502.2 | |
Benefits paid | (117.1) | (110) | |
Foreign currency translation adjustments | 299.3 | (397.6) | |
Benefit obligation at end of year | 3,189.7 | 3,076.2 | 2,987.8 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,429.7 | 2,496.8 | |
Actual return on plan assets | 172.3 | 287.7 | |
Employer contribution | 77.4 | 73.7 | |
Plan participants’ contributions | 1.9 | 2.3 | |
Benefits paid | (117.1) | (110) | |
Foreign currency translation and other adjustments | 269.7 | (320.8) | |
Fair value of plan assets at end of year | 2,833.9 | 2,429.7 | 2,496.8 |
Funded status at end of year | (355.8) | (646.5) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | 147.4 | 31.9 | |
Other accrued liabilities | (0.2) | (0.2) | |
Long-term postretirement liabilities | (503) | (678.2) | |
Total funded status | (355.8) | (646.5) | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 1,067.8 | 1,144.7 | |
Prior service credit | (69.8) | (27.7) | |
Accumulated benefit obligation | 3,188 | 3,072.1 | |
Other Postretirement Benefit Plans | |||
Change in projected benefit obligation | |||
Benefit obligation at beginning of year | 120.1 | 131.5 | |
Service cost | 0.5 | 0.4 | 0.6 |
Interest cost | 5.6 | 6.2 | 6.9 |
Plan participants’ contributions | 3.5 | 3.8 | |
Plan amendment | (7.4) | (3.3) | |
Actuarial loss (gain) | (4.3) | (1.4) | |
Federal drug subsidy | 0.3 | 1.4 | |
Benefits paid | (15.7) | (16.9) | |
Foreign currency translation adjustments | 0.6 | (1.6) | |
Benefit obligation at end of year | 103.2 | 120.1 | 131.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 7.9 | 7.7 | |
Actual return on plan assets | (0.3) | (0.3) | |
Employer contribution | 12.2 | 13.6 | |
Plan participants’ contributions | 3.5 | 3.8 | |
Benefits paid | (15.7) | (16.9) | |
Fair value of plan assets at end of year | 7.6 | 7.9 | $ 7.7 |
Funded status at end of year | (95.6) | (112.2) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | 0.9 | 1.4 | |
Other accrued liabilities | (11.5) | (12.4) | |
Long-term postretirement liabilities | (85) | (101.2) | |
Total funded status | (95.6) | (112.2) | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 14.9 | 19 | |
Prior service credit | $ (9.8) | $ (3.2) |
Employee plans - Schedule of Ac
Employee plans - Schedule of Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 7,151.7 | $ 7,551.8 |
Fair value of plan assets | 5,227 | 5,357.2 |
Projected benefit obligation | 7,153.4 | 7,555.2 |
Fair value of plan assets | $ 5,227 | $ 5,357.2 |
Employee plans - Components of
Employee plans - Components of Net Periodic Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service credit | $ (4.9) | ||
Recognized net actuarial loss | 176.2 | ||
Pension Plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | $ 0 | $ 0 |
Interest cost | 211.3 | 231.3 | 224.1 |
Expected return on plan assets | (235.2) | (253.1) | (254.8) |
Amortization of prior service credit | (2.5) | (2.5) | (2.4) |
Recognized net actuarial loss | 126.4 | 116 | 132.7 |
Curtailment gain | 0 | 0 | 0 |
Net periodic pension cost (income) | 100 | 91.7 | 99.6 |
Pension Plans | International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5.1 | 7.4 | 8.7 |
Interest cost | 72.8 | 87.8 | 94.1 |
Expected return on plan assets | (127.5) | (139.5) | (155.4) |
Amortization of prior service credit | (2.4) | (3) | (1.9) |
Recognized net actuarial loss | 49.8 | 40.3 | 63.6 |
Curtailment gain | (5.4) | (2) | 0 |
Net periodic pension cost (income) | (7.6) | (9) | 9.1 |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.4 | 0.6 |
Interest cost | 5.6 | 6.2 | 6.9 |
Expected return on plan assets | (0.5) | (0.4) | (0.4) |
Amortization of prior service credit | (0.7) | 0 | 1.1 |
Recognized net actuarial loss | 0.8 | 0.5 | 1.8 |
Net periodic pension cost (income) | $ 5.7 | $ 6.7 | $ 10 |
Employee plans - Schedule of We
Employee plans - Schedule of Weighted-Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.38% | 4.56% | 4.09% |
Expected long-term rate of return on assets | 6.80% | 6.80% | 6.80% |
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: | |||
Discount rate | 3.87% | 4.38% | 4.56% |
Pension Plans | International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.34% | 3.30% | 3.05% |
Rate of compensation increase | 1.66% | 1.66% | 1.68% |
Expected long-term rate of return on assets | 5.30% | 5.99% | 6.45% |
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: | |||
Discount rate | 2.24% | 2.34% | 3.30% |
Rate of compensation increase | 1.55% | 1.66% | 1.68% |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.53% | 5.61% | 5.27% |
Expected long-term rate of return on assets | 5.50% | 5.50% | 5.50% |
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: | |||
Discount rate | 5.30% | 5.53% | 5.61% |
Employee plans - Company's Inve
Employee plans - Company's Investment Policy Targets and Ranges for Each Asset Category (Details) - Pension Plans | Dec. 31, 2017 |
U.S. Plans | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 58.00% |
U.S. Plans | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 36.00% |
U.S. Plans | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 6.00% |
U.S. Plans | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
U.S. Plans | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
U.S. Plans | Minimum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 52.00% |
U.S. Plans | Minimum | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 33.00% |
U.S. Plans | Minimum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 3.00% |
U.S. Plans | Minimum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
U.S. Plans | Minimum | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
U.S. Plans | Maximum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 64.00% |
U.S. Plans | Maximum | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 39.00% |
U.S. Plans | Maximum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 9.00% |
U.S. Plans | Maximum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 5.00% |
International Plans | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 24.00% |
International Plans | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 60.00% |
International Plans | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 1.00% |
International Plans | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 1.00% |
International Plans | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 14.00% |
International Plans | Minimum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 18.00% |
International Plans | Minimum | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 53.00% |
International Plans | Minimum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
International Plans | Minimum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
International Plans | Minimum | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 7.00% |
International Plans | Maximum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 30.00% |
International Plans | Maximum | Debt securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 66.00% |
International Plans | Maximum | Real estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 3.00% |
International Plans | Maximum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 5.00% |
International Plans | Maximum | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan target allocation percentage of assets | 21.00% |
Employee plans - Expected Futur
Employee plans - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plans | U.S. Plans | |
Gross Expected Payments | |
Expected future benefit payments, 2018 | $ 364.4 |
Expected future benefit payments, 2019 | 361.4 |
Expected future benefit payments, 2020 | 359.3 |
Expected future benefit payments, 2021 | 357.6 |
Expected future benefit payments, 2022 | 355.1 |
Expected future benefit payments, 2023 - 2027 | 1,693.6 |
Pension Plans | International Plans | |
Gross Expected Payments | |
Expected future benefit payments, 2018 | 98.7 |
Expected future benefit payments, 2019 | 102.8 |
Expected future benefit payments, 2020 | 106.9 |
Expected future benefit payments, 2021 | 110.3 |
Expected future benefit payments, 2022 | 117.5 |
Expected future benefit payments, 2023 - 2027 | 642.5 |
Other Postretirement Benefit Plans | |
Gross Expected Payments | |
Expected future benefit payments, 2018 | 12.7 |
Expected future benefit payments, 2019 | 10.5 |
Expected future benefit payments, 2020 | 10 |
Expected future benefit payments, 2021 | 9.4 |
Expected future benefit payments, 2022 | 8.8 |
Expected future benefit payments, 2023 - 2027 | 34.4 |
Gross Medicare Part D Receipts | |
Gross Medicare Part D Receipts, 2018 | 0.1 |
Gross Medicare Part D Receipts, 2019 | 0 |
Gross Medicare Part D Receipts, 2020 | 0 |
Gross Medicare Part D Receipts, 2021 | 0 |
Gross Medicare Part D Receipts, 2022 | 0 |
Gross Medicare Part D Receipts, 2023 - 2027 | $ 0 |
Employee plans - Assumed Health
Employee plans - Assumed Health Care Cost Trend Rates (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Health care cost trend rate assumed for next year | 6.60% | 5.80% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.80% | 4.80% |
Year that the rate reaches the ultimate trend rate | 2,023 | 2,023 |
Employee plans - Effect of One-
Employee plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
1-Percentage- Point Increase | |
Effect on service and interest cost | $ 0.1 |
Effect on postretirement benefit obligation | 2 |
1-Percentage- Point Decrease | |
Effect on service and interest cost | (0.1) |
Effect on postretirement benefit obligation | $ (1.7) |
Employee plans - Schedule of Pl
Employee plans - Schedule of Plan Assets at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | $ 3,578.4 | $ 3,452.1 | $ 3,759.4 |
Total plan assets in fair value hierarchy | 3,340.2 | 3,287.3 | |
Plan assets measured using NAV as a practical expedient | 238.2 | 164.8 | |
Pension Plans | U.S. Plans | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1,465.1 | 1,443.1 | |
Pension Plans | U.S. Plans | Equity Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 584.4 | 517.9 | |
Plan assets measured using NAV as a practical expedient | 0 | 0 | |
Pension Plans | U.S. Plans | U.S. Govt. Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 139.8 | 158.5 | |
Pension Plans | U.S. Plans | Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 830.6 | 812.4 | |
Pension Plans | U.S. Plans | Debt Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 19.8 | 18.6 | |
Pension Plans | U.S. Plans | Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 113.5 | 156.2 | |
Pension Plans | U.S. Plans | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 2.6 | 3.1 | |
Pension Plans | U.S. Plans | Other, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 105.1 | 104.6 | |
Pension Plans | U.S. Plans | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 228 | 272 | |
Pension Plans | U.S. Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 34.8 | 12.2 | |
Pension Plans | U.S. Plans | Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 58.1 | 107.2 | |
Pension Plans | U.S. Plans | Payables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | (116.7) | (195.3) | |
Pension Plans | U.S. Plans | Private Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 112.4 | 40.5 | |
Pension Plans | U.S. Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 0.9 | 1.1 | |
Pension Plans | U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1,704.5 | 1,676 | |
Pension Plans | U.S. Plans | Level 1 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1,461.9 | 1,438.3 | |
Pension Plans | U.S. Plans | Level 1 | U.S. Govt. Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 139.8 | 158.5 | |
Pension Plans | U.S. Plans | Level 1 | Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 113.5 | 156.2 | |
Pension Plans | U.S. Plans | Level 1 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 13.1 | (1.1) | |
Pension Plans | U.S. Plans | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 34.8 | 12.2 | |
Pension Plans | U.S. Plans | Level 1 | Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 58.1 | 107.2 | |
Pension Plans | U.S. Plans | Level 1 | Payables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | (116.7) | (195.3) | |
Pension Plans | U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1,635.7 | 1,611.3 | |
Pension Plans | U.S. Plans | Level 2 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 3.2 | 4.8 | |
Pension Plans | U.S. Plans | Level 2 | Equity Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 584.4 | 517.9 | |
Pension Plans | U.S. Plans | Level 2 | Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 830.6 | 812.4 | |
Pension Plans | U.S. Plans | Level 2 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | (10.5) | 4.2 | |
Pension Plans | U.S. Plans | Level 2 | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 228 | 272 | |
Pension Plans | U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | U.S. Plans | Level 3 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 2,833.9 | 2,429.7 | 2,496.8 |
Total plan assets in fair value hierarchy | 1,173.8 | 995.5 | |
Plan assets measured using NAV as a practical expedient | 1,660.1 | 1,434.2 | |
Pension Plans | International Plans | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | International Plans | Equity Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 84 | 76 | |
Plan assets measured using NAV as a practical expedient | 780.7 | 726.7 | |
Pension Plans | International Plans | Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 254.1 | 241.4 | |
Pension Plans | International Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 135.8 | 116.2 | |
Pension Plans | International Plans | Debt Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 267.5 | 242.8 | |
Plan assets measured using NAV as a practical expedient | 837.7 | 640 | |
Pension Plans | International Plans | Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1.4 | 1.6 | |
Pension Plans | International Plans | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1.2 | 4.9 | |
Pension Plans | International Plans | Other, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 357.1 | 294.5 | |
Plan assets measured using NAV as a practical expedient | 25.2 | 25.8 | |
Pension Plans | International Plans | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 29.2 | 6.7 | |
Pension Plans | International Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 25.1 | 11.4 | |
Pension Plans | International Plans | Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 19.9 | ||
Pension Plans | International Plans | Payables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | (1.5) | ||
Pension Plans | International Plans | Private Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 16.5 | 41.7 | |
Pension Plans | International Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets measured using NAV as a practical expedient | 0 | 0 | |
Pension Plans | International Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 46.5 | 13.1 | |
Pension Plans | International Plans | Level 1 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | International Plans | Level 1 | Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 2.6 | 0.5 | |
Pension Plans | International Plans | Level 1 | Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0.4 | 1.2 | |
Pension Plans | International Plans | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 25.1 | 11.4 | |
Pension Plans | International Plans | Level 1 | Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 19.9 | ||
Pension Plans | International Plans | Level 1 | Payables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | (1.5) | ||
Pension Plans | International Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 991.5 | 866.2 | |
Pension Plans | International Plans | Level 2 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | International Plans | Level 2 | Equity Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 84 | 76 | |
Pension Plans | International Plans | Level 2 | Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 251.5 | 240.9 | |
Pension Plans | International Plans | Level 2 | Debt Securities, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 267.5 | 242.8 | |
Pension Plans | International Plans | Level 2 | Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1 | 0.4 | |
Pension Plans | International Plans | Level 2 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 1.2 | 4.9 | |
Pension Plans | International Plans | Level 2 | Other, Commingled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 357.1 | 294.5 | |
Pension Plans | International Plans | Level 2 | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 29.2 | 6.7 | |
Pension Plans | International Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 135.8 | 116.2 | |
Pension Plans | International Plans | Level 3 | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 0 | 0 | |
Pension Plans | International Plans | Level 3 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 135.8 | 116.2 | 120.6 |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 7.6 | 7.9 | 7.7 |
Other Postretirement Benefit Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 7.9 | ||
Other Postretirement Benefit Plans | Level 3 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 7.9 | ||
Other Postretirement Benefit Plans | U.S. Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | 7.6 | ||
Other Postretirement Benefit Plans | U.S. Plans | Level 3 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets total | $ 7.6 | $ 7.9 | $ 7.7 |
Employee plans - Summary of Cha
Employee plans - Summary of Changes in Level 3 Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Postretirement Benefit Plans | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | $ 7.9 | $ 7.7 |
Fair value of plan assets at end of year | 7.6 | 7.9 |
Other Postretirement Benefit Plans | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 7.9 | |
Fair value of plan assets at end of year | 7.9 | |
Other Postretirement Benefit Plans | Level 3 | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 7.9 | |
Fair value of plan assets at end of year | 7.9 | |
U.S. Plans | Pension Plans | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 3,452.1 | 3,759.4 |
Fair value of plan assets at end of year | 3,578.4 | 3,452.1 |
U.S. Plans | Pension Plans | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
U.S. Plans | Other Postretirement Benefit Plans | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at end of year | 7.6 | |
U.S. Plans | Other Postretirement Benefit Plans | Level 3 | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 7.9 | 7.7 |
Realized gains (losses) | (0.2) | (0.3) |
Purchases or acquisitions | 0.2 | 0.5 |
Sales or dispositions | (0.3) | 0 |
Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017 | 0 | 0 |
Fair value of plan assets at end of year | 7.6 | 7.9 |
International Plans | Pension Plans | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 2,429.7 | 2,496.8 |
Fair value of plan assets at end of year | 2,833.9 | 2,429.7 |
International Plans | Pension Plans | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 116.2 | |
Fair value of plan assets at end of year | 135.8 | 116.2 |
International Plans | Pension Plans | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 116.2 | |
Fair value of plan assets at end of year | 135.8 | 116.2 |
International Plans | Pension Plans | Level 3 | Insurance Contracts | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 116.2 | 120.6 |
Realized gains (losses) | 0 | 0 |
Purchases or acquisitions | 10.8 | 4.7 |
Sales or dispositions | (11.4) | (11) |
Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017 | 20.2 | 1.9 |
Fair value of plan assets at end of year | $ 135.8 | $ 116.2 |
Employee plans - Additional I96
Employee plans - Additional Information About Plan Assets Valued Using Net Asset Value (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plans | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 238.2 | $ 164.8 |
Unfunded Commit-ments | 0 | 0 |
U.S. Plans | Equity Securities, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 0 | 0 |
Redemption Notice Period Range | 90 days | |
U.S. Plans | Debt Securities, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 19.8 | 18.6 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 5 days | 5 days |
U.S. Plans | Other, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 105.1 | $ 104.6 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 5 days | 5 days |
U.S. Plans | Private Real Estate | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 112.4 | $ 40.5 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 60 days | |
Limited partnerships, period expected to make all distributions | 3 years | |
U.S. Plans | Private Equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 0.9 | $ 1.1 |
Unfunded Commit-ments | $ 0 | 0 |
Limited partnerships, period expected to make all distributions | 3 years | |
International Plans | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 1,660.1 | 1,434.2 |
Unfunded Commit-ments | 0 | 0 |
International Plans | Equity Securities, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 780.7 | 726.7 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 30 days | 90 days |
International Plans | Debt Securities, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 837.7 | $ 640 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 30 days | 90 days |
International Plans | Other, Commingled Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 25.2 | $ 25.8 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 30 days | 90 days |
International Plans | Private Real Estate | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 16.5 | $ 41.7 |
Unfunded Commit-ments | $ 0 | $ 0 |
Redemption Notice Period Range | 90 days | 90 days |
International Plans | Private Equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 150,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 40,000,000 | |
Preferred stock, par value (in dollars per share) | $ 1 | |
Unissued common stock reserved for stock-based incentive plans and convertible debt (in shares) | 35,100,000 |
Stockholders' equity - Accumula
Stockholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ (1,647.4) | $ (1,378.6) | $ (1,452.4) |
Other comprehensive income before reclassifications | 506.8 | (64.9) | 346.2 |
Amounts reclassified from accumulated other comprehensive income | (169.8) | (142.6) | (178.1) |
Current period other comprehensive income | 337 | (207.5) | 168.1 |
Ending Balance | (1,326.5) | (1,647.4) | (1,378.6) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (4,152.8) | (3,945.3) | (4,113.4) |
Ending Balance | (3,815.8) | (4,152.8) | (3,945.3) |
Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (927.1) | (833.8) | (737.8) |
Other comprehensive income before reclassifications | 121.9 | (93.3) | (96) |
Amounts reclassified from accumulated other comprehensive income | (11.8) | 0 | 0 |
Current period other comprehensive income | 110.1 | (93.3) | (96) |
Ending Balance | (817) | (927.1) | (833.8) |
Postretirement Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (3,225.7) | (3,111.5) | (3,375.6) |
Other comprehensive income before reclassifications | 384.9 | 28.4 | 442.2 |
Amounts reclassified from accumulated other comprehensive income | (158) | (142.6) | (178.1) |
Current period other comprehensive income | 226.9 | (114.2) | 264.1 |
Ending Balance | $ (2,998.8) | $ (3,225.7) | $ (3,111.5) |
Stockholders' equity - Amounts
Stockholders' equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other income (expense), net | $ (23.9) | $ 0.3 | $ 8.2 |
Total reclassifications for the period | (169.8) | (142.6) | (178.1) |
Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications for the period | (11.8) | 0 | 0 |
Amortization of prior service cost | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of postretirement plan items, before tax | 5.6 | 5.6 | 3.1 |
Amortization of actuarial losses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of postretirement plan items, before tax | (174.1) | (155.2) | (189.7) |
Curtailment gain | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of postretirement plan items, before tax | 5.4 | 2 | 0 |
Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of postretirement plan items, before tax | (174.9) | (147.6) | (186.6) |
Income tax benefit | 5.1 | 5 | 8.5 |
Total reclassifications for the period | (158) | (142.6) | (178.1) |
Adjustment for substantial completion of liquidation of foreign subsidiaries | Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other income (expense), net | $ (11.8) | $ 0 | $ 0 |
Stockholders' equity - Changes
Stockholders' equity - Changes in Common Stock and Treasury Stock (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance (in shares) | 52.8 | 52.6 | 52.4 |
Stock-based compensation (in shares) | 0.6 | 0.2 | 0.2 |
Ending Balance (in shares) | 53.4 | 52.8 | 52.6 |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance (in shares) | 2.7 | 2.7 | 2.7 |
Stock-based compensation (in shares) | 0.2 | 0 | 0 |
Ending Balance (in shares) | 2.9 | 2.7 | 2.7 |
Quarterly financial informat101
Quarterly financial information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 744.8 | $ 666.3 | $ 666.2 | $ 664.5 | $ 721.7 | $ 683.3 | $ 748.9 | $ 666.8 | $ 2,741.8 | $ 2,820.7 | $ 3,015.1 |
Gross profit | 169.5 | 86.1 | 102.5 | 120.2 | 160.2 | 121.6 | 178.3 | 98.5 | 478.3 | 558.6 | |
Income (loss) before income taxes | 27.4 | (40.4) | (42.3) | (16.8) | 24.6 | (15.2) | 44.3 | (33.2) | (72.1) | 20.5 | $ (58.8) |
Net income (loss) attributable to Unisys Corporation common shareholders | $ 50.5 | $ (41.1) | $ (42) | $ (32.7) | $ (1.2) | $ (28.2) | $ 21.6 | $ (39.9) | $ (65.3) | $ (47.7) | |
Loss per common share attributable to Unisys Corporation | |||||||||||
Basic (in dollars per share) | $ 1 | $ (0.81) | $ (0.83) | $ (0.65) | $ (0.02) | $ (0.56) | $ 0.43 | $ (0.80) | $ (1.30) | $ (0.95) | $ (2.20) |
Diluted (in dollars per share) | $ 0.76 | $ (0.81) | $ (0.83) | $ (0.65) | $ (0.02) | $ (0.56) | $ 0.36 | $ (0.80) | $ (1.30) | $ (0.95) | $ (2.20) |
Quarterly financial informat102
Quarterly financial information (unaudited) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Restructuring charges | $ 47.8 | $ 46.1 | $ 27.5 | $ 25.4 | $ 13.1 | $ 31.9 | $ 10.2 | $ 26.9 | $ 146.8 | $ 82.1 | $ 118.5 | $ 347.4 |
Schedule II - Valuation and 103
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts (deducted from accounts receivable): | |||
Balance at Beginning of Period | $ 22.8 | $ 21.1 | $ 30.1 |
Additions Charged to Costs and Expenses | 3.1 | 2.2 | 3 |
Deductions | (3.9) | (0.5) | (12) |
Balance at End of Period | $ 22 | $ 22.8 | $ 21.1 |