Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 18, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UIS | ||
Entity Registrant Name | UNISYS CORP | ||
Entity Central Index Key | 746838 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 49,898,173 | ||
Entity Public Float | $1,241.50 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||
Services | $2,887.70 | $2,996.10 | $3,192.40 |
Technology | 468.7 | 460.4 | 514 |
Total revenue | 3,356.40 | 3,456.50 | 3,706.40 |
Cost of revenue: | |||
Services | 2,394.20 | 2,405.50 | 2,567.70 |
Technology | 184.4 | 202.6 | 165.2 |
Cost of Revenue, Total | 2,578.60 | 2,608.10 | 2,732.90 |
Selling, general and administrative expenses | 554.1 | 559.4 | 572.8 |
Research and development expenses | 68.8 | 69.5 | 81.5 |
Costs and Expenses, Total | 3,201.50 | 3,237 | 3,387.20 |
Operating profit | 154.9 | 219.5 | 319.2 |
Interest expense | 9.2 | 9.9 | 27.5 |
Other income (expense), net | -0.2 | 9.8 | -37.6 |
Income before income taxes | 145.5 | 219.4 | 254.1 |
Provision for income taxes | 86.2 | 99.3 | 97.3 |
Consolidated net income | 59.3 | 120.1 | 156.8 |
Net income attributable to noncontrolling interests | 12.6 | 11.6 | 11.2 |
Net income attributable to Unisys Corporation | 46.7 | 108.5 | 145.6 |
Preferred stock dividends | 2.7 | 16.2 | 16.2 |
Net income attributable to Unisys Corporation common shareholders | $44 | $92.30 | $129.40 |
Earnings per common share attributable to Unisys Corporation | |||
Basic | $0.89 | $2.10 | $2.95 |
Diluted | $0.89 | $2.08 | $2.84 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated net income | $59.30 | $120.10 | $156.80 |
Other comprehensive income | |||
Foreign currency translation | -66.3 | -40.1 | 17.7 |
Postretirement adjustments, net of tax of $(42.5) in 2014, $14.6 in 2013 and $(28.3) in 2012 | -756.8 | 853.8 | -452.3 |
Total other comprehensive income (loss) | -823.1 | 813.7 | -434.6 |
Comprehensive income (loss) | -763.8 | 933.8 | -277.8 |
Comprehensive income (loss) attributable to noncontrolling interests | 30.5 | -25.1 | -9.3 |
Comprehensive income (loss) attributable to Unisys Corporation | ($733.30) | $908.70 | ($287.10) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement adjustments, tax | ($42.50) | $14.60 | ($28.30) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $494.30 | $639.80 |
Accounts and notes receivable, net | 619.3 | 683.1 |
Inventories: | ||
Parts and finished equipment | 22.2 | 32.8 |
Work in process and materials | 24.5 | 22.3 |
Deferred income taxes | 16.4 | 24.1 |
Prepaid expenses and other current assets | 140.6 | 138.7 |
Total | 1,317.30 | 1,540.80 |
Properties | 1,059.40 | 1,095.50 |
Less - Accumulated depreciation and amortization | 890.7 | 920.8 |
Properties, net | 168.7 | 174.7 |
Outsourcing assets, net | 150.9 | 115.5 |
Marketable software, net | 144.1 | 129.1 |
Prepaid postretirement assets | 19.9 | 83.7 |
Deferred income taxes | 154.6 | 112.3 |
Goodwill | 183.9 | 188.7 |
Other long-term assets | 209.3 | 165.2 |
Total | 2,348.70 | 2,510 |
Current liabilities | ||
Current maturities of long-term debt | 1.8 | |
Accounts payable | 262.5 | 246.7 |
Deferred revenue | 348.3 | 402.4 |
Other accrued liabilities | 385.1 | 375.7 |
Total | 997.7 | 1,024.80 |
Long-term debt | 222.2 | 210 |
Long-term postretirement liabilities | 2,369.90 | 1,697.20 |
Long-term deferred revenue | 119.5 | 122.7 |
Other long-term liabilities | 91.8 | 119.2 |
Commitments and contingencies | ||
Deficit | ||
6.25% mandatory convertible preferred stock | 249.7 | |
Common stock, par value $.01 per share (100.0 million shares authorized; 52.4 million shares and 45.1 million shares issued) | 0.5 | 0.4 |
Accumulated deficit | -1,735.80 | -1,782.50 |
Treasury stock, at cost | -99.6 | -62.4 |
Paid-in capital | 4,488.30 | 4,227.70 |
Accumulated other comprehensive loss | -4,113.40 | -3,333.40 |
Total Unisys stockholders' deficit | -1,460 | -700.5 |
Noncontrolling interests | 7.6 | 36.6 |
Total deficit | -1,452.40 | -663.9 |
Total | $2,348.70 | $2,510 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Convertible preferred stock, dividend rate | 6.25% | 6.25% |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100 | 100 |
Common stock, shares issued | 52.4 | 45.1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Consolidated net income | $59.30 | $120.10 | $156.80 |
Add (deduct) items to reconcile consolidated net income to net cash provided by operating activities: | |||
Company stock issued for U.S. 401(k) plan | 6.2 | ||
Foreign currency transaction losses | 7.4 | 6.5 | |
Loss on debt extinguishment | 30.6 | ||
Employee stock compensation | 10.4 | 12.5 | 14.3 |
Depreciation and amortization of properties | 52 | 46.7 | 54.7 |
Depreciation and amortization of outsourcing assets | 58.1 | 53.5 | 57.9 |
Amortization of marketable software | 58.5 | 59.4 | 62 |
Other non-cash operating activities | 7.8 | -0.6 | -2.7 |
Disposal of capital assets | 1.8 | 2 | 6.3 |
(Gain) loss on sale of businesses and assets | -0.7 | 1.5 | -11.7 |
Pension contributions | -183.4 | -147.2 | -201.5 |
Pension expense | 73.8 | 93.5 | 108.2 |
Decrease in deferred income taxes, net | 24.8 | 29.4 | 26.3 |
Increase in receivables, net | -14.3 | -63.5 | -11.2 |
Decrease (increase) in inventories | 6.3 | -6.5 | 14.2 |
(Increase) decrease in other assets | -23.7 | -16.5 | 32.2 |
Increase (decrease) in accounts payable and other accrued liabilities | 14.4 | 1.9 | -80.7 |
Decrease in other liabilities | -31.1 | -5.3 | -0.6 |
Net cash provided by operating activities | 121.4 | 187.4 | 261.3 |
Cash flows from investing activities | |||
Proceeds from investments | 5,654 | 5,315.90 | 4,108.50 |
Purchases of investments | -5,640.30 | -5,325.80 | -4,107.20 |
Investment in marketable software | -73.6 | -64.3 | -56.4 |
Capital additions of properties | -53.3 | -47.2 | -40.1 |
Capital additions of outsourcing assets | -85.9 | -39.9 | -36.1 |
Other | 3.8 | -1.4 | 4.6 |
Net cash used for investing activities | -195.3 | -162.7 | -126.7 |
Cash flows from financing activities | |||
Common stock repurchases | -35.7 | -11.7 | |
Dividends paid on preferred stock | -4 | -16.2 | -16.2 |
Proceeds from exercise of stock options | 3.4 | 4.9 | 0.4 |
Financing fees | -0.6 | ||
Proceeds from issuance of long-term debt | 204.8 | ||
Payments of long-term debt | -388.9 | ||
Dividends paid to noncontrolling interest | -4.5 | ||
Net cash used for financing activities | -36.9 | -23 | -204.4 |
Effect of exchange rate changes on cash and cash equivalents | -34.7 | -17.5 | 10.5 |
Decrease in cash and cash equivalents | -145.5 | -15.8 | -59.3 |
Cash and cash equivalents, beginning of year | 639.8 | 655.6 | 714.9 |
Cash and cash equivalents, end of year | $494.30 | $639.80 | $655.60 |
Consolidated_Statements_of_Def
Consolidated Statements of Deficit (USD $) | 12 Months Ended | 25 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2011 |
Beginning Balance | ($663.90) | ($1,588.70) | ($1,311) | ||
Consolidated net income | 59.3 | 120.1 | 156.8 | ||
Stock-based compensation | 13.5 | 14.8 | 21.2 | ||
Dividends declared to preferred holders | -4 | -12.1 | -16.2 | ||
Dividends declared to noncontrolling interests | -3.5 | ||||
Sale of subsidiary | 1.5 | -1.4 | |||
Common stock repurchases | -35.7 | -11.7 | -47.3 | ||
Translation adjustments | -66.3 | -40.1 | 17.7 | ||
Postretirement plans | -756.8 | 853.8 | -452.3 | ||
Ending Balance | -1,452.40 | -663.9 | -1,588.70 | -1,452.40 | |
Total Unisys Corporation | |||||
Beginning Balance | -700.5 | -1,600.20 | -1,318.10 | ||
Consolidated net income | 46.7 | 108.5 | 145.6 | ||
Stock-based compensation | 13.5 | 14.8 | 21.2 | ||
Dividends declared to preferred holders | -4 | -12.1 | -16.2 | ||
Common stock repurchases | -35.7 | -11.7 | |||
Translation adjustments | -61 | -42.5 | 14.8 | ||
Postretirement plans | -719 | 842.7 | -447.5 | ||
Ending Balance | -1,460 | -700.5 | -1,600.20 | -1,460 | |
Preferred Stock | |||||
Beginning Balance | 249.7 | 249.7 | |||
Preferred stock conversion | -249.7 | ||||
Ending Balance | 249.7 | 249.7 | |||
Common Stock Par Value | |||||
Beginning Balance | 0.4 | 0.4 | |||
Preferred stock conversion | 0.1 | ||||
Ending Balance | 0.5 | 0.4 | 0.5 | 0.4 | |
Accumulated Deficit | |||||
Beginning Balance | -1,782.50 | -1,891 | -2,036.60 | ||
Consolidated net income | 46.7 | 108.5 | 145.6 | ||
Ending Balance | -1,735.80 | -1,782.50 | -1,891 | -1,735.80 | |
Treasury Stock At Cost | |||||
Beginning Balance | -62.4 | -48.8 | -48.1 | ||
Stock-based compensation | -1.5 | -1.9 | -0.7 | ||
Common stock repurchases | -35.7 | -11.7 | |||
Ending Balance | -99.6 | -62.4 | -48.8 | -99.6 | |
Paid-in Capital | |||||
Beginning Balance | 4,227.70 | 4,223.10 | 4,217.40 | ||
Stock-based compensation | 15 | 16.7 | 21.9 | ||
Dividends declared to preferred holders | -4 | -12.1 | -16.2 | ||
Preferred stock conversion | 249.6 | ||||
Ending Balance | 4,488.30 | 4,227.70 | 4,223.10 | 4,488.30 | |
Accumulated Other Comprehensive Loss | |||||
Beginning Balance | -3,333.40 | -4,133.60 | -3,700.90 | ||
Translation adjustments | -61 | -42.5 | 14.8 | ||
Postretirement plans | -719 | 842.7 | -447.5 | ||
Ending Balance | -4,113.40 | -3,333.40 | -4,133.60 | -4,113.40 | |
Non- controlling Interests | |||||
Beginning Balance | 36.6 | 11.5 | 7.1 | ||
Consolidated net income | 12.6 | 11.6 | 11.2 | ||
Dividends declared to noncontrolling interests | -3.5 | ||||
Sale of subsidiary | 1.5 | -1.4 | |||
Translation adjustments | -5.3 | 2.4 | 2.9 | ||
Postretirement plans | -37.8 | 11.1 | -4.8 | ||
Ending Balance | $7.60 | $36.60 | $11.50 | $7.60 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | 1. 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, and assumptions used in the calculation 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 equivalents All 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 are classified as cash equivalents. | |
Inventories Inventories are valued at the lower of cost or market. 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 2014, 2013 and 2012 was $8.0 million, $2.5 million and $3.1 million, respectively. | |
Shipping and handling Costs related to shipping and handling is included in cost of revenue. | |
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 hardware, software 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 hardware and software 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 hardware and software products to the client. The services are provided on a continuous basis across multiple reporting periods and the hardware and software 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 products and services 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 non-maintenance services. 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 products or services that (a) do not include the licensing, selling or leasing of software, or (b) contain software that is incidental to the products or services 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 hardware and software) 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 hardware and software), 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 products or services are not essential to the functionality of the delivered products or services, (b) the company has an enforceable claim to receive the amount due in the event it does not deliver the undelivered products or services, (c) there is evidence of the selling price for each undelivered products or services, 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 return 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 has elected the policy of not providing for intra-period tax allocations between pretax earnings and other comprehensive income in instances where there is no net tax provision. This determination is made for each tax jurisdiction. | |
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 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, but 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. The company quarterly 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 8), derivatives (see note 11) 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 processing outsourcing joint venture. The remaining interests, which is 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, 2014 | |||||||||||||
Earnings Per Common Share | 2. Earnings per common share | ||||||||||||
The following table shows how the earnings per common share attributable to Unisys Corporation were computed for the three years ended December 31, 2014. | |||||||||||||
Year ended December 31 (millions, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Basic earnings per common share computation | |||||||||||||
Net income attributable to Unisys Corporation common stockholders | $ | 44 | $ | 92.3 | $ | 129.4 | |||||||
Weighted average shares (thousands) | 49,280 | 43,899 | 43,864 | ||||||||||
Basic earnings per common share | $ | 0.89 | $ | 2.1 | $ | 2.95 | |||||||
Diluted earnings per common share computation | |||||||||||||
Net income attributable to Unisys Corporation common stockholders | $ | 44 | $ | 92.3 | $ | 129.4 | |||||||
Add preferred stock dividends | – | – | 16.2 | ||||||||||
Net income attributable to Unisys Corporation for diluted earnings per share | $ | 44 | $ | 92.3 | $ | 145.6 | |||||||
Weighted average shares (thousands) | 49,280 | 43,899 | 43,864 | ||||||||||
Plus incremental shares from assumed conversions | |||||||||||||
Employee stock plans | 304 | 448 | 439 | ||||||||||
Preferred stock | – | – | 6,913 | ||||||||||
Adjusted weighted average shares | 49,584 | 44,347 | 51,216 | ||||||||||
Diluted earnings per common share | $ | 0.89 | $ | 2.08 | $ | 2.84 | |||||||
In 2014, 2013 and 2012, the following weighted-average number of stock options and restricted stock units were antidilutive and therefore excluded from the computation of diluted earnings per common share (in thousands): 1,929; 2,142; and 2,261, respectively. In 2014 and 2013, the following weighted-average mandatory convertible preferred stock was antidilutive and therefore excluded from the computation of diluted earnings per share (in thousands): 1,171 and 6,913, respectively. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill | 3. Goodwill | ||||||||||||
Goodwill is reviewed annually for impairment and whenever events or circumstances occur indicating that goodwill may be impaired. The company performed its annual impairment test in the fourth quarter of 2014, which indicated that goodwill was not impaired. | |||||||||||||
Changes in the carrying amount of goodwill by segment for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||
(millions) | Total | Services | Technology | ||||||||||
Balance at December 31, 2012 | $ | 192.3 | $ | 83.6 | $ | 108.7 | |||||||
Translation adjustments | (3.6 | ) | (3.6 | ) | – | ||||||||
Balance at December 31, 2013 | 188.7 | 80 | 108.7 | ||||||||||
Translation adjustments | (4.8 | ) | (4.8 | ) | – | ||||||||
Balance at December 31, 2014 | $ | 183.9 | $ | 75.2 | $ | 108.7 |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements and Accounting Changes | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements and Accounting Changes | 4. Recent accounting pronouncements and accounting changes |
Effective January 1, 2014, the company adopted the Financial Accounting Standards Board (FASB) accounting guidance on reporting discontinued operations. The new guidance is aimed at reducing the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or are expected to have a major effect on an entity’s operations and financial results. Such a shift could include the disposal of a major line of business, a major geographical area, a major equity method investment or other major parts of the entity. In another change from current U.S. GAAP, the guidance permits companies to have continuing cash flows and significant continuing involvement with the disposed component. The guidance does not change the presentation requirements for discontinued operations in the statement of income. The guidance requires expanded disclosures for discontinued operations and new disclosures for individually material disposals that do not meet the definition of a discontinued operation. Since the company did not dispose of any operations in 2014, adoption of the guidance did not have an impact on the company’s consolidated financial statements. | |
Effective January 1, 2013, the company adopted the FASB’s authoritative guidance that requires companies to disclose the following: (a) for items reclassified out of accumulated other comprehensive income (AOCI) and into net income in their entirety, the effect of the reclassification on each affected income statement line item; and (b) for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The new standard was required to be applied prospectively. Other than additional disclosure, the adoption of the new standard did not have an impact on the company’s consolidated financial statements. | |
In May of 2014, the FASB issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” The objective of the standard is to establish the 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 is effective for annual reporting periods beginning after December 15, 2016, which for the company is January 1, 2017. Earlier application is not permitted. 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 company is currently assessing which method it will choose for adoption, and is evaluating the impact of the adoption on its consolidated results of operations and financial position. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2014 | |
Accounts Receivable | 5. 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 $100.1 million and $125.0 million at December 31, 2014 and 2013, respectively. | |
At December 31, 2014, receivables under sales-type leases before the allowance for unearned income were collectible as follows (in millions): 2015, $32.5; 2016, $27.6; 2017, $23.1; 2018, $22.9; 2019, $7.1; and $2.6 thereafter. | |
Unearned income, which is deducted from accounts and notes receivable, was $11.8 million and $10.5 million at December 31, 2014 and 2013, respectively. The allowance for doubtful accounts, which is reported as a deduction from accounts and notes receivable, was $30.1 million and $28.3 million at December 31, 2014 and 2013, respectively. The provision for doubtful accounts, which is reported in selling, general and administrative expenses in the consolidated statements of income, was expense (income) of $2.7 million, $(.6) million and $(2.7) million, in 2014, 2013 and 2012, respectively. |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income taxes | 6. Income taxes | ||||||||||||
Following is the total income before income taxes and the provision for income taxes for the three years ended December 31, 2014. | |||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||
Income before income taxes | |||||||||||||
United States | $ | (19.9 | ) | $ | 28.4 | $ | 32.5 | ||||||
Foreign | 165.4 | 191 | 221.6 | ||||||||||
Total income before income taxes | $ | 145.5 | $ | 219.4 | $ | 254.1 | |||||||
Provision for income taxes | |||||||||||||
Current | |||||||||||||
United States | $ | 2.1 | $ | 8 | $ | 3.6 | |||||||
Foreign | 59.4 | 63 | 66.5 | ||||||||||
State and local | 1 | (.2 | ) | – | |||||||||
Total | 62.5 | 70.8 | 70.1 | ||||||||||
Deferred | |||||||||||||
Foreign | 23.7 | 28.5 | 27.2 | ||||||||||
Total provision for income taxes | $ | 86.2 | $ | 99.3 | $ | 97.3 | |||||||
Following is a reconciliation of the provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported: | |||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||
United States statutory income tax provision | $ | 50.9 | $ | 76.8 | $ | 88.9 | |||||||
Income and losses for which no provision or benefit has been recognized | 35.7 | 13.5 | 7 | ||||||||||
Foreign rate differential and other foreign tax expense | (22.0 | ) | (23.0 | ) | (32.2 | ) | |||||||
Income tax withholdings | 17.1 | 15.4 | 20.3 | ||||||||||
Permanent items | 1.1 | 4 | 4 | ||||||||||
Enacted rate changes | – | 8.9 | 9 | ||||||||||
Change in uncertain tax positions | 0.2 | 4.4 | 4.5 | ||||||||||
Change in valuation allowances due to changes in judgment | 7 | (.5 | ) | – | |||||||||
Income tax credits, U.S. | (3.9 | ) | – | (4.0 | ) | ||||||||
Other | 0.1 | (.2 | ) | (.2 | ) | ||||||||
Provision for income taxes | $ | 86.2 | $ | 99.3 | $ | 97.3 | |||||||
The 2013 and 2012 provision for income taxes included $11.4 million and $9.2 million, respectively, due to a reduction in the UK income tax rate. The rate reductions were enacted in the third quarters of 2013 and 2012, and reduced the rate from 26% to 24% effective April 1, 2012, to 23% effective April 1, 2013, to 21% effective April 1, 2014 and to 20% effective April 1, 2015. The tax provisions were caused by a write down of the UK net deferred tax assets. | |||||||||||||
The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2014 and 2013 were as follows: | |||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||
Deferred tax assets | |||||||||||||
Tax loss carryforwards | $ | 883.3 | $ | 888.8 | |||||||||
Postretirement benefits | 791.3 | 566.3 | |||||||||||
Foreign tax credit carryforwards | 245.5 | 252.4 | |||||||||||
Other tax credit carryforwards | 88 | 88.9 | |||||||||||
Deferred revenue | 60.5 | 86.4 | |||||||||||
Employee benefits and compensation | 44.6 | 42.4 | |||||||||||
Purchased capitalized software | 39.3 | 41.3 | |||||||||||
Capitalized research and development | 36 | 89.7 | |||||||||||
Depreciation | 34.9 | 31.6 | |||||||||||
Capitalized costs | 16.3 | 16.5 | |||||||||||
Warranty, bad debts and other reserves | 12.8 | 14.6 | |||||||||||
Other | 29.5 | 26.8 | |||||||||||
2,282.00 | 2,145.70 | ||||||||||||
Valuation allowance | (2,107.8 | ) | (1,998.8 | ) | |||||||||
Total deferred tax assets | $ | 174.2 | $ | 146.9 | |||||||||
Deferred tax liabilities | |||||||||||||
Other | $ | 37.9 | $ | 33 | |||||||||
Total deferred tax liabilities | $ | 37.9 | $ | 33 | |||||||||
Net deferred tax assets | $ | 136.3 | $ | 113.9 | |||||||||
At December 31, 2014, the company has U.S. Federal ($431.6 million), state and local ($204.5 million), and foreign ($247.2 million) tax loss carryforwards, the total tax effect of which is $883.3 million. These carryforwards will expire as follows (in millions): 2015, $11.1; 2016, $8.7; 2017, $11.9; 2018, $24.6; 2019, $8.4; and $818.6 thereafter. The company also has available tax credit carryforwards of approximately $333.5 million, which will expire as follows (in millions): 2015, $7.5; 2016, $10.5; 2017, $48.2; 2018, $20.8; 2019, $20.6; and $225.9 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. | |||||||||||||
Cumulative undistributed earnings of foreign subsidiaries, for which no U.S. income or foreign withholding taxes have been recorded, approximated $1,279.7 million at December 31, 2014. As the company currently intends to indefinitely reinvest all such earnings, no provision has been made for income taxes that may become payable upon distribution of such earnings, and it is not practicable to determine the amount of the related unrecognized deferred income tax liability. | |||||||||||||
Cash paid for income taxes, net of refunds, during 2014, 2013 and 2012 was $73.9 million, $63.8 million and $39.9 million, respectively. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 26.3 | $ | 29.2 | $ | 24.3 | |||||||
Additions based on tax positions related to the current year | 14.4 | (2.4 | ) | 3.5 | |||||||||
Changes for tax positions of prior years | (1.4 | ) | (.1 | ) | 1.4 | ||||||||
Reductions as a result of a lapse of applicable statute of limitations | (1.6 | ) | – | (.4 | ) | ||||||||
Settlements | (.9 | ) | (.2 | ) | (.7 | ) | |||||||
Changes due to foreign currency | (1.8 | ) | (.2 | ) | 1.1 | ||||||||
Balance at December 31 | $ | 35 | $ | 26.3 | $ | 29.2 | |||||||
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, 2014 and 2013, the company had an accrual of $1.6 million and $2.1 million, respectively, for the payment of penalties and interest. | |||||||||||||
At December 31, 2014, 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 Brazil and the United Kingdom, which are the most significant jurisdictions outside the U.S., the audit periods through 2009 and 2010, respectively, are closed. 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 ownership change, utilization of the company’s Tax Attributes will be subject to an overall annual limitation of $70.6 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. As of December 31, 2013, due to the ownership change in 2011, the Section 382 limitation and accompanying built in losses caused the company to reduce its deferred tax assets and related valuation allowance by $389.6 million. 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, 2014 | |||||||||
Properties | 7. Properties | ||||||||
Properties comprise the following: | |||||||||
December 31 (millions) | 2014 | 2013 | |||||||
Land | $ | 2.8 | $ | 3.2 | |||||
Buildings | 80.1 | 86.1 | |||||||
Machinery and office equipment | 644.9 | 677.8 | |||||||
Internal-use software | 257.7 | 244.6 | |||||||
Rental equipment | 73.9 | 83.8 | |||||||
Total properties | $ | 1,059.40 | $ | 1,095.50 |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt | 8. Debt | ||||||||
Long-term debt is comprised of the following: | |||||||||
December 31 (millions) | 2014 | 2013 | |||||||
6.25% senior notes due 2017 | $ | 210 | $ | 210 | |||||
Capital leases | 14 | – | |||||||
Total | 224 | 210 | |||||||
Less – current maturities | 1.8 | – | |||||||
Total long-term debt | $ | 222.2 | $ | 210 | |||||
All $210.0 million of 6.25% long-term debt matures in 2017. Capital leases maturities in 2015, 2016, 2017, 2018, 2019 and thereafter are $1.8 million, $2.6 million, $2.7 million, $2.4 million, $1.3 million and $3.2 million, respectively. | |||||||||
Cash paid for interest during 2014, 2013 and 2012 was $13.2 million, $12.9 million and $42.5 million, respectively. Capitalized interest expense during 2014, 2013 and 2012 was $4.0 million, $3.2 million and $5.3 million, respectively. | |||||||||
The company has a secured revolving credit facility, expiring in June 2018, which provides for loans and letters of credit up to an aggregate amount of $150 million (with a limit on letters of credit of $100 million). Borrowing limits under the credit agreement are based upon the amount of eligible U.S. accounts receivable. At December 31, 2014, the company had no borrowings and $18.8 million of letters of credit outstanding under the facility. At December 31, 2014, availability under the facility was $100.0 million net of letters of credit issued. Borrowings under the facility will bear interest based on short-term rates. 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 company is required to maintain a minimum fixed charge coverage ratio if the company’s availability under the credit facility falls below the greater of 12.5% of the lenders’ commitments under the facility and $18.75 million. The credit agreement allows the company to pay dividends on its capital stock in an amount up to $22.5 million per year unless the company is in default and to, among other things, repurchase its equity, prepay other debt, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, provided the company complies with certain requirements and limitations set forth in the agreement. 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 million. 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 Unisys Corporation and the subsidiary guarantors, other than certain excluded assets. The company may elect to prepay or terminate the credit facility without penalty. | |||||||||
At December 31, 2014, 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 2015 cash requirements. |
Other_liabilities
Other liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other liabilities | 9. Other liabilities | ||||||||
Other accrued liabilities (current) are comprised of the following: | |||||||||
December 31 (millions) | 2014 | 2013 | |||||||
Payrolls and commissions | $ | 109.3 | $ | 103.9 | |||||
Accrued vacations | 60.8 | 67.2 | |||||||
Income taxes | 58.3 | 40.9 | |||||||
Taxes other than income taxes | 53.8 | 62.4 | |||||||
Postretirement | 22.6 | 25.1 | |||||||
Accrued interest | 4.9 | 4.9 | |||||||
Other | 75.4 | 71.3 | |||||||
Total other accrued liabilities | $ | 385.1 | $ | 375.7 |
Rental_Expense_and_Commitments
Rental Expense and Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Rental Expense and Commitments | 10. Rental expense and commitments |
Rental expense, less income from subleases, for 2014, 2013 and 2012 was $83.7 million, $85.3 million and $84.7 million, respectively. Income from subleases, for 2014, 2013 and 2012 was $8.5 million, $7.4 million and $8.5 million, respectively. | |
Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2014, substantially all of which relate to real properties, were as follows: 2015, $58.2 million; 2016, $47.2 million; 2017, $38.9 million; 2018, $26.6 million; 2019, $19.9 million; and $34.3 million thereafter. Such rental commitments have been reduced by minimum sublease rentals of $32.0 million, due in the future under noncancelable subleases. | |
At December 31, 2014, the company had outstanding standby letters of credit and surety bonds totaling approximately $343 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, 2014, the company had deposits and collateral of approximately $58 million in other long-term assets, principally related to collateralized letters of credit, and to tax and labor contingencies in Brazil. |
Financial_Instruments_and_Conc
Financial Instruments and Concentration of Credit Risks | 12 Months Ended |
Dec. 31, 2014 | |
Financial Instruments and Concentration of Credit Risks | 11. 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 one month, which have not been designated as hedging instruments. At December 31, 2014 and 2013, the notional amount of these contracts was $403.9 million and $482.6 million, respectively, and the fair value of such contracts was a net gain of $5.3 million and a net gain of $1.7 million, respectively, of which a gain of $6.1 million and $2.0 million, respectively, has been recognized in “Prepaid expenses and other current assets” and a loss of $.8 million and $.3 million, respectively, has been recognized in “Other accrued liabilities.” Changes in the fair value of these instruments was a gain of $17.3 million, a loss of $7.3 million and a loss of $.4 million, respectively, for years ended December 31, 2014, 2013 and 2012, which has been recognized in earnings in “Other income (expense), net” in the company’s consolidated statement of income. 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. | |
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, 2014 and 2013, 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. Realized gains or losses during 2014, 2013 and 2012, as well as unrealized gains or losses at December 31, 2014 and 2013, were immaterial. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2014 and 2013, the company had no significant concentrations of credit risk with any one customer. At December 31, 2014 and 2013, the company had approximately $94 million and $79 million, respectively, of receivables due from various U.S. federal governmental agencies. At December 31, 2014 and 2013, the carrying amount of cash and cash equivalents approximated fair value; and the carrying amount of long-term debt was less than the fair value, which is based on market prices (Level 2 inputs), of such debt by approximately $9 million and $15 million, respectively. |
Foreign_Currency_Translation
Foreign Currency Translation | 12 Months Ended |
Dec. 31, 2014 | |
Foreign Currency Translation | 12. Foreign currency translation |
Due to inflation rates in recent years, the company’s Venezuelan subsidiary has applied highly inflationary accounting beginning January 1, 2010. 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. Effective February 13, 2013, the Venezuelan government devalued its currency, the bolivar, by resetting the official exchange rate from 4.30 to the U.S. dollar to 6.30 to the U.S. dollar. As a result, the company recorded a pretax foreign exchange loss in 2013 of $6.5 million. | |
In January of 2014, the Venezuelan government announced that the exchange rate to be applied to the settlement of certain transactions, including foreign investments and royalties, would be changed to the Complementary System of Foreign Currency Administration (SICAD I) auction rate. As a result, the company changed the exchange rate used to remeasure its Venezuelan subsidiary’s financial statements in U.S. dollars from the official rate of 6.3 bolivars to the new SICAD I rate. At December 31, the SICAD I exchange rate used was 12.0 bolivars to the U.S. dollar. The changes in the rate resulted in the company recording a pretax foreign exchange loss in 2014 of $7.4 million. The company believes that using the SICAD I exchange rate is economically representative of what it might expect to receive in a dividend transaction. | |
At December 31, 2014, the company’s operations in Venezuela had net monetary assets denominated in local currency equivalent to approximately $8 million. As indicated above, the SICAD I exchange rate is determined by periodic auctions and, therefore, the potential exists for it to change significantly in future quarters. Additionally, the Venezuelan government may make further changes or introduce new exchange rate mechanisms, which could result in further changes in the exchange rate used by the company to remeasure its Venezuelan subsidiary’s financial statements in U.S. dollars. | |
During the years ended December 31, 2014, 2013 and 2012, the company recognized foreign exchange (losses) gains in “Other income (expense), net” in its consolidated statements of income of $(7.0) million, $10.4 million and $(8.1) million, respectively. |
Litigation_and_Contingencies
Litigation and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Litigation and Contingencies | 13. 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 and employment compensation in Brazil. 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 flow 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 million Euros. Unisys Belgium filed its defense and counterclaim in April 2008, in the amount of approximately 18.5 million Euros. The company believes it has valid defenses to the claims and contends that the Belgian State’s termination of the contract was unjustified. | |
In December 2007, Lufthansa AG sued Unisys Deutschland GmbH, a Unisys subsidiary (Unisys Germany), in the District Court of Frankfurt, Germany, for allegedly failing to perform properly its obligations during the initial phase of a 2004 software design and development contract relating to a Lufthansa customer loyalty program. Under the contract, either party was free to withdraw from the project at the conclusion of the initial design phase. Rather than withdraw, Lufthansa instead terminated the contract and failed to pay the balance owed to Unisys Germany for the initial phase. Lufthansa’s lawsuit alleges that Unisys Germany breached the contract by failing to deliver a proper design for the new system and seeks approximately 21.4 million Euros in damages. The company believes it has valid defenses and filed its defense and a counterclaim in the amount of approximately 1.5 million Euros. In July 2013, the District Court issued a decision finding Unisys Germany liable for failing to perform its obligations under the initial phase of the contract. It also dismissed Unisys Germany’s counterclaim. The District Court did not conduct the damage phase of the proceeding. Unisys Germany appealed the decision on liability in August 2013. In December 2014, the Appellate Court found that Lufthansa was not entitled to terminate the contract for breach and dismissed Lufthansa’s 21.4 million Euros damages claim. It also dismissed Unisys Germany’s 1.5 million Euros counterclaim, finding the contract required Unisys Germany to return to Lufthansa a 2.2 million Euros advance payment that Lufthansa made upon contract signing. Accordingly, the Appellate Court entered a judgment against Unisys Germany for 2.2 million Euros plus interest (currently estimated to be approximately 1.16 million Euros). Under the judgment, the court also awarded costs of approximately 240,000 Euros to Unisys. In January 2015, the parties agreed to settle the case by waiving their rights to seek permission from Germany’s highest court to appeal and Unisys paying the amount due under the judgment. Unisys may either pay Lufthansa cash or, subject to further agreement of the parties, credits on a new project involving Unisys and Lufthansa. | |
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 matters. The company believes that appropriate accruals have been established for such matters based on information currently available. At December 31, 2014, 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 $127 million. | |
The company has been involved in a matter arising from the sale of its Health Information Management (HIM) business to Molina Information Systems, LLC (Molina) under a 2010 Asset Purchase Agreement (APA). The HIM business provided system solutions and services to state governments, including the state of Idaho, for administering Medicaid programs. In August 2012, Molina sued the company in Federal District Court in Delaware alleging breaches of contract, negligent misrepresentation and intentional misrepresentation with respect to the APA and the Medicaid contract with Idaho. Molina sought compensatory damages, punitive damages, lost profits, indemnification, and declaratory relief. Molina alleged losses of approximately $35 million in the complaint. In June 2013, the District Court granted the company’s motion to dismiss the complaint and allowed Molina to replead certain claims and file an amended complaint. In August 2013, Molina filed an amended complaint. The company filed a motion to dismiss the amended complaint. On September 2, 2014, the District Court granted the company’s motion to dismiss the negligent misrepresentation claim, but denied the company’s motion with respect to Molina’s intentional misrepresentation and breach of contract claims. The litigation continues on the remaining claims. | |
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, 2014, it has adequate provisions for any such matters. |
Segment_information
Segment information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment information | 14. Segment information | ||||||||||||||||
The company has two business segments: Services and Technology. The products and services of each segment are marketed throughout the world to commercial businesses and governments. Revenue classifications by segment are as follows: Services – systems integration and consulting, outsourcing, infrastructure services and core maintenance; Technology – enterprise-class software and servers and other technology. | |||||||||||||||||
The accounting policies of each business segment are the same as those described in the summary of significant accounting policies. 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 hardware and software shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profit on such shipments of company hardware and software to customers. The Services segment also includes hardware and software 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 hardware and software 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, 2014, 2013 and 2012, was $17.0 million, $6.0 million and $11.5 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 $529 million, $512 million and $523 million in 2014, 2013 and 2012, 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 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Services | |||||||||||||||||
Systems integration and consulting | $ | 942.8 | $ | 956.9 | $ | 1,079.30 | |||||||||||
Outsourcing | 1,412.70 | 1,428.70 | 1,475.50 | ||||||||||||||
Infrastructure services | 347.4 | 428.1 | 442.4 | ||||||||||||||
Core maintenance | 184.8 | 182.4 | 195.2 | ||||||||||||||
2,887.70 | 2,996.10 | 3,192.40 | |||||||||||||||
Technology | |||||||||||||||||
Enterprise-class software and servers | 429 | 402.7 | 480.3 | ||||||||||||||
Other technology | 39.7 | 57.7 | 33.7 | ||||||||||||||
468.7 | 460.4 | 514 | |||||||||||||||
Total | $ | 3,356.40 | $ | 3,456.50 | $ | 3,706.40 | |||||||||||
Presented below is a reconciliation of segment operating income to consolidated income before income taxes: | |||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total segment operating income | $ | 233.6 | $ | 309.6 | $ | 414.3 | |||||||||||
Interest expense | (9.2 | ) | (9.9 | ) | (27.5 | ) | |||||||||||
Other income (expense), net | (.2 | ) | 9.8 | (37.6 | ) | ||||||||||||
Corporate and eliminations | (78.7 | ) | (90.1 | ) | (95.1 | ) | |||||||||||
Total income before income taxes | $ | 145.5 | $ | 219.4 | $ | 254.1 | |||||||||||
Presented below is a reconciliation of total business segment assets to consolidated assets: | |||||||||||||||||
December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total segment assets | $ | 1,533.80 | $ | 1,530.50 | $ | 1,469.10 | |||||||||||
Cash and cash equivalents | 494.3 | 639.8 | 655.6 | ||||||||||||||
Deferred income taxes | 171 | 136.4 | 184.3 | ||||||||||||||
Prepaid postretirement assets | 19.9 | 83.7 | 3.3 | ||||||||||||||
Other corporate assets | 129.7 | 119.6 | 108.1 | ||||||||||||||
Total assets | $ | 2,348.70 | $ | 2,510.00 | $ | 2,420.40 | |||||||||||
A summary of the company’s operations by business segment for 2014, 2013 and 2012 is presented below: | |||||||||||||||||
(millions) | Total | Corporate | Services | Technology | |||||||||||||
2014 | |||||||||||||||||
Customer revenue | $ | 3,356.40 | $ | 2,887.70 | $ | 468.7 | |||||||||||
Intersegment | $ | (112.3 | ) | 0.4 | 111.9 | ||||||||||||
Total revenue | $ | 3,356.40 | $ | (112.3 | ) | $ | 2,888.10 | $ | 580.6 | ||||||||
Operating income | $ | 154.9 | $ | (78.7 | ) | $ | 122.7 | $ | 110.9 | ||||||||
Depreciation and amortization | 168.6 | 103.2 | 65.4 | ||||||||||||||
Total assets | 2,348.70 | 814.9 | 1,099.20 | 434.6 | |||||||||||||
Capital expenditures | 212.8 | 4.9 | 133.8 | 74.1 | |||||||||||||
2013 | |||||||||||||||||
Customer revenue | $ | 3,456.50 | $ | 2,996.10 | $ | 460.4 | |||||||||||
Intersegment | $ | (122.5 | ) | 1.7 | 120.8 | ||||||||||||
Total revenue | $ | 3,456.50 | $ | (122.5 | ) | $ | 2,997.80 | $ | 581.2 | ||||||||
Operating income | $ | 219.5 | $ | (90.1 | ) | $ | 186.7 | $ | 122.9 | ||||||||
Depreciation and amortization | 159.6 | 91.8 | 67.8 | ||||||||||||||
Total assets | 2,510.00 | 979.5 | 1,126.70 | 403.8 | |||||||||||||
Capital expenditures | 151.4 | 2.9 | 78.8 | 69.7 | |||||||||||||
2012 | |||||||||||||||||
Customer revenue | $ | 3,706.40 | $ | 3,192.40 | $ | 514 | |||||||||||
Intersegment | $ | (123.1 | ) | 3.8 | 119.3 | ||||||||||||
Total revenue | $ | 3,706.40 | $ | (123.1 | ) | $ | 3,196.20 | $ | 633.3 | ||||||||
Operating income | $ | 319.2 | $ | (95.1 | ) | $ | 204.6 | $ | 209.7 | ||||||||
Depreciation and amortization | 174.6 | 102.4 | 72.2 | ||||||||||||||
Total assets | 2,420.40 | 951.3 | 1,085.90 | 383.2 | |||||||||||||
Capital expenditures | 132.6 | 3.7 | 64.7 | 64.2 | |||||||||||||
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 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Revenue | |||||||||||||||||
United States | $ | 1,378.10 | $ | 1,370.60 | $ | 1,455.00 | |||||||||||
United Kingdom | 435.4 | 414 | 496.9 | ||||||||||||||
Other foreign | 1,542.90 | 1,671.90 | 1,754.50 | ||||||||||||||
Total | $ | 3,356.40 | $ | 3,456.50 | $ | 3,706.40 | |||||||||||
Properties, net | |||||||||||||||||
United States | $ | 111.9 | $ | 112.4 | $ | 112.7 | |||||||||||
United Kingdom | 22 | 24.7 | 23.1 | ||||||||||||||
Other foreign | 34.8 | 37.6 | 40.6 | ||||||||||||||
Total | $ | 168.7 | $ | 174.7 | $ | 176.4 | |||||||||||
Outsourcing assets, net | |||||||||||||||||
United States | $ | 99.7 | $ | 56.2 | $ | 67.1 | |||||||||||
United Kingdom | 25.8 | 28.1 | 30.3 | ||||||||||||||
Other foreign | 25.4 | 31.2 | 28.9 | ||||||||||||||
Total | $ | 150.9 | $ | 115.5 | $ | 126.3 |
Sale_of_Business
Sale of Business | 12 Months Ended |
Dec. 31, 2014 | |
Sale of Business | 15. Sale of business |
On March 30, 2012, the company completed the sale of its interest in its South African joint venture and reported a pretax gain of $10.6 million, which was reported as a reduction of selling, general and administrative expense in the company’s consolidated statement of income. Since the sale, the company has served this market through a distributor. The joint venture, which had operations in both of the company’s reporting segments of Services and Technology, generated 2012 (through the date of sale) revenue and pretax income of $47.6 million and $7.6 million, respectively. |
Employee_plans
Employee plans | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Employee plans | 16. 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, 2014, 2.7 million shares of unissued common stock of the company were available for granting under these plans. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, 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 five years and become exercisable in annual installments over a three-year period following date of grant. | |||||||||||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the company recognized $10.4 million, $12.5 million and $14.3 million of share-based compensation expense, which is comprised of $3.3 million, $3.2 million and $5.4 million of restricted stock unit expense and $7.1 million, $9.3 million and $8.9 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 the 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. | |||||||||||||||||||||||||||||||||
The fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values as follows: | |||||||||||||||||||||||||||||||||
Year Ended December 31 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted-average fair value of grant | $ | 11.24 | $ | 8.79 | $ | 9.73 | |||||||||||||||||||||||||||
Risk-free interest rate | 1.04 | % | 0.54 | % | 0.54 | % | |||||||||||||||||||||||||||
Expected volatility | 45.65 | % | 50.19 | % | 71.29 | % | |||||||||||||||||||||||||||
Expected life of options in years | 3.71 | 3.69 | 3.65 | ||||||||||||||||||||||||||||||
Expected dividend yield | – | – | – | ||||||||||||||||||||||||||||||
A summary of stock option activity for the year ended December 31, 2014 follows (shares in thousands): | |||||||||||||||||||||||||||||||||
Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||||||||
Exercise | Remaining | Value ($ in | |||||||||||||||||||||||||||||||
Price | Contractual | millions) | |||||||||||||||||||||||||||||||
Term | |||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 2,698 | $ | 32.74 | ||||||||||||||||||||||||||||||
Granted | 756 | 32.2 | |||||||||||||||||||||||||||||||
Exercised | (272 | ) | 14.25 | ||||||||||||||||||||||||||||||
Forfeited and expired | (366 | ) | 70.3 | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 2,816 | 29.51 | 2.37 | $ | 9.1 | ||||||||||||||||||||||||||||
Expected to vest at December 31, 2014 | 1,335 | 27.37 | 3.49 | $ | 4.7 | ||||||||||||||||||||||||||||
Exercisable at December 31, 2014 | 1,456 | 31.47 | 1.31 | $ | 4.4 | ||||||||||||||||||||||||||||
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, 2014. 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 years ended December 31, 2014, 2013 and 2012 was $4.7 million, $7.9 million and $.9 million, respectively. As of December 31, 2014, $3.2 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 1.8 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 1.5 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, 2014 follows (shares in thousands): | |||||||||||||||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||||||||||||||
Stock Units | Grant-Date Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 401 | $ | 23.45 | ||||||||||||||||||||||||||||||
Granted | 397 | 32.16 | |||||||||||||||||||||||||||||||
Vested | (124 | ) | 26.76 | ||||||||||||||||||||||||||||||
Forfeited and expired | (320 | ) | 27.03 | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 354 | 28.81 | |||||||||||||||||||||||||||||||
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, 2014, 2013 and 2012 was $12.8 million, $5.3 million and $3.3 million, respectively. As of December 31, 2014, there was $2.0 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 2.1 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the years ended December 31, 2014, 2013 and 2012 was $3.3 million, $4.5 million and $4.1 million, respectively. | |||||||||||||||||||||||||||||||||
Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units is newly issued shares. Cash received from the exercise of stock options was $3.4 million and $4.9 million for the years ended December 31, 2014 and 2013, respectively. During 2014 and 2013, 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 financing 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). In 2014, 2013 and 2012, the company funded the match with cash, a combination of cash and company common stock and company common stock, respectively. The charge to income related to the company match for the years ended December 31, 2014, 2013 and 2012, was $10.6 million, $11.8 million and $12.1 million, respectively. | |||||||||||||||||||||||||||||||||
The company has defined contribution plans in certain locations outside the United States. The charge to income related to these plans was $25.2 million, $26.7 million and $30.0 million, for the years ended December 31, 2014, 2013 and 2012, 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, 2014 and 2013, the liability to the participants of these plans was $12.1 million and $13.2 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. and the UK, accrual of future benefits under the plans has ceased. | |||||||||||||||||||||||||||||||||
Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2014 and 2013 follow: | |||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 5,158.80 | $ | 5,646.80 | $ | 3,059.20 | $ | 2,945.40 | |||||||||||||||||||||||||
Service cost | – | – | 8.4 | 10.4 | |||||||||||||||||||||||||||||
Interest cost | 248.3 | 220.4 | 117.9 | 106.6 | |||||||||||||||||||||||||||||
Plan participants’ contributions | – | – | 3.1 | 3.1 | |||||||||||||||||||||||||||||
Plan amendment | (46.3 | ) | – | (1.0 | ) | (6.3 | ) | ||||||||||||||||||||||||||
Plan curtailment | – | – | (.3 | ) | – | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 670 | (355.9 | ) | 559.4 | (19.3 | ) | |||||||||||||||||||||||||||
Benefits paid | (365.3 | ) | (352.5 | ) | (115.4 | ) | (100.8 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | – | – | (276.4 | ) | 120.1 | ||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 5,665.50 | $ | 5,158.80 | $ | 3,354.90 | $ | 3,059.20 | |||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 4,048.00 | $ | 3,786.70 | $ | 2,681.80 | $ | 2,399.20 | |||||||||||||||||||||||||
Actual return on plan assets | 299.9 | 572.6 | 278 | 166.3 | |||||||||||||||||||||||||||||
Employer contribution | 87.1 | 41.2 | 96.3 | 106 | |||||||||||||||||||||||||||||
Plan participants’ contributions | – | – | 3.1 | 3.1 | |||||||||||||||||||||||||||||
Benefits paid | (365.3 | ) | (352.5 | ) | (115.4 | ) | (100.8 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | – | – | (224.9 | ) | 108 | ||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 4,069.70 | $ | 4,048.00 | $ | 2,718.90 | $ | 2,681.80 | |||||||||||||||||||||||||
Funded status at end of year | $ | (1,595.8 | ) | $ | (1,110.8 | ) | $ | (636.0 | ) | $ | (377.4 | ) | |||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||||||||||
Prepaid postretirement assets | $ | – | $ | – | $ | 18.9 | $ | 82.6 | |||||||||||||||||||||||||
Other accrued liabilities | (6.9 | ) | (6.9 | ) | (.2 | ) | (.2 | ) | |||||||||||||||||||||||||
Long-term postretirement liabilities | (1,588.9 | ) | (1,103.9 | ) | (654.7 | ) | (459.8 | ) | |||||||||||||||||||||||||
Total funded status | $ | (1,595.8 | ) | $ | (1,110.8 | ) | $ | (636.0 | ) | $ | (377.4 | ) | |||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | |||||||||||||||||||||||||||||||||
Net loss | $ | 2,973.50 | $ | 2,425.90 | $ | 1,076.10 | $ | 817.7 | |||||||||||||||||||||||||
Prior service (credit) cost | $ | (44.5 | ) | $ | 1.4 | $ | (12.8 | ) | $ | (16.0 | ) | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 5,665.50 | $ | 5,158.80 | $ | 3,349.30 | $ | 3,051.50 | |||||||||||||||||||||||||
Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2014 and 2013 follows: | |||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 8,412.60 | $ | 7,210.40 | |||||||||||||||||||||||||||||
Fair value of plan assets | 6,167.20 | 5,646.70 | |||||||||||||||||||||||||||||||
Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2014 and 2013 follows: | |||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 8,417.90 | $ | 7,217.40 | |||||||||||||||||||||||||||||
Fair value of plan assets | 6,167.20 | 5,646.70 | |||||||||||||||||||||||||||||||
Net periodic pension cost for 2014, 2013 and 2012 includes the following components: | |||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | – | $ | – | $ | – | $ | 8.4 | $ | 10.4 | $ | 8.6 | |||||||||||||||||||||
Interest cost | 248.3 | 220.4 | 252.9 | 117.9 | 106.6 | 113.1 | |||||||||||||||||||||||||||
Expected return on plan assets | (287.1 | ) | (291.5 | ) | (285.7 | ) | (160.5 | ) | (141.9 | ) | (136.1 | ) | |||||||||||||||||||||
Amortization of prior service (credit) | (.4 | ) | 0.7 | 0.7 | (2.1 | ) | (2.1 | ) | (.5 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | 109.7 | 139 | 124 | 40.2 | 51.9 | 36.9 | |||||||||||||||||||||||||||
Curtailment gain | – | – | – | (.6 | ) | – | (5.7 | ) | |||||||||||||||||||||||||
Net periodic pension cost | $ | 70.5 | $ | 68.6 | $ | 91.9 | $ | 3.3 | $ | 24.9 | $ | 16.3 | |||||||||||||||||||||
Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows: | |||||||||||||||||||||||||||||||||
Discount rate | 5.02% | 4.01% | 4.96% | 4.15% | 3.92% | 4.65% | |||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.08% | 2.06% | 2.66% | |||||||||||||||||||||||||||
Expected long-term rate of return on assets | 7.72% | 8.00% | 8.00% | 6.45% | 6.40% | 6.59% | |||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: | |||||||||||||||||||||||||||||||||
Discount rate | 4.09% | 5.02% | 4.01% | 3.05% | 4.15% | 3.92% | |||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 1.68% | 2.08% | 2.06% | |||||||||||||||||||||||||||
The expected pretax amortization in 2015 of net periodic pension cost is as follows: net loss, $199.3 million; and prior service credit, $(4.4) million. The amortization of these items is recorded as an element of pension expense. In 2014, pension expense included amortization of $149.9 million of net losses and $(2.5) million of prior service credit. | |||||||||||||||||||||||||||||||||
The company’s investment policy targets and ranges for each asset category are as follows: | |||||||||||||||||||||||||||||||||
U.S. | Int’l. | ||||||||||||||||||||||||||||||||
Asset Category | Target | Range | Target | Range | |||||||||||||||||||||||||||||
Equity securities | 58% | 52-64% | 38% | 32-44% | |||||||||||||||||||||||||||||
Debt securities | 36% | 33-39% | 55% | 48-62% | |||||||||||||||||||||||||||||
Real estate | 6% | 3-9% | 1% | 0-3% | |||||||||||||||||||||||||||||
Cash | 0% | 0-5% | 1% | 0-5% | |||||||||||||||||||||||||||||
Other | 0% | 0% | 5% | 0-10% | |||||||||||||||||||||||||||||
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 2015, the company expects to make cash contributions of $128.8 million to its worldwide defined benefit pension plans, which is comprised of $76.2 million primarily for non-U.S. defined benefit pension plans and $52.6 million for the company’s U.S. qualified defined benefit pension plan. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, 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 (millions) | U.S. | Int’l. | |||||||||||||||||||||||||||||||
2015 | $ | 362.7 | $ | 103.2 | |||||||||||||||||||||||||||||
2016 | 363.7 | 106 | |||||||||||||||||||||||||||||||
2017 | 365.7 | 109.1 | |||||||||||||||||||||||||||||||
2018 | 366.4 | 112 | |||||||||||||||||||||||||||||||
2019 | 367.2 | 115.4 | |||||||||||||||||||||||||||||||
2020 - 2024 | 1,839.40 | 615.9 | |||||||||||||||||||||||||||||||
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, 2014 and 2013, follows: | |||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Change in accumulated benefit obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 159.7 | $ | 180.5 | |||||||||||||||||||||||||||||
Service cost | 0.6 | 0.6 | |||||||||||||||||||||||||||||||
Interest cost | 7.6 | 7.9 | |||||||||||||||||||||||||||||||
Plan participants’ contributions | 4.6 | 4.9 | |||||||||||||||||||||||||||||||
Actuarial gain | (2.4 | ) | (11.5 | ) | |||||||||||||||||||||||||||||
Federal drug subsidy | 1.4 | 1.8 | |||||||||||||||||||||||||||||||
Benefits paid | (20.0 | ) | (23.2 | ) | |||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | (1.5 | ) | (1.3 | ) | |||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 150 | $ | 159.7 | |||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 9.2 | $ | 9.7 | |||||||||||||||||||||||||||||
Actual return on plan assets | – | (.2 | ) | ||||||||||||||||||||||||||||||
Employer contributions | 15.3 | 18 | |||||||||||||||||||||||||||||||
Plan participants’ contributions | 4.6 | 4.9 | |||||||||||||||||||||||||||||||
Benefits paid | (20.0 | ) | (23.2 | ) | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 9.1 | $ | 9.2 | |||||||||||||||||||||||||||||
Funded status at end of year | $ | (140.9 | ) | $ | (150.5 | ) | |||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||||||||||
Prepaid postretirement assets | $ | 1 | $ | 1.1 | |||||||||||||||||||||||||||||
Other accrued liabilities | (15.6 | ) | (18.0 | ) | |||||||||||||||||||||||||||||
Long-term postretirement liabilities | (126.3 | ) | (133.6 | ) | |||||||||||||||||||||||||||||
Total funded status | $ | (140.9 | ) | $ | (150.5 | ) | |||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | |||||||||||||||||||||||||||||||||
Net loss | $ | 32 | $ | 36.7 | |||||||||||||||||||||||||||||
Prior service cost | 1.2 | 3 | |||||||||||||||||||||||||||||||
Net periodic postretirement benefit cost for 2014, 2013 and 2012, follows: | |||||||||||||||||||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Service cost | $ | 0.6 | $ | 0.6 | $ | 0.5 | |||||||||||||||||||||||||||
Interest cost | 7.6 | 7.9 | 8.7 | ||||||||||||||||||||||||||||||
Expected return on assets | (.5 | ) | (.5 | ) | (.5 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 1.7 | 1.8 | 1.8 | ||||||||||||||||||||||||||||||
Recognized net actuarial loss | 1.7 | 4.5 | 3.2 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 11.1 | $ | 14.3 | $ | 13.7 | |||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows: | |||||||||||||||||||||||||||||||||
Discount rate | 5.86 | % | 5.15 | % | 5.84 | % | |||||||||||||||||||||||||||
Expected return on plan assets | 6.75 | % | 6.75 | % | 6.75 | % | |||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligation at December 31 were as follows: | |||||||||||||||||||||||||||||||||
Discount rate | 5.27 | % | 5.86 | % | 5.15 | % | |||||||||||||||||||||||||||
The expected pretax amortization in 2015 of net periodic postretirement benefit cost is as follows: net loss, $2.8 million; and prior service cost, $1.1 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 2015, the company expects to contribute approximately $16 million to its postretirement benefit plan. | |||||||||||||||||||||||||||||||||
Assumed health care cost trend rates at December 31 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.4 | % | 6.6 | % | |||||||||||||||||||||||||||||
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 (in millions of dollars): | |||||||||||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||
Effect on service and interest cost | $ | 0.3 | $ | (.2 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 3.3 | (4.4 | ) | ||||||||||||||||||||||||||||||
As of December 31, 2014, the following benefits are expected to be paid to or from the company’s postretirement plan: | |||||||||||||||||||||||||||||||||
Year ending December 31 (millions) | Gross | Gross | |||||||||||||||||||||||||||||||
Medicare | Expected | ||||||||||||||||||||||||||||||||
Part D | Payments | ||||||||||||||||||||||||||||||||
Receipts | |||||||||||||||||||||||||||||||||
2015 | $ | 1.3 | $ | 19.6 | |||||||||||||||||||||||||||||
2016 | 1.2 | 17.2 | |||||||||||||||||||||||||||||||
2017 | 1.1 | 16.6 | |||||||||||||||||||||||||||||||
2018 | 1 | 15.8 | |||||||||||||||||||||||||||||||
2019 | 0.9 | 15 | |||||||||||||||||||||||||||||||
2020 – 2024 | 2.7 | 53.9 | |||||||||||||||||||||||||||||||
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, exchange traded futures, and U.S. and UK 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 at Net Asset Value (NAV) of shares held by the plans at year-end. NAV is a practical expedient for fair value. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. 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 NAV provided by trustees of the funds. The NAV is quoted on a private market that is not active. The unit price is based on underlying investments which are traded on markets that may or may not be active. | |||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
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. Due to the nature of these investments, pricing inputs are not readily observable. Asset valuations are developed 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. | |||||||||||||||||||||||||||||||||
Insurance Contracts – These investments are insurance contracts which are generally invested in fixed income securities. The insurance contracts are carried at book value, are not publicly traded and are adjusted to fair value based on a market value adjustment (MVA) formula determined by the insurance provider. The MVA formula is based on unobservable inputs, which among other items take into consideration the yield earned by contributions during a specified time period, current bond yields and duration. Similar to bonds, as interest rates rise, the market value of the contracts will decrease and as interest rates decline, the market value will increase. | |||||||||||||||||||||||||||||||||
Commingled Funds – These investments are commingled funds, which include a fund of hedge funds, and a multi-asset fund. The NAV is quoted on a private market that is not active. The unit price is based on underlying investments, which are valued based on unobservable inputs. | |||||||||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2014. | |||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31, 2014 (millions) | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||
Common Stocks | $ | 1,837.40 | $ | 1,831.60 | $ | 5.8 | $ | 1.6 | $ | 1.6 | |||||||||||||||||||||||
Commingled Funds | 461.6 | 461.6 | 1,054.80 | $ | 1,054.80 | ||||||||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||||||
U.S. and UK Govt. Securities | 176.9 | 176.9 | |||||||||||||||||||||||||||||||
Other Fixed Income | 1,025.30 | 1,025.30 | 330.4 | 330.4 | |||||||||||||||||||||||||||||
Insurance Contracts | 17.4 | $ | 17.4 | 135.5 | $ | 135.5 | |||||||||||||||||||||||||||
Commingled Funds | 991.1 | 991.1 | |||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Real Estate Investment Trusts | 169.1 | 169.1 | 1.3 | 1.3 | |||||||||||||||||||||||||||||
Real Estate | 34.2 | 34.2 | 40.8 | 40.8 | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
Derivatives | 18.2 | 5.9 | 12.3 | 7.2 | 7.2 | ||||||||||||||||||||||||||||
Private Equity | 12.8 | 12.8 | |||||||||||||||||||||||||||||||
Commingled Funds | 102.1 | 102.1 | 136.5 | 85.8 | 50.7 | ||||||||||||||||||||||||||||
Pooled Funds | 297.2 | 297.2 | 1.2 | 1.2 | |||||||||||||||||||||||||||||
Cash | (1.3 | ) | (1.3 | ) | 18.6 | 18.6 | |||||||||||||||||||||||||||
Receivables | 77.4 | 77.4 | |||||||||||||||||||||||||||||||
Payables | (158.6 | ) | (158.6 | ) | (.1 | ) | (.1 | ) | |||||||||||||||||||||||||
Total | $ | 4,069.70 | $ | 2,101.00 | $ | 1,904.30 | $ | 64.4 | $ | 2,718.90 | $ | 21.4 | $ | 2,470.50 | $ | 227 | |||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.3 | $ | 7.3 | |||||||||||||||||||||||||||||
Pooled Funds | 1.8 | $ | 1.8 | ||||||||||||||||||||||||||||||
Total | $ | 9.1 | $ | 1.8 | $ | 7.3 | |||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2013. | |||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31, 2013 (millions) | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||
Common Stocks | $ | 1,916.20 | $ | 1,916.20 | $ | 1.8 | $ | 1.8 | |||||||||||||||||||||||||
Commingled Funds | 494.3 | $ | 494.3 | 1,046.70 | $ | 1,046.70 | |||||||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||||||
U.S. and UK Govt. Securities | 148.8 | 148.8 | |||||||||||||||||||||||||||||||
Other Fixed Income | 978.1 | 978.1 | 268.9 | 268.9 | |||||||||||||||||||||||||||||
Insurance Contracts | 79.5 | $ | 79.5 | 151.3 | $ | 151.3 | |||||||||||||||||||||||||||
Commingled Funds | 983.7 | 983.7 | |||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Real Estate Investment Trusts | 145.7 | 145.7 | 1.3 | 1.3 | |||||||||||||||||||||||||||||
Real Estate | 34.7 | 34.7 | 42.8 | 42.8 | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
Derivatives | (4.2 | ) | (4.5 | ) | 0.3 | 19.1 | 19.1 | ||||||||||||||||||||||||||
Private Equity | 16.5 | 16.5 | |||||||||||||||||||||||||||||||
Commingled Funds | 93.3 | 93.3 | 141 | 90.8 | 50.2 | ||||||||||||||||||||||||||||
Pooled Funds | 236.1 | 236.1 | 3.2 | 3.2 | |||||||||||||||||||||||||||||
Cash | 5.7 | 5.7 | 22.1 | 22.1 | |||||||||||||||||||||||||||||
Receivables | 45.5 | 45.5 | |||||||||||||||||||||||||||||||
Payables | (142.2 | ) | (142.2 | ) | (.1 | ) | (.1 | ) | |||||||||||||||||||||||||
Total | $ | 4,048.00 | $ | 2,115.20 | $ | 1,802.10 | $ | 130.7 | $ | 2,681.80 | $ | 25.1 | $ | 2,412.40 | $ | 244.3 | |||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.5 | $ | 7.5 | |||||||||||||||||||||||||||||
Exchange Traded Fund – Bond | 1.3 | $ | 1.3 | ||||||||||||||||||||||||||||||
Pooled Funds | 0.4 | $ | 0.4 | ||||||||||||||||||||||||||||||
Total | $ | 9.2 | $ | 1.3 | $ | 0.4 | $ | 7.5 | |||||||||||||||||||||||||
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, 2014. | |||||||||||||||||||||||||||||||||
(millions) | January 1, | Realized | Purchases | Sales | Currency and | December 31, | |||||||||||||||||||||||||||
2014 | gains | or | or | unrealized | 2014 | ||||||||||||||||||||||||||||
(losses) | acquisitions | dispositions | gains (losses) | ||||||||||||||||||||||||||||||
relating to | |||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||
still held at | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
U.S. plans | |||||||||||||||||||||||||||||||||
Pension plan | |||||||||||||||||||||||||||||||||
Real Estate | $ | 34.7 | $ | 4.7 | $ | -4.9 | $ | -0.3 | $ | 34.2 | |||||||||||||||||||||||
Private Equity | 16.5 | -24.4 | -6.7 | 27.4 | 12.8 | ||||||||||||||||||||||||||||
Insurance Contracts | 79.5 | 0.1 | -63 | 0.8 | 17.4 | ||||||||||||||||||||||||||||
Total | $ | 130.7 | $ | -19.6 | $ | -74.6 | $ | 27.9 | $ | 64.4 | |||||||||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.5 | $ | 0.2 | $ | -0.4 | $ | 7.3 | |||||||||||||||||||||||||
International pension plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 151.3 | $ | 7 | $ | -13 | $ | -9.8 | $ | 135.5 | |||||||||||||||||||||||
Real Estate | 42.8 | $ | -0.2 | 15.3 | -15.5 | -1.6 | 40.8 | ||||||||||||||||||||||||||
Commingled Funds | 50.2 | 0.1 | 1 | -0.3 | -0.3 | 50.7 | |||||||||||||||||||||||||||
Total | $ | 244.3 | $ | -0.1 | $ | 23.3 | $ | -28.8 | $ | -11.7 | $ | 227 | |||||||||||||||||||||
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, 2013. | |||||||||||||||||||||||||||||||||
(millions) | January 1, | Realized | Purchases | Sales | Currency and | December 31, | |||||||||||||||||||||||||||
2013 | gains | or | or | unrealized | 2013 | ||||||||||||||||||||||||||||
(losses) | acquisitions | dispositions | gains (losses) | ||||||||||||||||||||||||||||||
relating to | |||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||
still held at | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
U.S. plans | |||||||||||||||||||||||||||||||||
Pension plan | |||||||||||||||||||||||||||||||||
Real Estate | $ | 34.8 | $ | 0.5 | $ | (2.4 | ) | $ | 1.8 | $ | 34.7 | ||||||||||||||||||||||
Private Equity | 20.8 | (17.5 | ) | (5.8 | ) | 19 | 16.5 | ||||||||||||||||||||||||||
Insurance Contracts | 90.9 | (6.7 | ) | (4.7 | ) | 79.5 | |||||||||||||||||||||||||||
Total | $ | 146.5 | $ | (17.0 | ) | $ | (14.9 | ) | $ | 16.1 | $ | 130.7 | |||||||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.9 | $ | (.2 | ) | $ | 0.2 | $ | (.4 | ) | $ | 7.5 | |||||||||||||||||||||
International pension plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 146.7 | $ | 6.6 | $ | (12.7 | ) | $ | 10.7 | $ | 151.3 | ||||||||||||||||||||||
Real Estate | 31.1 | 9.5 | 2.2 | 42.8 | |||||||||||||||||||||||||||||
Commingled Funds | 58.1 | $ | 0.4 | (12.3 | ) | 4 | 50.2 | ||||||||||||||||||||||||||
Total | $ | 235.9 | $ | 0.4 | $ | 16.1 | $ | (25.0 | ) | $ | 16.9 | $ | 244.3 |
Stockholders_equity
Stockholders' equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' equity | 17. Stockholders’ equity | ||||||||||||
The company has 100 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, 2014, 6.3 million shares of unissued common stock of the company were reserved for stock-based incentive plans. | |||||||||||||
On March 1, 2014, all of the outstanding shares of 6.25% mandatory convertible preferred stock (2,587,400 shares) were automatically converted (in accordance with its terms) into 6,912,756 shares of the company’s common stock. Because March 1, 2014 was not a business day, the mandatory conversion was effected on Monday, March 3, 2014. | |||||||||||||
On December 10, 2012, the company announced that its Board of Directors had authorized the company to purchase up to an aggregate of $50 million of the company’s common stock and mandatory convertible preferred stock through December 31, 2014. Through December 31, 2014, the company repurchased an aggregate of 2.2 million shares of common stock for approximately $47.3 million. At December 31, 2014, the Board’s repurchase authorization expired. | |||||||||||||
Accumulated other comprehensive income (loss) as of December 31, 2014, 2013 and 2012, is as follows: | |||||||||||||
(millions) | Total | Translation | Postretirement | ||||||||||
Adjustments | Plans | ||||||||||||
Balance at December 31, 2011 | $ | (3,700.9 | ) | $ | (649.1 | ) | $ | (3,051.8 | ) | ||||
Other comprehensive income before reclassifications | (275.9 | ) | 14.8 | (290.7 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (156.8 | ) | – | (156.8 | ) | ||||||||
Current period other comprehensive income | (432.7 | ) | 14.8 | (447.5 | ) | ||||||||
Balance at December 31, 2012 | (4,133.6 | ) | (634.3 | ) | (3,499.3 | ) | |||||||
Other comprehensive income before reclassifications | 985.1 | (42.5 | ) | 1,027.60 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (184.9 | ) | – | (184.9 | ) | ||||||||
Current period other comprehensive income | 800.2 | (42.5 | ) | 842.7 | |||||||||
Balance at December 31, 2013 | (3,333.4 | ) | (676.8 | ) | (2,656.6 | ) | |||||||
Other comprehensive income before reclassifications | (638.8 | ) | (61.0 | ) | (577.8 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (141.2 | ) | – | (141.2 | ) | ||||||||
Current period other comprehensive income | (780.0 | ) | (61.0 | ) | (719.0 | ) | |||||||
Balance at December 31, 2014 | $ | (4,113.4 | ) | $ | (737.8 | ) | $ | (3,375.6 | ) | ||||
Amounts related to postretirement plans not reclassified in their entirety out of accumulated other comprehensive income were as follows: | |||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | |||||||||||
Amortization of prior service cost* | $ | (.7 | ) | $ | 0.4 | ||||||||
Amortization of actuarial losses* | 148.3 | 191.4 | |||||||||||
Curtailment gain* | (.6 | ) | – | ||||||||||
Total before tax | 147 | 191.8 | |||||||||||
Income tax benefit | (5.8 | ) | (6.9 | ) | |||||||||
Net of tax | $ | 141.2 | $ | 184.9 | |||||||||
* These items are included in net periodic postretirement cost (see note 16). | |||||||||||||
The following table summarizes the changes in preferred stock, common stock and treasury stock during the three years ended December 31, 2014: | |||||||||||||
(millions) | Preferred | Common | Treasury | ||||||||||
Stock | Stock | Stock | |||||||||||
Balance at December 31, 2011 | 2.6 | 43.8 | 0.3 | ||||||||||
Stock-based compensation | – | 0.5 | 0.1 | ||||||||||
Balance at December 31, 2012 | 2.6 | 44.3 | 0.4 | ||||||||||
Common stock repurchases | – | – | 0.6 | ||||||||||
Stock-based compensation | – | 0.8 | 0.1 | ||||||||||
Balance at December 31, 2013 | 2.6 | 45.1 | 1.1 | ||||||||||
Common stock repurchases | – | – | 1.6 | ||||||||||
Stock-based compensation | – | 0.4 | – | ||||||||||
Preferred stock conversion | (2.6 | ) | 6.9 | – | |||||||||
Balance at December 31, 2014 | – | 52.4 | 2.7 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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, and assumptions used in the calculation 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 Equivalents | Cash equivalents All 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 are classified as cash equivalents. |
Inventories | Inventories Inventories are valued at the lower of cost or market. 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. 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 | Advertising costs All advertising costs are expensed as incurred. The amount charged to expense during 2014, 2013 and 2012 was $8.0 million, $2.5 million and $3.1 million, respectively. |
Shipping And Handling | Shipping and handling Costs related to shipping and handling is included in cost of revenue. |
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 hardware, software 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 hardware and software 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 hardware and software products to the client. The services are provided on a continuous basis across multiple reporting periods and the hardware and software 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 products and services 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 non-maintenance services. 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 products or services that (a) do not include the licensing, selling or leasing of software, or (b) contain software that is incidental to the products or services 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 hardware and software) 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 hardware and software), 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 products or services are not essential to the functionality of the delivered products or services, (b) the company has an enforceable claim to receive the amount due in the event it does not deliver the undelivered products or services, (c) there is evidence of the selling price for each undelivered products or services, 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 return 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 has elected the policy of not providing for intra-period tax allocations between pretax earnings and other comprehensive income in instances where there is no net tax provision. This determination is made for each tax jurisdiction. |
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, but 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. The company quarterly 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 8), derivatives (see note 11) 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 processing outsourcing joint venture. The remaining interests, which is 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_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Computation of Earnings Per Common Share Attributable to Unisys Corporation | The following table shows how the earnings per common share attributable to Unisys Corporation were computed for the three years ended December 31, 2014. | ||||||||||||
Year ended December 31 (millions, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Basic earnings per common share computation | |||||||||||||
Net income attributable to Unisys Corporation common stockholders | $ | 44 | $ | 92.3 | $ | 129.4 | |||||||
Weighted average shares (thousands) | 49,280 | 43,899 | 43,864 | ||||||||||
Basic earnings per common share | $ | 0.89 | $ | 2.1 | $ | 2.95 | |||||||
Diluted earnings per common share computation | |||||||||||||
Net income attributable to Unisys Corporation common stockholders | $ | 44 | $ | 92.3 | $ | 129.4 | |||||||
Add preferred stock dividends | – | – | 16.2 | ||||||||||
Net income attributable to Unisys Corporation for diluted earnings per share | $ | 44 | $ | 92.3 | $ | 145.6 | |||||||
Weighted average shares (thousands) | 49,280 | 43,899 | 43,864 | ||||||||||
Plus incremental shares from assumed conversions | |||||||||||||
Employee stock plans | 304 | 448 | 439 | ||||||||||
Preferred stock | – | – | 6,913 | ||||||||||
Adjusted weighted average shares | 49,584 | 44,347 | 51,216 | ||||||||||
Diluted earnings per common share | $ | 0.89 | $ | 2.08 | $ | 2.84 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||
(millions) | Total | Services | Technology | ||||||||||
Balance at December 31, 2012 | $ | 192.3 | $ | 83.6 | $ | 108.7 | |||||||
Translation adjustments | (3.6 | ) | (3.6 | ) | – | ||||||||
Balance at December 31, 2013 | 188.7 | 80 | 108.7 | ||||||||||
Translation adjustments | (4.8 | ) | (4.8 | ) | – | ||||||||
Balance at December 31, 2014 | $ | 183.9 | $ | 75.2 | $ | 108.7 |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Total Income Before Income Taxes and Provision for Income Taxes | Following is the total income before income taxes and the provision for income taxes for the three years ended December 31, 2014. | ||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||
Income before income taxes | |||||||||||||
United States | $ | (19.9 | ) | $ | 28.4 | $ | 32.5 | ||||||
Foreign | 165.4 | 191 | 221.6 | ||||||||||
Total income before income taxes | $ | 145.5 | $ | 219.4 | $ | 254.1 | |||||||
Provision for income taxes | |||||||||||||
Current | |||||||||||||
United States | $ | 2.1 | $ | 8 | $ | 3.6 | |||||||
Foreign | 59.4 | 63 | 66.5 | ||||||||||
State and local | 1 | (.2 | ) | – | |||||||||
Total | 62.5 | 70.8 | 70.1 | ||||||||||
Deferred | |||||||||||||
Foreign | 23.7 | 28.5 | 27.2 | ||||||||||
Total provision for income taxes | $ | 86.2 | $ | 99.3 | $ | 97.3 | |||||||
Reconciliation of the Provision for Income Taxes | Following is a reconciliation of the provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported: | ||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||
United States statutory income tax provision | $ | 50.9 | $ | 76.8 | $ | 88.9 | |||||||
Income and losses for which no provision or benefit has been recognized | 35.7 | 13.5 | 7 | ||||||||||
Foreign rate differential and other foreign tax expense | (22.0 | ) | (23.0 | ) | (32.2 | ) | |||||||
Income tax withholdings | 17.1 | 15.4 | 20.3 | ||||||||||
Permanent items | 1.1 | 4 | 4 | ||||||||||
Enacted rate changes | – | 8.9 | 9 | ||||||||||
Change in uncertain tax positions | 0.2 | 4.4 | 4.5 | ||||||||||
Change in valuation allowances due to changes in judgment | 7 | (.5 | ) | – | |||||||||
Income tax credits, U.S. | (3.9 | ) | – | (4.0 | ) | ||||||||
Other | 0.1 | (.2 | ) | (.2 | ) | ||||||||
Provision for income taxes | $ | 86.2 | $ | 99.3 | $ | 97.3 | |||||||
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, 2014 and 2013 were as follows: | ||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||
Deferred tax assets | |||||||||||||
Tax loss carryforwards | $ | 883.3 | $ | 888.8 | |||||||||
Postretirement benefits | 791.3 | 566.3 | |||||||||||
Foreign tax credit carryforwards | 245.5 | 252.4 | |||||||||||
Other tax credit carryforwards | 88 | 88.9 | |||||||||||
Deferred revenue | 60.5 | 86.4 | |||||||||||
Employee benefits and compensation | 44.6 | 42.4 | |||||||||||
Purchased capitalized software | 39.3 | 41.3 | |||||||||||
Capitalized research and development | 36 | 89.7 | |||||||||||
Depreciation | 34.9 | 31.6 | |||||||||||
Capitalized costs | 16.3 | 16.5 | |||||||||||
Warranty, bad debts and other reserves | 12.8 | 14.6 | |||||||||||
Other | 29.5 | 26.8 | |||||||||||
2,282.00 | 2,145.70 | ||||||||||||
Valuation allowance | (2,107.8 | ) | (1,998.8 | ) | |||||||||
Total deferred tax assets | $ | 174.2 | $ | 146.9 | |||||||||
Deferred tax liabilities | |||||||||||||
Other | $ | 37.9 | $ | 33 | |||||||||
Total deferred tax liabilities | $ | 37.9 | $ | 33 | |||||||||
Net deferred tax assets | $ | 136.3 | $ | 113.9 | |||||||||
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 (millions) | 2014 | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 26.3 | $ | 29.2 | $ | 24.3 | |||||||
Additions based on tax positions related to the current year | 14.4 | (2.4 | ) | 3.5 | |||||||||
Changes for tax positions of prior years | (1.4 | ) | (.1 | ) | 1.4 | ||||||||
Reductions as a result of a lapse of applicable statute of limitations | (1.6 | ) | – | (.4 | ) | ||||||||
Settlements | (.9 | ) | (.2 | ) | (.7 | ) | |||||||
Changes due to foreign currency | (1.8 | ) | (.2 | ) | 1.1 | ||||||||
Balance at December 31 | $ | 35 | $ | 26.3 | $ | 29.2 |
Properties_Tables
Properties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Properties | Properties comprise the following: | ||||||||
December 31 (millions) | 2014 | 2013 | |||||||
Land | $ | 2.8 | $ | 3.2 | |||||
Buildings | 80.1 | 86.1 | |||||||
Machinery and office equipment | 644.9 | 677.8 | |||||||
Internal-use software | 257.7 | 244.6 | |||||||
Rental equipment | 73.9 | 83.8 | |||||||
Total properties | $ | 1,059.40 | $ | 1,095.50 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Long-Term Debt | Long-term debt is comprised of the following: | ||||||||
December 31 (millions) | 2014 | 2013 | |||||||
6.25% senior notes due 2017 | $ | 210 | $ | 210 | |||||
Capital leases | 14 | – | |||||||
Total | 224 | 210 | |||||||
Less – current maturities | 1.8 | – | |||||||
Total long-term debt | $ | 222.2 | $ | 210 |
Other_liabilities_Tables
Other liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Accrued Liabilities (Current) | Other accrued liabilities (current) are comprised of the following: | ||||||||
December 31 (millions) | 2014 | 2013 | |||||||
Payrolls and commissions | $ | 109.3 | $ | 103.9 | |||||
Accrued vacations | 60.8 | 67.2 | |||||||
Income taxes | 58.3 | 40.9 | |||||||
Taxes other than income taxes | 53.8 | 62.4 | |||||||
Postretirement | 22.6 | 25.1 | |||||||
Accrued interest | 4.9 | 4.9 | |||||||
Other | 75.4 | 71.3 | |||||||
Total other accrued liabilities | $ | 385.1 | $ | 375.7 |
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Services | |||||||||||||||||
Systems integration and consulting | $ | 942.8 | $ | 956.9 | $ | 1,079.30 | |||||||||||
Outsourcing | 1,412.70 | 1,428.70 | 1,475.50 | ||||||||||||||
Infrastructure services | 347.4 | 428.1 | 442.4 | ||||||||||||||
Core maintenance | 184.8 | 182.4 | 195.2 | ||||||||||||||
2,887.70 | 2,996.10 | 3,192.40 | |||||||||||||||
Technology | |||||||||||||||||
Enterprise-class software and servers | 429 | 402.7 | 480.3 | ||||||||||||||
Other technology | 39.7 | 57.7 | 33.7 | ||||||||||||||
468.7 | 460.4 | 514 | |||||||||||||||
Total | $ | 3,356.40 | $ | 3,456.50 | $ | 3,706.40 | |||||||||||
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes | Presented below is a reconciliation of segment operating income to consolidated income before income taxes: | ||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total segment operating income | $ | 233.6 | $ | 309.6 | $ | 414.3 | |||||||||||
Interest expense | (9.2 | ) | (9.9 | ) | (27.5 | ) | |||||||||||
Other income (expense), net | (.2 | ) | 9.8 | (37.6 | ) | ||||||||||||
Corporate and eliminations | (78.7 | ) | (90.1 | ) | (95.1 | ) | |||||||||||
Total income before income taxes | $ | 145.5 | $ | 219.4 | $ | 254.1 | |||||||||||
Reconciliation of Total Business Segment Assets to Consolidated Assets | Presented below is a reconciliation of total business segment assets to consolidated assets: | ||||||||||||||||
December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Total segment assets | $ | 1,533.80 | $ | 1,530.50 | $ | 1,469.10 | |||||||||||
Cash and cash equivalents | 494.3 | 639.8 | 655.6 | ||||||||||||||
Deferred income taxes | 171 | 136.4 | 184.3 | ||||||||||||||
Prepaid postretirement assets | 19.9 | 83.7 | 3.3 | ||||||||||||||
Other corporate assets | 129.7 | 119.6 | 108.1 | ||||||||||||||
Total assets | $ | 2,348.70 | $ | 2,510.00 | $ | 2,420.40 | |||||||||||
Summary of Operations by Business Segment | A summary of the company’s operations by business segment for 2014, 2013 and 2012 is presented below: | ||||||||||||||||
(millions) | Total | Corporate | Services | Technology | |||||||||||||
2014 | |||||||||||||||||
Customer revenue | $ | 3,356.40 | $ | 2,887.70 | $ | 468.7 | |||||||||||
Intersegment | $ | (112.3 | ) | 0.4 | 111.9 | ||||||||||||
Total revenue | $ | 3,356.40 | $ | (112.3 | ) | $ | 2,888.10 | $ | 580.6 | ||||||||
Operating income | $ | 154.9 | $ | (78.7 | ) | $ | 122.7 | $ | 110.9 | ||||||||
Depreciation and amortization | 168.6 | 103.2 | 65.4 | ||||||||||||||
Total assets | 2,348.70 | 814.9 | 1,099.20 | 434.6 | |||||||||||||
Capital expenditures | 212.8 | 4.9 | 133.8 | 74.1 | |||||||||||||
2013 | |||||||||||||||||
Customer revenue | $ | 3,456.50 | $ | 2,996.10 | $ | 460.4 | |||||||||||
Intersegment | $ | (122.5 | ) | 1.7 | 120.8 | ||||||||||||
Total revenue | $ | 3,456.50 | $ | (122.5 | ) | $ | 2,997.80 | $ | 581.2 | ||||||||
Operating income | $ | 219.5 | $ | (90.1 | ) | $ | 186.7 | $ | 122.9 | ||||||||
Depreciation and amortization | 159.6 | 91.8 | 67.8 | ||||||||||||||
Total assets | 2,510.00 | 979.5 | 1,126.70 | 403.8 | |||||||||||||
Capital expenditures | 151.4 | 2.9 | 78.8 | 69.7 | |||||||||||||
2012 | |||||||||||||||||
Customer revenue | $ | 3,706.40 | $ | 3,192.40 | $ | 514 | |||||||||||
Intersegment | $ | (123.1 | ) | 3.8 | 119.3 | ||||||||||||
Total revenue | $ | 3,706.40 | $ | (123.1 | ) | $ | 3,196.20 | $ | 633.3 | ||||||||
Operating income | $ | 319.2 | $ | (95.1 | ) | $ | 204.6 | $ | 209.7 | ||||||||
Depreciation and amortization | 174.6 | 102.4 | 72.2 | ||||||||||||||
Total assets | 2,420.40 | 951.3 | 1,085.90 | 383.2 | |||||||||||||
Capital expenditures | 132.6 | 3.7 | 64.7 | 64.2 | |||||||||||||
Revenue, Properties and Outsourcing Assets 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 (millions) | 2014 | 2013 | 2012 | ||||||||||||||
Revenue | |||||||||||||||||
United States | $ | 1,378.10 | $ | 1,370.60 | $ | 1,455.00 | |||||||||||
United Kingdom | 435.4 | 414 | 496.9 | ||||||||||||||
Other foreign | 1,542.90 | 1,671.90 | 1,754.50 | ||||||||||||||
Total | $ | 3,356.40 | $ | 3,456.50 | $ | 3,706.40 | |||||||||||
Properties, net | |||||||||||||||||
United States | $ | 111.9 | $ | 112.4 | $ | 112.7 | |||||||||||
United Kingdom | 22 | 24.7 | 23.1 | ||||||||||||||
Other foreign | 34.8 | 37.6 | 40.6 | ||||||||||||||
Total | $ | 168.7 | $ | 174.7 | $ | 176.4 | |||||||||||
Outsourcing assets, net | |||||||||||||||||
United States | $ | 99.7 | $ | 56.2 | $ | 67.1 | |||||||||||
United Kingdom | 25.8 | 28.1 | 30.3 | ||||||||||||||
Other foreign | 25.4 | 31.2 | 28.9 | ||||||||||||||
Total | $ | 150.9 | $ | 115.5 | $ | 126.3 |
Employee_plans_Tables
Employee plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Assumptions on Stock Options | The fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values as follows: | ||||||||||||||||||||||||||||||||
Year Ended December 31 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Weighted-average fair value of grant | $ | 11.24 | $ | 8.79 | $ | 9.73 | |||||||||||||||||||||||||||
Risk-free interest rate | 1.04 | % | 0.54 | % | 0.54 | % | |||||||||||||||||||||||||||
Expected volatility | 45.65 | % | 50.19 | % | 71.29 | % | |||||||||||||||||||||||||||
Expected life of options in years | 3.71 | 3.69 | 3.65 | ||||||||||||||||||||||||||||||
Expected dividend yield | – | – | – | ||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2014 follows (shares in thousands): | ||||||||||||||||||||||||||||||||
Options | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||||||||
Exercise | Remaining | Value ($ in | |||||||||||||||||||||||||||||||
Price | Contractual | millions) | |||||||||||||||||||||||||||||||
Term | |||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 2,698 | $ | 32.74 | ||||||||||||||||||||||||||||||
Granted | 756 | 32.2 | |||||||||||||||||||||||||||||||
Exercised | (272 | ) | 14.25 | ||||||||||||||||||||||||||||||
Forfeited and expired | (366 | ) | 70.3 | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 2,816 | 29.51 | 2.37 | $ | 9.1 | ||||||||||||||||||||||||||||
Expected to vest at December 31, 2014 | 1,335 | 27.37 | 3.49 | $ | 4.7 | ||||||||||||||||||||||||||||
Exercisable at December 31, 2014 | 1,456 | 31.47 | 1.31 | $ | 4.4 | ||||||||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the year ended December 31, 2014 follows (shares in thousands): | ||||||||||||||||||||||||||||||||
Restricted | Weighted-Average | ||||||||||||||||||||||||||||||||
Stock Units | Grant-Date Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 401 | $ | 23.45 | ||||||||||||||||||||||||||||||
Granted | 397 | 32.16 | |||||||||||||||||||||||||||||||
Vested | (124 | ) | 26.76 | ||||||||||||||||||||||||||||||
Forfeited and expired | (320 | ) | 27.03 | ||||||||||||||||||||||||||||||
Outstanding at December 31, 2014 | 354 | 28.81 | |||||||||||||||||||||||||||||||
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, 2014 and 2013 follows: | ||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 8,412.60 | $ | 7,210.40 | |||||||||||||||||||||||||||||
Fair value of plan assets | 6,167.20 | 5,646.70 | |||||||||||||||||||||||||||||||
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, 2014 and 2013 follows: | ||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 8,417.90 | $ | 7,217.40 | |||||||||||||||||||||||||||||
Fair value of plan assets | 6,167.20 | 5,646.70 | |||||||||||||||||||||||||||||||
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. | Int’l. | ||||||||||||||||||||||||||||||||
Asset Category | Target | Range | Target | Range | |||||||||||||||||||||||||||||
Equity securities | 58% | 52-64% | 38% | 32-44% | |||||||||||||||||||||||||||||
Debt securities | 36% | 33-39% | 55% | 48-62% | |||||||||||||||||||||||||||||
Real estate | 6% | 3-9% | 1% | 0-3% | |||||||||||||||||||||||||||||
Cash | 0% | 0-5% | 1% | 0-5% | |||||||||||||||||||||||||||||
Other | 0% | 0% | 5% | 0-10% | |||||||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates | |||||||||||||||||||||||||||||||||
Assumed health care cost trend rates at December 31 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 6.4 | % | 6.6 | % | |||||||||||||||||||||||||||||
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 (in millions of dollars): | ||||||||||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||
Effect on service and interest cost | $ | 0.3 | $ | (.2 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 3.3 | (4.4 | ) | ||||||||||||||||||||||||||||||
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, 2014. | ||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31, 2014 (millions) | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||
Common Stocks | $ | 1,837.40 | $ | 1,831.60 | $ | 5.8 | $ | 1.6 | $ | 1.6 | |||||||||||||||||||||||
Commingled Funds | 461.6 | 461.6 | 1,054.80 | $ | 1,054.80 | ||||||||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||||||
U.S. and UK Govt. Securities | 176.9 | 176.9 | |||||||||||||||||||||||||||||||
Other Fixed Income | 1,025.30 | 1,025.30 | 330.4 | 330.4 | |||||||||||||||||||||||||||||
Insurance Contracts | 17.4 | $ | 17.4 | 135.5 | $ | 135.5 | |||||||||||||||||||||||||||
Commingled Funds | 991.1 | 991.1 | |||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Real Estate Investment Trusts | 169.1 | 169.1 | 1.3 | 1.3 | |||||||||||||||||||||||||||||
Real Estate | 34.2 | 34.2 | 40.8 | 40.8 | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
Derivatives | 18.2 | 5.9 | 12.3 | 7.2 | 7.2 | ||||||||||||||||||||||||||||
Private Equity | 12.8 | 12.8 | |||||||||||||||||||||||||||||||
Commingled Funds | 102.1 | 102.1 | 136.5 | 85.8 | 50.7 | ||||||||||||||||||||||||||||
Pooled Funds | 297.2 | 297.2 | 1.2 | 1.2 | |||||||||||||||||||||||||||||
Cash | (1.3 | ) | (1.3 | ) | 18.6 | 18.6 | |||||||||||||||||||||||||||
Receivables | 77.4 | 77.4 | |||||||||||||||||||||||||||||||
Payables | (158.6 | ) | (158.6 | ) | (.1 | ) | (.1 | ) | |||||||||||||||||||||||||
Total | $ | 4,069.70 | $ | 2,101.00 | $ | 1,904.30 | $ | 64.4 | $ | 2,718.90 | $ | 21.4 | $ | 2,470.50 | $ | 227 | |||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.3 | $ | 7.3 | |||||||||||||||||||||||||||||
Pooled Funds | 1.8 | $ | 1.8 | ||||||||||||||||||||||||||||||
Total | $ | 9.1 | $ | 1.8 | $ | 7.3 | |||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2013. | |||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31, 2013 (millions) | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||
Common Stocks | $ | 1,916.20 | $ | 1,916.20 | $ | 1.8 | $ | 1.8 | |||||||||||||||||||||||||
Commingled Funds | 494.3 | $ | 494.3 | 1,046.70 | $ | 1,046.70 | |||||||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||||||||||
U.S. and UK Govt. Securities | 148.8 | 148.8 | |||||||||||||||||||||||||||||||
Other Fixed Income | 978.1 | 978.1 | 268.9 | 268.9 | |||||||||||||||||||||||||||||
Insurance Contracts | 79.5 | $ | 79.5 | 151.3 | $ | 151.3 | |||||||||||||||||||||||||||
Commingled Funds | 983.7 | 983.7 | |||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Real Estate Investment Trusts | 145.7 | 145.7 | 1.3 | 1.3 | |||||||||||||||||||||||||||||
Real Estate | 34.7 | 34.7 | 42.8 | 42.8 | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
Derivatives | (4.2 | ) | (4.5 | ) | 0.3 | 19.1 | 19.1 | ||||||||||||||||||||||||||
Private Equity | 16.5 | 16.5 | |||||||||||||||||||||||||||||||
Commingled Funds | 93.3 | 93.3 | 141 | 90.8 | 50.2 | ||||||||||||||||||||||||||||
Pooled Funds | 236.1 | 236.1 | 3.2 | 3.2 | |||||||||||||||||||||||||||||
Cash | 5.7 | 5.7 | 22.1 | 22.1 | |||||||||||||||||||||||||||||
Receivables | 45.5 | 45.5 | |||||||||||||||||||||||||||||||
Payables | (142.2 | ) | (142.2 | ) | (.1 | ) | (.1 | ) | |||||||||||||||||||||||||
Total | $ | 4,048.00 | $ | 2,115.20 | $ | 1,802.10 | $ | 130.7 | $ | 2,681.80 | $ | 25.1 | $ | 2,412.40 | $ | 244.3 | |||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.5 | $ | 7.5 | |||||||||||||||||||||||||||||
Exchange Traded Fund – Bond | 1.3 | $ | 1.3 | ||||||||||||||||||||||||||||||
Pooled Funds | 0.4 | $ | 0.4 | ||||||||||||||||||||||||||||||
Total | $ | 9.2 | $ | 1.3 | $ | 0.4 | $ | 7.5 | |||||||||||||||||||||||||
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, 2014. | ||||||||||||||||||||||||||||||||
(millions) | January 1, | Realized | Purchases | Sales | Currency and | December 31, | |||||||||||||||||||||||||||
2014 | gains | or | or | unrealized | 2014 | ||||||||||||||||||||||||||||
(losses) | acquisitions | dispositions | gains (losses) | ||||||||||||||||||||||||||||||
relating to | |||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||
still held at | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
U.S. plans | |||||||||||||||||||||||||||||||||
Pension plan | |||||||||||||||||||||||||||||||||
Real Estate | $ | 34.7 | $ | 4.7 | $ | -4.9 | $ | -0.3 | $ | 34.2 | |||||||||||||||||||||||
Private Equity | 16.5 | -24.4 | -6.7 | 27.4 | 12.8 | ||||||||||||||||||||||||||||
Insurance Contracts | 79.5 | 0.1 | -63 | 0.8 | 17.4 | ||||||||||||||||||||||||||||
Total | $ | 130.7 | $ | -19.6 | $ | -74.6 | $ | 27.9 | $ | 64.4 | |||||||||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.5 | $ | 0.2 | $ | -0.4 | $ | 7.3 | |||||||||||||||||||||||||
International pension plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 151.3 | $ | 7 | $ | -13 | $ | -9.8 | $ | 135.5 | |||||||||||||||||||||||
Real Estate | 42.8 | $ | -0.2 | 15.3 | -15.5 | -1.6 | 40.8 | ||||||||||||||||||||||||||
Commingled Funds | 50.2 | 0.1 | 1 | -0.3 | -0.3 | 50.7 | |||||||||||||||||||||||||||
Total | $ | 244.3 | $ | -0.1 | $ | 23.3 | $ | -28.8 | $ | -11.7 | $ | 227 | |||||||||||||||||||||
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, 2013. | |||||||||||||||||||||||||||||||||
(millions) | January 1, | Realized | Purchases | Sales | Currency and | December 31, | |||||||||||||||||||||||||||
2013 | gains | or | or | unrealized | 2013 | ||||||||||||||||||||||||||||
(losses) | acquisitions | dispositions | gains (losses) | ||||||||||||||||||||||||||||||
relating to | |||||||||||||||||||||||||||||||||
instruments | |||||||||||||||||||||||||||||||||
still held at | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||
U.S. plans | |||||||||||||||||||||||||||||||||
Pension plan | |||||||||||||||||||||||||||||||||
Real Estate | $ | 34.8 | $ | 0.5 | $ | (2.4 | ) | $ | 1.8 | $ | 34.7 | ||||||||||||||||||||||
Private Equity | 20.8 | (17.5 | ) | (5.8 | ) | 19 | 16.5 | ||||||||||||||||||||||||||
Insurance Contracts | 90.9 | (6.7 | ) | (4.7 | ) | 79.5 | |||||||||||||||||||||||||||
Total | $ | 146.5 | $ | (17.0 | ) | $ | (14.9 | ) | $ | 16.1 | $ | 130.7 | |||||||||||||||||||||
Other postretirement plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 7.9 | $ | (.2 | ) | $ | 0.2 | $ | (.4 | ) | $ | 7.5 | |||||||||||||||||||||
International pension plans | |||||||||||||||||||||||||||||||||
Insurance Contracts | $ | 146.7 | $ | 6.6 | $ | (12.7 | ) | $ | 10.7 | $ | 151.3 | ||||||||||||||||||||||
Real Estate | 31.1 | 9.5 | 2.2 | 42.8 | |||||||||||||||||||||||||||||
Commingled Funds | 58.1 | $ | 0.4 | (12.3 | ) | 4 | 50.2 | ||||||||||||||||||||||||||
Total | $ | 235.9 | $ | 0.4 | $ | 16.1 | $ | (25.0 | ) | $ | 16.9 | $ | 244.3 | ||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
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, 2014 and 2013 follow: | ||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 5,158.80 | $ | 5,646.80 | $ | 3,059.20 | $ | 2,945.40 | |||||||||||||||||||||||||
Service cost | – | – | 8.4 | 10.4 | |||||||||||||||||||||||||||||
Interest cost | 248.3 | 220.4 | 117.9 | 106.6 | |||||||||||||||||||||||||||||
Plan participants’ contributions | – | – | 3.1 | 3.1 | |||||||||||||||||||||||||||||
Plan amendment | (46.3 | ) | – | (1.0 | ) | (6.3 | ) | ||||||||||||||||||||||||||
Plan curtailment | – | – | (.3 | ) | – | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 670 | (355.9 | ) | 559.4 | (19.3 | ) | |||||||||||||||||||||||||||
Benefits paid | (365.3 | ) | (352.5 | ) | (115.4 | ) | (100.8 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | – | – | (276.4 | ) | 120.1 | ||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 5,665.50 | $ | 5,158.80 | $ | 3,354.90 | $ | 3,059.20 | |||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 4,048.00 | $ | 3,786.70 | $ | 2,681.80 | $ | 2,399.20 | |||||||||||||||||||||||||
Actual return on plan assets | 299.9 | 572.6 | 278 | 166.3 | |||||||||||||||||||||||||||||
Employer contribution | 87.1 | 41.2 | 96.3 | 106 | |||||||||||||||||||||||||||||
Plan participants’ contributions | – | – | 3.1 | 3.1 | |||||||||||||||||||||||||||||
Benefits paid | (365.3 | ) | (352.5 | ) | (115.4 | ) | (100.8 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | – | – | (224.9 | ) | 108 | ||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 4,069.70 | $ | 4,048.00 | $ | 2,718.90 | $ | 2,681.80 | |||||||||||||||||||||||||
Funded status at end of year | $ | (1,595.8 | ) | $ | (1,110.8 | ) | $ | (636.0 | ) | $ | (377.4 | ) | |||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||||||||||
Prepaid postretirement assets | $ | – | $ | – | $ | 18.9 | $ | 82.6 | |||||||||||||||||||||||||
Other accrued liabilities | (6.9 | ) | (6.9 | ) | (.2 | ) | (.2 | ) | |||||||||||||||||||||||||
Long-term postretirement liabilities | (1,588.9 | ) | (1,103.9 | ) | (654.7 | ) | (459.8 | ) | |||||||||||||||||||||||||
Total funded status | $ | (1,595.8 | ) | $ | (1,110.8 | ) | $ | (636.0 | ) | $ | (377.4 | ) | |||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | |||||||||||||||||||||||||||||||||
Net loss | $ | 2,973.50 | $ | 2,425.90 | $ | 1,076.10 | $ | 817.7 | |||||||||||||||||||||||||
Prior service (credit) cost | $ | (44.5 | ) | $ | 1.4 | $ | (12.8 | ) | $ | (16.0 | ) | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 5,665.50 | $ | 5,158.80 | $ | 3,349.30 | $ | 3,051.50 | |||||||||||||||||||||||||
Components of Net Periodic Benefit (Income) Cost | Net periodic pension cost for 2014, 2013 and 2012 includes the following components: | ||||||||||||||||||||||||||||||||
U.S. Plans | International Plans | ||||||||||||||||||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Service cost | $ | – | $ | – | $ | – | $ | 8.4 | $ | 10.4 | $ | 8.6 | |||||||||||||||||||||
Interest cost | 248.3 | 220.4 | 252.9 | 117.9 | 106.6 | 113.1 | |||||||||||||||||||||||||||
Expected return on plan assets | (287.1 | ) | (291.5 | ) | (285.7 | ) | (160.5 | ) | (141.9 | ) | (136.1 | ) | |||||||||||||||||||||
Amortization of prior service (credit) | (.4 | ) | 0.7 | 0.7 | (2.1 | ) | (2.1 | ) | (.5 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | 109.7 | 139 | 124 | 40.2 | 51.9 | 36.9 | |||||||||||||||||||||||||||
Curtailment gain | – | – | – | (.6 | ) | – | (5.7 | ) | |||||||||||||||||||||||||
Net periodic pension cost | $ | 70.5 | $ | 68.6 | $ | 91.9 | $ | 3.3 | $ | 24.9 | $ | 16.3 | |||||||||||||||||||||
Expected Future Benefit Payments | As of December 31, 2014, 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 (millions) | U.S. | Int’l. | |||||||||||||||||||||||||||||||
2015 | $ | 362.7 | $ | 103.2 | |||||||||||||||||||||||||||||
2016 | 363.7 | 106 | |||||||||||||||||||||||||||||||
2017 | 365.7 | 109.1 | |||||||||||||||||||||||||||||||
2018 | 366.4 | 112 | |||||||||||||||||||||||||||||||
2019 | 367.2 | 115.4 | |||||||||||||||||||||||||||||||
2020 - 2024 | 1,839.40 | 615.9 | |||||||||||||||||||||||||||||||
Pension Plans | Net Periodic Pension Cost | |||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows: | ||||||||||||||||||||||||||||||||
Discount rate | 5.02% | 4.01% | 4.96% | 4.15% | 3.92% | 4.65% | |||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 2.08% | 2.06% | 2.66% | |||||||||||||||||||||||||||
Expected long-term rate of return on assets | 7.72% | 8.00% | 8.00% | 6.45% | 6.40% | 6.59% | |||||||||||||||||||||||||||
Pension Plans | Benefit Obligation | |||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine benefit obligations at December 31 were as follows: | ||||||||||||||||||||||||||||||||
Discount rate | 4.09% | 5.02% | 4.01% | 3.05% | 4.15% | 3.92% | |||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 1.68% | 2.08% | 2.06% | |||||||||||||||||||||||||||
Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet | 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, 2014 and 2013, follows: | ||||||||||||||||||||||||||||||||
December 31 (millions) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Change in accumulated benefit obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 159.7 | $ | 180.5 | |||||||||||||||||||||||||||||
Service cost | 0.6 | 0.6 | |||||||||||||||||||||||||||||||
Interest cost | 7.6 | 7.9 | |||||||||||||||||||||||||||||||
Plan participants’ contributions | 4.6 | 4.9 | |||||||||||||||||||||||||||||||
Actuarial gain | (2.4 | ) | (11.5 | ) | |||||||||||||||||||||||||||||
Federal drug subsidy | 1.4 | 1.8 | |||||||||||||||||||||||||||||||
Benefits paid | (20.0 | ) | (23.2 | ) | |||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | (1.5 | ) | (1.3 | ) | |||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 150 | $ | 159.7 | |||||||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 9.2 | $ | 9.7 | |||||||||||||||||||||||||||||
Actual return on plan assets | – | (.2 | ) | ||||||||||||||||||||||||||||||
Employer contributions | 15.3 | 18 | |||||||||||||||||||||||||||||||
Plan participants’ contributions | 4.6 | 4.9 | |||||||||||||||||||||||||||||||
Benefits paid | (20.0 | ) | (23.2 | ) | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 9.1 | $ | 9.2 | |||||||||||||||||||||||||||||
Funded status at end of year | $ | (140.9 | ) | $ | (150.5 | ) | |||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||||||||||
Prepaid postretirement assets | $ | 1 | $ | 1.1 | |||||||||||||||||||||||||||||
Other accrued liabilities | (15.6 | ) | (18.0 | ) | |||||||||||||||||||||||||||||
Long-term postretirement liabilities | (126.3 | ) | (133.6 | ) | |||||||||||||||||||||||||||||
Total funded status | $ | (140.9 | ) | $ | (150.5 | ) | |||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | |||||||||||||||||||||||||||||||||
Net loss | $ | 32 | $ | 36.7 | |||||||||||||||||||||||||||||
Prior service cost | 1.2 | 3 | |||||||||||||||||||||||||||||||
Components of Net Periodic Benefit (Income) Cost | Net periodic postretirement benefit cost for 2014, 2013 and 2012, follows: | ||||||||||||||||||||||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Service cost | $ | 0.6 | $ | 0.6 | $ | 0.5 | |||||||||||||||||||||||||||
Interest cost | 7.6 | 7.9 | 8.7 | ||||||||||||||||||||||||||||||
Expected return on assets | (.5 | ) | (.5 | ) | (.5 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 1.7 | 1.8 | 1.8 | ||||||||||||||||||||||||||||||
Recognized net actuarial loss | 1.7 | 4.5 | 3.2 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 11.1 | $ | 14.3 | $ | 13.7 | |||||||||||||||||||||||||||
Expected Future Benefit Payments | As of December 31, 2014, the following benefits are expected to be paid to or from the company’s postretirement plan: | ||||||||||||||||||||||||||||||||
Year ending December 31 (millions) | Gross | Gross | |||||||||||||||||||||||||||||||
Medicare | Expected | ||||||||||||||||||||||||||||||||
Part D | Payments | ||||||||||||||||||||||||||||||||
Receipts | |||||||||||||||||||||||||||||||||
2015 | $ | 1.3 | $ | 19.6 | |||||||||||||||||||||||||||||
2016 | 1.2 | 17.2 | |||||||||||||||||||||||||||||||
2017 | 1.1 | 16.6 | |||||||||||||||||||||||||||||||
2018 | 1 | 15.8 | |||||||||||||||||||||||||||||||
2019 | 0.9 | 15 | |||||||||||||||||||||||||||||||
2020 – 2024 | 2.7 | 53.9 | |||||||||||||||||||||||||||||||
Other Postretirement Benefit Plans | Benefit Obligation | |||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine benefit obligation at December 31 were as follows: | ||||||||||||||||||||||||||||||||
Discount rate | 5.27 | % | 5.86 | % | 5.15 | % | |||||||||||||||||||||||||||
Other Postretirement Benefit Plans | Net Periodic Postretirement Benefit Cost | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
Discount rate | 5.86 | % | 5.15 | % | 5.84 | % | |||||||||||||||||||||||||||
Expected return on plan assets | 6.75 | % | 6.75 | % | 6.75 | % |
Stockholders_equity_Tables
Stockholders' equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) as of December 31, 2014, 2013 and 2012, is as follows: | ||||||||||||
(millions) | Total | Translation | Postretirement | ||||||||||
Adjustments | Plans | ||||||||||||
Balance at December 31, 2011 | $ | (3,700.9 | ) | $ | (649.1 | ) | $ | (3,051.8 | ) | ||||
Other comprehensive income before reclassifications | (275.9 | ) | 14.8 | (290.7 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (156.8 | ) | – | (156.8 | ) | ||||||||
Current period other comprehensive income | (432.7 | ) | 14.8 | (447.5 | ) | ||||||||
Balance at December 31, 2012 | (4,133.6 | ) | (634.3 | ) | (3,499.3 | ) | |||||||
Other comprehensive income before reclassifications | 985.1 | (42.5 | ) | 1,027.60 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (184.9 | ) | – | (184.9 | ) | ||||||||
Current period other comprehensive income | 800.2 | (42.5 | ) | 842.7 | |||||||||
Balance at December 31, 2013 | (3,333.4 | ) | (676.8 | ) | (2,656.6 | ) | |||||||
Other comprehensive income before reclassifications | (638.8 | ) | (61.0 | ) | (577.8 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (141.2 | ) | – | (141.2 | ) | ||||||||
Current period other comprehensive income | (780.0 | ) | (61.0 | ) | (719.0 | ) | |||||||
Balance at December 31, 2014 | $ | (4,113.4 | ) | $ | (737.8 | ) | $ | (3,375.6 | ) | ||||
Amounts Related to Postretirement Plans Not Reclassified in Entirety out of Accumulated Other Comprehensive Income | Amounts related to postretirement plans not reclassified in their entirety out of accumulated other comprehensive income were as follows: | ||||||||||||
Year ended December 31 (millions) | 2014 | 2013 | |||||||||||
Amortization of prior service cost* | $ | (.7 | ) | $ | 0.4 | ||||||||
Amortization of actuarial losses* | 148.3 | 191.4 | |||||||||||
Curtailment gain* | (.6 | ) | – | ||||||||||
Total before tax | 147 | 191.8 | |||||||||||
Income tax benefit | (5.8 | ) | (6.9 | ) | |||||||||
Net of tax | $ | 141.2 | $ | 184.9 | |||||||||
* These items are included in net periodic postretirement cost (see note 16). | |||||||||||||
Changes in Preferred Stock, Common Stock and Treasury Stock | The following table summarizes the changes in preferred stock, common stock and treasury stock during the three years ended December 31, 2014: | ||||||||||||
(millions) | Preferred | Common | Treasury | ||||||||||
Stock | Stock | Stock | |||||||||||
Balance at December 31, 2011 | 2.6 | 43.8 | 0.3 | ||||||||||
Stock-based compensation | – | 0.5 | 0.1 | ||||||||||
Balance at December 31, 2012 | 2.6 | 44.3 | 0.4 | ||||||||||
Common stock repurchases | – | – | 0.6 | ||||||||||
Stock-based compensation | – | 0.8 | 0.1 | ||||||||||
Balance at December 31, 2013 | 2.6 | 45.1 | 1.1 | ||||||||||
Common stock repurchases | – | – | 1.6 | ||||||||||
Stock-based compensation | – | 0.4 | – | ||||||||||
Preferred stock conversion | (2.6 | ) | 6.9 | – | |||||||||
Balance at December 31, 2014 | – | 52.4 | 2.7 |
Recovered_Sheet1
Summary Of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary Of Significant Accounting Policies [Line Items] | |||
Advertising costs incurred | $8 | $2.50 | $3.10 |
Maximum estimated revenue-producing lives of computer software products from the date of release | 3 years | ||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Inputs | Four | ||
Intelligent Processing Solutions Ltd. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of Ownership interest | 51.00% | ||
Building | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 20 years | ||
Building | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 50 years | ||
Machinery and Office Equipment | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 4 years | ||
Machinery and Office Equipment | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 7 years | ||
Rental Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 4 years | ||
Internal-Use Software | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Internal-Use Software | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per common share computation | |||
Net income attributable to Unisys Corporation common stockholders | $44 | $92.30 | $129.40 |
Weighted average shares | 49,280 | 43,899 | 43,864 |
Basic earnings per common share | $0.89 | $2.10 | $2.95 |
Diluted earnings per common share computation | |||
Net income attributable to Unisys Corporation common stockholders | 44 | 92.3 | 129.4 |
Add preferred stock dividends | 2.7 | 16.2 | 16.2 |
Net income attributable to Unisys Corporation for diluted earnings per share | $44 | $92.30 | $145.60 |
Weighted average shares | 49,280 | 43,899 | 43,864 |
Plus incremental shares from assumed conversions | |||
Employee stock plans | 304 | 448 | 439 |
Preferred stock | 6,913 | ||
Adjusted weighted average shares | 49,584 | 44,347 | 51,216 |
Diluted earnings per common share | $0.89 | $2.08 | $2.84 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,929 | 2,142 | 2,261 |
Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,171 | 6,913 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Balance at beginning of year | $188.70 | $192.30 | |
Translation adjustments | -4.8 | -3.6 | |
Balance at end of year | 183.9 | 188.7 | |
Services | |||
Goodwill [Line Items] | |||
Balance at beginning of year | 80 | 83.6 | |
Translation adjustments | -4.8 | -3.6 | |
Balance at end of year | 75.2 | 80 | |
Technology | |||
Goodwill [Line Items] | |||
Balance at beginning of year | 108.7 | ||
Balance at end of year | $108.70 | $108.70 | $108.70 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenue recognized in excess of billings on services contracts or unbilled accounts receivable | $100.10 | $125 | |
Leases Receivable, 2015 | 32.5 | ||
Leases Receivable, 2016 | 27.6 | ||
Leases Receivable, 2017 | 23.1 | ||
Leases Receivable, 2018 | 22.9 | ||
Leases Receivable, 2019 | 7.1 | ||
Leases Receivable, thereafter | 2.6 | ||
Unearned income deducted from accounts and notes receivable | 11.8 | 10.5 | |
Allowance for doubtful accounts | 30.1 | 28.3 | |
Provision expense for doubtful accounts reported in selling, general and administrative expenses | 2.7 | ||
Provision income for doubtful accounts reported in selling, general and administrative expenses | ($0.60) | ($2.70) |
Total_Income_Before_Income_Tax
Total Income Before Income Taxes and Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income before income taxes | |||
Income before income taxes, United States | ($19.90) | $28.40 | $32.50 |
Income before income taxes, Foreign | 165.4 | 191 | 221.6 |
Income before income taxes | 145.5 | 219.4 | 254.1 |
Provision for income taxes, Current, United States | 2.1 | 8 | 3.6 |
Provision for income taxes, Current, Foreign | 59.4 | 63 | 66.5 |
Provision for income taxes, Current, State and local | 1 | -0.2 | |
Provision for income taxes, Current, Total | 62.5 | 70.8 | 70.1 |
Provision for income taxes, Deferred , Foreign | 23.7 | 28.5 | 27.2 |
Provision for income taxes | $86.20 | $99.30 | $97.30 |
Reconciliation_of_Provision_fo
Reconciliation of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Provision of Income Taxes [Line Items] | |||
United States statutory income tax provision | $50.90 | $76.80 | $88.90 |
Income and losses for which no provision or benefit has been recognized | 35.7 | 13.5 | 7 |
Foreign rate differential and other foreign tax expense | -22 | -23 | -32.2 |
Income tax withholdings | 17.1 | 15.4 | 20.3 |
Permanent items | 1.1 | 4 | 4 |
Enacted rate changes | 8.9 | 9 | |
Change in uncertain tax positions | 0.2 | 4.4 | 4.5 |
Change in valuation allowances due to changes in judgment | 7 | -0.5 | |
Income tax credits, U.S. | -3.9 | -4 | |
Other | 0.1 | -0.2 | -0.2 |
Provision for income taxes | $86.20 | $99.30 | $97.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2014 | Apr. 01, 2013 | Apr. 01, 2012 | Apr. 01, 2011 | Apr. 01, 2015 |
Tax Credit Carryforward [Line Items] | ||||||||
Rate change in the company's income tax provision | $8.90 | $9 | ||||||
U.S. Federal tax loss carryforwards | 431.6 | |||||||
State and local tax loss carryforwards | 204.5 | |||||||
Foreign tax loss carryforwards | 247.2 | |||||||
Total tax loss carryforwards | 883.3 | 888.8 | ||||||
Tax credit carryforwards | 333.5 | |||||||
Cumulative undistributed earnings of foreign subsidiaries | 1,279.70 | |||||||
Cash paid, net of refunds | 73.9 | 63.8 | 39.9 | |||||
Penalties and interest accrued related to income tax liabilities | 1.6 | 2.1 | ||||||
Utilization of tax attributes, annual limitation | 70.6 | |||||||
Change in deferred tax assets and related valuation allowance | 389.6 | |||||||
United Kingdom | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Rate change in the company's income tax provision | 11.4 | 9.2 | ||||||
Corporate tax rate | 21.00% | 23.00% | 24.00% | 26.00% | ||||
Tax audit for the years | 2010 | |||||||
2015 | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 11.1 | |||||||
Tax credit carryforwards, set to expire | 7.5 | |||||||
2016 | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 8.7 | |||||||
Tax credit carryforwards, set to expire | 10.5 | |||||||
2017 | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 11.9 | |||||||
Tax credit carryforwards, set to expire | 48.2 | |||||||
2018 | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 24.6 | |||||||
Tax credit carryforwards, set to expire | 20.8 | |||||||
2019 | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 8.4 | |||||||
Tax credit carryforwards, set to expire | 20.6 | |||||||
Thereafter | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax loss carryforwards, set to expire | 818.6 | |||||||
Tax credit carryforwards, set to expire | $225.90 | |||||||
India | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax audit for the years | 2006 | |||||||
Brazil | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Tax audit for the years | 2009 | |||||||
Scenario, Forecast | United Kingdom | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Corporate tax rate | 20.00% | |||||||
Minimum | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Expected change in ownership percentage | 50.00% |
Significant_Portions_Of_Deferr
Significant Portions Of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets | ||
Tax loss carryforwards | $883.30 | $888.80 |
Postretirement benefits | 791.3 | 566.3 |
Foreign tax credit carryforwards | 245.5 | 252.4 |
Other tax credit carryforwards | 88 | 88.9 |
Deferred revenue | 60.5 | 86.4 |
Employee benefits and compensation | 44.6 | 42.4 |
Purchased capitalized software | 39.3 | 41.3 |
Capitalized research and development | 36 | 89.7 |
Depreciation | 34.9 | 31.6 |
Capitalized costs | 16.3 | 16.5 |
Warranty, bad debts and other reserves | 12.8 | 14.6 |
Other | 29.5 | 26.8 |
Deferred Tax Assets, Gross, Total | 2,282 | 2,145.70 |
Valuation allowance | -2,107.80 | -1,998.80 |
Total deferred tax assets | 174.2 | 146.9 |
Other | 37.9 | 33 |
Total deferred tax liabilities | 37.9 | 33 |
Net deferred tax assets | $136.30 | $113.90 |
Reconciliation_Of_Changes_In_U
Reconciliation Of Changes In Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Balance at January 1 | $26.30 | $29.20 | $24.30 |
Additions based on tax positions related to the current year | 14.4 | -2.4 | 3.5 |
Changes for tax positions of prior years | -1.4 | -0.1 | 1.4 |
Reductions as a result of a lapse of applicable statute of limitations | -1.6 | -0.4 | |
Settlements | -0.9 | -0.2 | -0.7 |
Changes due to foreign currency | -1.8 | -0.2 | 1.1 |
Balance at December 31 | $35 | $26.30 | $29.20 |
Components_Of_Properties_Detai
Components Of Properties (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | $1,059.40 | $1,095.50 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 2.8 | 3.2 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 80.1 | 86.1 |
Machinery and Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 644.9 | 677.8 |
Internal-Use Software | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | 257.7 | 244.6 |
Rental Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total properties | $73.90 | $83.80 |
Components_Of_LongTerm_Debt_De
Components Of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Capital leases | $14 | |
Total | 224 | 210 |
Less - current maturities | 1.8 | |
Total long-term debt | 222.2 | 210 |
6.25% Senior Notes Due 2017 | ||
Debt Instrument [Line Items] | ||
Senior notes | $210 | $210 |
Components_Of_LongTerm_Debt_Pa
Components Of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Interest rate of the debt instruments | 6.25% | |
6.25% Senior Notes Due 2017 | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity year | 2017 | 2017 |
Interest rate of the debt instruments | 6.25% | 6.25% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Long-term debt, due in 2017 | $210 | ||
Interest rate of the debt instruments | 6.25% | ||
Capital leases, due in 2015 | 1.8 | ||
Capital leases, due in 2016 | 2.6 | ||
Capital leases, due in 2017 | 2.7 | ||
Capital leases, due in 2018 | 2.4 | ||
Capital leases, due in 2019 | 1.3 | ||
Capital leases, thereafter | 3.2 | ||
Cash paid for interest | 13.2 | 12.9 | 42.5 |
Capitalized interest expense | 4 | 3.2 | 5.3 |
Maximum borrowing capacity under the credit agreement | 150 | ||
Letters of credit outstanding | 18.8 | ||
Availability under the facility | 100 | ||
Aggregate debt default amount to violate covenant, minimum | 50 | ||
Covenant conditions of the credit facility | The company is required to maintain a minimum fixed charge coverage ratio only if the companybs availability under the credit facility falls below the greater of 12.5% of the lendersb commitments under the facility and $18.75 million. The credit agreement allows the company to pay dividends on its capital stock in an amount up to $22.5 million per year unless the company is in default and to, among other things, repurchase its equity, prepay other debt, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, provided the company complies with certain requirements and limitations set forth in the agreement. | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Availability under the facility | 18.75 | ||
Percentage of lenders' commitments under facility | 12.50% | ||
Dividends on capital stock | 22.5 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity under the credit agreement | $100 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ||
Payrolls and commissions | $109.30 | $103.90 |
Accrued vacations | 60.8 | 67.2 |
Income taxes | 58.3 | 40.9 |
Taxes other than income taxes | 53.8 | 62.4 |
Postretirement | 22.6 | 25.1 |
Accrued interest | 4.9 | 4.9 |
Other | 75.4 | 71.3 |
Total other accrued liabilities | $385.10 | $375.70 |
Rental_Expense_and_Commitments1
Rental Expense and Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Line Items] | |||
Net rental expense | $83.70 | $85.30 | $84.70 |
Income from subleases | 8.5 | 7.4 | 8.5 |
Minimum net rental commitments under noncancelable operating leases in 2015 | 58.2 | ||
Minimum net rental commitments under noncancelable operating leases in 2016 | 47.2 | ||
Minimum net rental commitments under noncancelable operating leases in 2017 | 38.9 | ||
Minimum net rental commitments under noncancelable operating leases in 2018 | 26.6 | ||
Minimum net rental commitments under noncancelable operating leases in 2019 | 19.9 | ||
Minimum net rental commitments under noncancelable operating leases, thereafter | 34.3 | ||
Future minimum sublease rentals | 32 | ||
Standby letters of credit and surety bonds outstanding | 343 | ||
Deposits and collateralized assets | $58 |
Financial_Instruments_and_Conc1
Financial Instruments and Concentration of Credit Risks - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Counterparty Credit Concentration Risk [Line Items] | |||
Maturity period limit of foreign currency exchange instruments (in months) | 1 month | ||
Net fair value gain (loss) on foreign exchange forward contracts | $5.30 | $1.70 | |
Receivables due from U.S. federal governmental agencies | 94 | 79 | |
Difference between carrying amount and fair value of long-term debt | 9 | 15 | |
Other Income Expense Net | |||
Counterparty Credit Concentration Risk [Line Items] | |||
Gain (loss) on foreign exchange forward contracts | 17.3 | -7.3 | -0.4 |
Prepaid Expenses and Other Current Assets | |||
Counterparty Credit Concentration Risk [Line Items] | |||
Net fair value gain (loss) on foreign exchange forward contracts | 6.1 | 2 | |
Other Accrued Liabilities | |||
Counterparty Credit Concentration Risk [Line Items] | |||
Net fair value gain (loss) on foreign exchange forward contracts | -0.8 | -0.3 | |
Foreign Exchange Contract | |||
Counterparty Credit Concentration Risk [Line Items] | |||
Notional amount of foreign exchange forward contracts not designated as hedging instruments | $403.90 | $482.60 |
Foreign_Currency_Translation_A
Foreign Currency Translation - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 13, 2013 | Feb. 12, 2013 |
Foreign Currency Translation [Line Items] | |||||
Foreign currency exchange rate | 6.3 | 4.3 | |||
Foreign exchange loss | $7.40 | $6.50 | |||
Gain (loss) recognized on foreign exchange | -7 | 10.4 | -8.1 | ||
Venezuelan Subsidiary | |||||
Foreign Currency Translation [Line Items] | |||||
Foreign currency exchange rate | 12 | ||||
Asset, Reporting Currency Denominated, Value | $8 |
Litigation_and_Contingencies_A
Litigation and Contingencies - Additional Information (Detail) | Dec. 31, 2014 | Apr. 30, 2007 | Apr. 30, 2008 | Dec. 31, 2014 | Dec. 31, 2007 | Dec. 31, 2014 | Aug. 31, 2012 |
USD ($) | Ministry Of Justice Of Belgium | Ministry Of Justice Of Belgium | Lufthansa AG | Lufthansa AG | Lufthansa AG | Health Information Management (HIM) | |
EUR (€) | EUR (€) | EUR (€) | EUR (€) | Dismissed Claims | USD ($) | ||
EUR (€) | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages sought value | € 28,000,000 | € 21,400,000 | € 21,400,000 | $35,000,000 | |||
Counterclaim against termination of contract | 18,500,000 | 1,500,000 | 1,500,000 | ||||
Loss contingency, awarded value | 2,200,000 | ||||||
Loss contingency, interest awarded | 1,160,000 | ||||||
Amount of judgment awarded to Unisys | 240,000 | ||||||
Unreserved tax-related matters, inclusive of interest | $127,000,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customer | |||
Segment | |||
Segment Reporting Information [Line Items] | |||
Number of operating business segments | 2 | ||
Intersegment profit | $154.90 | $219.50 | $319.20 |
Number of Customers Accounted for more than 10% of revenue | 0 | ||
Revenues | 3,356.40 | 3,456.50 | 3,706.40 |
Various Agencies Of U.S. Government | |||
Segment Reporting Information [Line Items] | |||
Revenues | 529 | 512 | 523 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Intersegment profit | -78.7 | -90.1 | -95.1 |
Other Technology | Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Intersegment profit | $17 | $6 | $11.50 |
Customer_Revenue_by_Classes_of
Customer Revenue by Classes of Similar Products or Services (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||
Customer revenue | $3,356.40 | $3,456.50 | $3,706.40 |
Services | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 2,887.70 | 2,996.10 | 3,192.40 |
Technology | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 468.7 | 460.4 | 514 |
Systems Integration and Consulting | Services | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 942.8 | 956.9 | 1,079.30 |
Outsourcing | Services | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 1,412.70 | 1,428.70 | 1,475.50 |
Infrastructure Services | Services | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 347.4 | 428.1 | 442.4 |
Core Maintenance | Services | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 184.8 | 182.4 | 195.2 |
Enterprise-Class Software And Servers | Technology | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | 429 | 402.7 | 480.3 |
Other Technology | Technology | |||
Revenue from External Customer [Line Items] | |||
Customer revenue | $39.70 | $57.70 | $33.70 |
Reconciliation_of_Segment_Oper
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | $154.90 | $219.50 | $319.20 |
Interest expense | -9.2 | -9.9 | -27.5 |
Other income (expense), net | -0.2 | 9.8 | -37.6 |
Total income before income taxes | 145.5 | 219.4 | 254.1 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 233.6 | 309.6 | 414.3 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | ($78.70) | ($90.10) | ($95.10) |
Reconciliation_of_Total_Busine
Reconciliation of Total Business Segment Assets to Consolidated Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and cash equivalents | $494.30 | $639.80 | $655.60 | $714.90 |
Deferred income taxes | 174.2 | 146.9 | ||
Prepaid postretirement assets | 19.9 | 83.7 | 3.3 | |
Other corporate assets | 129.7 | 119.6 | 108.1 | |
Assets | 2,348.70 | 2,510 | 2,420.40 | |
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Deferred income taxes | 171 | 136.4 | 184.3 | |
Assets | $1,533.80 | $1,530.50 | $1,469.10 |
Summary_of_Operations_by_Segme
Summary of Operations by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenue | $3,356.40 | $3,456.50 | $3,706.40 |
Operating income (loss) | 154.9 | 219.5 | 319.2 |
Depreciation and amortization | 168.6 | 159.6 | 174.6 |
Total assets | 2,348.70 | 2,510 | 2,420.40 |
Capital expenditures | 212.8 | 151.4 | 132.6 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,356.40 | 3,456.50 | 3,706.40 |
Operating income (loss) | 233.6 | 309.6 | 414.3 |
Total assets | 1,533.80 | 1,530.50 | 1,469.10 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | -78.7 | -90.1 | -95.1 |
Total assets | 814.9 | 979.5 | 951.3 |
Capital expenditures | 4.9 | 2.9 | 3.7 |
Corporate | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | -112.3 | -122.5 | -123.1 |
Corporate | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | -112.3 | -122.5 | -123.1 |
Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,887.70 | 2,996.10 | 3,192.40 |
Operating income (loss) | 122.7 | 186.7 | 204.6 |
Depreciation and amortization | 103.2 | 91.8 | 102.4 |
Total assets | 1,099.20 | 1,126.70 | 1,085.90 |
Capital expenditures | 133.8 | 78.8 | 64.7 |
Services | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0.4 | 1.7 | 3.8 |
Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,888.10 | 2,997.80 | 3,196.20 |
Technology | |||
Segment Reporting Information [Line Items] | |||
Revenue | 468.7 | 460.4 | 514 |
Operating income (loss) | 110.9 | 122.9 | 209.7 |
Depreciation and amortization | 65.4 | 67.8 | 72.2 |
Total assets | 434.6 | 403.8 | 383.2 |
Capital expenditures | 74.1 | 69.7 | 64.2 |
Technology | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue | 111.9 | 120.8 | 119.3 |
Technology | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | $580.60 | $581.20 | $633.30 |
Revenue_Properties_and_Outsour
Revenue, Properties and Outsourcing Assets by Geographic Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $3,356.40 | $3,456.50 | $3,706.40 |
Properties, net | 168.7 | 174.7 | 176.4 |
Outsourcing assets, net | 150.9 | 115.5 | 126.3 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,378.10 | 1,370.60 | 1,455 |
Properties, net | 111.9 | 112.4 | 112.7 |
Outsourcing assets, net | 99.7 | 56.2 | 67.1 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 435.4 | 414 | 496.9 |
Properties, net | 22 | 24.7 | 23.1 |
Outsourcing assets, net | 25.8 | 28.1 | 30.3 |
Other International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,542.90 | 1,671.90 | 1,754.50 |
Properties, net | 34.8 | 37.6 | 40.6 |
Outsourcing assets, net | $25.40 | $31.20 | $28.90 |
Sale_of_Business_Additional_In
Sale of Business - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 30, 2012 | Dec. 31, 2012 |
Business Acquisitions and Dispositions [Line Items] | ||
Pretax gain on sale of divested business | $10.60 | |
Services and Technology | ||
Business Acquisitions and Dispositions [Line Items] | ||
Pretax gain on sale of divested business | 7.6 | |
Revenue from divested business | $47.60 |
Employee_Plans_Additional_Info
Employee Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Age | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of unissued common stock available for grant under the plans | 2,700,000 | ||
Age requirement for vesting provision, minimum | 55 | ||
Completion of service period (in years) for stock awards | 5 years | ||
Maximum contractual term of options granted (in years) | 5 years | ||
Option vesting period (in years) | 3 years | ||
Share-based compensation expense | $10.40 | $12.50 | $14.30 |
Cash received from stock options exercised | 3.4 | 4.9 | 0.4 |
Deferred compensation Liability | 12.1 | 13.2 | |
Recognized net actuarial loss | 149.9 | ||
Amortization of prior service cost | -2.5 | ||
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 | 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 | 1.5 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 7.1 | 9.3 | 8.9 |
Total intrinsic value of options exercised | 4.7 | 7.9 | 0.9 |
Total unrecognized compensation cost | 3.2 | ||
Unrecognized compensation cost, Weighted-average recognition period | 1 year 9 months 18 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.3 | 3.2 | 5.4 |
Total unrecognized compensation cost | 2 | ||
Unrecognized compensation cost, Weighted-average recognition period | 2 years 1 month 6 days | ||
Aggregate weighted-average grant-date fair value of units granted | 12.8 | 5.3 | 3.3 |
Aggregate weighted-average grant-date fair value of units vested | 3.3 | 4.5 | 4.1 |
Other Postretirement Benefit Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected pretax amortization of net loss in 2015 | 2.8 | ||
Expected pretax amortization of prior service cost in 2015 | 1.1 | ||
Recognized net actuarial loss | -1.7 | -4.5 | -3.2 |
Amortization of prior service cost | 1.7 | 1.8 | 1.8 |
Estimated cash contributions by the company in 2015 | 16 | ||
Pension Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | 10.6 | 11.8 | 12.1 |
Expected pretax amortization of net loss in 2015 | 199.3 | ||
Expected pretax amortization of prior service cost in 2015 | -4.4 | ||
Estimated cash contributions by the company in 2015 | 128.8 | ||
International Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost recognized for contribution plans | 25.2 | 26.7 | 30 |
Recognized net actuarial loss | -40.2 | -51.9 | -36.9 |
Amortization of prior service cost | -2.1 | -2.1 | -0.5 |
Estimated cash contributions by the company in 2015 | 76.2 | ||
U.S. Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized net actuarial loss | -109.7 | -139 | -124 |
Amortization of prior service cost | -0.4 | 0.7 | 0.7 |
Estimated cash contributions by the company in 2015 | $52.60 |
Fair_Value_Assumptions_on_Stoc
Fair Value Assumptions on Stock Option (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Weighted-average fair value of grant | $11.24 | $8.79 | $9.73 |
Risk-free interest rate | 1.04% | 0.54% | 0.54% |
Expected volatility | 45.65% | 50.19% | 71.29% |
Expected life of options in years | 3 years 8 months 16 days | 3 years 8 months 9 days | 3 years 7 months 24 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (Employee Stock Option, USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
Employee Stock Option | |
Shares | |
Outstanding at December 31, 2013 | 2,698 |
Granted | 756 |
Exercised | -272 |
Forfeited and expired | -366 |
Outstanding at December 31, 2014 | 2,816 |
Expected to vest at December 31, 2014 | 1,335 |
Exercisable at December 31, 2014 | 1,456 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2013 | $32.74 |
Granted | $32.20 |
Exercised | $14.25 |
Forfeited and expired | $70.30 |
Outstanding at December 31, 2014 | $29.51 |
Expected to vest at December 31, 2014 | $27.37 |
Exercisable at December 31, 2014 | $31.47 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding at December 31, 2014 | 2 years 4 months 13 days |
Expected to vest at December 31, 2014 | 3 years 5 months 27 days |
Exercisable at December 31, 2014 | 1 year 3 months 22 days |
Aggregate Intrinsic Value | |
Outstanding at December 31, 2014 | $9.10 |
Expected to vest at December 31, 2014 | 4.7 |
Exercisable at December 31, 2014 | $4.40 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock Units, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units | |
Restricted Stock Units | |
Outstanding at December 31, 2013 | 401 |
Granted | 397 |
Vested | -124 |
Forfeited and expired | -320 |
Outstanding at December 31, 2014 | 354 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at December 31, 2013 | $23.45 |
Granted | $32.16 |
Vested | $26.76 |
Forfeited and expired | $27.03 |
Outstanding at December 31, 2014 | $28.81 |
Funded_Status_of_the_Plan_and_
Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amounts recognized in the consolidated balance sheets consist of: | |||
Other accrued liabilities | ($22.60) | ($25.10) | |
Long-term postretirement liabilities | -2,369.90 | -1,697.20 | |
U.S. Plans | |||
Change in accumulated benefit obligation | |||
Benefit obligation at beginning of year | 5,158.80 | 5,646.80 | |
Interest cost | 248.3 | 220.4 | 252.9 |
Plan amendment | -46.3 | ||
Actuarial loss (gain) | 670 | -355.9 | |
Benefits paid | -365.3 | -352.5 | |
Benefit obligation at end of year | 5,665.50 | 5,158.80 | 5,646.80 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 4,048 | 3,786.70 | |
Actual return on plan assets | 299.9 | 572.6 | |
Employer contribution | 87.1 | 41.2 | |
Benefits paid | -365.3 | -352.5 | |
Fair value of plan assets at end of year | 4,069.70 | 4,048 | 3,786.70 |
Funded status at end of year | -1,595.80 | -1,110.80 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Other accrued liabilities | -6.9 | -6.9 | |
Long-term postretirement liabilities | -1,588.90 | -1,103.90 | |
Total funded status | -1,595.80 | -1,110.80 | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 2,973.50 | 2,425.90 | |
Prior service (credit) cost | -44.5 | 1.4 | |
Accumulated benefit obligation | 5,665.50 | 5,158.80 | |
International Plans | |||
Change in accumulated benefit obligation | |||
Benefit obligation at beginning of year | 3,059.20 | 2,945.40 | |
Service cost | 8.4 | 10.4 | 8.6 |
Interest cost | 117.9 | 106.6 | 113.1 |
Plan participants' contributions | 3.1 | 3.1 | |
Plan amendment | -1 | -6.3 | |
Plan curtailment | -0.3 | ||
Actuarial loss (gain) | 559.4 | -19.3 | |
Benefits paid | -115.4 | -100.8 | |
Foreign currency translation adjustments | -276.4 | 120.1 | |
Benefit obligation at end of year | 3,354.90 | 3,059.20 | 2,945.40 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,681.80 | 2,399.20 | |
Actual return on plan assets | 278 | 166.3 | |
Employer contribution | 96.3 | 106 | |
Plan participants' contributions | 3.1 | 3.1 | |
Benefits paid | -115.4 | -100.8 | |
Foreign currency translation adjustments | -224.9 | 108 | |
Fair value of plan assets at end of year | 2,718.90 | 2,681.80 | 2,399.20 |
Funded status at end of year | -636 | -377.4 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | 18.9 | 82.6 | |
Other accrued liabilities | -0.2 | -0.2 | |
Long-term postretirement liabilities | -654.7 | -459.8 | |
Total funded status | -636 | -377.4 | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 1,076.10 | 817.7 | |
Prior service (credit) cost | -12.8 | -16 | |
Accumulated benefit obligation | 3,349.30 | 3,051.50 | |
Other Postretirement Benefit Plans | |||
Change in accumulated benefit obligation | |||
Benefit obligation at beginning of year | 159.7 | 180.5 | |
Service cost | 0.6 | 0.6 | 0.5 |
Interest cost | 7.6 | 7.9 | 8.7 |
Plan participants' contributions | 4.6 | 4.9 | |
Actuarial loss (gain) | -2.4 | -11.5 | |
Federal drug subsidy | 1.4 | 1.8 | |
Benefits paid | -20 | -23.2 | |
Foreign currency translation adjustments | -1.5 | -1.3 | |
Benefit obligation at end of year | 150 | 159.7 | 180.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 9.2 | 9.7 | |
Actual return on plan assets | -0.2 | ||
Employer contribution | 15.3 | 18 | |
Plan participants' contributions | 4.6 | 4.9 | |
Benefits paid | -20 | -23.2 | |
Fair value of plan assets at end of year | 9.1 | 9.2 | 9.7 |
Funded status at end of year | -140.9 | -150.5 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Prepaid postretirement assets | 1 | 1.1 | |
Other accrued liabilities | -15.6 | -18 | |
Long-term postretirement liabilities | -126.3 | -133.6 | |
Total funded status | -140.9 | -150.5 | |
Accumulated other comprehensive loss, net of tax | |||
Net loss | 32 | 36.7 | |
Prior service (credit) cost | $1.20 | $3 |
Schedule_of_Accumulated_and_Pr
Schedule of Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Pension Plans with Accumulated and Projected Benefit Obligations in Excess of Plan Assets [Line Items] | ||
Accumulated benefit obligation | $8,412.60 | $7,210.40 |
Fair value of plan assets | 6,167.20 | 5,646.70 |
Projected benefit obligation | 8,417.90 | 7,217.40 |
Fair value of plan assets | $6,167.20 | $5,646.70 |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service (credit) | ($2.50) | ||
Recognized net actuarial loss | -149.9 | ||
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 248.3 | 220.4 | 252.9 |
Expected return on assets | -287.1 | -291.5 | -285.7 |
Amortization of prior service (credit) | -0.4 | 0.7 | 0.7 |
Recognized net actuarial loss | 109.7 | 139 | 124 |
Net periodic benefit cost | 70.5 | 68.6 | 91.9 |
International Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8.4 | 10.4 | 8.6 |
Interest cost | 117.9 | 106.6 | 113.1 |
Expected return on assets | -160.5 | -141.9 | -136.1 |
Amortization of prior service (credit) | -2.1 | -2.1 | -0.5 |
Recognized net actuarial loss | 40.2 | 51.9 | 36.9 |
Curtailment gain | -0.6 | -5.7 | |
Net periodic benefit cost | 3.3 | 24.9 | 16.3 |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | 0.6 | 0.5 |
Interest cost | 7.6 | 7.9 | 8.7 |
Expected return on assets | -0.5 | -0.5 | -0.5 |
Amortization of prior service (credit) | 1.7 | 1.8 | 1.8 |
Recognized net actuarial loss | 1.7 | 4.5 | 3.2 |
Net periodic benefit cost | $11.10 | $14.30 | $13.70 |
Schedule_of_WeightedAverage_As
Schedule of Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit cost | 5.86% | 5.15% | 5.84% |
Expected long-term rate of return on assets, net periodic benefit cost | 6.75% | 6.75% | 6.75% |
Discount rate, benefit obligations | 5.27% | 5.86% | 5.15% |
U.S. Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit cost | 5.02% | 4.01% | 4.96% |
Expected long-term rate of return on assets, net periodic benefit cost | 7.72% | 8.00% | 8.00% |
Discount rate, benefit obligations | 4.09% | 5.02% | 4.01% |
International Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate, net periodic benefit cost | 4.15% | 3.92% | 4.65% |
Rate of compensation increase, net periodic benefit cost | 2.08% | 2.06% | 2.66% |
Expected long-term rate of return on assets, net periodic benefit cost | 6.45% | 6.40% | 6.59% |
Discount rate, benefit obligations | 3.05% | 4.15% | 3.92% |
Rate of compensation increase, benefit obligations | 1.68% | 2.08% | 2.06% |
Companys_Investment_Policy_Tar
Company's Investment Policy Targets and Ranges for Each Asset Category (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
U.S. Plans | Equity Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 58.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 52.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 64.00% |
U.S. Plans | Debt Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 36.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 33.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 39.00% |
U.S. Plans | Real Estate | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 6.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 3.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 9.00% |
U.S. Plans | Cash | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 5.00% |
U.S. Plans | Other | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 0.00% |
International Plans | Equity Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 38.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 32.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 44.00% |
International Plans | Debt Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 55.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 48.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 62.00% |
International Plans | Real Estate | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 1.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 3.00% |
International Plans | Cash | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 1.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 5.00% |
International Plans | Other | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Defined benefit plan target allocation percentage of assets | 5.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Minimum | 0.00% |
Defined Benefit Plan Target Plan Asset Allocations Range Maximum | 10.00% |
Expected_Future_Benefit_Paymen
Expected Future Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
U.S. Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
Expected future benefit payments, 2015 | $362.70 |
Expected future benefit payments, 2016 | 363.7 |
Expected future benefit payments, 2017 | 365.7 |
Expected future benefit payments, 2018 | 366.4 |
Expected future benefit payments, 2019 | 367.2 |
Expected future benefit payments, 2020 - 2024 | 1,839.40 |
International Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
Expected future benefit payments, 2015 | 103.2 |
Expected future benefit payments, 2016 | 106 |
Expected future benefit payments, 2017 | 109.1 |
Expected future benefit payments, 2018 | 112 |
Expected future benefit payments, 2019 | 115.4 |
Expected future benefit payments, 2020 - 2024 | 615.9 |
Other Postretirement Benefit Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
Expected future benefit payments, 2015 | 19.6 |
Expected future benefit payments, 2016 | 17.2 |
Expected future benefit payments, 2017 | 16.6 |
Expected future benefit payments, 2018 | 15.8 |
Expected future benefit payments, 2019 | 15 |
Expected future benefit payments, 2020 - 2024 | 53.9 |
Gross Medicare Part D Receipts, 2015 | 1.3 |
Gross Medicare Part D Receipts, 2016 | 1.2 |
Gross Medicare Part D Receipts, 2017 | 1.1 |
Gross Medicare Part D Receipts, 2018 | 1 |
Gross Medicare Part D Receipts, 2019 | 0.9 |
Gross Medicare Part D Receipts, 2020 - 2024 | $2.70 |
Assumed_Health_Care_Cost_Trend
Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Other Postretirement Benefits Expected Benefit Payments[Line Items] | ||
Health care cost trend rate assumed for next year | 6.40% | 6.60% |
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 | 2023 | 2023 |
Effect_of_OnePercentagePoint_C
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items] | |
Effect on service and interest cost, 1-Percentage-Point Increase | $0.30 |
Effect on postretirement benefit obligation, 1-Percentage-Point Increase | 3.3 |
Effect on service and interest cost, 1-Percentage-Point Decrease | -0.2 |
Effect on postretirement benefit obligation, 1-Percentage-Point Decrease | ($4.40) |
Schedule_of_Plans_Assets_Liabi
Schedule of Plans' Assets (Liabilities) at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Postretirement Benefit Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | $9.10 | $9.20 |
Other Postretirement Benefit Plans | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.5 | |
Other Postretirement Benefit Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.8 | 0.4 |
Other Postretirement Benefit Plans | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.3 | |
Other Postretirement Benefit Plans | Exchange Traded Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.3 | |
U.S. Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 4,069.70 | 4,048 |
U.S. Plans | Equity Securities | Common Stock | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,837.40 | 1,916.20 |
U.S. Plans | Equity Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 461.6 | 494.3 |
U.S. Plans | Debt Securities | US And UK Government Securities | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 176.9 | 148.8 |
U.S. Plans | Debt Securities | Other Fixed Income | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,025.30 | 978.1 |
U.S. Plans | Debt Securities | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 17.4 | 79.5 |
U.S. Plans | Real Estate | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 34.2 | 34.7 |
U.S. Plans | Real Estate | Real Estate Investments Trust | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 169.1 | 145.7 |
U.S. Plans | Other | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 102.1 | 93.3 |
U.S. Plans | Other | Derivative | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 18.2 | -4.2 |
U.S. Plans | Other | Private Equity | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 12.8 | 16.5 |
U.S. Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 297.2 | 236.1 |
U.S. Plans | Cash | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -1.3 | 5.7 |
U.S. Plans | Receivables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 77.4 | 45.5 |
U.S. Plans | Payables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -158.6 | -142.2 |
International Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 2,718.90 | 2,681.80 |
International Plans | Equity Securities | Common Stock | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.6 | 1.8 |
International Plans | Equity Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,054.80 | 1,046.70 |
International Plans | Debt Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 991.1 | 983.7 |
International Plans | Debt Securities | Other Fixed Income | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 330.4 | 268.9 |
International Plans | Debt Securities | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 135.5 | 151.3 |
International Plans | Real Estate | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 40.8 | 42.8 |
International Plans | Real Estate | Real Estate Investments Trust | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.3 | 1.3 |
International Plans | Other | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 136.5 | 141 |
International Plans | Other | Derivative | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.2 | 19.1 |
International Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.2 | 3.2 |
International Plans | Cash | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 18.6 | 22.1 |
International Plans | Payables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -0.1 | -0.1 |
Fair Value, Inputs, Level 1 | Other Postretirement Benefit Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.3 | |
Fair Value, Inputs, Level 1 | Other Postretirement Benefit Plans | Exchange Traded Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.3 | |
Fair Value, Inputs, Level 1 | U.S. Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 2,101 | 2,115.20 |
Fair Value, Inputs, Level 1 | U.S. Plans | Equity Securities | Common Stock | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,831.60 | 1,916.20 |
Fair Value, Inputs, Level 1 | U.S. Plans | Debt Securities | US And UK Government Securities | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 176.9 | 148.8 |
Fair Value, Inputs, Level 1 | U.S. Plans | Real Estate | Real Estate Investments Trust | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 169.1 | 145.7 |
Fair Value, Inputs, Level 1 | U.S. Plans | Other | Derivative | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 5.9 | -4.5 |
Fair Value, Inputs, Level 1 | U.S. Plans | Cash | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -1.3 | 5.7 |
Fair Value, Inputs, Level 1 | U.S. Plans | Receivables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 77.4 | 45.5 |
Fair Value, Inputs, Level 1 | U.S. Plans | Payables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -158.6 | -142.2 |
Fair Value, Inputs, Level 1 | International Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 21.4 | 25.1 |
Fair Value, Inputs, Level 1 | International Plans | Equity Securities | Common Stock | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.6 | 1.8 |
Fair Value, Inputs, Level 1 | International Plans | Real Estate | Real Estate Investments Trust | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.3 | 1.3 |
Fair Value, Inputs, Level 1 | International Plans | Cash | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 18.6 | 22.1 |
Fair Value, Inputs, Level 1 | International Plans | Payables | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | -0.1 | -0.1 |
Fair Value, Inputs, Level 2 | Other Postretirement Benefit Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.8 | 0.4 |
Fair Value, Inputs, Level 2 | Other Postretirement Benefit Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.8 | 0.4 |
Fair Value, Inputs, Level 2 | U.S. Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,904.30 | 1,802.10 |
Fair Value, Inputs, Level 2 | U.S. Plans | Equity Securities | Common Stock | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 5.8 | |
Fair Value, Inputs, Level 2 | U.S. Plans | Equity Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 461.6 | 494.3 |
Fair Value, Inputs, Level 2 | U.S. Plans | Debt Securities | Other Fixed Income | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,025.30 | 978.1 |
Fair Value, Inputs, Level 2 | U.S. Plans | Other | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 102.1 | 93.3 |
Fair Value, Inputs, Level 2 | U.S. Plans | Other | Derivative | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 12.3 | 0.3 |
Fair Value, Inputs, Level 2 | U.S. Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 297.2 | 236.1 |
Fair Value, Inputs, Level 2 | International Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 2,470.50 | 2,412.40 |
Fair Value, Inputs, Level 2 | International Plans | Equity Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1,054.80 | 1,046.70 |
Fair Value, Inputs, Level 2 | International Plans | Debt Securities | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 991.1 | 983.7 |
Fair Value, Inputs, Level 2 | International Plans | Debt Securities | Other Fixed Income | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 330.4 | 268.9 |
Fair Value, Inputs, Level 2 | International Plans | Other | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 85.8 | 90.8 |
Fair Value, Inputs, Level 2 | International Plans | Other | Derivative | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.2 | 19.1 |
Fair Value, Inputs, Level 2 | International Plans | Pooled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 1.2 | 3.2 |
Fair Value, Inputs, Level 3 | Other Postretirement Benefit Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.3 | 7.5 |
Fair Value, Inputs, Level 3 | Other Postretirement Benefit Plans | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.5 | |
Fair Value, Inputs, Level 3 | Other Postretirement Benefit Plans | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 7.3 | |
Fair Value, Inputs, Level 3 | U.S. Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 64.4 | 130.7 |
Fair Value, Inputs, Level 3 | U.S. Plans | Debt Securities | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 17.4 | 79.5 |
Fair Value, Inputs, Level 3 | U.S. Plans | Real Estate | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 34.2 | 34.7 |
Fair Value, Inputs, Level 3 | U.S. Plans | Other | Private Equity | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 12.8 | 16.5 |
Fair Value, Inputs, Level 3 | International Plans | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 227 | 244.3 |
Fair Value, Inputs, Level 3 | International Plans | Debt Securities | Insurance Contracts | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 135.5 | 151.3 |
Fair Value, Inputs, Level 3 | International Plans | Real Estate | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | 40.8 | 42.8 |
Fair Value, Inputs, Level 3 | International Plans | Other | Commingled Funds | ||
Fair Value Hierarchy Of Plan Assets By Category [Line Items] | ||
Fair value of plan assets total | $50.70 | $50.20 |
Summary_of_Changes_in_Fair_Val
Summary of Changes in Fair Value of Plans' Level 3 Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | $3,786.70 | ||
Fair value of plan assets at end of year | 4,069.70 | 4,048 | 3,786.70 |
Other Postretirement Benefit Plans | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 9.7 | ||
Fair value of plan assets at end of year | 9.1 | 9.2 | 9.7 |
International Plans | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 2,399.20 | ||
Fair value of plan assets at end of year | 2,718.90 | 2,681.80 | 2,399.20 |
Fair Value, Inputs, Level 3 | U.S. Plans | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 130.7 | 146.5 | |
Realized gains (losses) | -19.6 | -17 | |
Sales or dispositions | -74.6 | -14.9 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | 27.9 | 16.1 | |
Fair value of plan assets at end of year | 64.4 | 130.7 | |
Fair Value, Inputs, Level 3 | U.S. Plans | Real Estate | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 34.7 | 34.8 | |
Realized gains (losses) | 4.7 | 0.5 | |
Sales or dispositions | -4.9 | -2.4 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | -0.3 | 1.8 | |
Fair value of plan assets at end of year | 34.2 | 34.7 | |
Fair Value, Inputs, Level 3 | U.S. Plans | Private Equity | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 16.5 | 20.8 | |
Realized gains (losses) | -24.4 | -17.5 | |
Sales or dispositions | -6.7 | -5.8 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | 27.4 | 19 | |
Fair value of plan assets at end of year | 12.8 | 16.5 | |
Fair Value, Inputs, Level 3 | U.S. Plans | Insurance Contracts | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 79.5 | 90.9 | |
Realized gains (losses) | 0.1 | ||
Sales or dispositions | -63 | -6.7 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | 0.8 | -4.7 | |
Fair value of plan assets at end of year | 17.4 | 79.5 | |
Fair Value, Inputs, Level 3 | Other Postretirement Benefit Plans | Insurance Contracts | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 7.5 | 7.9 | |
Realized gains (losses) | -0.2 | ||
Purchases or acquisitions | 0.2 | 0.2 | |
Sales or dispositions | -0.4 | -0.4 | |
Fair value of plan assets at end of year | 7.3 | 7.5 | |
Fair Value, Inputs, Level 3 | International Plans | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 244.3 | 235.9 | |
Realized gains (losses) | -0.1 | 0.4 | |
Purchases or acquisitions | 23.3 | 16.1 | |
Sales or dispositions | -28.8 | -25 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | -11.7 | 16.9 | |
Fair value of plan assets at end of year | 227 | 244.3 | |
Fair Value, Inputs, Level 3 | International Plans | Real Estate | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 42.8 | 31.1 | |
Realized gains (losses) | -0.2 | ||
Purchases or acquisitions | 15.3 | 9.5 | |
Sales or dispositions | -15.5 | ||
Currency and unrealized gains (losses) relating to instruments still held at end of year | -1.6 | 2.2 | |
Fair value of plan assets at end of year | 40.8 | 42.8 | |
Fair Value, Inputs, Level 3 | International Plans | Insurance Contracts | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 151.3 | 146.7 | |
Purchases or acquisitions | 7 | 6.6 | |
Sales or dispositions | -13 | -12.7 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | -9.8 | 10.7 | |
Fair value of plan assets at end of year | 135.5 | 151.3 | |
Fair Value, Inputs, Level 3 | International Plans | Commingled Funds | |||
Changes In Level 3 Assets And Liabilities Measured At Fair Value On Recurring Basis [Line Items] | |||
Fair value of plan assets at beginning of year | 50.2 | 58.1 | |
Realized gains (losses) | 0.1 | 0.4 | |
Purchases or acquisitions | 1 | ||
Sales or dispositions | -0.3 | -12.3 | |
Currency and unrealized gains (losses) relating to instruments still held at end of year | -0.3 | 4 | |
Fair value of plan assets at end of year | $50.70 | $50.20 |
Stockholders_Equity_Additional
Stockholder's Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 25 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 10, 2012 |
Schedule Of Stockholders Equity [Line Items] | |||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common stock, par value | $0.01 | $0.01 | $0.01 | ||
Preferred stock, shares authorized | 40,000,000 | 40,000,000 | |||
Preferred stock, par value | $1 | $1 | |||
Unissued common stock reserved for stock - based incentive plans and convertible preferred stock issuance | 6,300,000 | 6,300,000 | |||
Sale of preferred stock | 2,587,400 | ||||
Convertible preferred stock dividend, rate | 6.25% | ||||
Conversion rate of preferred stock | 6,912,756 | ||||
Convertible preferred stock, conversion date | 1-Mar-14 | ||||
Common stock repurchased, shares | 2,200,000 | ||||
Common stock repurchased, value | $35.70 | $11.70 | $47.30 | ||
Board of Directors | Maximum | |||||
Schedule Of Stockholders Equity [Line Items] | |||||
Common stock repurchase authorized amount | $50 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($3,333.40) | ($4,133.60) | ($3,700.90) |
Other comprehensive income before reclassifications | -638.8 | 985.1 | -275.9 |
Amounts reclassified from accumulated other comprehensive income | -141.2 | -184.9 | -156.8 |
Current period other comprehensive income | -780 | 800.2 | -432.7 |
Ending balance | -4,113.40 | -3,333.40 | -4,133.60 |
Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -676.8 | -634.3 | -649.1 |
Other comprehensive income before reclassifications | -61 | -42.5 | 14.8 |
Current period other comprehensive income | -61 | -42.5 | 14.8 |
Ending balance | -737.8 | -676.8 | -634.3 |
Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -2,656.60 | -3,499.30 | -3,051.80 |
Other comprehensive income before reclassifications | -577.8 | 1,027.60 | -290.7 |
Amounts reclassified from accumulated other comprehensive income | -141.2 | -184.9 | -156.8 |
Current period other comprehensive income | -719 | 842.7 | -447.5 |
Ending balance | ($3,375.60) | ($2,656.60) | ($3,499.30) |
Amounts_Related_to_Postretirem
Amounts Related to Postretirement Plans Not Reclassified in Entirely out of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amortization of prior service cost | ($0.70) | [1] | $0.40 | [1] |
Amortization of actuarial losses | 148.3 | [1] | 191.4 | [1] |
Curtailment gain | -0.6 | [1] | ||
Total before tax | 147 | 191.8 | ||
Income tax benefit | -5.8 | -6.9 | ||
Net of tax | $141.20 | $184.90 | ||
[1] | * These items are included in net periodic postretirement cost (see note 16). |
Changes_in_Preferred_Stock_Com
Changes in Preferred Stock, Common Stock and Treasury Stock (Detail) | 25 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option Activity And Changes [Line Items] | |||||
Common stock repurchases | 2.2 | ||||
Preferred Stock | |||||
Stock Option Activity And Changes [Line Items] | |||||
Beginning Balance | 2.6 | 2.6 | |||
Preferred stock conversion | -2.6 | ||||
Ending Balance | 2.6 | 2.6 | |||
Common Stock | |||||
Stock Option Activity And Changes [Line Items] | |||||
Beginning Balance | 45.1 | 44.3 | 43.8 | ||
Stock-based compensation | 0.4 | 0.8 | 0.5 | ||
Preferred stock conversion | 6.9 | ||||
Ending Balance | 52.4 | 52.4 | 45.1 | 44.3 | |
Treasury Stock | |||||
Stock Option Activity And Changes [Line Items] | |||||
Beginning Balance | 1.1 | 0.4 | 0.3 | ||
Common stock repurchases | 1.6 | 0.6 | |||
Stock-based compensation | 0.1 | 0.1 | |||
Ending Balance | 2.7 | 2.7 | 1.1 | 0.4 |