þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Large accelerated filer | þ | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
PART I | Page | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
(Amounts in millions except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||
Revenues | $ | 692.3 | $ | 716.7 | $ | 1,414.4 | $ | 1,457.2 | |||||
Costs and Expenses: | |||||||||||||
Cost of providing services and products sold (1) | 435.9 | 463.1 | 887.1 | 935.5 | |||||||||
Selling, general and administrative | 170.0 | 169.4 | 341.5 | 341.2 | |||||||||
Depreciation | 31.2 | 36.3 | 63.1 | 72.9 | |||||||||
Amortization | 6.9 | 7.0 | 13.8 | 14.0 | |||||||||
Restructuring charges | 1.0 | 2.4 | 2.5 | 3.4 | |||||||||
Transaction and integration costs | 2.3 | 2.2 | 2.3 | 4.7 | |||||||||
Total Costs and Expenses | 647.3 | 680.4 | 1,310.3 | 1,371.7 | |||||||||
Operating Income | 45.0 | 36.3 | 104.1 | 85.5 | |||||||||
Other income, net | 0.5 | — | 0.5 | 2.8 | |||||||||
Interest expense | (4.5 | ) | (4.7 | ) | (9.0 | ) | (9.3 | ) | |||||
Income before Income Taxes | 41.0 | 31.6 | 95.6 | 79.0 | |||||||||
Income tax expense | 7.8 | 2.6 | 17.9 | 10.8 | |||||||||
Income from Continuing Operations, net of tax | 33.2 | 29.0 | 77.7 | 68.2 | |||||||||
Income from Discontinued Operations, net of tax | — | — | — | 0.1 | |||||||||
Net Income | $ | 33.2 | $ | 29.0 | $ | 77.7 | $ | 68.3 | |||||
Basic Earnings per Common Share: | |||||||||||||
Continuing Operations | $ | 0.35 | $ | 0.29 | $ | 0.81 | $ | 0.69 | |||||
Discontinued Operations | — | — | — | — | |||||||||
Basic Earnings per Common Share | $ | 0.35 | $ | 0.29 | $ | 0.81 | $ | 0.69 | |||||
Diluted Earnings per Common Share: | |||||||||||||
Continuing Operations | $ | 0.32 | $ | 0.28 | $ | 0.75 | $ | 0.65 | |||||
Discontinued Operations | — | — | — | — | |||||||||
Diluted Earnings per Common Share | $ | 0.32 | $ | 0.28 | $ | 0.75 | $ | 0.65 | |||||
Weighted Average Common Shares Outstanding: | |||||||||||||
Basic | 96.2 | 98.4 | 96.4 | 98.7 | |||||||||
Diluted | 102.7 | 105.0 | 103.0 | 105.3 | |||||||||
Cash Dividends Declared per Share | $ | 0.09 | $ | 0.08 | $ | 0.17 | $ | 0.15 |
(1) | Exclusive of depreciation and amortization, with the exception of amortization of deferred charges. |
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | |||||||||
Net Income | $ | 33.2 | $ | 29.0 | $ | 77.7 | $ | 68.3 | |||||
Other Comprehensive Income, net of tax: | |||||||||||||
Foreign currency translation adjustments | (11.2 | ) | 10.1 | (1.2 | ) | (18.8 | ) | ||||||
Change related to minimum pension liability | 1.0 | 1.6 | 2.0 | 3.2 | |||||||||
Unrealized (loss) gain on hedging activities | (6.9 | ) | (1.8 | ) | 15.1 | 2.9 | |||||||
Total other comprehensive (loss) income | (17.1 | ) | 9.9 | 15.9 | (12.7 | ) | |||||||
Total Comprehensive Income | $ | 16.1 | $ | 38.9 | $ | 93.6 | $ | 55.6 |
June 30, 2016 | December 31, 2015 | |||||
(Amounts in millions) | (Unaudited) | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 242.7 | $ | 204.7 | ||
Short-term investments | 11.4 | 12.2 | ||||
Receivables, net of allowances of $2.9 and $5.3 | 522.7 | 536.3 | ||||
Prepaid expenses | 50.2 | 37.9 | ||||
Other current assets | 34.9 | 32.2 | ||||
Total current assets | 861.9 | 823.3 | ||||
Property and equipment, net | 301.2 | 329.1 | ||||
Goodwill | 832.0 | 830.3 | ||||
Other intangibles, net | 303.7 | 318.1 | ||||
Deferred income tax assets | 13.5 | 14.6 | ||||
Other assets | 45.3 | 41.2 | ||||
Total Assets | $ | 2,357.6 | $ | 2,356.6 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities: | ||||||
Debt and capital lease obligations maturing within one year | $ | 2.2 | $ | 3.4 | ||
Payables and other current liabilities | 322.2 | 335.0 | ||||
Total current liabilities | 324.4 | 338.4 | ||||
Long-term debt and capital lease obligations | 307.3 | 335.9 | ||||
Deferred income tax liabilities | 185.5 | 176.0 | ||||
Accrued pension liabilities | 90.0 | 92.1 | ||||
Other long-term liabilities | 69.0 | 75.1 | ||||
Total liabilities | 976.2 | 1,017.5 | ||||
Convertible debentures conversion feature | 62.1 | 62.9 | ||||
Shareholders’ Equity: | ||||||
Preferred shares—without par value, 5.0 authorized; none issued or outstanding | — | — | ||||
Common shares—without par value, 500.0 authorized; 190.9 and 190.4 issued, 95.9 and 96.8 outstanding, as of June 30, 2016 and December 31, 2015, respectively | 1,099.8 | 1,095.5 | ||||
Treasury stock—95.0 and 93.5 as of June 30, 2016 and December 31, 2015, respectively | (1,601.7 | ) | (1,563.7 | ) | ||
Retained earnings | 1,907.1 | 1,846.2 | ||||
Accumulated other comprehensive loss | (85.9 | ) | (101.8 | ) | ||
Total shareholders’ equity | 1,319.3 | 1,276.2 | ||||
Total Liabilities and Shareholders’ Equity | $ | 2,357.6 | $ | 2,356.6 |
Six Months Ended | ||||||
June 30, | ||||||
(Amounts in millions) | 2016 | 2015 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ | 77.7 | $ | 68.3 | ||
Income from discontinued operations, net of tax | — | 0.1 | ||||
Income from continuing operations, net of tax | 77.7 | 68.2 | ||||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations: | ||||||
Depreciation and amortization | 76.9 | 86.9 | ||||
Deferred income tax benefit | (1.3 | ) | (0.6 | ) | ||
Stock compensation expense | 8.3 | 7.7 | ||||
Changes in assets and liabilities, net of acquisitions: | ||||||
Change in receivables | 9.0 | (11.5 | ) | |||
Change in other current assets | (11.6 | ) | (18.1 | ) | ||
Change in deferred charges, net | 0.7 | 0.8 | ||||
Change in other assets and liabilities | (1.5 | ) | (32.7 | ) | ||
Change in payables and other current liabilities | (1.9 | ) | 32.1 | |||
Net cash provided by operating activities | 156.3 | 132.8 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures | (34.3 | ) | (51.6 | ) | ||
Purchase of short-term and other investments | (0.8 | ) | — | |||
Net cash used in investing activities | (35.1 | ) | (51.6 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Repayments of other long-term debt and capital lease obligations | (2.0 | ) | (54.2 | ) | ||
Proceeds from Asset Securitization Facility | 449.0 | 374.0 | ||||
Repayment of Asset Securitization Facility | (478.0 | ) | (359.0 | ) | ||
Repurchase of common shares | (38.0 | ) | (33.1 | ) | ||
Proceeds from exercise of stock options | 0.3 | 0.9 | ||||
Payments of dividends | (15.5 | ) | (13.9 | ) | ||
Excess tax benefit from share-based payment arrangements | 1.0 | 0.5 | ||||
Net cash used in financing activities | (83.2 | ) | (84.8 | ) | ||
Net increase (decrease) in cash and cash equivalents | 38.0 | (3.6 | ) | |||
Cash and cash equivalents at beginning of period | 204.7 | 198.9 | ||||
Cash and cash equivalents at end of period | $ | 242.7 | $ | 195.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Gain on disposition | $ | — | $ | 0.2 | $ | 0.8 | $ | 0.3 | |||||
Income before income taxes | — | 0.2 | 0.8 | 0.3 | |||||||||
Income tax expense: | |||||||||||||
Expense related to gain on disposition | — | 0.2 | 0.8 | 0.2 | |||||||||
Income from discontinued operations, net of tax | $ | — | $ | — | $ | — | $ | 0.1 |
Continuing Operations | Discontinued Operations | Total | |||||||||||||||
Shares (in millions) | Shares | Net Income | Per Share Amount | Net Income | Per Share Amount | Per Share Amount | |||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||
Basic EPS | 96.2 | $ | 33.2 | $ | 0.35 | $ | — | $ | — | $ | 0.35 | ||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.6 | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Convertible Debt | 5.9 | — | (0.02 | ) | — | — | (0.02 | ) | |||||||||
Diluted EPS | 102.7 | $ | 33.2 | $ | 0.32 | $ | — | $ | — | $ | 0.32 | ||||||
Six Months Ended June 30, 2016 | |||||||||||||||||
Basic EPS | 96.4 | $ | 77.7 | $ | 0.81 | $ | — | $ | — | $ | 0.81 | ||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.7 | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Convertible Debt | 5.9 | — | (0.05 | ) | — | — | (0.05 | ) | |||||||||
Diluted EPS | 103.0 | $ | 77.7 | $ | 0.75 | $ | — | $ | — | $ | 0.75 | ||||||
Three Months Ended June 30, 2015 | |||||||||||||||||
Basic EPS | 98.4 | $ | 29.0 | $ | 0.29 | $ | — | $ | — | $ | 0.29 | ||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.7 | — | — | — | — | — | |||||||||||
Convertible Debt | 5.9 | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Diluted EPS | 105.0 | $ | 29.0 | $ | 0.28 | $ | — | $ | — | $ | 0.28 | ||||||
Six Months Ended June 30, 2015 | |||||||||||||||||
Basic EPS | 98.7 | $ | 68.2 | $ | 0.69 | $ | 0.1 | $ | — | $ | 0.69 | ||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.7 | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Convertible Debt | 5.9 | — | (0.03 | ) | — | — | (0.03 | ) | |||||||||
Diluted EPS | 105.3 | $ | 68.2 | $ | 0.65 | $ | 0.1 | $ | — | $ | 0.65 |
Announcement Date | Record Date | Dividend Amount | Payment Date |
November 5, 2014 | December 26, 2014 | $0.07 | January 9, 2015 |
February 18, 2015 | March 20, 2015 | $0.07 | April 3, 2015 |
May 5, 2015 | June 18, 2015 | $0.08 | July 2, 2015 |
August 4, 2015 | September 18, 2015 | $0.08 | October 2, 2015 |
November 4, 2015 | December 24, 2015 | $0.08 | January 8, 2016 |
February 23, 2016 | March 24, 2016 | $0.08 | April 8, 2016 |
May 9, 2016 | June 24, 2016 | $0.09 | July 8, 2016 |
June 30, 2016 | Gross Carrying Amount | Accumulated Amortization | Net | ||||||
Software (classified within Property and equipment, net) | $ | 41.3 | $ | (40.4 | ) | $ | 0.9 | ||
Trademarks | 25.9 | (19.3 | ) | 6.6 | |||||
Customer relationships and other intangibles | 457.4 | (160.3 | ) | 297.1 | |||||
Total | $ | 524.6 | $ | (220.0 | ) | $ | 304.6 |
December 31, 2015 | Gross Carrying Amount | Accumulated Amortization | Net | ||||||
Software (classified within Property and equipment, net) | $ | 41.3 | $ | (38.5 | ) | $ | 2.8 | ||
Trademarks | 26.0 | (17.3 | ) | 8.7 | |||||
Customer relationships and other intangibles | 458.1 | (148.7 | ) | 309.4 | |||||
Total | $ | 525.4 | $ | (204.5 | ) | $ | 320.9 |
For the year ended December 31, 2017 | $ | 27.4 | |
For the year ended December 31, 2018 | 23.3 | ||
For the year ended December 31, 2019 | 22.9 | ||
For the year ended December 31, 2020 | 22.3 | ||
For the year ended December 31, 2021 | 20.6 | ||
Thereafter | 173.5 |
June 30, 2016 | December 31, 2015 | |||||
Term Loan, due 2019 | $ | 212.4 | $ | 212.0 | ||
Convertible Debentures, due 2029 | 62.9 | 62.1 | ||||
Capital Lease Obligations | 4.7 | 6.7 | ||||
Accounts Receivable Securitization | 31.0 | 60.0 | ||||
Total debt | 311.0 | 340.8 | ||||
Less debt issuance costs | 1.5 | 1.5 | ||||
Total debt, net | 309.5 | 339.3 | ||||
Less current maturities | 2.2 | 3.4 | ||||
Long-term debt | $ | 307.3 | $ | 335.9 |
2016 | $ | 1.4 | |
2017 | 32.7 | ||
2018 | 0.8 | ||
2019 | 215.5 | ||
2020 | 0.4 | ||
2021 | — | ||
Thereafter | 125.0 | ||
Total | $ | 375.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Service cost | $ | 1.6 | $ | 1.9 | $ | 3.3 | $ | 3.8 | |||||
Interest cost on projected benefit obligation | 2.2 | 2.7 | 4.4 | 5.4 | |||||||||
Expected return on plan assets | (2.5 | ) | (2.6 | ) | (5.0 | ) | (5.2 | ) | |||||
Amortization and deferrals—net | 1.7 | 2.7 | 3.4 | 5.4 | |||||||||
Total pension cost | $ | 3.0 | $ | 4.7 | $ | 6.1 | $ | 9.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Service cost | $ | 0.3 | $ | 0.4 | $ | 0.6 | $ | 0.8 | |||||
Interest cost on projected benefit obligation | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||
Total pension cost | $ | 0.4 | $ | 0.5 | $ | 0.8 | $ | 1.0 |
Shares (in millions) | Number of Shares | Weighted Average Fair Value at Date of Grant | |||
Non-vested at December 31, 2015 | 1.3 | 20.20 | |||
Granted | 0.5 | 26.43 | |||
Vested | (0.5 | ) | 19.23 | ||
Forfeited | — | — | |||
Non-vested at June 30, 2016 | 1.3 | $ | 23.14 |
Shares (in millions) | Number of Shares | Weighted Average Fair Value at Date of Grant | |||
Non-vested at December 31, 2015 | 0.3 | 21.84 | |||
Granted | 0.3 | 26.49 | |||
Vested | (0.3 | ) | 21.87 | ||
Forfeited | — | — | |||
Non-vested at June 30, 2016 | 0.3 | $ | 26.48 |
Shares (in millions) | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Weighted Average Fair Value at Date of Grant (per share) | ||||||||
Options outstanding at December 31, 2015 | 0.5 | $ | 13.33 | 5.6 | $ | 3.78 | ||||||
Options exercisable at December 31, 2015 | 0.5 | $ | 13.33 | 5.6 | $ | 3.74 | ||||||
Granted | — | — | ||||||||||
Exercised | (0.1 | ) | 13.76 | |||||||||
Forfeited | — | — | ||||||||||
Options outstanding at June 30, 2016 | 0.4 | $ | 13.31 | 5.1 | $ | 3.77 | ||||||
Options exercisable at June 30, 2016 | 0.4 | $ | 13.31 | 5.1 | $ | 3.77 |
June 30, 2016 | December 31, 2015 | |||||
Forward exchange contracts and options designated as hedging instruments: | ||||||
Included within other current assets | $ | 3.3 | $ | 1.2 | ||
Included within other non-current assets | 3.7 | 0.8 | ||||
Included within other current liabilities | 18.2 | 29.7 | ||||
Included within other long-term liabilities | 6.8 | 14.7 |
Gain (Loss) Recognized in OCL on Derivative (Effective Portion) | Gain (Loss) Reclassified from Accumulated OCL into Income (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated OCL into Income (Effective Portion) | |||||
Three Months Ended June 30, 2016 | |||||||
Foreign exchange contracts | $ | (16.0 | ) | $ | (4.6 | ) | Cost of providing services and products sold and Selling, general and administrative |
Six Months Ended June 30, 2016 | |||||||
Foreign exchange contracts | $ | 11.1 | $ | (13.3 | ) | Cost of providing services and products sold and Selling, general and administrative | |
Three Months Ended June 30, 2015 | |||||||
Foreign exchange contracts | $ | (7.1 | ) | $ | (4.2 | ) | Cost of providing services and products sold and Selling, general and administrative |
Six Months Ended June 30, 2015 | |||||||
Foreign exchange contracts | $ | (3.1 | ) | $ | (7.9 | ) | Cost of providing services and products sold and Selling, general and administrative |
June 30, 2016 | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Derivatives: | |||||||||||||||
Foreign currency forward contracts (asset position) | $ | 7.8 | $ | — | $ | 7.8 | $ | — | |||||||
Foreign currency forward contracts (liability position) | $ | 25.0 | $ | — | $ | 25.0 | $ | — |
December 31, 2015 | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Derivatives: | |||||||||||||||
Foreign currency forward contracts (asset position) | $ | 2.1 | $ | — | $ | 2.1 | $ | — | |||||||
Foreign currency forward contracts (liability position) | $ | 44.4 | $ | — | $ | 44.4 | $ | — |
June 30, 2016 | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Investment securities: | |||||||||||||||
Mutual funds | $ | 9.5 | $ | 9.5 | $ | — | $ | — | |||||||
Convergys common stock | 1.3 | 1.3 | — | — | |||||||||||
Money market accounts | 0.6 | 0.6 | — | — | |||||||||||
Total | $ | 11.4 | $ | 11.4 | $ | — | $ | — |
December 31, 2015 | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Investment securities: | |||||||||||||||
Mutual funds | $ | 9.7 | $ | 9.7 | $ | — | $ | — | |||||||
Convergys common stock | 1.8 | 1.8 | — | — | |||||||||||
Money market accounts | 0.7 | 0.7 | — | — | |||||||||||
Total | $ | 12.2 | $ | 12.2 | $ | — | $ | — |
At June 30, 2016 | At December 31, 2015 | |||||
Payables and other current liabilities: | ||||||
Accounts payable | $ | 50.6 | $ | 48.0 | ||
Accrued income and other taxes | 24.6 | 23.9 | ||||
Accrued payroll-related expenses | 137.6 | 140.6 | ||||
Derivative liabilities | 18.2 | 29.7 | ||||
Accrued expenses, other | 73.2 | 69.0 | ||||
Restructuring and exit costs | 2.1 | 4.3 | ||||
Deferred revenue and government grants | 15.9 | 19.5 | ||||
$ | 322.2 | $ | 335.0 |
Foreign Currency | Derivative Financial Instruments | Pension Liability | Total | ||||||||||||||
Balance at December 31, 2014 | $ | (1.1 | ) | $ | (18.3 | ) | $ | (47.3 | ) | $ | (66.7 | ) | |||||
Other comprehensive (loss) income before reclassifications | (28.9 | ) | 2.4 | — | (26.5 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 2.3 | 1.6 | 3.9 | |||||||||||||
Net current-period other comprehensive (loss) income | (28.9 | ) | 4.7 | 1.6 | (22.6 | ) | |||||||||||
Balance at March 31, 2015 | $ | (30.0 | ) | $ | (13.6 | ) | $ | (45.7 | ) | $ | (89.3 | ) | |||||
Other comprehensive income (loss) before reclassifications | 10.1 | (4.4 | ) | — | 5.7 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 2.6 | 1.6 | 4.2 | |||||||||||||
Net current-period other comprehensive income (loss) | 10.1 | (1.8 | ) | 1.6 | 9.9 | ||||||||||||
Balance at June 30, 2015 | (19.9 | ) | (15.4 | ) | (44.1 | ) | (79.4 | ) | |||||||||
Balance at December 31, 2015 | $ | (38.2 | ) | $ | (26.1 | ) | $ | (37.5 | ) | $ | (101.8 | ) | |||||
Other comprehensive income before reclassifications, net of tax | 10.0 | 16.7 | — | 26.7 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 5.3 | 1.0 | 6.3 | |||||||||||||
Net current-period other comprehensive income | 10.0 | 22.0 | 1.0 | 33.0 | |||||||||||||
Balance at March 31, 2016 | $ | (28.2 | ) | $ | (4.1 | ) | $ | (36.5 | ) | $ | (68.8 | ) | |||||
Other comprehensive loss before reclassifications, net of tax | (11.2 | ) | (9.8 | ) | — | (21.0 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 2.9 | 1.0 | 3.9 | |||||||||||||
Net current-period other comprehensive (loss) income | (11.2 | ) | (6.9 | ) | 1.0 | (17.1 | ) | ||||||||||
Balance at June 30, 2016 | $ | (39.4 | ) | $ | (11.0 | ) | $ | (35.5 | ) | $ | (85.9 | ) |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | |||||||||
Loss on derivative instruments | $ | (4.6 | ) | $ | (13.3 | ) | Cost of providing services and products sold and Selling, general and administrative | |||
Tax benefit | 1.7 | 5.1 | Income tax expense | |||||||
Loss on derivative instruments, net of tax | (2.9 | ) | (8.2 | ) | Income from Continuing Operations, net of tax | |||||
Adjustments of pension and other post employment obligations | (1.6 | ) | (3.2 | ) | Selling, general and administrative | |||||
Tax benefit | 0.6 | 1.2 | Income tax expense | |||||||
Adjustment of pension and other post employment obligations, net of tax | (1.0 | ) | (2.0 | ) | Income from Continuing Operations, net of tax | |||||
Total reclassifications for the period | $ | (3.9 | ) | $ | (10.2 | ) | ||||
Three Months Ended June 30, 2015 | Six Months Ended June 30, 2015 | |||||||||
Loss on derivative instruments | $ | (4.2 | ) | $ | (7.9 | ) | Cost of providing services and products sold and Selling, general and administrative | |||
Tax benefit | 1.6 | 3.0 | Income tax expense | |||||||
Loss on derivative instruments, net of tax | (2.6 | ) | (4.9 | ) | Income from Continuing Operations, net of tax | |||||
Adjustments of pension and other post employment obligations | (2.5 | ) | (5.0 | ) | Selling, general and administrative | |||||
Tax benefit | 0.9 | 1.8 | Income tax expense | |||||||
Adjustment of pension and other post employment obligations, net of tax | (1.6 | ) | (3.2 | ) | Income from Continuing Operations, net of tax | |||||
Total reclassifications for the period | $ | (4.2 | ) | $ | (8.1 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||||
Revenues: | |||||||||||||||||||||||
Communications | $ | 348.4 | $ | 396.1 | $ | (47.7 | ) | (12 | ) | $ | 713.6 | $ | 793.7 | $ | (80.1 | ) | (10 | ) | |||||
Technology | 153.9 | 143.3 | 10.6 | 7 | 318.3 | 293.6 | 24.7 | 8 | |||||||||||||||
Financial Services | 51.1 | 51.9 | (0.8 | ) | (2 | ) | 106.2 | 107.0 | (0.8 | ) | (1 | ) | |||||||||||
Other | 138.9 | 125.4 | 13.5 | 11 | 276.3 | 262.9 | 13.4 | 5 | |||||||||||||||
Total Revenues | $ | 692.3 | $ | 716.7 | $ | (24.4 | ) | (3 | ) | $ | 1,414.4 | $ | 1,457.2 | $ | (42.8 | ) | (3 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||||
Operating Costs: | |||||||||||||||||||||||
Cost of providing services and products sold | $ | 435.9 | $ | 463.1 | $ | (27.2 | ) | (6 | ) | $ | 887.1 | $ | 935.5 | $ | (48.4 | ) | (5 | ) | |||||
Selling, general and administrative | 170.0 | 169.4 | 0.6 | — | 341.5 | 341.2 | 0.3 | — | |||||||||||||||
Depreciation | 31.2 | 36.3 | (5.1 | ) | (14 | ) | 63.1 | 72.9 | (9.8 | ) | (13 | ) | |||||||||||
Amortization | 6.9 | 7.0 | (0.1 | ) | (1 | ) | 13.8 | 14.0 | (0.2 | ) | (1 | ) | |||||||||||
Restructuring | 1.0 | 2.4 | (1.4 | ) | (58 | ) | 2.5 | 3.4 | (0.9 | ) | (26 | ) | |||||||||||
Transaction related expenses | 1.2 | — | 1.2 | 100 | 1.2 | — | 1.2 | 100 | |||||||||||||||
Integration related expenses | 1.1 | 2.2 | (1.1 | ) | (50 | ) | 1.1 | 4.7 | (3.6 | ) | (77 | ) | |||||||||||
Total costs and expenses | $ | 647.3 | $ | 680.4 | $ | (33.1 | ) | (5 | ) | $ | 1,310.3 | $ | 1,371.7 | $ | (61.4 | ) | (4 | ) |
1. | Depreciation of $2.3 and $5.5 for the three and six months ended June 30, 2016, respectively, and $5.3 and $10.8, respectively, in the prior year period, resulting from the fair value write-up of property and equipment acquired from Stream; |
2. | Amortization of acquired intangible assets of $6.9 and $13.8 for the three and six months ended June 30, 2016 , respectively, and $7.0 and $14.0, respectively, in the prior year period; |
3. | Transaction expenses of $1.2 for the three and six months ended June 30, 2016, associated with the acquisition of buw, primarily related to fees paid for third-party consulting services; |
4. | Integration expenses of $1.1 for the three and six months ended June 30, 2016, compared to $2.2 and $4.7 for the same period in 2015, associated with Convergys’ integration of the acquired Stream operations. These expenses primarily related to fees for third-party consulting services and severance expense. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||||
Operating Income | $ | 45.0 | $ | 36.3 | $ | 8.7 | 24 | $ | 104.1 | $ | 85.5 | $ | 18.6 | 22 | |||||||||
Operating Margin | 6.5 | % | 5.1 | % | 7.4 | % | 5.9 | % | |||||||||||||||
Depreciation of property & equipment write-up | 2.3 | 5.3 | (3.0 | ) | (57 | ) | 5.5 | 10.8 | (5.3 | ) | (49 | ) | |||||||||||
Amortization of acquired intangible assets | 6.9 | 7.0 | (0.1 | ) | (1 | ) | 13.8 | 14.0 | (0.2 | ) | (1 | ) | |||||||||||
Transaction related expenses | 1.2 | — | 1.2 | 100 | 1.2 | — | 1.2 | 100 | |||||||||||||||
Integration related expenses | 1.1 | 2.2 | (1.1 | ) | (50 | ) | 1.1 | 4.7 | (3.6 | ) | (77 | ) | |||||||||||
Adjusted Operating Income (a non-GAAP measure) | $ | 56.5 | $ | 50.8 | $ | 5.7 | 11 | $ | 125.7 | $ | 115.0 | $ | 10.7 | 9 | |||||||||
Adjusted Operating Margin | 8.2 | % | 7.1 | % | 8.9 | % | 7.9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||||
Operating Income | $ | 45.0 | $ | 36.3 | $ | 8.7 | 24 | $ | 104.1 | $ | 85.5 | $ | 18.6 | 22 | |||||||||
Other income, net | 0.5 | — | 0.5 | 100 | 0.5 | 2.8 | (2.3 | ) | (82 | ) | |||||||||||||
Interest expense | (4.5 | ) | (4.7 | ) | 0.2 | (4 | ) | (9.0 | ) | (9.3 | ) | 0.3 | (3 | ) | |||||||||
Income before Income Taxes | $ | 41.0 | $ | 31.6 | $ | 9.4 | 30 | $ | 95.6 | $ | 79.0 | $ | 16.6 | 21 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||
Income before Income Taxes | $ | 41.0 | $ | 31.6 | $ | 9.4 | 30 | $ | 95.6 | $ | 79.0 | $ | 16.6 | 21 | |||||||
Income tax expense | 7.8 | 2.6 | 5.2 | NM | 17.9 | 10.8 | 7.1 | 66 | |||||||||||||
Income from Continuing Operations, net of tax | $ | 33.2 | $ | 29.0 | $ | 4.2 | 14 | $ | 77.7 | $ | 68.2 | $ | 9.5 | 14 |
1. | Tax benefit of $4.9 for the three and six months ended June 30, 2015, resulting from favorable resolutions of tax audits. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | ||||||||||||||||
Income from Continuing Operations, net of tax | $ | 33.2 | $ | 29.0 | $ | 4.2 | 14 | $ | 77.7 | $ | 68.2 | $ | 9.5 | 14 | |||||||||
Total operating charges from above | 11.5 | 14.5 | (3 | ) | (21 | ) | 21.6 | 29.5 | (7.9 | ) | (27 | ) | |||||||||||
Income tax impact from total operating charges | (3.1 | ) | $ | (4.3 | ) | 1.2 | (28 | ) | (6.1 | ) | (8.8 | ) | $ | 2.7 | (31 | ) | |||||||
Release of income tax reserve | — | $ | (4.9 | ) | 4.9 | (100 | ) | — | (4.9 | ) | $ | 4.9 | (100 | ) | |||||||||
Adjusted income from Continuing Operations, net of tax (a non-GAAP measure) | $ | 41.6 | $ | 34.3 | $ | 7.3 | 21 | $ | 93.2 | $ | 84.0 | $ | 9.2 | 11 | |||||||||
Diluted Earnings per Common Share: | |||||||||||||||||||||||
Continuing Operations | $ | 0.32 | $ | 0.28 | $ | 0.04 | 14 | $ | 0.75 | $ | 0.65 | $ | 0.10 | 15 | |||||||||
Impact of net charges above included in Continuing Operations, net of tax | 0.09 | 0.05 | 0.04 | 80 | 0.16 | 0.15 | 0.01 | 7 | |||||||||||||||
Adjusted diluted earnings per common share from Continuing Operations (a non-GAAP measure) | $ | 0.41 | $ | 0.33 | $ | 0.08 | 24 | $ | 0.91 | $ | 0.80 | $ | 0.11 | 14 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | Change | % | 2016 | 2015 | Change | % | |||||||||||||||
Income from Continuing Operations, net of tax | $ | 33.2 | $ | 29.0 | $ | 4.2 | 14 | $ | 77.7 | $ | 68.2 | $ | 9.5 | 14 | ||||||||
Income from Discontinued Operations, net of expense of $0.2, for the three months ended June 30, 2015 and $0.8 and $0.2 for the six months ended June 30, 2016 and 2015, respectively. | — | — | — | — | — | 0.1 | (0.1 | ) | (100 | ) | ||||||||||||
Net Income | $ | 33.2 | $ | 29.0 | $ | 4.2 | 14 | $ | 77.7 | $ | 68.3 | $ | 9.4 | 14 | ||||||||
Diluted Earnings Per Common Share: | ||||||||||||||||||||||
Continuing Operations | $ | 0.32 | $ | 0.28 | $ | 0.04 | 14 | $ | 0.75 | $ | 0.65 | $ | 0.10 | 15 | ||||||||
Discontinued Operations | — | — | — | — | — | — | — | — | ||||||||||||||
Net Diluted Earnings Per Common Share | $ | 0.32 | $ | 0.28 | $ | 0.04 | 14 | $ | 0.75 | $ | 0.65 | $ | 0.10 | 15 |
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Income from Continuing Operations, net of tax | $ | 33.2 | $ | 29.0 | $ | 77.7 | $ | 68.2 | |||||
Depreciation and Amortization | 38.1 | 43.3 | 76.9 | 86.9 | |||||||||
Interest expense | 4.5 | 4.7 | 9.0 | 9.3 | |||||||||
Income tax expense | 7.8 | 2.6 | 17.9 | 10.8 | |||||||||
EBITDA (a non-GAAP measure) | 83.6 | 79.6 | 181.5 | 175.2 | |||||||||
Transaction related expenses | 1.2 | — | 1.2 | — | |||||||||
Integration related expenses | 1.1 | 2.2 | 1.1 | 4.7 | |||||||||
Adjusted EBITDA (a non-GAAP measure) | $ | 85.9 | $ | 81.8 | $ | 183.8 | $ | 179.9 | |||||
EBITDA Margin | 12.1 | % | 11.1 | % | 12.8 | % | 12.0 | % | |||||
Adjusted EBITDA Margin | 12.4 | % | 11.4 | % | 13.0 | % | 12.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Net cash flow provided by operating activities under U.S. GAAP | $ | 79.7 | $ | 67.6 | $ | 156.3 | $ | 132.8 | |||||
Capital expenditures, net of proceeds from disposal of assets | (23.3 | ) | (23.0 | ) | (34.3 | ) | (51.6 | ) | |||||
Free cash flows (a non-GAAP measure) | $ | 56.4 | $ | 44.6 | $ | 122.0 | $ | 81.2 | |||||
Stream acquisition - cash paid for transaction and integration related expenses (A) | 1.4 | 2.4 | 2.8 | 6.9 | |||||||||
Adjusted free cash flow (a non-GAAP measure) | $ | 57.8 | $ | 47.0 | $ | 124.8 | $ | 88.1 |
(A) | Since these payments were associated with investment activity, we have excluded these amounts from our adjusted free cash flow calculation. |
Announcement Date | Record Date | Dividend Amount | Payment Date |
November 5, 2014 | December 26, 2014 | $0.07 | January 9, 2015 |
February 18, 2015 | March 20, 2015 | $0.07 | April 3, 2015 |
May 5, 2015 | June 18, 2015 | $0.08 | July 2, 2015 |
August 4, 2015 | September 18, 2015 | $0.08 | October 2, 2015 |
November 4, 2015 | December 24, 2015 | $0.08 | January 8, 2016 |
February 23, 2016 | March 24, 2016 | $0.08 | April 8, 2016 |
May 9, 2016 | June 24, 2016 | $0.09 | July 8, 2016 |
Shares repurchased | Average price per share | |||||
January 2016 | 255,019 | $ | 23.60 | |||
February 2016 | 254,000 | 24.71 | ||||
March 2016 | 299,293 | 26.59 | ||||
April 2016 | 217,801 | 26.98 | ||||
May 2016 | 212,201 | 27.27 | ||||
June 2016 | 230,901 | 26.42 | ||||
Total | 1,469,215 | $ | 25.87 |
2.1 | Share and Partnership Interest Purchase Agreement, dated July 6, 2016. (Incorporated by reference from Exhibit 2.1 to Form 8-K filed on July 7, 2016.) |
3.1 | Amended Articles of Incorporation of the Company. (Incorporated by reference from Exhibit 3.1 to Form 10-Q filed on May 5, 2010.) |
3.2 | Amended and Restated Code of Regulations of Convergys Corporation. (Incorporated by reference from Exhibit 3.1 to Form 8-K filed on May 2, 2011.) |
21 | Subsidiaries of the Company. |
31.1 | Rule 13a - 14(a) Certification by Chief Executive Officer. |
31.2 | Rule 13a - 14(a) Certification by Chief Financial Officer. |
32.1 | Certification by Chief Executive Officer of Periodic Financial Reports Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification by Chief Financial Officer of Periodic Financial Reports Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed on August 8, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements. |
CONVERGYS CORPORATION | ||||
Date: | August 8, 2016 | By: | /s/ Andre S. Valentine | |
Andre S. Valentine Chief Financial Officer | ||||
(on behalf of the Registrant and as principal financial officer) |
Exhibit 21 to 2016 10-Q | |||||||||||||||||||||||
Convergys Corporation Direct and Indirect Subsidiaries | |||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||
Entity Name | Jurisdiction | ||||||||||||||||||||||
Convergys Corporation | Ohio | ||||||||||||||||||||||
Asset Ohio Fourth Street LLC | Ohio | ||||||||||||||||||||||
Convergys Software Service (Beijing) Ltd. | Peoples Republic of China | ||||||||||||||||||||||
Convergys Government Solutions LLC | Ohio | ||||||||||||||||||||||
Convergys Customer Management Group Inc. | Ohio | ||||||||||||||||||||||
SGS Holdings, Inc. (90.60156%) | Delaware | ||||||||||||||||||||||
Stream Global Services, Inc. | Delaware | ||||||||||||||||||||||
Stream Global Services El Salvador S.A. de C.V. (0.1%) | El Salvador | ||||||||||||||||||||||
Stream Holdings Corporation | Delaware | ||||||||||||||||||||||
Stream Florida Inc. | Delaware | ||||||||||||||||||||||
Stream Ireland Contact Services Limited | Ireland | ||||||||||||||||||||||
Stream New York Inc. | Delaware | ||||||||||||||||||||||
Convergys Italy S.R.L. (fka Stream Italy S.R.L.) | Italy | ||||||||||||||||||||||
Stream Global Services - US, Inc. | Delaware | ||||||||||||||||||||||
Stream Global Services - AZ, Inc. | Arizona | ||||||||||||||||||||||
Stream International (Bermuda) Ltd. | Bermuda | ||||||||||||||||||||||
Stream International Egypt LLC (1%) | Egypt | ||||||||||||||||||||||
Stream Global Services El Salvador S.A. de C.V. (99.9%) | El Salvador | ||||||||||||||||||||||
Convergys Philippines Inc. (fka Stream International Global Services Philippines, Inc.) (1.5625%) | Philippines | ||||||||||||||||||||||
Stream Global Services Honduras S.A. (99.6%) | Honduras | ||||||||||||||||||||||
Stream Global Services Denmark ApS | Denmark | ||||||||||||||||||||||
Stream International Service Europe BV | Netherlands | ||||||||||||||||||||||
Stream International Egypt LLC (99%) | Egypt | ||||||||||||||||||||||
SGS Tunisie S.A.R.L. (1%) | Tunisia | ||||||||||||||||||||||
Stream Contact Tunisie S.A.R.L. (fka N2SP Tunisie S.A.R.L.) (1%) | Tunisia | ||||||||||||||||||||||
Convergys Ireland Limited (fka Stream Ireland Limited) | Ireland | ||||||||||||||||||||||
SGS Tunisie S.A.R.L. (99%) | Tunisia | ||||||||||||||||||||||
Stream Contact Tunisie S.A.R.L. (fka N2SP Tunisie S.A.R.L.) (99%) | Tunisia | ||||||||||||||||||||||
Rheinsee 530. VV GmbH | Germany | ||||||||||||||||||||||
Stream Mauritius Limited | Mauritius | ||||||||||||||||||||||
Stream International Inc. | Delaware | ||||||||||||||||||||||
Stream Global Services Honduras S.A. (0.4%) | Honduras | ||||||||||||||||||||||
Convergys International Nordic AB (fka Stream International Nordic AB) | Sweden | ||||||||||||||||||||||
Convergys International Sp. Z.o.o. (fka Stream International Sp. z.o.o.) (99%) | Poland | ||||||||||||||||||||||
Convergys Luxembourg | Luxembourg | ||||||||||||||||||||||
Convergys International Inc. | Delaware | ||||||||||||||||||||||
SGS Holdings, Inc. (9.39844%) | Delaware | ||||||||||||||||||||||
Convergys Group Servicios de Apoyo Informatico, S.L. (fka Stream Servicios de Apoyo Informatico, S.L.) | Spain | ||||||||||||||||||||||
Convergys Group Limited (fka Stream International (N.I.) Limited) | United Kingdom | ||||||||||||||||||||||
Convergys International Sp. Z.o.o. (fka Stream International Sp. z.o.o.) (1%) | Poland | ||||||||||||||||||||||
Stream Tunisie, S.A.R.L. (1%) | Tunisia | ||||||||||||||||||||||
Convergys Global Services GmbH (fka Stream Global Services GmbH) | Germany | ||||||||||||||||||||||
Convergys International Europe B.V. (fka Stream International Europe B.V.) | Netherlands | ||||||||||||||||||||||
Stream Tunisie, S.A.R.L. (99%) | Tunisia | ||||||||||||||||||||||
Convergys International Bulgaria EOOD (fka Stream International Bulgaria EOOD) | Bulgaria | ||||||||||||||||||||||
Convergys Customer Management C.V. (2.8695% LP) | Netherlands | ||||||||||||||||||||||
Convergys Customer Management Australia Pty Ltd | Australia | ||||||||||||||||||||||
Convergys Customer Management Colombia S.A.S. | Colombia | ||||||||||||||||||||||
Convergys Funding Inc. | Kentucky | ||||||||||||||||||||||
Convergys Customer Management International Inc. | Ohio | ||||||||||||||||||||||
Convergys Customer Management Group Canada Holding Inc. | Delaware | ||||||||||||||||||||||
Convergys Customer Management Delaware LLC | Delaware | ||||||||||||||||||||||
Convergys Netherlands LLC | Delaware | ||||||||||||||||||||||
Convergys Customer Management C.V. (0.0026% GP) | Netherlands | ||||||||||||||||||||||
Convergys Customer Management C.V. (97.1279% LP) | Netherlands | ||||||||||||||||||||||
Convergys International Luxembourg S.a.r.l. | Luxembourg | ||||||||||||||||||||||
Convergys Services Denmark ApS | Denmark | ||||||||||||||||||||||
Convergys Canada LLC | Delaware | ||||||||||||||||||||||
SGS Netherlands CV (0.68525%) | Netherlands | ||||||||||||||||||||||
Convergys Canada LP (0.1% GP) | Canada | ||||||||||||||||||||||
Convergys Canada LP (99.9% LP) | Canada | ||||||||||||||||||||||
Convergys Canada Holding B.V. | Netherlands | ||||||||||||||||||||||
Convergys Netherlands B.V. | Netherlands | ||||||||||||||||||||||
CCM Limited Partner ULC | Nova Scotia, Canada | ||||||||||||||||||||||
Stream International Canada ULC | Canada | ||||||||||||||||||||||
Convergys CMG Canada Limited Partnership (99% LP) | Manitoba, Canada | ||||||||||||||||||||||
Convergys New Brunswick, Inc. | New Brunswick, Canada | ||||||||||||||||||||||
Convergys CMG Canada Limited Partnership (1% GP) | Manitoba, Canada | ||||||||||||||||||||||
Convergys International B.V. | Netherlands | ||||||||||||||||||||||
Convergys Malaysia Sdn Bhd (fka Datacom South East Asia (M) Sdn. Bhd.) | Malaysia | ||||||||||||||||||||||
Intervoice, LLC (30%) | Texas | ||||||||||||||||||||||
SGS Netherlands CV (99.31475% GP) | Netherlands | ||||||||||||||||||||||
Stream Global Services LLC | Delaware | ||||||||||||||||||||||
SGS Netherlands Cooperatief U.A. (1%) | Netherlands | ||||||||||||||||||||||
SGS Netherlands Cooperatief U.A. (99%) | Netherlands | ||||||||||||||||||||||
SGS Netherlands Investment Corporation B.V. | Netherlands | ||||||||||||||||||||||
Convergys Philippines Inc. (fka Stream International Global Services Philippines, Inc.) (98.4375%) | Philippines | ||||||||||||||||||||||
Convergys Nicaragua, S.A. (fka Stream Global Services Nicaragua, S.A.) (0.01%) | Nicaragua | ||||||||||||||||||||||
eTelecare Philippines, Inc. | Philippines | ||||||||||||||||||||||
Convergys Services Philippines, Inc. (fka Stream Global Services Phils, Inc.) | Philippines | ||||||||||||||||||||||
Convergys Philippines Services Corporation | Philippines | ||||||||||||||||||||||
Convergys Singapore Holdings Pte. Ltd. | Singapore | ||||||||||||||||||||||
Convergys Malaysia (Philippines) Sdn Bhd (fka Datacom Connect (Phil) Sdn Bhd) | Malaysia | ||||||||||||||||||||||
Convergys Global Services Hong Kong Limited (fka Stream Global Services Hong Kong Limited) | Hong Kong | ||||||||||||||||||||||
Convergys (Suzhou) Information Consulting Co., Limited (fka Stream (Suzhou) Information Consulting Co., Limited) | China | ||||||||||||||||||||||
Suzhou Ke Wei Xun Information Services Co., Ltd. (fka Suzhou SiJun Information Services Co. Ltd.) | China | ||||||||||||||||||||||
Convergys Services Singapore Pte, Ltd. (fka Stream Global Services - Singapore Pte. Ltd.) | Singapore | ||||||||||||||||||||||
Stream Business Process Outsourcing South Africa (Proprietary) Ltd. | South Africa | ||||||||||||||||||||||
eTelcare Global Solutions - UK, Ltd. | United Kingdom | ||||||||||||||||||||||
Convergys Nicaragua, S.A. (fka Stream Global Services Nicaragua, S.A.) (99.99%) | Nicaragua | ||||||||||||||||||||||
Convergys Holdings (GB) Limited (fka LBM Holdings Limited) | United Kingdom | ||||||||||||||||||||||
Convergys Holdings (UK) Ltd. (fka LBM Holdings (UK) Ltd.) | United Kingdom | ||||||||||||||||||||||
Convergys Intelligent Contact Ltd. (fka Stream Intelligent Contact Ltd., fka LBM Direct Marketing Ltd.) | United Kingdom | ||||||||||||||||||||||
Convergys Korea Limited (51%) | Korea | ||||||||||||||||||||||
Convergys Customer Management Mexico S. de R.L. de C.V. (1%) | Mexico | ||||||||||||||||||||||
Convergys Customer Management Netherlands B.V. | Netherlands | ||||||||||||||||||||||
Convergys CMG UK Limited | United Kingdom | ||||||||||||||||||||||
PT Convergys Customer Management Indonesia (1%) | Indonesia | ||||||||||||||||||||||
Encore Receivable Management, Inc. | Kansas | ||||||||||||||||||||||
Convergys India Services Private Limited | India | ||||||||||||||||||||||
DigitalThink (India) Pvt. Ltd. | India | ||||||||||||||||||||||
Convergys CMG Insurance Services LLC | Ohio | ||||||||||||||||||||||
Convergys Learning Solutions LLC | Delaware | ||||||||||||||||||||||
Convergys Customer Management Mexico S. de R.L. de C.V. (99%) | Mexico | ||||||||||||||||||||||
Intervoice, LLC (70%) | Texas | ||||||||||||||||||||||
Edify LLC | Delaware | ||||||||||||||||||||||
Intervoice do Brasil Comerico Servicos e Partipacoes Ltda. (0.000007%) | Brazil | ||||||||||||||||||||||
Intervoice GP, Inc. | Nevada | ||||||||||||||||||||||
Intervoice Limited Partnership (1%) | Nevada | ||||||||||||||||||||||
Intervoice LP, Inc. | Nevada | ||||||||||||||||||||||
Intervoice Limited Partnership (99%) | Nevada | ||||||||||||||||||||||
Intervoice Acquisition Subsidiary, Inc. | Nevada | ||||||||||||||||||||||
Intervoice Colombia Ltda. (6%) | Colombia | ||||||||||||||||||||||
Intervoice Colombia Ltda. (94%) | Colombia | ||||||||||||||||||||||
Intervoice do Brasil Comerico Servicos e Partipacoes Ltda. (99.999993%) | Brazil | ||||||||||||||||||||||
Brite Voice Systems, LLC | Kansas | ||||||||||||||||||||||
Intervoice Pte Ltd. | Singapore | ||||||||||||||||||||||
Intervoice Limited | United Kingdom | ||||||||||||||||||||||
Intervoice GmbH | Germany | ||||||||||||||||||||||
Convergys South Africa (Pty) Ltd (fka French Rose 14 (Pty) Ltd) | South Africa | ||||||||||||||||||||||
PT Convergys Customer Management Indonesia (99%) | Indonesia | ||||||||||||||||||||||
• All subsidiaries conduct business under their legal name. |
1. | I have reviewed this quarterly report on Form 10-Q of Convergys Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 8, 2016 | /s/ Andrea J. Ayers | |
Andrea J. Ayers | |||
Chief Executive Officer | |||
1. | I have reviewed this quarterly report on Form 10-Q of Convergys Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 8, 2016 | /s/ Andre S. Valentine | |
Andre S. Valentine | |||
Chief Financial Officer | |||
/s/ Andrea J. Ayers |
Andrea J. Ayers Chief Executive Officer |
/s/ Andre S. Valentine |
Andre S. Valentine Chief Financial Officer |
Document and Entity Information Document |
6 Months Ended |
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Jun. 30, 2016
shares
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Document and Entity Information [Abstract] | |
Entity Registrant Name | CONVERGYS CORP. |
Entity Central Index Key | 0001062047 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 95,908,672 |
Trading symbol | cvg |
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Revenues | $ 692.3 | $ 716.7 | $ 1,414.4 | $ 1,457.2 | ||
Operating Costs and Expenses: | ||||||
Cost of providing services and products sold | [1] | 435.9 | 463.1 | 887.1 | 935.5 | |
Selling, general and administrative expenses | 170.0 | 169.4 | 341.5 | 341.2 | ||
Depreciation | 31.2 | 36.3 | 63.1 | 72.9 | ||
Amortization | 6.9 | 7.0 | 13.8 | 14.0 | ||
Restructuring charges | 1.0 | 2.4 | 2.5 | 3.4 | ||
Transaction and integration costs | 2.3 | 2.2 | 2.3 | 4.7 | ||
Total costs and expenses | 647.3 | 680.4 | 1,310.3 | 1,371.7 | ||
Operating Income (Loss) | 45.0 | 36.3 | 104.1 | 85.5 | ||
Other income (expense), net | 0.5 | 0.0 | 0.5 | 2.8 | ||
Interest expense | (4.5) | (4.7) | (9.0) | (9.3) | ||
Income (loss) before income taxes | 41.0 | 31.6 | 95.6 | 79.0 | ||
Income tax expense | 7.8 | 2.6 | 17.9 | 10.8 | ||
Income (loss) from continuing operations | 33.2 | 29.0 | 77.7 | 68.2 | ||
Income (loss) from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (0.1) | ||
Net Income (Loss) | $ 33.2 | $ 29.0 | $ 77.7 | $ 68.3 | ||
Basic Earnings (Loss) per share: | ||||||
Continuing operations | $ 0.35 | $ 0.29 | $ 0.81 | $ 0.69 | ||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | ||
Net basic earnings (loss) per share | 0.35 | 0.29 | 0.81 | 0.69 | ||
Diluted Earnings (Loss) per share: | ||||||
Continuing operations | 0.32 | 0.28 | 0.75 | 0.65 | ||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | ||
Net diluted earnings (loss) per share | $ 0.32 | $ 0.28 | $ 0.75 | $ 0.65 | ||
Weighted average common shares outstanding: | ||||||
Basic | 96.2 | 98.4 | 96.4 | 98.7 | ||
Diluted | 102.7 | 105.0 | 103.0 | 105.3 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.15 | ||
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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Net Income (Loss) | $ 33.2 | $ 29.0 | $ 77.7 | $ 68.3 |
Foreign currency translation adjustments | 11.2 | (10.1) | 1.2 | 18.8 |
Change related to pension liability, net of tax | 1.0 | 1.6 | 2.0 | 3.2 |
Unrealized gain (loss) on hedging activities, net of tax | (6.9) | (1.8) | 15.1 | 2.9 |
Total other comprehensive income (loss) | (17.1) | 9.9 | 15.9 | (12.7) |
Total Comprehensive Income (Loss) | $ 16.1 | $ 38.9 | $ 93.6 | $ 55.6 |
Balance Sheet Parenthetical (Parentheticals) - USD ($) shares in Millions, $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Allowance for Doubtful Accounts Receivable, Current | $ 2.9 | $ 5.3 |
Preferred Stock, Value, Issued | $ 0.0 | $ 0.0 |
Preferred Stock, Shares Authorized | 5.0 | 5.0 |
Preferred Stock, Shares Outstanding | 0.0 | 0.0 |
Common Stock, Par or Stated Value Per Share | $ 0.0 | $ 0.0 |
Common Stock, Shares Authorized | 500.0 | 500.0 |
Common Stock, Shares, Issued | 190.9 | 190.4 |
Common Stock, Shares, Outstanding | 95.9 | 96.8 |
Treasury Stock, Shares | 95.0 | 93.5 |
Background And Basis Of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | BACKGROUND AND BASIS OF PRESENTATION Convergys Corporation (the Company or Convergys) is a global customer management leader, focused on bringing value to its clients through every customer interaction. As of June 30, 2016, Convergys had approximately 130,000 employees working in more than 150 locations in 31 countries, interacting with our clients’ customers in 58 languages. In order to help clients serve their customers, Convergys operates over 130 contact centers. Convergys leverages its geographic footprint and comprehensive capabilities to help leading companies create quality customer experiences across multiple interaction channels, such as voice, chat, email and interactive voice response. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations, and, in the opinion of management, include all adjustments necessary for a fair presentation of the results of operations, financial position and cash flows for each period shown. All adjustments are of a normal and recurring nature. Certain information and footnote disclosures normally included in Financial Statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. Interim Consolidated Financial Statements are not necessarily indicative of the financial position or operating results for an entire year. These interim Consolidated Financial Statements should be read in conjunction with the audited Financial Statements and the Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed on February 23, 2016. Certain balances within the prior year Consolidated Financial Statements have been reclassified to conform to current year presentation. |
Recent Accounting Pronouncements Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, "Improvements to Employee Share-Based Payment Accounting." This ASU is intended to simplify accounting for share-based payments. Upon adoption, this ASU will require that excess tax benefits for share-based payments be recorded as a reduction of income tax expense and reflected within operating cash flows rather than being recorded within equity and reflected within financing cash flows. This update is effective for interim and annual periods beginning after December 15, 2016. The Company is currently assessing the effect that adoption of the new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” This ASU will require lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as finance leases or operating leases. This update is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The Company is currently assessing the effect that adoption of the new standard will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This ASU was effective for interim and annual periods beginning after December 15, 2015 and was required to be applied retrospectively. The Company adopted this ASU as of March 31, 2016, and as a result debt issuance costs of $1.5 are reducing the carrying amounts of the Company's long-term debt as of June 30, 2016. As required under the ASU, this adoption resulted in the reclassification of $1.5 of debt issuance costs included in other current assets and other non-current assets to long-term debt on the Consolidated Balance Sheet as of December 31, 2015. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." The standard will apply one comprehensive revenue recognition model across all contracts, entities and sectors. The core principal of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Once effective, this ASU will replace most of the existing revenue recognition requirements in U.S. GAAP. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently assessing the effect that adoption of the new standard, including possible adoption alternatives, will have on its consolidated financial statements. |
Business Combination Business Combination |
6 Months Ended |
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Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Stream Acquisition On January 6, 2014, the Company and its wholly-owned subsidiary (Merger Sub), entered into an Agreement and Plan of Merger (the Merger Agreement) with Stream and, for limited purposes, other Sellers listed in the Merger Agreement. On March 3, 2014, Merger Sub was merged with and into Stream (the Merger), with Stream continuing as the surviving corporation and as a wholly owned subsidiary of Convergys. At the time of the Merger, each share of Stream common stock was converted into the right to receive an amount in cash, without interest. The total purchase price, net of cash acquired, was $802.6, which was funded using available cash, borrowings under the accounts receivable securitization facility and proceeds from a $350.0 term loan under the Company’s February 28, 2014 Credit Agreement (the Credit Agreement) (see Note 7 for further discussion). |
Divestitures & Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures | DIVESTITURES AND DISCONTINUED OPERATIONS Information Management On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation. During the periods presented, the Company recorded additional gains and losses as certain contingencies and tax positions related to Information Management were settled or adjusted. The results of the Information Management business have been classified as discontinued operations for all periods presented. All transition services agreements expired by June 30, 2014, and the Company has substantially eliminated the related costs. Summarized operating results of the Information Management business are as follows:
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Earnings (Loss) Per Share and Shareholders' Equity |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share and Shareholder's Equity | EARNINGS PER SHARE AND SHAREHOLDERS’ EQUITY Earnings per Share The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations:
The diluted EPS calculation for the three and six months ended June 30, 2016 excludes 0.2 of performance-based restricted stock units granted in 2014, as the criteria has not yet been achieved, as well as 0.7 performance-based restricted stock units (0.3 and 0.4 granted in 2016 and 2015, respectively), as the performance criteria for the third year of the 2015 grants and the second and third years of the 2016 grants have not yet been fully defined, thereby precluding a grant for accounting purposes due to a lack of a mutual understanding of the terms of the stock-based awards. As described more fully in Note 7, during 2009, the Company issued approximately $125.0 aggregate principal amount of 5.75% Junior Subordinated Convertible Debentures due 2029 (2029 Convertible Debentures). The 2029 Convertible Debentures were convertible, subject to certain conditions, into shares of the Company’s common stock at an initial conversion price of $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand dollars in principal amount of debentures. The conversion rate is subject to adjustment for certain events outlined in the indenture governing the 2029 Convertible Debentures (the Indenture), including payment of dividends. As of June 30, 2016, the implied conversion price for the 2029 Convertible Debentures was $11.43 per share, or eighty-seven and fifty-two hundredths shares per one thousand dollars in principal amount of debentures. There were 5.9 dilutive shares related to the 2029 Convertible Debentures for the three and six months ended June 30, 2016. Shareholders’ Equity The Company repurchased 0.7 and 1.5 of its common shares during the three and six months ended June 30, 2016 at average prices of $26.88 and $25.87 per share for a total of $17.8 and $38.0. Based upon the timing of transactions, $0.9 of the shares repurchased had not settled as of June 30, 2016. These shares are excluded from outstanding shares at the end of the current quarter and were settled in cash during the third quarter of 2016. As of June 30, 2016, the Company had the authority to repurchase an additional $176.7 of outstanding common shares pursuant to share repurchase authorizations approved by the Company’s Board of Directors. The timing and terms of any future transactions will depend on a number of considerations including market conditions, our available liquidity and capital needs, and limits on share repurchases that may be applicable under the covenants in our Credit Agreement. Dividends During 2015 and 2016, the Company has paid the following dividends per common share approved by the Company’s Board of Directors:
On August 8, 2016, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid on October 7, 2016 to shareholders of record as of September 23, 2016. The Board expects that future cash dividends will be paid on a quarterly basis. However, any decision to pay future cash dividends will be subject to Board approval, and will depend on the Company’s future earnings, cash flow, financial condition, financial covenants and other relevant factors. |
Goodwill and Other Intangible Assets and Long-Lived Assets |
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Goodwill And Other Intangible Assets and Long-Lived Assets | GOODWILL AND OTHER INTANGIBLE AND LONG-LIVED ASSETS Goodwill and Other Intangible Assets Goodwill was $832.0 at June 30, 2016 compared to $830.3 at December 31, 2015. This increase was due to foreign currency translation. The Company tests goodwill for impairment annually as of October 1 and at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. Goodwill impairment testing is performed at the reporting unit level, one level below the business segment. The Company’s reporting units are Customer Management - Agent Services and Customer Management - Customer Interaction Technology (CIT). As of June 30, 2016 and December 31, 2015, all goodwill was held by the Customer Management - Agent Services reporting unit. The most recent annual impairment test performed as of October 1, 2015, indicated that the fair value of the Customer Management - Agent Services reporting unit was substantially in excess of its carrying value. However, impairment charges could be required if a divestiture decision is made or other significant economic events occur with respect to the reporting unit. Subsequent to our October 1, 2015 annual impairment test, no indications of an impairment were identified. The Company’s other intangible assets, primarily acquired through business combinations, are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. No impairment charges were recognized in any period presented. As of June 30, 2016 and December 31, 2015 the Company’s other intangible assets consisted of the following:
The intangible assets are being amortized using the following amortizable lives: 8 to 10 years for software, 4 years for trademarks and 1 to 17 years for customer relationships and other intangibles. The remaining weighted average depreciation period for software is less than 1.0 year. The remaining weighted average amortization period for customer relationships, trademarks and other intangibles is approximately 14.0 years. Amortization of software is included within depreciation expense as the underlying assets are classified within property and equipment. Trademarks, customer relationships, and other intangibles amortization expense was $13.8 and $14.0 for the six months ended June 30, 2016 and 2015, respectively, and is estimated to be approximately $27.5 for the year ended December 31, 2016. The related estimated expense for the five subsequent fiscal years is as follows:
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Debt And Capital Lease Obligation |
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Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT AND CAPITAL LEASE OBLIGATIONS Debt and capital lease obligations consists of the following:
Credit Facility On February 28, 2014, the Company entered into a Credit Agreement establishing an unsecured credit facility in the aggregate amount of $650.0 (Credit Agreement). In connection with entering into the Credit Agreement, Convergys terminated its $300.0 Four-Year Competitive Advance and Revolving Credit Facility Agreement dated March 11, 2011. The Credit Agreement consists of unsecured term loans (the Term Loan) in the initial aggregate amount of $350.0, and an unsecured revolving credit facility (the Revolving Credit Facility) in the amount of $300.0. The Company recorded the initial carrying amount of the Term Loan at $344.9, reflecting a discount of $5.1 resulting from fees paid directly to the lenders at issuance. The discount will be amortized over the life of the Term Loan using the effective interest rate method (2.7% as of June 30, 2016), and is included in interest expense in the Consolidated Statements of Income. The Term Loan and the Revolving Credit Facility mature on March 3, 2019, unless extended pursuant to the terms of the Credit Agreement. Outstanding amounts bear interest at the applicable rate described in the Credit Agreement. The next required principal payment is due March 3, 2019. While amounts borrowed and repaid under the Revolving Credit Facility may be re-borrowed, amounts repaid under the Term Loan may not be borrowed again under the Credit Agreement. Total borrowing capacity remaining under the Revolving Credit Facility was $300.0, with $215.0 outstanding principal on the Term Loan, as of June 30, 2016. The Credit Agreement contains certain affirmative and negative covenants, as well as other terms and conditions that are customary for credit facilities of this type, including financial covenants for leverage and interest coverage ratios. The Company was in compliance with all covenants at June 30, 2016. Convertible Debentures During 2009, Convergys issued $125.0 aggregate principal amount of 5.75% Junior Subordinated Convertible Debentures due September 2029 (2029 Convertible Debentures) in exchange for $122.5 of 4.875% Unsecured Senior Notes due December 15, 2009, pursuant to an exchange offer. At the date of issuance, the Company recognized the liability component of the 2029 Convertible Debenture at its fair value of $56.3. The liability component was recognized as the fair value of a similar instrument that did not have a conversion feature at issuance. The equity component, which is the value of the conversion feature at issuance, was recognized as the difference between the proceeds from the issuance of the debentures and the fair value of the liability component, after adjusting for the deferred tax impact of $32.7. The 2029 Convertible Debentures were issued at a coupon rate of 5.75%, which was below that of a similar instrument that does not have a conversion feature. Therefore, the valuation of the debt component, using the income approach, resulted in a debt discount. The debt discount is being amortized over the life of a similar debt instrument without a conversion feature, which the Company determined to equal the contractual maturity of the 2029 Convertible Debentures. Amortization is based upon the effective interest rate method and is included in interest expense in the Consolidated Statements of Income. The 2029 Convertible Debentures, which pay a fixed rate of interest semi-annually, have a contingent interest component that will require the Company to pay additional interest if the trading price of the 2029 Convertible Debentures exceeds a specified threshold at specified times, commencing on September 15, 2019, as outlined in the Indenture. The maximum amount of contingent interest that will accrue is 0.75% per annum of the average trading price of the 2029 Convertible Debentures during the periods specified in the Indenture. The fair value of this embedded derivative was not significant at June 30, 2016 or December 31, 2015. The Company is not entitled to redeem the 2029 Convertible Debentures prior to September 15, 2019. On or after September 15, 2019, the Company may redeem for cash all or part of the 2029 Convertible Debentures at par value plus accrued but unpaid interest if certain trading conditions of the Company’s common shares are satisfied. The holders of the 2029 Convertible Debentures have the option to require redemption at par value plus accrued but unpaid interest upon the occurrence of a fundamental change, a defined term in the Indenture. The 2029 Convertible Debentures are convertible at the option of the holders on or after September 15, 2028 and prior to that date only under the following circumstances: (1) during any calendar quarter if the last reported sales price of the Company’s common shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is greater than or equal to 130% of the applicable conversion price (currently $14.85) for the 2029 Convertible Debentures on each applicable trading day (hereinafter referred to as the Sales Price Condition); (2) during the five business day period immediately following any five consecutive trading day period (the Measurement Period) in which, as determined following a request by a holder of 2029 Convertible Debentures as provided in the Indenture, the trading price per $1,000 principal amount of 2029 Convertible Debentures for each trading day of such Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common shares and the applicable conversion rate for the 2029 Convertible Debentures on each such trading day; (3) if the Company elects to redeem any or all of the 2029 Convertible Debentures; or (4) upon the occurrence of specified corporate events pursuant to the terms of the Indenture. Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2029 Convertible Debentures to be converted and pay or deliver, as the case may be, cash, common shares of the Company or a combination of cash and common shares of the Company, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2029 Convertible Debentures being converted. The 2029 Convertible Debentures were convertible, subject to certain conditions, into common shares of the Company at an initial conversion price of approximately $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand dollars in principal amount of debentures. As of June 30, 2016, the implied conversion price for the 2029 Convertible Debentures was $11.43 per share, or eighty-seven and fifty-two hundredths shares per one thousand dollars in principal amount of debentures. The conversion rate is subject to adjustment for certain events outlined in the Indenture, including payment of dividends. As of June 30, 2016 and December 31, 2015, the 2029 Convertible Debentures were convertible at the option of the holders. This conversion right was triggered upon satisfaction of the Sales Price Condition (the closing price of the Company’s common shares was greater than or equal to $14.85, 130% of the conversion price of the 2029 Convertible Debentures at June 30, 2016, for at least 20 of the 30 consecutive trading days ending on June 30, 2016). As a result, the equity component of the 2029 Convertible Debentures equal to $62.1 (the difference between the par value and carrying value of the 2029 Convertible Debentures at June 30, 2016) has been classified as temporary equity within the June 30, 2016 Consolidated Balance Sheet since this amount was considered redeemable. The Company will reassess the convertibility of the 2029 Convertible Debentures and the related balance sheet classification on a prospective basis. There have been no conversions of the 2029 Convertible Debentures through the date of this filing. Based on quoted market prices at June 30, 2016, the fair value of the $125.0 aggregate principal amount of the Company’s 2029 Convertible Debentures is $283.3. Asset Securitization Facility During January 2014, the Company extended the terms of an asset securitization facility collateralized by accounts receivable of certain of the Company’s subsidiaries, with a purchase limit of $150.0 expiring in January 2017. During June 2015, the Company amended the asset securitization facility to include the receivables of certain of the Company’s Stream subsidiaries. The asset securitization program is conducted through Convergys Funding Inc., a wholly-owned bankruptcy-remote subsidiary of the Company. As of June 30, 2016 and December 31, 2015, Convergys had drawn $31.0 and $60.0, respectively, in available funding from qualified receivables. Amounts drawn under this facility have been classified as long-term debt within the Consolidated Balance Sheets. At June 30, 2016, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt issuance costs and discounts) are as follows:
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Restructuring |
6 Months Ended |
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Jun. 30, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING 2016 Restructuring The Company recorded severance charges of $1.0 and $2.5, respectively, for the three and six months ended June 30, 2016, related to the Company’s ongoing efforts to refine its operating model and reduce costs, as well as headcount reductions resulting from certain client program completions. The 2016 actions impacted approximately 725 employees. The severance expense is included in Restructuring charges on the Consolidated Statements of Income and is expected to be substantially paid in cash by June 30, 2017. The total remaining liability under these severance-related actions, which is included in Payables and other current liabilities on the Company’s Consolidated Balance Sheet, was $1.6 as of June 30, 2016 and $1.2 as of March 31, 2016. 2015 Restructuring During 2015, the Company recorded severance charges of $7.2 related to the Company’s ongoing efforts to refine its operating model and reduce costs, as well as headcount reductions resulting from certain client program completions. The 2015 actions impacted approximately 700 employees. The severance expense is included in Restructuring charges on the Consolidated Statements of Income and is expected to be paid in cash by the end of 2016. The total remaining liability under these severance-related actions, which is included in Payables and other current liabilities on the Company’s Consolidated Balance Sheet, was $0.5 as of June 30, 2016, $2.7 as of March 31, 2016 and $4.1 as of December 31, 2015. During 2015, the Company also recorded restructuring expenses of $0.4 related to the integration of Stream. These severance-related charges were fully paid in cash by March 31, 2016. The total remaining liability under these severance-related actions, which is included in Payables and other current liabilities on the Company’s Consolidated Balance Sheets, was $0.2 as of December 31, 2015. |
Employee Benefit Plans |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pensions The Company sponsors a frozen defined benefit pension plan, which includes both a qualified and non-qualified portion, for all eligible employees (the Cash Balance Plan) in the U.S and unfunded defined benefit plans for certain eligible employees in the Philippines, Malaysia and France (together with the Cash Balance Plan, the defined benefit plans).The pension benefit formula for the Cash Balance Plan is determined by a combination of compensation and age-based credits and annual guaranteed interest credits. The qualified portion of the Cash Balance Plan has been funded through contributions made to a trust fund in accordance with the Pension Protection Act of 2006. Components of pension cost and other amounts recognized in other comprehensive income for the Company’s defined benefit plans are as follows:
The Company also sponsors a non-qualified, unfunded executive deferred compensation plan (the EDCP), which permits eligible participants, including executive officers, to defer receipt of certain income. The Company matches up to 100% of the first 3% of a participant’s deferred amounts and 50% of a participant’s next 2% of deferred amounts. The Company match under the EDCP is reduced by the Company match eligible to be received under the Company’s Retirement and Savings Plan. Components of pension cost and other amounts recognized in other comprehensive loss for the EDCP are as follows:
Change in Applying Discount Rate to Measure Benefit Costs At December 31, 2015, Convergys changed the method used to estimate the service and interest cost components of net periodic benefit cost for pension and other postretirement benefits. This change in methodology resulted in a decrease in the service and interest cost components for pension and other postretirement benefit costs during the three and six months ended June 30, 2016. Convergys historically estimated these service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2016, the Company has elected to utilize a full yield curve approach in the determination of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Convergys elected to make this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of Convergys’ total benefit obligations. Convergys has accounted for this change as a change in accounting estimate and accordingly has accounted for it prospectively. The impact of this discount rate change compared to the previous method decreased pension and other postretirement benefits service and interest cost by $0.6 and $1.2 during the three and six months ended June 30, 2016, respectively, with substantially all of the decrease attributable to interest cost. The impact of the change is expected to be approximately $2.4 for the year ended December 31, 2016. |
Stock-Based Compensation Plans |
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION PLANS The Company’s operating results for the three and six months ended June 30, 2016 included stock compensation expense of $5.0 and $9.2, respectively, compared to $4.3 and $8.4, respectively, for the same period in 2015. Expense for the three and six months ended June 30, 2016 included $0.5 and $0.9, respectively, related to awards classified as liabilities that will ultimately settle in cash. Restricted Stock Units Time-based Restricted Stock Units During the six months ended June 30, 2016 and 2015, the Company granted 0.5 and 0.7 shares, respectively, of time-based restricted stock units. The weighted average grant date fair values of these grants were $26.43 and $22.30 per share, respectively. These time-based grants are scheduled to vest 25% at the first anniversary of the grant date, 25% at the second anniversary and 50% at the third anniversary. The total compensation cost related to non-vested time-based restricted stock units not yet recognized as of June 30, 2016 was approximately $24.0, which is expected to be recognized over a weighted average period of 1.1 years. Changes to non-vested time-based restricted stock units for the six months ended June 30, 2016 were as follows:
Performance-based Restricted Stock Units During the six months ended June 30, 2016 and 2015, the Company granted 0.3 and 0.4 shares, respectively, of performance-based restricted stock units. These grants provide for payout based upon the extent to which the Company achieves certain EPS targets, as determined by the Compensation and Benefits Committee of the Board of Directors, over three-year periods. Payout levels for earned shares range from 50% to 200% of award shares. No payout is earned if performance is below the minimum performance threshold level. At June 30, 2016, the targets for the third year of the 2015 grants and the second and third years of the 2016 grants had not yet been set and the key terms had not been effectively communicated to the recipients, and as such the expense related to these grants had not yet been recognized. These grants have been excluded from the table below. During the first quarter of 2016, the Company established and communicated to participants the final key terms of the 2014 awards, resulting in grants for accounting purposes with a grant date fair value of $26.49 per share. The total compensation cost related to the 2014 non-vested performance-based restricted stock units not yet recognized as of June 30, 2016 was approximately $4.1, which is expected to be recognized ratably over the remaining vesting period ending in February 2017. Changes to non-vested performance-based restricted stock units for the six months ended June 30, 2016 were as follows:
Stock Options Presented below is a summary of Company stock option activity for the six months ended June 30, 2016. Prior to 2016, all outstanding stock options were fully vested and the related expense had been fully recognized.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments At June 30, 2016, the Company had outstanding letters of credit and bond obligations of $24.8 related to performance guarantees. The Company believes that any guarantee obligation that may arise will not be material. The Company also has future purchase commitments with telecommunication and transportation providers of $30.9. At June 30, 2016, 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 June 30, 2016, the Company maintained a liability of $0.1 for these obligations. The Company’s guarantee for this bond obligation expires in August 2016. 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, with final payment made during January 2016. This matter did not have a material impact on the Company’s liquidity, results of operations or financial condition. |
Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS Derivative Instruments The Company is exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company’s risk management strategy includes the use of derivative instruments to reduce the effects on its operating results and cash flows from fluctuations caused by volatility in currency exchange rates. The Company serves many of its U.S.-based clients using its contact centers in various countries such as the Philippines, India, Canada, China, Malaysia, Egypt, Costa Rica, Colombia, Dominican Republic, Nicaragua and Honduras. Although the contracts with these clients are typically priced in U.S. dollars, a substantial portion of the costs incurred to deliver services under these contracts are denominated in the local currency of the country where services are provided, which represents a foreign exchange exposure. Additionally, we have certain client contracts that are priced in Australian dollars, for which a substantial portion of the costs to deliver services are denominated in other currencies. The Company has hedged a portion of its exposure related to the anticipated cash flow requirements denominated in some of the aforementioned foreign currencies by entering into hedging contracts with several financial institutions to acquire a total of PHP 37,077.0 at a fixed price of $791.8 at various dates through March 2019, INR 11,703.0 at a fixed price of $162.3 at various dates through March 2019, CAD 59.8 at a fixed price of $46.5 at various dates through December 2018 and COP 30,000.0 at a fixed price of $9.4 at various dates through December 2017, and to sell a total of AUD 18.0 at a fixed price of $12.8 at various dates through December 2016. These instruments mature within the next 33 months and had a notional value of $1,022.8 at June 30, 2016 and $1,040.8 at December 31, 2015. The derivative instruments discussed above are designated and are effective as cash flow hedges. The following table reflects the fair values of these derivative instruments:
The Company recorded a deferred tax benefit of $6.9 and $16.2 related to these derivatives at June 30, 2016 and December 31, 2015, respectively. A total of $11.0 and $26.1 of deferred losses, net of tax, related to these cash flow hedges at June 30, 2016 and December 31, 2015, respectively, were included in accumulated other comprehensive loss (OCL). As of June 30, 2016, deferred losses of $14.9 ($9.2 net of tax), on derivative instruments included in accumulated OCL are expected to be reclassified into earnings during the next 12 months. The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during the three and six months ended June 30, 2016 and 2015, respectively:
The gain or loss recognized related to the ineffective portion of the derivative instruments was immaterial for the three and six months ended June 30, 2016 and 2015. The Company also enters into derivative instruments (forwards) to economically hedge the foreign currency impact of assets and liabilities denominated in nonfunctional currencies. During the six months ended June 30, 2016, a gain of $1.0 was recognized related to changes in fair value of these derivative instruments not designated as hedges, compared to a gain of $1.8 in the same period in 2015. The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. These gains and losses are classified within other income, net in the accompanying Consolidated Statements of Income. The fair value of these derivative instruments not designated as hedges at June 30, 2016, was a $0.8 receivable. The aggregate fair value of all derivative instruments designated as hedges in a liability position at June 30, 2016 was $25.0 for which the Company has no posted collateral. Short-term Investments As of June 30, 2016 and December 31, 2015, the Company held investment securities with a fair value of $11.4 and $12.2, respectively, that are held in a grantor trust for the benefit of participants in the EDCP and reflect the hypothetical investment balances of EDCP participants. The securities are classified as trading securities and included within short-term investments in the Consolidated Balance Sheets. The investment securities include exchange-traded mutual funds, common shares of the Company and money market accounts. These securities are carried at fair value, with gains and losses, both realized and unrealized, reported in other income (expense), net in the Consolidated Statements of Income. The cost of securities sold is based upon the specific identification method. Interest and dividends on securities classified as trading are included in other income (expense), net. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | FAIR VALUE MEASUREMENTS U.S. GAAP defines a hierarchy which prioritizes the inputs in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. At June 30, 2016 and December 31, 2015, the Company had foreign currency forward contracts measured at fair value. The fair values of these instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. There were no transfers between the three levels of the fair value hierarchy during the six months ended June 30, 2016 and 2015. The derivative assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 were as follows:
The Company also had investment securities held in a grantor trust for the benefit of participants of the EDCP measured at fair value at June 30, 2016 and December 31, 2015. These investments are recorded as short-term investments on the Consolidated Balance Sheets. The fair value of these instruments was measured using the quoted prices in active markets for identical assets (Level 1). There were no transfers between the three levels of the fair value hierarchy during the six months ended June 30, 2016 and 2015. The assets measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 were as follows:
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Income Taxes |
6 Months Ended |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective tax rate on net income from continuing operations was 19.0% and 18.7% for the three and six months ended June 30, 2016 compared to 8.2% and 13.7% in the same period last year. The change in the effective tax rates for both periods ended June 30, 2016 is primarily due to a shift in the geographic mix of worldwide income and certain discrete items, primarily a $4.9 tax benefit recognized during the prior year as a result of favorable resolution of certain tax audits. The liability for unrecognized tax benefits was $31.8 and $31.6 at June 30, 2016 and December 31, 2015, respectively, and is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. As of June 30, 2016, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the Consolidated Financial Statements is $28.8. This amount includes interest and penalties of $10.1. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between approximately $3.0 and $25.0 in the next twelve months; however, actual developments in this area could differ from those currently expected. |
Payables and Other Current Liabilities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information |
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss):
The following table summarizes the reclassification out of accumulated other comprehensive income (loss):
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Subsequent Events Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On August 1, 2016, the Company acquired buw, a leader in the German customer care industry, for €119.6 (approximately $135) in cash, subject to a post-closing working capital and net debt adjustment. The acquisition was effected pursuant to a Share and Partnership Interest Purchase Agreement, dated July 6, 2016 (the Purchase Agreement), pursuant to which Rheinsee 530. V V GmbH, a wholly owned subsidiary of the Company, acquired from the sellers named in the Purchase Agreement 100% of the limited partnership interest in buw and 100% of the share capital in buw Verwaltungs GmbH, the general partner of buw. |
Divestitures & Discontinued Operations (Tables) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Summarized operating results of the Information Management business are as follows:
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Earnings (Loss) Per Share and Shareholder’s Equity (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations:
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Share Repurchase Activity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared and Paid [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared and Paid [Table Text Block] | During 2015 and 2016, the Company has paid the following dividends per common share approved by the Company’s Board of Directors:
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Goodwill and Other Intangible Assets and Long-Lived Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations | As of June 30, 2016 and December 31, 2015 the Company’s other intangible assets consisted of the following:
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Schedule Of Estimated Amortization Expense | Trademarks, customer relationships, and other intangibles amortization expense was $13.8 and $14.0 for the six months ended June 30, 2016 and 2015, respectively, and is estimated to be approximately $27.5 for the year ended December 31, 2016. The related estimated expense for the five subsequent fiscal years is as follows:
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Debt And Capital Lease Obliations (Tables) |
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Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Debt And Capital Lease Obligations | Debt and capital lease obligations consists of the following:
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Schedule Of Future Minimum Payments | At June 30, 2016, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt issuance costs and discounts) are as follows:
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Employee Benefit Plans (Tables) |
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Schedule of Net Funded Status | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of pension cost and other amounts recognized in other comprehensive income for the Company’s defined benefit plans are as follows:
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Schedule of Net Benefit Costs [Table Text Block] | Components of pension cost and other amounts recognized in other comprehensive loss for the EDCP are as follows:
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Stock-Based Compensation Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Presented below is a summary of Company stock option activity for the six months ended June 30, 2016. Prior to 2016, all outstanding stock options were fully vested and the related expense had been fully recognized.
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Stock-Based Compensation Plans Stock-Based Compensation Plans (Schedule of Non-Vested Restricted Stock Units Activity) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Performance Based Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Changes to non-vested performance-based restricted stock units for the six months ended June 30, 2016 were as follows:
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Time-Based Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Changes to non-vested time-based restricted stock units for the six months ended June 30, 2016 were as follows:
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Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Derivative Instruments | The following table reflects the fair values of these derivative instruments:
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Effect Of Derivative Instruments On Consolidated Financial Statements | The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during the three and six months ended June 30, 2016 and 2015, respectively:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The derivative assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 were as follows:
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Investments [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The assets measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 were as follows:
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Payables and Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] |
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss):
The following table summarizes the reclassification out of accumulated other comprehensive income (loss):
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Background And Basis of Presentation (Details) |
6 Months Ended |
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Jun. 30, 2016
facilities
| |
Entity Information [Line Items] | |
Entity Number of Employees | 130,000 |
Number of Languages Spoken | 58 |
Number of Countries in which Entity Operates | 31 |
Entity Number of Locations | 150 |
Number of Contact Centers | 130 |
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Unamortized Debt Issuance Expense | $ 1.5 | $ 1.5 |
Business Combination Business Combination (Details) - USD ($) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Mar. 31, 2014 |
Jun. 30, 2016 |
Mar. 03, 2014 |
|
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 802.6 | ||
Business Acquisition, Effective Date of Acquisition | Mar. 03, 2014 | ||
2014 Term Loan [Member] | |||
Business Acquisition [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350.0 | ||
2014 Revolving Credit Facility [Member] | |||
Business Acquisition [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300.0 | $ 300.0 |
Divestitures & Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.1 |
Divestitures & Discontinued Operations (Schedule Of Results Included In Discontinued Operations) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.1 |
Information Management [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on disposition | 0.0 | 0.2 | 0.8 | 0.3 |
Income (loss) before income taxes | 0.0 | 0.2 | 0.8 | 0.3 |
Income tax on gain (loss) on dispostion | 0.0 | 0.2 | 0.8 | 0.2 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.1 |
Earnings (Loss) Per Share and Shareholder’s Equity Earnings (Loss) Per Share and Shareholder’s Equity (Schedule of Dividends Declared and Paid) (Details) - $ / shares |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
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Schedule of Dividends Declared and Paid [Abstract] | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.07 | $ 0.07 |
Goodwill and Other Intangible Assets and Long-Lived Assets (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
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Goodwill, net | $ 832.0 | $ 832.0 | $ 830.3 | ||
Amortization | 6.9 | $ 7.0 | 13.8 | $ 14.0 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 27.5 | $ 27.5 | |||
Software [Member] | |||||
Weighted average amortization period | 1 year | ||||
Trademarks [Member] | |||||
Intangible assets, useful life, minimum | 4 years | ||||
Customer Relationships [Member] | |||||
Weighted average amortization period | 14 years | ||||
Minimum [Member] | Software [Member] | |||||
Intangible assets, useful life, minimum | 8 years | ||||
Minimum [Member] | Customer Relationships [Member] | |||||
Intangible assets, useful life, minimum | 1 year | ||||
Maximum [Member] | Software [Member] | |||||
Intangible assets, useful life, minimum | 10 years | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Intangible assets, useful life, minimum | 17 years |
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Gross Carrying Value | $ 524.6 | $ 525.4 |
Accumulated Amortization | (220.0) | (204.5) |
Intangible assets, net | 304.6 | 320.9 |
Software [Member] | ||
Gross Carrying Value | 41.3 | 41.3 |
Accumulated Amortization | (40.4) | (38.5) |
Intangible assets, net | 0.9 | 2.8 |
Trademarks [Member] | ||
Gross Carrying Value | 25.9 | 26.0 |
Accumulated Amortization | (19.3) | (17.3) |
Intangible assets, net | 6.6 | 8.7 |
Customer Relationships [Member] | ||
Gross Carrying Value | 457.4 | 458.1 |
Accumulated Amortization | (160.3) | (148.7) |
Intangible assets, net | $ 297.1 | $ 309.4 |
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
For the year ended 2017 | $ 27.4 |
For the year ended 2018 | 23.3 |
For the year ended 2019 | 22.9 |
For the year ended 2020 | 22.3 |
For the year ended 2021 | 20.6 |
Thereafter | $ 173.5 |
Debt And Capital Lease Obligations (Revolving Credit Facility) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Mar. 03, 2014 |
Mar. 11, 2013 |
|
Secured Debt, Current | $ 31.0 | $ 60.0 | |||
Proceeds from (Repayments of) Debt | $ 344.9 | ||||
Debt Instrument, Unamortized Discount | 5.1 | ||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.027 | ||||
Credit facility, amount outstanding | $ 212.4 | $ 212.0 | |||
2014 Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | $ 650.0 | ||||
2011 Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | $ 300.0 | ||||
2014 Term Loan [Member] | |||||
Line of credit, maximum borrowing capacity | 350.0 | ||||
Credit facility, amount outstanding | 215.0 | ||||
2014 Revolving Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | $ 300.0 | $ 300.0 |
Debt And Capital Lease Obligations (Schedule Of Debt And Capital Lease Obligations) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument | ||
Revolving credit facility | $ 212.4 | $ 212.0 |
2029 Convertible debt | 62.9 | 62.1 |
Capital Lease Obligations | 4.7 | 6.7 |
Secured Debt, Current | 31.0 | 60.0 |
Unamortized Debt Issuance Expense | 1.5 | 1.5 |
Long-term Debt | 309.5 | 339.3 |
Debt and Capital Lease Obligations | 311.0 | 340.8 |
Less current maturities | (2.2) | (3.4) |
Total long-term debt and capital lease obligations | $ 307.3 | $ 335.9 |
Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Schedule of Future Minimum Payments) (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Long-term Debt and Capital Lease Obligations [Abstract] | |
2016 | $ 1.4 |
2017 | 32.7 |
2018 | 0.8 |
2019 | 215.5 |
2020 | 0.4 |
2021 | 0.0 |
Thereafter | 125.0 |
Total | $ 375.8 |
Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Other) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||
Secured Debt, Current | $ 31.0 | $ 60.0 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 150.0 | |
Debt Instrument, Maturity Date | Jan. 06, 2017 |
Restructuring Restructuring (Details) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Mar. 31, 2016
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 0.2 | |||
2016 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 1.0 | $ 2.5 | ||
Employees affected | 725 | |||
Restructuring Reserve | 1.6 | $ 1.6 | $ 1.2 | |
2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 7.2 | |||
Employees affected | 700 | |||
Restructuring Reserve | $ 0.5 | $ 0.5 | $ 4.1 | $ 2.7 |
Other Restructuring Costs | $ 0.4 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2016 |
|
Decrease in estimated service and interest cost | $ 0.6 | $ 1.2 | $ 2.4 | ||
Pension Plan [Member] | |||||
Pension cost (benefit) | 3.0 | $ 4.7 | 6.1 | $ 9.4 | |
Other Pension Plans, Defined Benefit [Member] | |||||
Pension cost (benefit) | $ 0.4 | $ 0.5 | $ 0.8 | $ 1.0 |
Employee Benefit Plans (Tables) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Other Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 0.3 | $ 0.4 | $ 0.6 | $ 0.8 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Pension cost | 0.4 | 0.5 | 0.8 | 1.0 |
Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 1.6 | 1.9 | 3.3 | 3.8 |
Interest cost | 2.2 | 2.7 | 4.4 | 5.4 |
Expected return on plan assets | (2.5) | (2.6) | (5.0) | (5.2) |
Defined Benefit Plan, Amortization of Gains (Losses) | 1.7 | 2.7 | 3.4 | 5.4 |
Pension cost | $ 3.0 | $ 4.7 | $ 6.1 | $ 9.4 |
Commitments and Contingencies (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Letters of credit outstanding amount | $ 24.8 |
Purchase Commitments | 30.9 |
HRM Performance Bond Obligations [Member] | |
Guarantee | 30.0 |
Liability of obligations | $ 0.1 |
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | $ 3.3 | $ 1.2 |
Other Non-Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | 3.7 | 0.8 |
Other Current Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | 18.2 | 29.7 |
Other Long-Term Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | $ 6.8 | $ 14.7 |
Financial Instruments (Effect Of Derivative Instruments On Consolidated Financial Statements) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) | ||||
Foreign exchange contracts, Gain (Loss) Recognized in OCL | $ (16.0) | $ (7.1) | $ 11.1 | $ (3.1) |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (4.6) | $ (4.2) | $ (13.3) | $ (7.9) |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Effective Income Tax Rate Reconciliation, Percent | 19.00% | 8.20% | 18.70% | 13.70% | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 4.9 | ||||
Liability for unrecognized tax benefits | $ 31.8 | $ 31.8 | $ 31.6 | ||
Unrecognized tax benefits that would affect income tax expense | 28.8 | 28.8 | |||
Interest and penalties share in unrecognized tax benefits | 10.1 | ||||
Minimum [Member] | |||||
Expected change in unrecognized tax benefits, lower | 3.0 | 3.0 | |||
Maximum [Member] | |||||
Expected change in unrecognized tax benefits, lower | $ 25.0 | $ 25.0 |
Payables and Other Current Liabilities (Schedule Of Payables And Other Current Liabilities) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 50.6 | $ 48.0 |
Accrued taxes | 24.6 | 23.9 |
Accrued payroll-related expenses | 137.6 | 140.6 |
Derivative Liabilities | 18.2 | 29.7 |
Accrued expenses, other | 73.2 | 69.0 |
Restructuring and exit costs | 2.1 | 4.3 |
Deferred Revenue, Current | 15.9 | 19.5 |
Total Payables and other current liabilities | $ 322.2 | $ 335.0 |
Subsequent Events Subsequent Events (Details) - 6 months ended Jun. 30, 2016 € in Millions, $ in Millions |
USD ($) |
EUR (€) |
---|---|---|
Subsequent Event [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 135 | € 119.6 |
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