☑ | 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 | ☑ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
Emerging growth 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 March 31, | ||||||
(Amounts in millions except per share amounts) | 2017 | 2016 | ||||
Revenues | $727.6 | $722.2 | ||||
Costs and Expenses: | ||||||
Cost of providing services and products sold (1) | 450.2 | 450.4 | ||||
Selling, general and administrative | 177.5 | 171.2 | ||||
Depreciation | 27.4 | 31.8 | ||||
Amortization | 7.2 | 6.9 | ||||
Restructuring charges | 15.0 | 1.5 | ||||
Integration costs | 1.5 | — | ||||
Total costs and expenses | 678.8 | 661.8 | ||||
Operating Income | 48.8 | 60.4 | ||||
Other income (expense), net | 1.3 | (1.3 | ) | |||
Interest expense | (5.3 | ) | (4.5 | ) | ||
Income before Income Taxes | 44.8 | 54.6 | ||||
Income tax expense | 6.9 | 10.1 | ||||
Income from Continuing Operations, net of tax | 37.9 | 44.5 | ||||
Income from Discontinued Operations, net of tax | — | — | ||||
Net Income | $37.9 | $44.5 | ||||
Basic Earnings per Common Share: | ||||||
Continuing Operations | $0.40 | $0.46 | ||||
Discontinued Operations | — | — | ||||
Basic Earnings per Common Share | $0.40 | $0.46 | ||||
Diluted Earnings per Common Share: | ||||||
Continuing Operations | $0.38 | $0.43 | ||||
Discontinued Operations | — | — | ||||
Diluted Earnings per Common Share | $0.38 | $0.43 | ||||
Weighted Average Common Shares Outstanding: | ||||||
Basic | 94.4 | 96.5 | ||||
Diluted | 100.5 | 103.8 | ||||
Cash dividends declared per share | $0.09 | $0.08 |
(1) | Exclusive of depreciation and amortization, with the exception of amortization of deferred charges. |
Three Months Ended March 31, | ||||||
(Amounts in millions) | 2017 | 2016 | ||||
Net Income | $37.9 | $44.5 | ||||
Other Comprehensive Income, net of tax: | ||||||
Foreign currency translation adjustments | 3.0 | 10.0 | ||||
Change related to pension liability | 0.9 | 1.0 | ||||
Unrealized gain on hedging activities | 10.7 | 22.0 | ||||
Total other comprehensive gain | 14.6 | 33.0 | ||||
Total Comprehensive Income | $52.5 | $77.5 |
(Unaudited) | ||||||
At March 31, | At December 31, | |||||
(Amounts in millions) | 2017 | 2016 | ||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $177.1 | $138.8 | ||||
Short-term investments | 11.6 | 12.4 | ||||
Receivables, net of allowances of $5.6 and $5.8 | 552.6 | 555.0 | ||||
Prepaid expenses | 38.6 | 38.6 | ||||
Other current assets | 44.2 | 40.0 | ||||
Total current assets | 824.1 | 784.8 | ||||
Property and equipment, net | 291.2 | 304.1 | ||||
Goodwill | 920.1 | 916.9 | ||||
Other intangibles, net | 300.1 | 307.6 | ||||
Deferred income tax assets | 20.8 | 17.7 | ||||
Other assets | 44.8 | 40.7 | ||||
Total Assets | $2,401.1 | $2,371.8 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities: | ||||||
Debt and capital lease obligations maturing within one year | $1.3 | $1.8 | ||||
Payables and other current liabilities | 305.9 | 345.8 | ||||
Total current liabilities | 307.2 | 347.6 | ||||
Long-term debt and capital lease obligations | 343.3 | 297.0 | ||||
Deferred income tax liabilities | 206.6 | 197.8 | ||||
Accrued pension liabilities | 79.0 | 80.3 | ||||
Other long-term liabilities | 68.5 | 71.9 | ||||
Total liabilities | 1,004.6 | 994.6 | ||||
Convertible debentures conversion feature | 60.9 | 61.3 | ||||
Shareholders’ Equity: | ||||||
Preferred shares—without par value, 5.0 authorized; none issued or outstanding | — | — | ||||
Common shares—without par value, 500.0 authorized; 191.4 and 191.0 issued, 94.1 and 94.7 outstanding, as of March 31, 2017 and December 31, 2016, respectively | 1,109.2 | 1,110.0 | ||||
Treasury stock—97.2 and 96.3 shares as of March 31, 2017 and December 31, 2016, respectively | (1,658.2 | ) | (1,635.3 | ) | ||
Retained earnings | 1,983.8 | 1,955.0 | ||||
Accumulated other comprehensive loss | (99.2 | ) | (113.8 | ) | ||
Total shareholders’ equity | 1,335.6 | 1,315.9 | ||||
Total Liabilities and Shareholders’ Equity | $2,401.1 | $2,371.8 |
Three Months Ended March 31, | ||||||
(Amounts in millions) | 2017 | 2016 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $37.9 | $44.5 | ||||
Income from discontinued operations, net of tax | — | — | ||||
Income from continuing operations, net of tax | 37.9 | 44.5 | ||||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations: | ||||||
Depreciation and amortization | 34.6 | 38.7 | ||||
Deferred income tax benefit | (0.6 | ) | (0.9 | ) | ||
Stock compensation expense | 4.4 | 3.8 | ||||
Changes in assets and liabilities, net of acquisitions: | ||||||
Change in receivables | 1.3 | (15.5 | ) | |||
Change in other current assets | 1.4 | 7.8 | ||||
Change in deferred charges, net | 0.1 | 0.3 | ||||
Change in other assets and liabilities | (11.2 | ) | (6.2 | ) | ||
Change in payables and other current liabilities | (35.0 | ) | 4.1 | |||
Net cash provided by operating activities | 32.9 | 76.6 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures | (8.9 | ) | (11.0 | ) | ||
Proceeds from maturity of short-term and other investments | — | (0.8 | ) | |||
Net cash used in investing activities | (8.9 | ) | (11.8 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from issuance of other long-term debt (term loan) | 100.0 | — | ||||
Repayments of other long-term debt (term loan and capital lease obligations) | (215.7 | ) | (1.0 | ) | ||
Proceeds from Asset Securitization Facility | 333.6 | 288.0 | ||||
Repayment of Asset Securitization Facility | (173.6 | ) | (308.0 | ) | ||
Repurchase of common shares | (21.5 | ) | (20.3 | ) | ||
Proceeds from exercise of stock options | — | 0.3 | ||||
Payments of dividends | (8.5 | ) | (7.8 | ) | ||
Excess tax benefit from share-based payment arrangements | — | 0.8 | ||||
Net cash provided by (used in) financing activities | 14.3 | (48.0 | ) | |||
Net increase in cash and cash equivalents | 38.3 | 16.8 | ||||
Cash and cash equivalents at beginning of period | 138.8 | 204.7 | ||||
Cash and cash equivalents at end of period | $177.1 | $221.5 |
Three Months Ended March 31, 2016 | |||||||||
Consolidated Statement of Income Caption | Previously Reported | Change | Currently Reported | ||||||
Cost of providing services and products sold | $451.2 | ($0.8 | ) | $450.4 | |||||
Selling, general and administrative | $171.8 | ($0.6 | ) | $171.2 | |||||
Total costs and expenses | $663.2 | ($1.4 | ) | $661.8 | |||||
Operating Income | $59.0 | $1.4 | $60.4 | ||||||
Other income (expense), net | $0.1 | ($1.4 | ) | ($1.3 | ) |
August 1, 2016 | |||
Assets: | |||
Receivables | $36.2 | ||
Other current assets | 2.6 | ||
Property and equipment | 6.9 | ||
Goodwill | 97.6 | ||
Intangible assets | 22.7 | ||
Other assets | 0.3 | ||
Liabilities: | |||
Accounts payable | (0.8 | ) | |
Accrued expenses | (15.1 | ) | |
Deferred tax - net | (6.7 | ) | |
Other long-term liabilities | (5.8 | ) | |
Total purchase price | $137.9 |
Life | ||||
Intangible asset type | Value | (years) | ||
Customer relationship | $22.0 | 10 | ||
Trade name | 0.7 | 1 | ||
Total | $22.7 |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Gain on disposition | $— | $0.8 | ||||
Income before income taxes | — | 0.8 | ||||
Income tax expense: | ||||||
Expense related to gain on disposition | — | (0.8 | ) | |||
Income from discontinued operations, net of tax | $— | $— |
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 March 31, 2017 | |||||||||||||||||
Basic EPS | 94.4 | $37.9 | $0.40 | $— | $— | $0.40 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.9 | — | — | — | — | — | |||||||||||
Convertible Debt | 5.2 | — | (0.02 | ) | — | — | (0.02 | ) | |||||||||
Diluted EPS | 100.5 | $37.9 | $0.38 | $— | $— | $0.38 | |||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||
Basic EPS | 96.5 | $44.5 | $0.46 | $— | $— | $0.46 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock-based compensation arrangements | 0.9 | — | (0.01 | ) | — | — | (0.01 | ) | |||||||||
Convertible Debt | 6.4 | — | (0.02 | ) | — | — | (0.02 | ) | |||||||||
Diluted EPS | 103.8 | $44.5 | $0.43 | $— | $— | $0.43 |
Announcement Date | Record Date | Dividend Amount | Payment Date |
February 23, 2016 | March 24, 2016 | $0.08 | April 8, 2016 |
May 9, 2016 | June 24, 2016 | $0.09 | July 8, 2016 |
August 8, 2016 | September 23, 2016 | $0.09 | October 7, 2016 |
November 8, 2016 | December 23, 2016 | $0.09 | January 6, 2017 |
February 22, 2017 | March 24, 2017 | $0.09 | April 7, 2017 |
March 31, 2017 | Gross Carrying Amount | Accumulated Amortization | Net | ||||||
Customer relationships and other intangibles | $473.9 | ($177.6 | ) | $296.3 | |||||
Trademarks | 26.5 | (22.7 | ) | 3.8 | |||||
Software (classified within Property and equipment, net) | 41.3 | (41.3 | ) | — | |||||
Total | $541.7 | ($241.6 | ) | $300.1 | |||||
December 31, 2016 | Gross Carrying Amount | Accumulated Amortization | Net | ||||||
Customer relationships and other intangibles | $474.0 | ($171.4 | ) | $302.6 | |||||
Trademarks | 26.5 | (21.5 | ) | 5.0 | |||||
Software (classified within Property and equipment, net) | 41.3 | (41.3 | ) | — | |||||
Total | $541.8 | ($234.2 | ) | $307.6 |
For the year ended 2018 | $23.9 | ||
For the year ended 2019 | 23.9 | ||
For the year ended 2020 | 22.8 | ||
For the year ended 2021 | 21.3 | ||
For the year ended 2022 | 21.2 | ||
Thereafter | 159.1 |
March 31, 2017 | December 31, 2016 | |||||
Term Loan, due 2019 | $98.9 | $212.9 | ||||
Convertible Debentures, due 2029 | 64.1 | 63.7 | ||||
Capital Lease Obligations | 3.0 | 3.6 | ||||
Accounts Receivable Securitization | 180.0 | 20.0 | ||||
Total debt | 346.0 | 300.2 | ||||
Less debt issuance costs | 1.4 | 1.4 | ||||
Total debt, net | 344.6 | 298.8 | ||||
Less current maturities | 1.3 | 1.8 | ||||
Long-term debt | $343.3 | $297.0 |
2017 | $0.9 | ||
2018 | 72.9 | ||
2019 | 100.7 | ||
2020 | 108.5 | ||
2021 | — | ||
2022 | — | ||
Thereafter | 125.0 | ||
Total | $408.0 |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Service cost | $1.4 | $1.7 | ||||
Interest cost on projected benefit obligation | 1.9 | 2.2 | ||||
Expected return on plan assets | (2.5 | ) | (2.5 | ) | ||
Amortization and deferrals—net | 1.5 | 1.7 | ||||
Total net pension cost | $2.3 | $3.1 |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Service cost | $0.4 | $0.3 | ||||
Interest cost on projected benefit obligation | 0.1 | 0.1 | ||||
Total pension cost | $0.5 | $0.4 |
Shares (in millions) | Number of Shares | Weighted Average Fair Value at Date of Grant | |||
Non-vested at December 31, 2016 | 1.3 | 23.23 | |||
Granted | 0.2 | 22.70 | |||
Vested | (0.5 | ) | 22.48 | ||
Forfeited | — | — | |||
Non-vested at March 31, 2017 | 1.0 | $23.43 |
Shares (in millions) | Number of Shares | Weighted Average Fair Value at Date of Grant | |||
Non-vested at December 31, 2016 | 0.3 | 26.48 | |||
Granted | 0.3 | 21.27 | |||
Vested | (0.3 | ) | 26.48 | ||
Forfeited | — | — | |||
Non-vested at March 31, 2017 | 0.3 | $21.28 |
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, 2016 | 0.4 | $13.34 | 4.5 | $3.78 | |||||
Options exercisable at December 31, 2016 | 0.4 | $13.34 | 4.5 | $3.78 | |||||
Granted | — | — | |||||||
Exercised | — | — | |||||||
Forfeited | — | — | |||||||
Options outstanding at March 31, 2017 | 0.4 | $13.34 | 4.3 | $3.78 | |||||
Options exercisable at March 31, 2017 | 0.4 | $13.34 | 4.3 | $3.78 |
March 31, 2017 | December 31, 2016 | |||||
Forward exchange contracts and options designated as hedging instruments: | ||||||
Included within other current assets | $8.7 | $3.0 | ||||
Included within other non-current assets | 5.7 | 2.3 | ||||
Included within other current liabilities | 26.0 | 31.3 | ||||
Included within other long-term liabilities | 12.3 | 15.4 |
Derivatives in Cash Flow Hedging Relationships | 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) | ||||
Foreign exchange contracts | $9.8 | ($7.7 | ) | Cost of providing services and products sold and Selling, general and administrative |
Derivatives in Cash Flow Hedging Relationships | 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) | ||||
Foreign exchange contracts | $27.1 | ($8.7 | ) | Cost of providing services and products sold and Selling, general and administrative |
March 31, 2017 | 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) | $15.3 | $— | $15.3 | $— | |||||||||||
Foreign currency forward contracts (liability position) | $39.2 | $— | $39.2 | $— |
December 31, 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) | $5.6 | $— | $5.6 | $— | |||||||||||
Foreign currency forward contracts (liability position) | $49.0 | $— | $49.0 | $— |
March 31, 2017 | 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 | $11.0 | $11.0 | $— | $— | |||||||||||
Money market accounts | 0.6 | 0.6 | — | — | |||||||||||
Total | $11.6 | $11.6 | $— | $— |
December 31, 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 | $10.5 | $10.5 | $— | $— | |||||||||||
Convergys common stock | 1.3 | 1.3 | — | — | |||||||||||
Money market accounts | 0.6 | 0.6 | — | — | |||||||||||
Total | $12.4 | $12.4 | $— | $— |
At March 31, 2017 | At December 31, 2016 | |||||
Payables and other current liabilities: | ||||||
Accounts payable | $43.1 | $53.9 | ||||
Accrued income and other taxes | 24.8 | 44.1 | ||||
Accrued payroll-related expenses | 125.6 | 132.0 | ||||
Derivative liabilities | 26.9 | 33.6 | ||||
Accrued expenses, other | 58.8 | 63.7 | ||||
Restructuring and exit costs | 12.2 | 0.8 | ||||
Deferred revenue and government grants | 14.5 | 17.7 | ||||
$305.9 | $345.8 |
Foreign Currency | Derivative Financial Instruments | Pension Liability | Total | ||||||||||||||
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 | ) | |||||||||
Balance at December 31, 2016 | ($56.6 | ) | ($25.5 | ) | ($31.7 | ) | ($113.8 | ) | |||||||||
Other comprehensive income before reclassifications, net of tax | 3.0 | 6.0 | — | 9.0 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 4.7 | 0.9 | 5.6 | |||||||||||||
Net current-period other comprehensive income | 3.0 | 10.7 | 0.9 | 14.6 | |||||||||||||
Balance at March 31, 2017 | ($53.6 | ) | ($14.8 | ) | ($30.8 | ) | ($99.2 | ) |
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 March 31, | ||||||||||
2017 | 2016 | |||||||||
Loss on derivative instruments | ($7.7 | ) | ($8.7 | ) | Cost of providing services and products sold and Selling, general and administrative | |||||
Tax benefit | 3.0 | 3.4 | Income tax expense | |||||||
Loss on derivative instruments, net of tax | (4.7 | ) | (5.3 | ) | Income from Continuing Operations, net of tax | |||||
Adjustments of pension and other post employment obligations | (1.5 | ) | (1.6 | ) | Selling, general and administrative | |||||
Tax benefit | 0.6 | 0.6 | Income tax expense | |||||||
Adjustment of pension and other post employment obligations, net of tax | (0.9 | ) | (1.0 | ) | Income from Continuing Operations, net of tax | |||||
Total reclassifications for the period | ($5.6 | ) | ($6.3 | ) |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Revenues: | ||||||||||
Communications | $331.4 | $365.2 | (33.8 | ) | (9 | ) | ||||
Technology | 150.0 | 164.4 | (14.4 | ) | (9 | ) | ||||
Financial Services | 66.4 | 55.1 | 11.3 | 21 | ||||||
Other | 179.8 | 137.5 | 42.3 | 31 | ||||||
Total Revenues | $727.6 | $722.2 | 5.4 | 1 |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Operating Costs: | ||||||||||
Cost of providing services and products sold | $450.2 | $450.4 | (0.2 | ) | — | |||||
Selling, general and administrative | 177.5 | 171.2 | 6.3 | 4 | ||||||
Depreciation | 27.4 | 31.8 | (4.4 | ) | (14 | ) | ||||
Amortization | 7.2 | 6.9 | 0.3 | 4 | ||||||
Restructuring | 15.0 | 1.5 | 13.5 | NM | ||||||
Integration costs | 1.5 | — | 1.5 | 100 | ||||||
Total costs and expenses | $678.8 | $661.8 | 17.0 | 3 |
1. | Restructuring charges of $12.8 for the three months ended March 31, 2017, associated with a company-wide initiative to reduce headcount and better align the Company’s resources, principally for corporate functions; |
2. | Depreciation of $1.0 and $3.2 for the three months ended March 31, 2017 and 2016, respectively, resulting from the fair value write-up of property and equipment acquired from buw and Stream; |
3. | Acquisition integration expenses of $1.5 for the three months ended March 31, 2017, primarily related to fees for third-party consulting services and severance expense; |
4. | Amortization of acquired intangible assets of $7.2 and $6.9 for the three months ended March 31, 2017 and 2016, respectively. |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Operating Income | $48.8 | $60.4 | (11.6 | ) | (19 | ) | ||||
Operating Margin | 6.7 | % | 8.4 | % | ||||||
Company-wide restructuring | 12.8 | — | 12.8 | 100 | ||||||
Depreciation of property & equipment write-up | 1.0 | 3.2 | (2.2 | ) | (69 | ) | ||||
Integration related expenses | 1.5 | — | 1.5 | 100 | ||||||
Amortization of acquired intangible assets | 7.2 | 6.9 | 0.3 | 4 | ||||||
Adjusted Operating Income (a non-GAAP measure) | $71.3 | $70.5 | 0.8 | 1 | ||||||
Adjusted Operating Margin | 9.8 | % | 9.8 | % |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Operating Income | $48.8 | $60.4 | (11.6 | ) | (19 | ) | ||||
Other income (expense), net | 1.3 | (1.3 | ) | 2.6 | NM | |||||
Interest expense | (5.3 | ) | (4.5 | ) | (0.8 | ) | 18 | |||
Income before Income Taxes | $44.8 | $54.6 | (9.8 | ) | (18 | ) |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Income before Income Taxes | $44.8 | $54.6 | (9.8 | ) | (18 | ) | ||||
Income tax expense | 6.9 | 10.1 | (3.2 | ) | (32 | ) | ||||
Income from Continuing Operations, net of tax | $37.9 | $44.5 | (6.6 | ) | (15 | ) |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Income from Continuing Operations, net of tax | $37.9 | $44.5 | (6.6 | ) | (15 | ) | ||||
Total operating charges from above | 22.5 | 10.1 | 12.4 | NM | ||||||
Income tax impact from total operating charges | (8.3 | ) | (3.0 | ) | (5.3 | ) | NM | |||
Adjusted income from Continuing Operations, net of tax (a non-GAAP measure) | $52.1 | $51.6 | 0.5 | 1 | ||||||
Diluted Earnings per Common Share: | ||||||||||
Continuing Operations | $0.38 | $0.43 | (0.05 | ) | (12 | ) | ||||
Impact of net charges above included in Continuing Operations, net of tax | 0.14 | 0.07 | 0.07 | 100 | ||||||
Adjusted diluted earnings per common share from Continuing Operations (a non-GAAP measure) | $0.52 | $0.50 | 0.02 | 4 |
Three Months Ended March 31, | ||||||||||
2017 | 2016 | Change | % | |||||||
Income from Continuing Operations, net of tax | $37.9 | $44.5 | (6.6 | ) | (15 | ) | ||||
Income from Discontinued Operations | — | — | — | — | ||||||
Net Income | $37.9 | $44.5 | (6.6 | ) | (15 | ) | ||||
Diluted Earnings Per Common Share: | ||||||||||
Continuing Operations | $0.38 | $0.43 | (0.05 | ) | (12 | ) | ||||
Discontinued Operations | — | — | — | — | ||||||
Net Diluted Earnings Per Common Share | $0.38 | $0.43 | (0.05 | ) | (12 | ) |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Income from Continuing Operations, net of tax | $37.9 | $44.5 | ||||
Depreciation and Amortization | 34.6 | 38.7 | ||||
Interest expense | 5.3 | 4.5 | ||||
Income tax expense | 6.9 | 10.1 | ||||
EBITDA (a non-GAAP measure) | 84.7 | 97.8 | ||||
Company-wide restructuring | 12.8 | — | ||||
Integration related expenses | 1.5 | — | ||||
Adjusted EBITDA (a non-GAAP measure) | $99.0 | $97.8 | ||||
EBITDA Margin | 11.6 | % | 13.5 | % | ||
Adjusted EBITDA Margin | 13.6 | % | 13.5 | % |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Net cash flow provided by operating activities under U.S. GAAP | $32.9 | $76.6 | ||||
Capital expenditures, net of proceeds from disposal of assets | (8.9 | ) | (11.0 | ) | ||
Free cash flow (a non-GAAP measure) | $24.0 | $65.6 | ||||
Acquisition - cash paid for integration related expenses (A) | 1.7 | 1.4 | ||||
Adjusted free cash flow (a non-GAAP measure) | $25.7 | $67.0 |
(A) | Payments associated with investment activity to expand our business (the buw and Stream acquisitions). |
Announcement Date | Record Date | Dividend Amount | Payment Date |
February 23, 2016 | March 24, 2016 | $0.08 | April 8, 2016 |
May 9, 2016 | June 24, 2016 | $0.09 | July 8, 2016 |
August 8, 2016 | September 23, 2016 | $0.09 | October 7, 2016 |
November 8, 2016 | December 23, 2016 | $0.09 | January 6, 2017 |
February 22, 2017 | March 24, 2017 | $0.09 | April 7, 2017 |
Shares repurchased | Average price per share | |||||
January 2017 | 254,598 | $25.43 | ||||
February 2017 | 257,000 | 24.22 | ||||
March 2017 | 430,300 | 21.10 | ||||
Total | 941,898 | $23.12 |
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.) |
10.1 | 2012 Convergys Corporation Senior Severance Pay Plan dated February 9, 2017. (Incorporated by reference from Exhibit 10.18 to Form 10-K filed on February 22, 2017.)* |
10.2 | First Amendment to Trust Agreement between Fidelity Management Trust Company and Convergys Corporation, dated as of January 27, 2017. (Incorporated by reference from Exhibit 10.25 to Form 10-K filed on February 22, 2017.)* |
10.3 | Amendment No. 10 to Receivables Purchase Agreement, dated as of January 4, 2017. (Incorporated by reference from Exhibit 10.39 to Form 10-K filed on February 22, 2017.) |
10.4 | Credit Agreement, dated as of January 11, 2017, by and among Convergys Corporation, the lenders party thereto, and Citibank, N.A., as Administrative Agent. (Incorporated by reference from Exhibit 10.1 to Form 8-K/A filed on January 17, 2017.) |
21 | Subsidiaries of Convergys Corporation. |
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 March 31, 2017, filed on May 8, 2017, 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 | |||
May 8, 2017 | By | /s/ Andre S. Valentine | |
Andre S. Valentine Chief Financial Officer | |||
(on behalf of the Registrant and as principal financial officer) |
Exhibit 21 to 2017 10-Q | ||||||||||||||||||||||
Convergys Corporation Direct and Indirect Subsidiaries | ||||||||||||||||||||||
As of 3/31/2017 | ||||||||||||||||||||||
Entity Name | Jurisdiction | |||||||||||||||||||||
Convergys Corporation | Ohio | |||||||||||||||||||||
Asset Ohio Fourth Street LLC | Ohio | |||||||||||||||||||||
Convergys Government Solutions LLC | Ohio | |||||||||||||||||||||
Convergys Software Service (Beijing) Ltd. | Peoples Republic of China | |||||||||||||||||||||
Convergys Customer Management Group Inc. | Ohio | |||||||||||||||||||||
Convergys CMG Insurance Services LLC | Ohio | |||||||||||||||||||||
Convergys Customer Management Mexico S. de R.L. de C.V. (99%) | Mexico | |||||||||||||||||||||
Convergys Funding Inc. | Kentucky | |||||||||||||||||||||
Convergys India Services Private Limited | India | |||||||||||||||||||||
DigitalThink (India) Pvt. Ltd. | India | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (0.46%) | Bermuda | |||||||||||||||||||||
Convergys Learning Solutions LLC | Delaware | |||||||||||||||||||||
Encore Receivable Management, Inc. | Kansas | |||||||||||||||||||||
SGS Holdings, Inc. (90.60156%) | Delaware | |||||||||||||||||||||
Stream Global Services, Inc. | Delaware | |||||||||||||||||||||
Convergys Global Services El Salvador, S.A. de C.V. (fka Stream Global Services El Salvador, S.A. de C.V.) (0.1%) | El Salvador | |||||||||||||||||||||
Stream Holdings Corporation | Delaware | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (5.04%) | Bermuda | |||||||||||||||||||||
Stream Florida Inc. | Delaware | |||||||||||||||||||||
Stream Ireland Contact Services Limited | Ireland | |||||||||||||||||||||
Stream Global Services - US, Inc. | Delaware | |||||||||||||||||||||
Stream Global Services - AZ, Inc. | Arizona | |||||||||||||||||||||
Stream New York, Inc. | Delaware | |||||||||||||||||||||
Stream International Inc. | Delaware | |||||||||||||||||||||
Convergys Global Services Honduras, S.A. (fka Stream Global Services Honduras, S.A.) (0.4%) | Honduras | |||||||||||||||||||||
Convergys Group Servicios de Apoyo Informatico, S.L. (fka Stream Servicios de Apoyo Informatico, S.L.) | Spain | |||||||||||||||||||||
Convergys International Europe B.V. (fka Stream International Europe B.V.) | Netherlands | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (1.65%) | Bermuda | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (3.64%) | Bermuda | |||||||||||||||||||||
Convergys Luxembourg | Luxembourg | |||||||||||||||||||||
Convergys International Inc. | Delaware | |||||||||||||||||||||
SGS Holdings, Inc. (9.39844%) | Delaware | |||||||||||||||||||||
Convergys Customer Management International Inc. | Ohio | |||||||||||||||||||||
Convergys CMG UK Limited | United Kingdom | |||||||||||||||||||||
Convergys Customer Management Mexico S. de R.L. de C.V. (1%) | Mexico | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (0.24%) | Bermuda | |||||||||||||||||||||
Convergys Korea Limited (51%) | Korea | |||||||||||||||||||||
PT Convergys Customer Management Indonesia (1%) | Indonesia | |||||||||||||||||||||
Convergys Customer Management Group Canada Holding Inc. | Delaware | |||||||||||||||||||||
Convergys Customer Management Delaware LLC | Delaware | |||||||||||||||||||||
Convergys International Holding Ltd. (fka Stream International (Bermuda) Ltd.) (88.98%) | Bermuda | |||||||||||||||||||||
Convergys Global Services El Salvador, S.A. de C.V. (fka Stream Global Services El Salvador, S.A. de C.V.) (99.9%) | El Salvador | |||||||||||||||||||||
Convergys Philippines, Inc. (fka Stream International Global Services Philippines, Inc.) (0.4673%) | Philippines | |||||||||||||||||||||
Stream Global Services Danmark ApS | Denmark | |||||||||||||||||||||
Convergys Egypt Limited Liability Company(1%) | Egypt | |||||||||||||||||||||
Convergys International Services Europe B.V. (fka Stream International Service Europe B.V.) | Netherlands | |||||||||||||||||||||
Convergys Customer Management Australia Pty Ltd | Australia | |||||||||||||||||||||
Convergys Customer Management Colombia S.A.S. | Colombia | |||||||||||||||||||||
Convergys Customer Management Netherlands B.V. | Netherlands | |||||||||||||||||||||
Convergys Global Services GmbH (fka Stream Global Services GmbH) | Germany | |||||||||||||||||||||
Convergys Global Services Honduras, S.A. (fka Stream Global Services Honduras, S.A.) (99.6%) | Honduras | |||||||||||||||||||||
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 International Bulgaria EOOD (fka Stream International Bulgaria EOOD) | Bulgaria | |||||||||||||||||||||
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 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 | |||||||||||||||||||||
Convergys Italy S.R.L. (fka Stream Italy S.R.L.) | Italy | |||||||||||||||||||||
PT Convergys Customer Management Indonesia (99%) | Indonesia | |||||||||||||||||||||
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 Egypt Limited Liability Company (99%) | Egypt | |||||||||||||||||||||
Convergys (Mauritius) Ltd (fka Stream Mauritius Ltd) | Mauritius | |||||||||||||||||||||
Stream Tunisie, S.A.R.L. (99%) | Tunisia | |||||||||||||||||||||
Convergys International GmbH (fka Rheinsee 530. V V GmbH) | Germany | |||||||||||||||||||||
buw Verwaltungs GmbH | Austria | |||||||||||||||||||||
buw Management Holding GmbH & Co. KG | Germany | |||||||||||||||||||||
buw operations Wuppertal GmbH | Germany | |||||||||||||||||||||
buw Romania S.R.L. (99.9767%) | Romania | |||||||||||||||||||||
buw Hungary Telefoninformációs Szolgáltató és Tanácsadó Kft. | Hungary | |||||||||||||||||||||
buw operations Osnabrück GmbH | Germany | |||||||||||||||||||||
buw Romania S.R.L. (0.0233%) | Romania | |||||||||||||||||||||
buw operations Münster GmbH | Germany | |||||||||||||||||||||
buw Rechenzentrum GmbH | Germany | |||||||||||||||||||||
buw operations Leipzig GmbH | Germany | |||||||||||||||||||||
buw operations Gera GmbH | Germany | |||||||||||||||||||||
buw operations Halle GmbH | Germany | |||||||||||||||||||||
buw services GmbH | Germany | |||||||||||||||||||||
buw operations Frankfurt a. M. GmbH | Germany | |||||||||||||||||||||
buw operations Schwerin GmbH | Germany | |||||||||||||||||||||
buw operations Wismar GmbH | Germany | |||||||||||||||||||||
buw Beteiligungen GmbH | Germany | |||||||||||||||||||||
Konnektum GmbH (51%) | Germany | |||||||||||||||||||||
buw operations GmbH | Germany | |||||||||||||||||||||
Call 4 performance GmbH | Germany | |||||||||||||||||||||
Convergys Netherlands LLC | Delaware | |||||||||||||||||||||
Convergys Customer Management C.V. (0.0026% GP) | Netherlands | |||||||||||||||||||||
Convergys Customer Management C.V. (99.9974% LP) | Netherlands | |||||||||||||||||||||
Convergys International Luxembourg S.a.r.l. | Luxembourg | |||||||||||||||||||||
Convergys Services Denmark ApS | Denmark | |||||||||||||||||||||
Convergys Canada Holding B.V. | Netherlands | |||||||||||||||||||||
Convergys Netherlands B.V. | Netherlands | |||||||||||||||||||||
Convergys CMG Canada ULC | Nova Scotia, Canada | |||||||||||||||||||||
Convergys International B.V. | Netherlands | |||||||||||||||||||||
Convergys Malaysia Sdn Bhd (fka Datacom South East Asia (M) Sdn. Bhd.) | Malaysia | |||||||||||||||||||||
Intervoice Pte Ltd. | Singapore | |||||||||||||||||||||
Intervoice Limited | United Kingdom | |||||||||||||||||||||
Intervoice GmbH | Germany | |||||||||||||||||||||
Convergys South Africa (Pty) Ltd (fka French Rose 14 (Pty) Ltd) | South Africa | |||||||||||||||||||||
SGS Netherlands Cooperatief U.A. (100%) | Netherlands | |||||||||||||||||||||
Convergys Netherlands Investments B.V. (fka 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 Singapore Holdings Pte. Ltd. | Singapore | |||||||||||||||||||||
Convergys Malaysia (Philippines) Sdn Bhd (fka Datacom Connect (Phil) Sdn B | 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 | |||||||||||||||||||||
Intervoice, LLC (100%) | 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 Services e Partipacoes Ltda. (99.999993%) | Brazil | |||||||||||||||||||||
Brite Voice Systems, LLC | Kansas | |||||||||||||||||||||
• 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. |
May 8, 2017 | /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. |
May 8, 2017 | /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 |
3 Months Ended |
---|---|
Mar. 31, 2017
shares
| |
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 | Mar. 31, 2017 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 94,126,586 |
Trading symbol | cvg |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Net Income (Loss) | $ 37.9 | $ 44.5 |
Foreign currency translation adjustments | 3.0 | 10.0 |
Change related to pension liability, net of tax | 0.9 | 1.0 |
Unrealized gain (loss) on hedging activities, net of tax | 10.7 | 22.0 |
Total other comprehensive income (loss) | 14.6 | 33.0 |
Total Comprehensive Income (Loss) | $ 52.5 | $ 77.5 |
Balance Sheet Parenthetical (Parentheticals) - USD ($) shares in Millions, $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Allowance for Doubtful Accounts Receivable, Current | $ 5.6 | $ 5.8 |
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 | 191.4 | 191.0 |
Common Stock, Shares, Outstanding | 94.1 | 94.7 |
Treasury Stock, Shares | 97.2 | 96.3 |
Background And Basis Of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | BACKGROUND AND BASIS OF PRESENTATION Convergys Corporation (Convergys or the Company) is a global leader in customer experience outsourcing, focused on bringing value to its clients through every customer interaction. As of March 31, 2017, Convergys had approximately 130,000 employees in 33 countries, interacting with our clients’ customers in 58 languages. In order to help clients serve their customers, Convergys operates 149 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, 2016, filed with the SEC on February 22, 2017. Certain balances within the prior year Consolidated Financial Statements have been reclassified to conform to current year presentation. |
Recent Accounting Pronouncements (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, “Simplifying the Test for Goodwill Impairment.” This ASU eliminates the two-step process that required identification of potential impairment and a separate measure of the actual impairment. Goodwill impairment charges, if any, would be determined by the difference between a reporting unit's carrying value and its fair value (impairment loss is limited to the carrying value). This standard is effective for annual or any interim goodwill impairment tests beginning after December 15, 2019. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs.” This ASU requires the service component of pension and other postretirement benefit costs to be presented in the same line item as other employee compensation costs on the consolidated statement of income; however, the other components of net benefit cost are required to be presented outside of operating income within the consolidated statements of income. The Company retrospectively adopted this ASU on January 1, 2017. The impact of the adoption on balances previously reported as of March 31, 2016 were as follows:
In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU is intended to simplify accounting for share-based payments and requires 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. The ASU also provides the option to recognize forfeitures as they occur rather than estimating the number of awards expected to be forfeited. The Company adopted this ASU as of January 1, 2017 and is applying the new guidance related to excess tax benefits on a prospective basis. The Company has elected to account for forfeitures of share-based payments as they occur and will no longer apply estimated forfeiture rates. As a result of this election, the Company recorded a $0.6 cumulative-effect adjustment to the retained earnings balance as of January 1, 2017 for outstanding awards based on the difference between the fair value of awards historically expected to be forfeited and the fair value of awards actually forfeited. 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 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 of U.S. GAAP. This update is effective for interim and annual reporting periods beginning after December 15, 2017. The Company is currently assessing the effect that adoption of the new standard will have on its consolidated financial statements. The Company expects the largest impacts to result from the requirement to estimate variable consideration, such as performance related bonus and penalty provisions. The Company anticipates that it will apply the modified retrospective adoption alternative for this standard, which will result in a cumulative effect adjustment to retained earnings as of January 1, 2018. |
Business Combination Business Combination (Notes) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS buw Acquisition On August 1, 2016, the Company acquired buw, a leader in the German customer care industry. The acquisition added 16 sites and approximately 6,000 employees from Germany, Hungary and Romania into Convergys’ global operations. The total purchase price, net of cash acquired, was $137.9, which was funded using available cash and cash equivalents. Preliminary Purchase Price Allocation The Company accounted for buw using the acquisition method of accounting in accordance with applicable U.S. GAAP whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values. The following table summarizes the preliminary values of the assets acquired and liabilities assumed at the date of acquisition:
As of March 31, 2017, the purchase price allocation for the acquisition was preliminary and subject to completion. Adjustments to the current fair value estimates in the above table may occur as the process conducted for various valuations and assessments is finalized. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the synergistic benefits that are expected to be realized from the acquisition. The benefits primarily include an expanded geographic footprint in Germany and Eastern Europe. None of the goodwill is expected to be deductible for income tax purposes and was entirely allocated to the Customer Management - Agent Services reporting unit. Intangible Assets Identified The following details the total intangible assets identified:
The fair value of the customer relationship asset was determined using the income approach through an excess earnings analysis, with projected earnings being discounted at a rate of 13.2%. The customer relationship intangible asset represents relationships between buw and its customers. Convergys applied the income approach through a relief-from-royalty analysis to determine the preliminary fair value of the buw trade name asset. The determination of the useful lives was based upon consideration of market participant assumptions and transaction specific factors. |
Divestitures |
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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 business to NEC Corporation. During the periods presented, the Company recorded additional gains 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. 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 months ended March 31, 2017 excludes 0.3 performance-based restricted stock units granted in 2015, as the performance criteria has not yet been achieved, as well as 0.4 performance-based restricted stock units (0.1 and 0.3 granted in 2017 and 2016, respectively), as the performance criteria for the third year of the 2016 grants and the second and third years of the 2017 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 implied 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. 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 March 31, 2017, the implied conversion price for the 2029 Convertible Debentures was approximately $11.30 per share, or eighty-eight and forty-nine hundredths shares per one thousand dollars in principal amount of debentures. Shareholders’ Equity The Company repurchased 0.9 of its common shares during the three months ended March 31, 2017 at an average price of $23.12 per share for a total of $21.8. Based upon the timing of transactions, $0.9 of the shares repurchased in December 2016 settled during the first quarter of 2017. Additionally, $1.2 of the shares repurchased during March 2017 had not settled as of March 31, 2017. These shares are excluded from outstanding shares at the end of the current quarter and were settled in cash during the second quarter of 2017. As of March 31, 2017, the Company had the authority to repurchase $121.3 of outstanding common shares pursuant to the Board of Directors’ August 2015 authorization to increase the remaining authorized share repurchases to $250.0 in the aggregate. The timing and terms of any future transactions will depend on a number of considerations including market conditions, our available liquidity and capital needs, and limits on share repurchases that may be applicable under the covenants in our New Credit Agreement. Dividends During 2016 and 2017, the Company’s Board of Directors declared the following dividends per common share, which were paid by the Company on the payment dates listed below:
On May 8, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per common share to be paid on July 7, 2017 to shareholders of record as of June 23, 2017. 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 Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Other Intangible Assets and Long-Lived Assets | GOODWILL AND OTHER INTANGIBLE AND LONG-LIVED ASSETS Goodwill Goodwill was $920.1 at March 31, 2017 compared to $916.9 at December 31, 2016. 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 March 31, 2017 and December 31, 2016, all goodwill was held by the Customer Management - Agent Services reporting unit. The annual impairment test performed as of October 1, 2016 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, 2016 annual impairment test, no indications of an impairment were identified. Other Intangible Assets The Company’s other intangible assets, primarily acquired through business combinations, are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. No impairment charges were recognized in any period presented. As of March 31, 2017 and December 31, 2016, 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, 1 to 4 years for trademarks and 1 to 17 years for customer relationships and other intangibles. The remaining weighted average amortization period for customer relationships and other intangibles is approximately 13.0 years. Amortization of software is included within depreciation expense as the underlying assets are classified within property and equipment. Amortization expense for intangibles was $7.2 and $6.9 for the three months ended March 31, 2017 and 2016, respectively, and is estimated to be approximately $27.9 for the year ended December 31, 2017. 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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Debt and Capital Lease Obligations | DEBT AND CAPITAL LEASE OBLIGATIONS Debt and capital lease obligations consisted of the following:
Credit Facility On January 11, 2017 (the Effective Date), the Company entered into a new credit agreement (New Credit Agreement) and repaid all amounts outstanding and terminated all commitments under its previously existing credit agreement (Credit Agreement) using initial borrowings under the New Credit Agreement as well as borrowings under the Company’s asset securitization facility.The New Credit Agreement consists of a $215.0 unsecured term loan facility (New Term Loan), maturing on March 3, 2019, and a $300.0 unsecured revolving credit facility (New Revolving Credit Facility), maturing on January 11, 2022. On the Effective Date, the Company drew $100.0 in initial borrowings under the New Term Loan. A $1.0 extinguishment loss was recognized on the Effective Date and is included in interest expense on the Consolidated Statement of Income. The New Revolving Credit Facility may be extended for two additional periods of one year, subject to the satisfaction of certain conditions set forth in the New Credit Agreement. In addition, aggregate borrowing capacity under the New Credit Agreement may be increased by up to an additional $250.0 million by increasing the amount of the Revolving Credit Facility or by incurring additional term loans, in each case subject to the satisfaction of certain conditions set forth in the New Credit Agreement, including the receipt of additional commitments for such increase. Borrowings outstanding under the New Credit Agreement may be repaid from time to time without premium or penalty, other than customary breakage costs, if any. Borrowings outstanding under the New Credit Agreement bear interest at a fluctuating rate per annum equal to, at the Company’s option, either (a) the applicable adjusted LIBOR plus a spread based on the Company’s total net leverage ratio, which spread is currently 150 basis points or (b) a base rate (equal to the higher of the Administrative Agent’s prime rate, the federal fund rate plus 0.50%, and the one-month adjusted LIBOR plus 1.0%) plus a spread based on the Company’s total net leverage ratio, which spread is currently 50 basis points. The Company is also obligated to pay a commitment fee on a quarterly basis on the unused portion of the commitments under the New Revolving Credit Facility based on the Company’s total net leverage ratio, which fee is currently 25 basis points. While amounts borrowed and repaid under the New Revolving Credit Facility can be re-borrowed, amounts repaid under the New Term Loan cannot be borrowed again under the New Credit Agreement. The New Credit Agreement contains certain affirmative and negative covenants, as well as terms and conditions that are customary for credit facilities of this type, including financial covenants for leverage and interest coverage ratios. The Company was in compliance with all covenants at March 31, 2017. Total borrowing capacity remaining under the New Revolving Credit Facility was $300.0, with $100.0 outstanding on the New Term Loan, as of March 31, 2017. The carrying value of the New Term Loan at March 31, 2017 reflects a discount of $1.1 related to fees paid directly to the lenders at issuance. This discount is being amortized over the life of the New Term Loan using the effective interest rate method (3.1% as of March 31, 2017), and is included in interest expense in the Consolidated Statements of Income. The Company established the Credit Agreement on February 28, 2014 in the aggregate amount of $650.0. The Credit Agreement consisted of unsecured term loans (Term Loan) in the initial aggregate amount of $350.0, and an unsecured revolving credit facility (Revolving Credit Facility) in the amount of $300.0. The Term Loan and the Revolving Credit Facility were scheduled to mature on March 3, 2019. Outstanding amounts were subject to interest at the applicable rate described in the Credit Agreement. 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 March 31, 2017 or December 31, 2016. 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 $14.69) 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 implied conversion price of approximately $12.07 per share, or eighty-two and eighty-two hundredths shares per one thousand dollars in principal amount of debentures. As of December 31, 2016, the implied conversion price for the 2029 Convertible Debentures was approximately $11.30 per share, or eighty-eight and forty-nine 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 March 31, 2017 and December 31, 2016, 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 $14.69, 130% of the conversion price of the 2029 Convertible Debentures at March 31, 2017, for at least 20 of the 30 consecutive trading days ending on March 31, 2017). As a result, the equity component of the 2029 Convertible Debentures equal to $60.9 (the difference between the par value and carrying value of the 2029 Convertible Debentures at March 31, 2017) has been classified as temporary equity within the March 31, 2017 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 March 31, 2017, the fair value of the $125.0 aggregate principal amount of the Company’s 2029 Convertible Debentures is $248.7. Asset Securitization Facility During January 2017, the Company amended the terms of its asset securitization facility collateralized by accounts receivable of certain of the Company’s subsidiaries. The amendment resulted in an increased purchase limit of $225.0, with $90.0 and $135.0 expiring in January 2018 and January 2020, respectively. As of December 31, 2016, the asset securitization facility had a purchase limit of $150.0 expiring in January 2017. The asset securitization program is conducted through Convergys Funding Inc., a wholly-owned bankruptcy remote subsidiary of the Company. As of March 31, 2017 and December 31, 2016, Convergys had drawn $180.0 and $20.0, respectively, in available funding from qualified receivables. Amounts drawn under this facility have been classified as long-term debt within the Consolidated Balance Sheets, based on the Company’s ability and intent to refinance on a long-term basis as of March 31, 2017. At March 31, 2017, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt discounts) are as follows:
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Restructuring |
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Restructuring Charges [Abstract] | |
Restructuring | RESTRUCTURING 2017 Restructuring Company-wide restructuring program During the first quarter of 2017, the Company recorded restructuring expenses of $12.8 related to a company-wide initiative to reduce headcount and better align the Company’s resources, principally for corporate functions. The 2017 restructuring actions impacted approximately 315 employees. This expense is included in Restructuring charges on the Consolidated Statements of Income and is expected to be substantially paid in cash by March 31, 2018. The total remaining liability under these restructuring actions, which is included in Payables and other current liabilities on the Consolidated Balance Sheet, was $10.2 as of March 31, 2017. Other Severance During 2017, the Company recorded other severance expense totaling $2.2, primarily related to headcount reductions resulting from certain client program completions. These actions impacted approximately 150 employees. This severance expense is included in Restructuring charges on the Consolidated Statements of Income and is expected to be substantially paid in cash by December 31, 2017. The total remaining liability under these severance-related actions, which is included in Payables and other current liabilities on the Consolidated Balance Sheet, was $1.4 as of March 31, 2017. buw integration During 2017, the Company recorded severance expense totaling $0.9 related to the elimination of certain redundant positions as a result of the integration of the buw business. This severance expense was included in Integration costs on the Consolidated Statements of Income and is expected to be substantially paid in cash by December 31, 2017. The total remaining liability under these severance-related actions, which is included in Payables and other current liabilities on the Consolidated Balance Sheet, was $0.5 as of March 31, 2017. 2016 Restructuring During 2016, the Company recorded severance charges of $3.7 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 760 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 $0.8 as of December 31, 2016 and $0.1 as of March 31, 2017. |
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 in the U.S. (the cash balance plan) 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. The Company’s measurement date for all plans is December 31. The plan assumptions are evaluated annually and are updated as deemed necessary. 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:
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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 months ended March 31, 2017 and 2016 included stock-based compensation expense of $4.3 and $4.1, respectively. Expense for the three months ended March 31, 2017 and 2016 included an income adjustment of $0.1 and expense of $0.3, respectively, related to awards classified as liabilities that will ultimately settle in cash. The income adjustment in the current quarter reflected a revaluation of the awards classified as liabilities based on the trading price of the Company’s common stock. Restricted Stock Units Time-based Restricted Stock Units During the three months ended March 31, 2017 and 2016, the Company granted 0.2 and 0.5 shares, respectively, of time-based restricted stock units. The weighted average grant date fair values of these grants were $22.70 and $26.34, 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 March 31, 2017 was approximately $17.0, which is expected to be recognized over a weighted average period of 2.0 years. Changes to non-vested time-based restricted stock units for the three months ended March 31, 2017 were as follows:
Performance-based Restricted Stock Units During the three months ended March 31, 2017 and 2016, the Company granted 0.1 and 0.3 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 performance minimum threshold level. At March 31, 2017, the targets for the third year of the 2016 grants and the second and third years of the 2017 grants had not yet been set, 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 2017, the Company established and communicated to participants the final key terms of the 2015 grants, resulting in grants for accounting purposes of 0.3 shares with a grant date fair value of $21.27 per share. The total compensation cost related to the 2015 non-vested performance-based restricted stock units not yet recognized as of March 31, 2017 was approximately $6.5, which is expected to be recognized ratably over the remaining vesting period ending in February 2018. Changes to non-vested performance-based restricted stock units for the three months ended March 31, 2017 were as follows:
Stock Options Presented below is a summary of Company stock option activity. 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 |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments At March 31, 2017, the Company had outstanding letters of credit and bond obligations of $23.2 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 $14.8 for the remainder of 2017. 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. |
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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 contact center capacity outside of the U.S. 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. 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 36,810.0 at a fixed price of $756.0 at various dates through December 2019, INR 12,177.0 at a fixed price of $166.5 at various dates through December 2019, CAD 39.8 at a fixed price of $30.6 at various dates through December 2018 and COP 35,700.0 at a fixed price of $11.2 at various dates through December 2018. These instruments mature within the next 33 months and had a notional value of $964.4 at March 31, 2017 and $959.0 at December 31, 2016. 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 $9.2 and $15.9 related to these derivatives at March 31, 2017 and December 31, 2016, respectively. A total of $14.8 and $25.5 of deferred losses, net of tax, related to these cash flow hedges at March 31, 2017 and December 31, 2016, respectively, were included in accumulated other comprehensive loss (OCL). As of March 31, 2017, deferred losses of $17.3 ($10.6 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 months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017:
Three Months Ended March 31, 2016:
The gain or loss recognized related to the ineffective portion of the derivative instruments was immaterial for the three months ended March 31, 2017 and 2016. 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 three months ended March 31, 2017, a loss of $2.6 was recognized related to changes in fair value of these derivative instruments not designated as hedges, compared to a gain of $1.0 in the same period in 2016. 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 March 31, 2017, was less than a $0.1 receivable. Short-term Investments As of March 31, 2017 and December 31, 2016, the Company held investment securities with a fair value of $11.6 and $12.4, 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. |
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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 March 31, 2017 and December 31, 2016, 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 three months ended March 31, 2017 and March 31, 2016. The derivative assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 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 March 31, 2017 and December 31, 2016. 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 three months ended March 31, 2017 and March 31, 2016. The assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 were as follows:
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Income Taxes |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective tax rate on net income from continuing operations was 15.4% for the three months ended March 31, 2017 compared to 18.5% in the same period last year. The effective tax rates for both periods were largely impacted by the geographic mix of worldwide income and certain discrete items. The liability for unrecognized tax benefits was $21.1 and $20.8 at March 31, 2017 and December 31, 2016, respectively, and is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. As of March 31, 2017, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the Consolidated Financial Statements is $18.4. This amount includes interest and penalties of $10.0. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between approximately $1.2 and $13.2 in the next twelve months; however, actual developments in this area could differ from those currently expected. |
Additional Financial Information |
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Additional Financial Information |
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Accumulated Other Comprehensive Income (Loss) (Notes) |
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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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Recent Accounting Pronouncements (Tables) |
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Recent Accounting Pronouncements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The Company retrospectively adopted this ASU on January 1, 2017. The impact of the adoption on balances previously reported as of March 31, 2016 were as follows:
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Business Combination Business Combination (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | he following table summarizes the preliminary values of the assets acquired and liabilities assumed at the date of acquisition:
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Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following details the total intangible assets identified:
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Divestitures (Tables) |
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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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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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Schedule of Dividends Declared and Paid [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared and Paid [Table Text Block] | During 2016 and 2017, the Company’s Board of Directors declared the following dividends per common share, which were paid by the Company on the payment dates listed below:
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Goodwill and Other Intangible Assets and Long-Lived Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations | As of March 31, 2017 and December 31, 2016, the Company’s other intangible assets consisted of the following:
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Schedule Of Estimated Amortization Expense | Amortization expense for intangibles was $7.2 and $6.9 for the three months ended March 31, 2017 and 2016, respectively, and is estimated to be approximately $27.9 for the year ended December 31, 2017. The related estimated expense for the five subsequent fiscal years is as follows:
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Debt And Capital Lease Obliations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Debt And Capital Lease Obligations | Debt and capital lease obligations consisted of the following:
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Schedule Of Future Minimum Payments | At March 31, 2017, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt discounts) are as follows:
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Employee Benefit Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Other Pension Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of pension cost and other amounts recognized in other comprehensive loss for the EDCP are as follows:
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Stock-Based Compensation Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. 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 Schedule of Non-Vested Restricted Stock Units Activity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 three months ended March 31, 2017 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 three months ended March 31, 2017 were as follows:
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Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017:
Three Months Ended March 31, 2016:
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Fair Value Measurements (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2017 and December 31, 2016 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 March 31, 2017 and December 31, 2016 were as follows:
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Additional Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information |
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Accumulated Other Comprehensive Income (Loss) (Tables) |
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss):
The following table summarizes the reclassification out of accumulated other comprehensive income (loss):
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Background And Basis Of Presentation Background And Basis Of Presentation (Details) |
3 Months Ended |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Number of Employees | 130,000 |
Entity Number of Contact Centers | 149 |
Number of Countries in which Entity Operates | 33 |
Number of Languages Spoken | 58 |
Business Combination Business Combinations (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
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Aug. 01, 2016 |
|
Business Acquisition [Line Items] | ||
Entity Number of Employees | 130,000 | |
Business Combination, Consideration Transferred | $ 137.9 | |
Fair Value Inputs, Discount Rate | 13.20% | |
Number of Countries in which Entity Operates | 33 | |
buw Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Entity Number of Employees | 6,000 |
Divestitures (Schedule Of Results Included In Discontinued Operations) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 0.0 | $ 0.0 |
Information Management [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on disposition | 0.0 | 0.8 |
Income before income taxes | 0.0 | 0.8 |
Benefit related to gain on disposition | 0.0 | (0.8) |
Income from discontinued operations, net of tax | $ 0.0 | $ 0.0 |
Earnings (Loss) Per Share and Shareholder’s Equity Schedule of Dividends Declared and Paid (Details) - $ / shares |
3 Months Ended | ||||
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Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
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Schedule of Dividends Declared and Paid [Abstract] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.08 |
Goodwill and Other Intangible Assets and Long-Lived Assets (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Aug. 01, 2016 |
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Goodwill | $ 920.1 | $ 916.9 | $ 97.6 | ||
Amortization | $ 7.2 | $ 6.9 | |||
Customer Relationships [Member] | |||||
Weighted average amortization period | 13 years | ||||
Minimum [Member] | Software [Member] | |||||
Intangible assets, useful life, minimum | 8 years | ||||
Minimum [Member] | Trademarks [Member] | |||||
Intangible assets, useful life, minimum | 1 year | ||||
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] | Trademarks [Member] | |||||
Intangible assets, useful life, minimum | 4 years | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Intangible assets, useful life, minimum | 17 years | ||||
Scenario, Forecast [Member] | |||||
Amortization | $ 27.9 |
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
Aug. 01, 2016 |
---|---|---|---|
Gross Carrying Value | $ 541.7 | $ 541.8 | $ 22.7 |
Accumulated Amortization | (241.6) | (234.2) | |
Intangible assets, net | 300.1 | 307.6 | |
Software [Member] | |||
Gross Carrying Value | 41.3 | 41.3 | |
Accumulated Amortization | (41.3) | (41.3) | |
Intangible assets, net | 0.0 | 0.0 | |
Trademarks [Member] | |||
Gross Carrying Value | 26.5 | 26.5 | |
Accumulated Amortization | (22.7) | (21.5) | |
Intangible assets, net | 3.8 | 5.0 | |
Customer Relationships [Member] | |||
Gross Carrying Value | 473.9 | 474.0 | |
Accumulated Amortization | (177.6) | (171.4) | |
Intangible assets, net | $ 296.3 | $ 302.6 |
Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
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Goodwill and Intangible Assets Disclosure [Abstract] | |
For the year ended 2018 | $ 23.9 |
For the year ended 2019 | 23.9 |
For the year ended 2020 | 22.8 |
For the year ended 2021 | 21.3 |
For the year ended 2022 | 21.2 |
Thereafter | $ 159.1 |
Debt (Revolving Credit Facility) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Jan. 31, 2017 |
Dec. 31, 2016 |
Mar. 03, 2014 |
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Line of credit, maximum borrowing capacity | $ 650.0 | ||||
Credit facility, amount outstanding | $ 98.9 | $ 212.9 | |||
Gain (Loss) on Extinguishment of Debt | $ 1.0 | ||||
Line of Credit Facility, Description | 250 | ||||
Ratio of Indebtedness to Net Capital | 15000.00% | ||||
Debt Instrument, Interest Rate Terms | 0.005 | ||||
Debt Instrument, Description of Variable Rate Basis | 0.01 | ||||
Proceeds from (Repayments of) Debt | $ 100.0 | $ 0.0 | |||
Debt Instrument, Unamortized Discount | $ 1.1 | ||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.031 | ||||
Line of Credit [Member] | |||||
Line of credit, maximum borrowing capacity | $ 215.0 | 350.0 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 100.0 | ||||
Credit facility, amount outstanding | 100.0 | ||||
Revolving Credit Facility [Member] | |||||
Line of credit, maximum borrowing capacity | $ 300.0 | $ 300.0 | $ 300.0 | ||
Base Rate [Member] | |||||
Ratio of Indebtedness to Net Capital | 5000.00% |
Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Other) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Mar. 31, 2017 |
|
Debt Instrument [Line Items] | ||
Accounts Receivable Securitization | $ 20.0 | $ 180.0 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 150.0 | 225.0 |
Debt Instrument, Maturity Date | Jan. 06, 2017 | |
January 2018 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 90.0 | |
January 2020 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 135.0 |
Debt (Schedule Of Debt And Capital Lease Obligations) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument | ||
Term Loan, due 2019 | $ 98.9 | $ 212.9 |
Convertible Debentures, due 2029 | 64.1 | 63.7 |
Capital Lease Obligations | 3.0 | 3.6 |
Accounts Receivable Securitization | 180.0 | 20.0 |
Total debt | 346.0 | 300.2 |
Less debt issuance costs | 1.4 | 1.4 |
Total debt, net | 344.6 | 298.8 |
Less current maturities | (1.3) | (1.8) |
Long-term debt | $ 343.3 | $ 297.0 |
Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Schedule of Future Minimum Payments) (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Long-term Debt and Capital Lease Obligations [Abstract] | |
2017 | $ 0.9 |
2018 | 72.9 |
2019 | 100.7 |
2020 | 108.5 |
2021 | 0.0 |
2022 | 0.0 |
Thereafter | 125.0 |
Total | $ 408.0 |
Restructuring Restructuring (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 12.8 | |
Employees affected | 315 | |
Restructuring Reserve | $ 10.2 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 2.2 | |
Employees affected | 150 | |
Restructuring Reserve | $ 1.4 | |
2016 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 3.7 | |
Employees affected | 760 | |
Restructuring Reserve | 0.1 | $ 0.8 |
buw Acquisition [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 0.9 | |
Restructuring Reserve | $ 0.5 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |
Defined Contribution Plan, Contributions by Employee | 3.00% | |
Pension Plan [Member] | ||
Defined Benefit Plan, Service Cost | $ 1.4 | $ 1.7 |
Defined Benefit Plan, Interest Cost | 1.9 | 2.2 |
Defined Benefit Plan, Expected Return on Plan Assets | (2.5) | (2.5) |
Defined Benefit Plan, Amortization of Gains (Losses) | 1.5 | 1.7 |
Defined Benefit Plan, Net Periodic Benefit Cost | 2.3 | 3.1 |
Other Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan, Service Cost | 0.4 | 0.3 |
Defined Benefit Plan, Interest Cost | 0.1 | 0.1 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 0.5 | $ 0.4 |
50% [Domain] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |
2% [Domain] | ||
Defined Contribution Plan, Contributions by Employee | 2.00% |
Commitments And Contingencies (Details) $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Letters of credit outstanding amount | $ 23.2 |
Purchase Commitments | $ 14.8 |
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Forward exchange contracts and options designated as hedging instruments, assets | $ 15.3 | $ 5.6 |
Forward exchange contracts and options designated as hedging instruments, liabilities | 39.2 | 49.0 |
Other Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | 8.7 | 3.0 |
Other Non-Current Assets [Member] | ||
Forward exchange contracts and options designated as hedging instruments, assets | 5.7 | 2.3 |
Other Current Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | 26.0 | 31.3 |
Other Noncurrent Liabilities [Member] | ||
Forward exchange contracts and options designated as hedging instruments, liabilities | $ 12.3 | $ 15.4 |
Financial Instruments (Effect Of Derivative Instruments On Consolidated Financial Statements) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Derivative Instruments, Gain (Loss) | ||
Foreign exchange contracts, Gain (Loss) Recognized in OCL | $ 9.8 | $ 27.1 |
Foreign exchange contracts, Gain Reclassified from AOCL to Income | $ (7.7) | $ (8.7) |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Effective Income Tax Rate Reconciliation, Percent | 15.40% | 18.50% | |
Unrecognized Tax Benefits | $ 21.1 | $ 20.8 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 18.4 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 10.0 | ||
Minimum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1.2 | ||
Maximum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 13.2 |
Additional Financial Information (Schedule Of Payables And Other Current Liabilities) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Additional Information [Line Items] | ||
Accounts payable | $ 43.1 | $ 53.9 |
Accrued taxes | 24.8 | 44.1 |
Accrued payroll-related expenses | 125.6 | 132.0 |
Derivative Liabilities | 26.9 | 33.6 |
Accrued expenses, other | 58.8 | 63.7 |
Restructuring and exit costs | 12.2 | 0.8 |
Deferred Revenue, Current | 14.5 | 17.7 |
Accounts Payable and Accrued Liabilities, Current | $ 305.9 | $ 345.8 |
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