COMMITMENTS AND CONTINGENCIES

Commitments

The Company leases certain facilities and equipment used in its operations. Total rent expense was $129.3, $125.2 and $81.0 in 2015, 2014 and 2013, respectively.

At December 31, 2015, the total minimum rental commitments under non-cancelable operating leases are as follows:



2016	$	97.9
2017	75.8
2018	56.4
2019	36.4
2020	25.1
Thereafter	71.3
Total	$	362.9

At December 31, 2015, the Company had outstanding letters of credit and bond obligations of $26.0 related to performance guarantees, of which $18.2 is set to expire by the end of 2016, $7.6 is set to expire within one to three years and $0.2 is set to expire after three years.

At December 31, 2015, the Company had an outstanding performance bond obligation of $30.0 related to a performance guarantee for the Company’s former HR Management line of business which was sold in 2010 to NorthgateArinso. Subsequent to completion of the sale of the HR Management business, the Company continues to be responsible for this bond obligation. As part of the gain on disposition, the Company recognized a liability equal to the present value of probability weighted cash flows of potential outcomes, a Level 3 fair value measurement. Although the buyer is obligated to indemnify the Company for any and all losses, costs, liabilities and expenses incurred related to these performance bonds, as of December 31, 2015, the Company maintained a liability of $0.2 for these obligations. The Company’s guarantee for this bond obligation expires in August 2016.

The Company also has future purchase commitments with telecommunication and transportation providers of $54.1 at December 31, 2015.

Contingencies

The Company, from time to time, is subject to various loss contingencies, including tax and legal contingencies that arise in the ordinary course of business. The Company accrues for a loss contingency when it is probable that a liability has been incurred and the amount of such loss can be reasonably estimated. At this time, the Company believes that any such contingencies, either individually or in the aggregate, will not have a materially adverse effect on the Company’s results of operations or financial condition. However, the outcome of litigation cannot be predicted with certainty, and unfavorable resolution of one or more pending matters could have a materially adverse impact on the Company’s results of operations or financial condition in the future.

In November 2011, one of the Company’s call center clients, Hyundai Motor America (Hyundai), tendered a contractual indemnity claim to Convergys Customer Management Group Inc., a subsidiary of the Company, relating to a putative class action captioned Brandon Wheelock, individually and on behalf of a class and subclass of similarly situated individuals, v. Hyundai Motor America, Orange County Superior Court, California, Case No. 30-2011-00522293-CU-BT-CJC. The lawsuit alleged that Hyundai violated California’s telephone recording laws by recording telephone calls with customer service representatives without providing a disclosure that the calls might be recorded.

An amended settlement agreement was executed by the plaintiff, Hyundai and Convergys Customer Management Group Inc., and received final approval from the Court during the fourth quarter of 2015. The Company’s liability with respect to the proposed settlement was fully accrued at December 31, 2015, and did not have a material impact on the Company’s liquidity, results of operations or financial condition with final payment made during January 2016.