10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

Form 10-Q

______________________

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 1-14379

______________________

CONVERGYS CORPORATION

(Exact name of registrant as specified in its charter)

______________________

Incorporated under the laws of the State of Ohio

201 East Fourth Street, Cincinnati, Ohio 45202

I.R.S. Employer Identification Number 31-1598292

Telephone - Area Code (513) 723-7000

______________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   ☑   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☑

At September 30, 2017, there were 92,412,178 common shares, without par value, outstanding, excluding amounts held in Treasury of 99,102,838.

TABLE OF CONTENTS

PART I		Page
Item 1.	Financial Statements	2
	Consolidated Statements of Income - Three and Nine Months Ended September 30, 2017 and 2016 (Unaudited)	2
	Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2017 and 2016 (Unaudited)	3
	Consolidated Balance Sheets - September 30, 2017 (Unaudited) and December 31, 2016	4
	Consolidated Statements of Cash Flow - Nine Months Ended September 30, 2017 and 2016 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	6
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	7
Item 4.	Controls and Procedures	7
PART II
Item 1.	Legal Proceedings	8
Item 1A.	Risk Factors	8
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8
Item 5.	Other Information	8
Item 6.	Exhibits	8
	Signatures	9

1

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Amounts in millions except per share amounts)	2017			2016			2017			2016
Revenues		$688.3			$741.2			$2,102.8			$2,155.6
Costs and Expenses:
Cost of providing services and products sold (1)	428.1			479.8			1,305.1			1,365.3
Selling, general and administrative	175.5			170.5			527.1			511.1
Depreciation	26.2			30.3			80.6			93.3
Amortization	7.2			7.1			21.7			20.9
Restructuring charges	2.4			0.2			19.1			2.7
Transaction and integration costs	0.8			2.7			3.4			5.0
Total costs and expenses	640.2			690.6			1,957.0			1,998.3
Operating Income	48.1			50.6			145.8			157.3
Other (expense) income, net	(1.6		)	(1.2		)	1.2			(3.2		)
Interest expense	(4.5		)	(4.6		)	(14.0		)	(13.6		)
Income before Income Taxes	42.0			44.8			133.0			140.5
Income tax expense	7.2			7.1			20.5			25.0
Income from Continuing Operations, net of tax	34.8			37.7			112.5			115.5
Income from Discontinued Operations, net of tax	—			10.0			—			10.0
Net Income		$34.8			$47.7			$112.5			$125.5
Basic Earnings per Common Share
Continuing Operations		$0.38			$0.39			$1.20			$1.20
Discontinued Operations	—			0.11			—			0.11
Basic Earnings per Common Share		$0.38			$0.50			$1.20			$1.31
Diluted Earnings per Common Share
Continuing Operations		$0.35			$0.36			$1.12			$1.11
Discontinued Operations	—			0.10			—			0.10
Diluted Earnings per Common Share		$0.35			$0.46			$1.12			$1.21
Weighted Average Common Shares Outstanding:
Basic	92.8			95.6			93.6			96.1
Diluted	99.8			103.1			100.7			103.6
Cash dividends declared per share		$0.10			$0.09			$0.29			$0.26

(1) Exclusive of depreciation and amortization, with the exception of amortization of deferred charges.

The accompanying notes are an integral part of the Consolidated Financial Statements.

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Amounts in millions)	2017			2016			2017		2016
Net Income		$34.8			$47.7			$112.5		$125.5
Other Comprehensive Income, net of tax:
Foreign currency translation adjustments	5.7			(2.0		)	18.2		(3.2		)
Change related to pension liability	(0.1		)	1.0			1.6		3.0
Unrealized gain (loss) on hedging activities	2.1			(5.3		)	17.8		9.8
Total other comprehensive gain (loss)	7.7			(6.3		)	37.6		9.6
Total Comprehensive Income		$42.5			$41.4			$150.1		$135.1

The accompanying notes are an integral part of the Consolidated Financial Statements.

3

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	At September 30,			At December 31,
(Amounts in millions)	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents		$167.8			$138.8
Short-term investments	13.0			12.4
Receivables, net of allowances of $3.7 and $5.8	555.8			555.0
Prepaid expenses	44.0			38.6
Other current assets	38.4			40.0
Total current assets	819.0			784.8
Property and equipment, net	270.4			304.1
Goodwill	935.7			916.9
Other intangibles, net	293.2			307.6
Deferred income tax assets	24.2			17.7
Other assets	44.9			40.7
Total Assets		$2,387.4			$2,371.8
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Debt and capital lease obligations maturing within one year		$0.9			$1.8
Payables and other current liabilities	314.1			345.8
Total current liabilities	315.0			347.6
Long-term debt and capital lease obligations	279.2			297.0
Deferred income tax liabilities	202.1			197.8
Accrued pension liabilities	80.3			80.3
Other long-term liabilities	71.0			71.9
Total liabilities	947.6			994.6
Convertible debentures conversion feature	59.9			61.3
Shareholders’ Equity:
Preferred shares—without par value, 5.0 authorized; none issued or outstanding	—			—
Common shares—without par value, 500.0 authorized; 191.5 and 191.0 issued, 92.4 and 94.7 outstanding, as of September 30, 2017 and December 31, 2016, respectively	1,118.8			1,110.0
Treasury stock—99.1 and 96.3 shares as of September 30, 2017 and December 31, 2016, respectively	(1,702.0		)	(1,635.3		)
Retained earnings	2,039.3			1,955.0
Accumulated other comprehensive loss	(76.2		)	(113.8		)
Total shareholders’ equity	1,379.9			1,315.9
Total Liabilities and Shareholders’ Equity		$2,387.4			$2,371.8

The accompanying notes are an integral part of the Consolidated Financial Statements.

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
(Amounts in millions)	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$112.5			$125.5
Income from discontinued operations, net of tax	—			10.0
Income from continuing operations, net of tax	112.5			115.5
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations
Depreciation and amortization	102.3			114.2
Deferred income tax benefit	(13.2		)	(6.0		)
Stock compensation expense	12.5			12.8
Changes in assets and liabilities, net of acquisitions:
Change in receivables	(8.2		)	23.1
Change in other current assets	2.6			(9.3		)
Change in deferred charges, net	0.3			0.6
Change in other assets and liabilities	(1.3		)	(1.2		)
Change in payables and other current liabilities	(21.4		)	(12.9		)
Net cash provided by operating activities	186.1			236.8
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(44.9		)	(63.6		)
Purchase of short-term and other investments	—			(0.8		)
Acquisition, net of cash acquired	—			(129.9		)
Net proceeds from sale of joint venture interest previously acquired in the buw acquisition	0.7			—
Net cash used in investing activities	(44.2		)	(194.3		)
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)	(216.4		)	(2.4		)
Proceeds from Asset Securitization Facility	643.7			699.0
Repayment of Asset Securitization Facility	(548.7		)	(738.0		)
Repurchase of common shares	(65.9		)	(54.3		)
Proceeds from exercise of stock options	0.8			0.6
Payments of dividends	(26.4		)	(24.1		)
Excess tax benefit from share-based payment arrangements	—			1.1
Net cash used in financing activities	(112.9		)	(118.1		)
Net increase (decrease) in cash and cash equivalents	29.0			(75.6		)
Cash and cash equivalents at beginning of period	138.8			204.7
Cash and cash equivalents at end of period		$167.8			$129.1

 The accompanying notes are an integral part of the Consolidated Financial Statements.

5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in millions except per share amounts)

1. 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 September 30, 2017, Convergys had approximately 120,000 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.

2. 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 September 30, 2016 were as follows:

	Three Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$480.5		($0.7	)		$479.8
Selling, general and administrative		$171.0		($0.5	)		$170.5
Total costs and expenses		$691.8		($1.2	)		$690.6
Operating Income		$49.4		$1.2			$50.6
Other income (expense), net		$—		($1.2	)		($1.2	)

	Nine Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$1,367.5		($2.2	)		$1,365.3
Selling, general and administrative		$512.7		($1.6	)		$511.1
Total costs and expenses		$2,002.1		($3.8	)		$1,998.3
Operating Income		$153.5		$3.8			$157.3
Other income (expense), net		$0.6		($3.8	)		($3.2	)

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 not 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 will adopt this standard on January 1, 2019 and 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. The Company will adopt this standard on January 1, 2018. The Company’s implementation activities related to this standard are aligned to meeting the required adoption date. The largest impacts to the Company’s financial statements will result from the new qualitative and quantitative disclosures that will be required upon adoption of the new standard, and the capitalization of certain direct and incremental contract costs that will be required to be capitalized and amortized over the life of the corresponding contract. The Company has concluded that it will apply the modified retrospective adoption alternative for this standard. Processes and controls are currently being implemented to identify and quantify the cumulative effect adjustment to retained earnings as of January 1, 2018.

3. 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 in 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.

Purchase Price Allocation

The Company accounted for its acquisition of 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 values of the assets acquired and liabilities assumed at the date of acquisition:

	August 1, 2016
Assets:
Receivables		$35.3
Other current assets	2.5
Property and equipment	6.9
Goodwill	98.5
Intangible assets	22.7
Other assets	0.3
Liabilities:
Accounts payable	(0.8		)
Accrued expenses	(15.0		)
Deferred tax - net	(6.7		)
Other long-term liabilities	(5.8		)
Total purchase price		$137.9

As of September 30, 2017, the purchase price allocation for the acquisition was final. Goodwill was 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:

			Life
Intangible asset type	Value		(years)
Customer relationship		$22.0	10
Trade name	0.7		1
Total		$22.7

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 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.

4. DIVESTITURES AND DISCONTINUED OPERATIONS

Information Management

On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation. During the three and nine months ended September 30, 2016, the Company recorded income from discontinued operations, net of $10.0 as certain contingencies and tax positions related to Information Management were settled or adjusted. 

5. 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:

		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 September 30, 2017
Basic EPS	92.8		$34.8		$0.38		—			$—			$0.38
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.3	—		(0.03		)	—		—			(0.03		)
Diluted EPS	99.8		$34.8		$0.35		—			$—			$0.35
Nine Months Ended September 30, 2017
Basic EPS	93.6		$112.5		$1.20		—			$—			$1.20
Effect of dilutive securities:
Stock-based compensation arrangements	0.8	—		(0.01		)	—		—			(0.01		)
Convertible Debt	6.3	—		(0.07		)	—		—			(0.07		)
Diluted EPS	100.7		$112.5		$1.12		—			$—			$1.12
Three Months Ended September 30, 2016
Basic EPS	95.6		$37.7		$0.39			$10.0		$0.11			$0.50
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.8	—		(0.03		)	—		(0.01		)	(0.04		)
Diluted EPS	103.1		$37.7		$0.36			$10.0		$0.10			$0.46
Nine Months Ended September 30, 2016
Basic EPS	96.1		$115.5		$1.20			$10.0		$0.11			$1.31
Effect of dilutive securities:
Stock-based compensation arrangements	0.7			(0.01		)	—		—			(0.01		)
Convertible Debt	6.8			(0.08		)	—		(0.01		)	(0.09		)
Diluted EPS	103.6		$115.5		$1.11			$10.0		$0.10			$1.21

The diluted EPS calculation for the three and nine months endedSeptember 30, 2017 excludes 0.3 performance-based restricted stock units granted in 2015, as the performance criteria has not yet been achieved, as well as 0.6 performance-based restricted stock units (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.

The diluted EPS calculation for the three and nine months endedSeptember 30, 2017 includes 6.3 shares associated with the Company’s convertible debt. 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 September 30, 2017, the implied conversion price for the 2029 Convertible Debentures was approximately $11.21 per share, or eighty-nine and twenty-two hundredths shares per one thousand dollars in principal amount of debentures.

Shareholders’ Equity

The Company repurchased 0.9 and 2.8 of its common shares during the three and nine months endedSeptember 30, 2017 at average prices of $23.96 and $23.40 per share for a total of $21.9 and $65.6. Based upon the timing of transactions, $0.9 of the shares repurchased in December 2016 settled during the first quarter of 2017. Additionally, $0.6 of the shares repurchased during September 2017 had not settled as of September 30, 2017. These shares are excluded from outstanding shares at the end of the third quarter and were settled in cash during the fourth quarter of 2017.

As of September 30, 2017, the Company had the authority to repurchase $77.5 of outstanding common shares pursuant to the Board of Directors’ August 2015 increase of its then-existing authorization of share repurchases to $250.0 in the aggregate. The timing and terms of any future share repurchases 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 existing 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:

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
May 8, 2017	June 23, 2017	$0.10	July 7, 2017
August 8, 2017	September 22, 2017	$0.10	October 6, 2017

On November 7, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per common share to be paid on January 5, 2017 to shareholders of record as of December 22, 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.

6. GOODWILL AND OTHER INTANGIBLE AND LONG-LIVED ASSETS

Goodwill

Goodwill was $935.7 at September 30, 2017 compared to $916.9 at December 31, 2016. This increase was primarily 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 September 30, 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 September 30, 2017 and December 31, 2016, the Company’s other intangible assets consisted of the following:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships and other intangibles		$483.1		($191.5	)		$291.6
Trademarks	26.9		(25.3		)	1.6
Software (classified within Property and equipment, net)	41.3		(41.3		)	—
Total		$551.3		($258.1	)		$293.2
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

The intangible assets are being amortized using the following amortizable lives: 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 $21.7 and $20.9 for the nine months endedSeptember 30, 2017 and 2016, respectively, and is estimated to be approximately $28.8 for the year ended December 31, 2017. The related estimated expense for the five subsequent fiscal years is as follows:

For the year ended 2018		$24.8
For the year ended 2019	24.1
For the year ended 2020	23.4
For the year ended 2021	21.7
For the year ended 2022	21.5
Thereafter	170.6

7. DEBT AND CAPITAL LEASE OBLIGATIONS

Debt and capital lease obligations consisted of the following:

	September 30, 2017		December 31, 2016
Term Loan, due 2019		$99.2		$212.9
Convertible Debentures, due 2029	65.1		63.7
Capital Lease Obligations	2.2		3.6
Accounts Receivable Securitization	115.0		20.0
Total debt	281.5		300.2
Less debt issuance costs	1.4		1.4
Total debt, net	280.1		298.8
Less current maturities	0.9		1.8
Long-term debt		$279.2		$297.0

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 for the nine months endedSeptember 30, 2017.

The New Revolving Credit Facility may be extended for two additional one-year periods, 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, 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. 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 September 30, 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 September 30, 2017. The carrying value of the New Term Loan at September 30, 2017 reflects a discount of $0.8 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 (3.3% as of September 30, 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 did 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 September 30, 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 $14.57) 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 September 30, 2017, the implied conversion price for the 2029 Convertible Debentures was approximately $11.21 per share, or eighty-nine and twenty-two hundredths shares per one thousand dollars in principal amount of debentures. The conversion rate is subject to adjustment for certain events outlined in the Indenture, including payment of dividends.

As of September 30, 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 $14.57, 130% of the conversion price of the 2029 Convertible Debentures at September 30, 2017, for at least 20 of the 30 consecutive trading days ending on September 30, 2017). As a result, the equity component of the 2029 Convertible Debentures equal to $59.9 (the difference between the par value and carrying value of the 2029 Convertible Debentures at September 30, 2017) has been classified as temporary equity within the September 30, 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 September 30, 2017, the fair value of the $125.0 aggregate principal amount of the Company’s 2029 Convertible Debentures is $297.6.

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 September 30, 2017 and December 31, 2016, Convergys had drawn $115.0 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 September 30, 2017.

At September 30, 2017, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt discounts) are as follows:

2017		$0.3
2018	46.9
2019	100.6
2020	69.4
2021	—
2022	—
Thereafter	125.0
Total		$342.2

8. RESTRUCTURING

2017 Restructuring

Company-wide restructuring program

The Company recorded restructuring expenses of $12.8 for the nine months ended September 30, 2017, 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 $7.0 as of September 30, 2017, $8.2 as of June 30, 2017 and $10.2 as of March 31, 2017.

Other Severance

The Company recorded other severance expense of $2.3 and $6.2, respectively, for the three and nine months ended September 30, 2017, primarily related to headcount reductions resulting from certain client program completions. These actions impacted approximately 250 employees. This severance expense is included in Restructuring charges on the Consolidated Statements of Income. These severance-related charges were fully paid in cash by September 30, 2017.

buw integration

The Company recorded severance expense totaling $0.1 and $1.1, respectively, for the three and nine months ended September 30, 2017, related to the elimination of certain redundant positions as a result of the integration of the buw business. This severance expense was included in Transaction and 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 $0.4 as of September 30, 2017 and $0.5 as of both June 30, 2017 and 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. These severance-related charges have been fully paid in cash.

9. 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, 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. 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost		$1.4			$1.6			$4.1			$4.8
Interest cost on projected benefit obligation	1.8			2.1			5.5			6.4
Expected return on plan assets	(2.4		)	(2.6		)	(7.4		)	(7.6		)
Amortization and deferrals—net	1.7			1.7			4.6			5.2
Settlement charge	2.0			—			2.0			—
Total net pension cost		$4.5			$2.8			$8.8			$8.8

During the three and nine months ended September 30, 2017, the Company recognized a non-cash pension settlement charge of $2.0 resulting from a high volume of lump sum distributions from the cash balance plan. This pension settlement charge was included in Other (expense) income, net on the Consolidated Statements of Income.

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 income for the EDCP are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Service cost		$0.4		$0.3		$1.3		$0.9
Interest cost on projected benefit obligation	0.1		0.1		0.3		0.3
Total pension cost		$0.5		$0.4		$1.6		$1.2

10. STOCK-BASED COMPENSATION PLANS

The Company’s operating results for the three and nine months endedSeptember 30, 2017 included stock-based compensation expense of $4.6 and $13.1, respectively, compared to $5.2 and $14.4, respectively, for the same periods in 2016. Expense for the three and nine months endedSeptember 30, 2017 included $0.6 in each period, related to awards classified as liabilities that will ultimately settle in cash, compared to $0.7 and $1.6, respectively, for the same periods in the prior year.

Restricted Stock Units

Time-based Restricted Stock Units

During the three and nine months endedSeptember 30, 2017, the Company granted 0.4 and 0.6 shares, respectively, of time-based restricted stock units. The weighted average grant date fair values of these grants were $23.81 and $23.59, respectively. During the nine months endedSeptember 30, 2016, the Company granted 0.5 shares of time-based restricted stock units at a weighted average grant date fair value of $26.53. 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 September 30, 2017 was approximately $23.5, which is expected to be recognized over a weighted average period of 2.2 years. Changes to non-vested time-based restricted stock units for the nine months endedSeptember 30, 2017 were as follows:

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	0.6		23.59
Vested	(0.5	)	22.81
Forfeited	—		—
Non-vested at September 30, 2017	1.4			$23.49

Performance-based Restricted Stock Units

During the nine months endedSeptember 30, 2017 and 2016, the Company granted 0.3 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 September 30, 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 September 30, 2017 was approximately $2.2, which is expected to be recognized ratably over the remaining vesting period ending in February 2018. The performance metric for the 2015 grants had not yet been achieved at September 30, 2017.

Changes to non-vested performance-based restricted stock units for the nine months endedSeptember 30, 2017 were as follows:

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	)	26.19
Forfeited	—		—
Non-vested at September 30, 2017	0.3			$21.28

Stock Options

Presented below is a summary of Company stock option activity. Prior to 2017, all outstanding stock options were fully vested and the related expense had been fully recognized.

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 September 30, 2017	0.4		$13.34	3.7		$3.83
Options exercisable at September 30, 2017	0.4		$13.34	3.7		$3.83

11. COMMITMENTS AND CONTINGENCIES

Commitments

At September 30, 2017, the Company had outstanding letters of credit and bond obligations of $22.3 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 $4.2 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.

12. 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 35,940.0 at a fixed price of $718.1 at various dates through June 2020, INR 11,925.0 at a fixed price of $164.6 at various dates through June 2020, CAD 46.4 at a fixed price of $35.1 at various dates through December 2019 and COP 47,700.0 at a fixed price of $15.0 at various dates through June 2019, and to sell a total of AUD 34.7 at a fixed price of $26.9 at various dates through October 2018. These instruments mature within the next 33 months and had a notional value of $947.5 at September 30, 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:

	September 30, 2017		December 31, 2016
Forward exchange contracts and options designated as hedging instruments:
Included within other current assets		$9.7		$3.0
Included within other non-current assets	4.9		2.3
Included within other current liabilities	18.7		31.3
Included within other long-term liabilities	8.5		15.4

The Company recorded a deferred tax benefit of $4.8 and $15.9 related to these derivatives at September 30, 2017 and December 31, 2016, respectively. A total of $7.7 and $25.5 of deferred losses, net of tax, related to these cash flow hedges at September 30, 2017 and December 31, 2016, respectively, were included in accumulated other comprehensive loss (OCL). As of September 30, 2017, deferred losses of $9.0 ($5.5 net of tax) on derivative instruments included in accumulated OCL are expected to be reclassified into earnings during the next 12 months. The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during the three and nine months endedSeptember 30, 2017 and 2016, respectively:

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)
Three Months Ended September 30, 2017
Foreign exchange contracts		($2.0	)		($5.3	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2017
Foreign exchange contracts		$10.8			($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Three Months Ended September 30, 2016
Foreign exchange contracts		($13.2	)		($4.6	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2016
Foreign exchange contracts		($2.1	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative

The gain or loss recognized related to the ineffective portion of the derivative instruments was immaterial for the three months ended September 30, 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 and nine months endedSeptember 30, 2017, losses of $5.3 and $17.3, respectively, were recognized related to changes in fair value of these derivative instruments not designated as hedges, compared to losses of $5.5 and $3.7 in the same periods 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 September 30, 2017 was a $6.3 payable.

Short-term Investments

As of September 30, 2017 and December 31, 2016, the Company held investment securities with a fair value of $13.0 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 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 (expense) income, net.

13. 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 September 30, 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 nine months ended September 30, 2017 and September 30, 2016. The derivative assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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)		$15.2		$—		$15.2		$—
Foreign currency forward contracts (liability position)		$34.1		$—		$34.1		$—

	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		$—

The Company also had investment securities held in a grantor trust for the benefit of participants of the EDCP measured at fair value at September 30, 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 nine months ended September 30, 2017 and September 30, 2016. The assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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		$12.4		$12.4		$—		$—
Money market accounts	0.6		0.6		—		—
Total		$13.0		$13.0		$—		$—

	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		$—		$—

14. INCOME TAXES

The effective tax rate on net income from continuing operations was 17.1% and 15.4% for the three and nine months endedSeptember 30, 2017 compared to 15.8% and 17.8%, respectively, in the same periods last year. The effective tax rates for both periods were largely impacted by the geographic mix of worldwide income and certain discrete items, including tax expense of $1.3 for the three and nine months ended September 30, 2016 associated with the repatriation of certain foreign earnings in conjunction with the Company’s acquisition of buw.

The liability for unrecognized tax benefits was $21.4 and $20.8 at September 30, 2017 and December 31, 2016, respectively, and is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. As of September 30, 2017, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the Consolidated Financial Statements is $18.7. This amount includes interest and penalties of $9.6. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between approximately $2.1 and $17.0 in the next twelve months; however, actual developments in this area could differ from those currently expected.

15. PAYABLES AND OTHER CURRENT LIABILITIES

	At September 30, 2017		At December 31, 2016
Payables and other current liabilities:
Accounts payable		$38.2		$53.9
Accrued income and other taxes	29.1		44.1
Accrued payroll-related expenses	137.1		132.0
Derivative liabilities	25.6		33.6
Accrued expenses, other	64.4		63.7
Restructuring and exit costs	7.4		0.8
Deferred revenue and government grants	12.3		17.7
		$314.1		$345.8

16. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive (loss) income:

		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	)
	Other comprehensive loss before reclassifications	(11.2		)	(9.8		)	—			(21.0		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.9			1.0			3.9
Net current-period other comprehensive (loss) income		(11.2		)	(6.9		)	1.0			(17.1		)
Balance at June 30, 2016			($39.4	)		($11.0	)		($35.5	)		($85.9	)
	Other comprehensive (loss) income before reclassifications	(2.0		)	(8.1		)	—			(10.1		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.8			1.0			3.8
Net current-period other comprehensive income (loss)		(2.0		)	(5.3		)	1.0			(6.3		)
Balance at September 30, 2016			($41.4	)		($16.3	)		($34.5	)		($92.2	)
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 income, 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	)
	Other comprehensive income before reclassifications, net of tax	9.5			1.9			—			11.4
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.1			0.8			3.9
Net current-period other comprehensive income		9.5			5.0			0.8			15.3
Balance at June 30, 2017			($44.1	)		($9.8	)		($30.0	)		($83.9	)
	Other comprehensive income (loss) before reclassifications, net of tax	5.7			(1.2		)	(3.3		)	1.2
	Settlement of pension obligation, net of tax	—			—			1.2			1.2
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.3			2.0			5.3
Net current-period other comprehensive income		5.7			2.1			(0.1		)	7.7
Balance at September 30, 2017			($38.4	)		($7.7	)		($30.1	)		($76.2	)

The following table summarizes the reclassification out of accumulated other comprehensive income (loss):

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 September 30, 2017			Nine Months Ended September 30, 2017
Loss on derivative instruments		($5.3	)		($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	2.0			6.9			Income tax expense
Loss on derivative instruments, net of tax	(3.3		)	(11.2		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(3.3		)	(6.2		)	Selling, general and administrative
Tax benefit	1.3			2.6			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(2.0		)	(3.6		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($5.3	)		($14.8	)
	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Loss on derivative instruments		($4.6	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	1.8			7.0			Income tax expense
Loss on derivative instruments, net of tax	(2.8		)	(11.0		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(1.6		)	(4.8		)	Selling, general and administrative
Tax benefit	0.6			1.8			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(1.0		)	(3.0		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($3.8	)		($14.0	)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Amounts in millions except per share amounts)

BACKGROUND

Convergys Corporation (Convergys, the Company or we) is a global leader in customer experience outsourcing, focused on bringing value to our clients through every customer interaction. We provide global, multi-channel agent, analytics and technology solutions that we believe deliver superior business outcomes for our clients. Convergys has approximately 120,000 employees working in 33 countries, interacting with our clients’ customers in 58 languages. As a global provider in the industry, Convergys has a history of commitment and dedication to excellence in serving many of the world’s largest brands. Our business model allows us to deliver consistent, quality service, at scale in the geographies that meet our clients’ business needs. We proactively partner to solve client business challenges through our account management model. Our geographic footprint and comprehensive capabilities help leading companies create brand-differentiated customer experiences across all interaction channels to generate revenue and reduce their cost to serve. We are a well-capitalized leader in our market and are able to invest in the services, technology, and analytics that matter to our clients and their customers.

Operations and Structure

On August 1, 2016, Convergys 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.

We believe our global clients benefit from our worldwide workforce located in key geographies, including the United States, the Philippines, India, Germany, the United Kingdom, Canada, Tunisia, Costa Rica, the Dominican Republic, Colombia, Egypt, France, Ireland, Italy, Poland, Romania, China, Malaysia, El Salvador, Honduras, Nicaragua, Bulgaria, Hungary, the Netherlands, Spain, Sweden, Australia, Brazil, Indonesia, Mauritius, Singapore, South Africa, and the United Arab Emirates.

Agent-related revenues, which accounted for more than 95% of our revenues for the nine months ended September 30, 2017, are typically recognized as services are performed based on staffing hours or the number of contacts handled by service agents using contractual rates. Remaining revenues are derived from the sale of premise-based and hosted self-care and technology solutions and provision of professional services. Revenues from the sale of these solutions and provision of services are typically recognized as services are provided over the duration of the contract using contractual rates.

Additional Information

The Company files annual, quarterly and current reports and proxy statements with the SEC. These filings are available to the public over the Internet on the SEC’s website at http://www.sec.gov and on the Company’s website at http://www.convergys.com. The Company’s website and the information contained therein are not incorporated by reference into this quarterly report. You may also read and copy any document we file with the SEC at its public reference room located at 100 F Street, N.E., Washington, DC 20549. You may call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room. 

FORWARD-LOOKING STATEMENTS

This report contains statements, estimates, or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. In some cases, one can identify forward looking statements by terminology such as “will,” “expect,” “estimate,” “think,” “forecast,” “guidance,” “outlook,” “plan,” “lead,” “project” or other comparable terminology. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks include, but are not limited to: (i) the loss of a significant client or significant business from a client; (ii) the future financial performance or outsourcing trends of our largest clients and the major industries that we serve, including continued volatility in volumes with our largest communications clients; (iii) contractual provisions that may limit our profitability or enable our clients to reduce or terminate services; (iv) our failure to successfully acquire and integrate businesses; (v) our inability to protect proprietary or personally identifiable data against unauthorized access or unintended release; (vi) the effects of complying with jurisdiction-specific data privacy requirements, including increased expenses, operational and contractual changes, and diversion of resources; (vii) our inability to maintain and upgrade our technology and network equipment in a timely and cost effective manner; (viii) business and political risks, including ongoing political developments in the Philippines, uncertainty regarding the impact of Britain’s vote to leave the European Union (“Brexit”) or other similar actions by European Union member states, and economic weakness and operational disruption as a result of natural events, political unrest, war, terrorist attacks or other civil disruption; (ix) the effects of foreign currency exchange rate fluctuations; (x) the failure to meet expectations regarding our future tax liabilities, changes in tax laws or regulations that increase our future tax liabilities or the unfavorable resolution of tax contingencies; (xi) adverse effects of regulatory requirements or changes thereto, investigative and legal actions, and other commitments and contingencies; (xii) costs associated with conversions of our convertible debentures that may occur from time to time; and (xiii) those factors contained in our periodic reports filed with the SEC, included in the “Risk Factors” section of our most recent Annual Report on Form 10-K. The forward-looking information in this document is given as of the date of the particular statement and we assume no duty to update this information.

RESULTS OF OPERATIONS

Revenues

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017		2016		Change		%		2017		2016		Change		%
Revenues:
Communications		$323.1		$377.9	(54.8	)	(15	)		$972.9		$1,091.6	(118.7	)	(11	)
Technology	141.5		154.3		(12.8	)	(8	)	431.0		472.5		(41.5	)	(9	)
Financial Services	54.6		51.8		2.8		5		181.3		157.6		23.7		15
Other	169.1		157.2		11.9		8		517.6		433.9		83.7		19
Total Revenues		$688.3		$741.2	(52.9	)	(7	)		$2,102.8		$2,155.6	(52.8	)	(2	)

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Consolidated revenues for the third quarter of 2017 were $688.3, a 7% decrease from $741.2 in the same period prior year. Revenues from the acquired buw operations increased revenue by approximately 2%. Changes in currency exchange rates resulted in increased revenues of less than 1% in the third quarter of 2017 as the U.S. dollar weakened relative to the euro. Revenues from communications clients decreased 15% from the third quarter of 2016, reflecting a shift of volumes to lower-cost geographies and consolidation of certain programs with our two largest clients, as well as volume decreases with other existing clients. These decreases were partially offset by revenues from a new client and one additional month of revenue from the acquired buw operations. Revenues from technology clients decreased 8% from the third quarter of 2016, primarily reflecting volume reductions with existing clients. Revenues from financial services clients increased 5% from the third quarter of 2016, reflecting revenues from new clients and volume increases with several existing clients, as well as one additional month of revenue from the acquired buw operations. Revenues from all other clients increased 8% from the third quarter of 2016 as a result of volume increases with several existing clients, revenues from new clients, and one additional month of revenue from the acquired buw operations.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

Consolidated revenues for the nine months ended September 30, 2017 were $2,102.8, a 2% decrease from $2,155.6 in the same period in the prior year. Revenues related to the acquired buw operations increased revenues by approximately 5%. Changes in currency exchange rates resulted in decreased revenues of approximately 1% in the current year as the U.S. dollar strengthened relative to the British pound. Revenues from communications clients decreased 11% from the prior year, reflecting a shift of volumes to lower-cost geographies and consolidation of certain programs with our two largest clients, as well as volume reductions and program completions with certain existing clients and unfavorable currency exchange rate impacts. These decreases were partially offset by revenues from a new client and revenues from the acquired buw operations. Revenues from technology clients decreased 9% from the prior year due to volume reductions with certain clients and unfavorable currency exchange rate impacts, partially offset by volume increases with other existing clients. Revenues from financial services clients increased 15% from the prior year, reflecting revenues from new clients and volume increases with existing clients, as well as revenue from the acquired buw operations, partially offset by volume decreases with other clients. Other revenues increased 19% from the prior year. This increase is attributable to volume increases and new programs with existing clients, as well as revenues from the acquired buw operations and revenues from new clients.

Operating Costs and Expenses

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017		2016		Change		%		2017		2016		Change		%
Operating Costs:
Cost of providing services and products sold		$428.1		$479.8	(51.7	)	(11	)		$1,305.1		$1,365.3	(60.2	)	(4	)
Selling, general and administrative	175.5		170.5		5.0		3		527.1		511.1		16.0		3
Depreciation	26.2		30.3		(4.1	)	(14	)	80.6		93.3		(12.7	)	(14	)
Amortization	7.2		7.1		0.1		1		21.7		20.9		0.8		4
Restructuring	2.4		0.2		2.2		NM		19.1		2.7		16.4		NM
Transaction related expenses	—		1.9		(1.9	)	(100	)	—		3.1		(3.1	)	(100	)
Integration related expenses	0.8		0.8		—		—		3.4		1.9		1.5		79
Total costs and expenses		$640.2		$690.6	(50.4	)	(7	)		$1,957.0		$1,998.3	(41.3	)	(2	)

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Total operating costs and expenses for the third quarter of 2017 of $640.2 decreased 7% from $690.6 in the same period in the prior year. Operating costs associated with the acquired buw operations increased total costs and expenses by approximately 2%, due to an additional month of ownership in the third quarter of 2017. Changes in currency exchange rates reduced operating costs and expenses by approximately 1% in the third quarter of 2017. Operating costs for the prior year quarter included charges for transaction related expenses of $1.9 related to the acquisition of buw that were not recurring in the third quarter of 2017. As a percentage of revenues, the cost of providing services and products sold was 62.2% in the third quarter of 2017 compared to 64.7% in the prior year period, primarily as a result of the timing of certain program implementations, changes in the mix of geographies where services are provided, and favorable currency exchange impacts. Selling, general and administrative expenses of $175.5 in the third quarter of 2017 increased by 3% compared to the prior year period as a result of an additional month of expenses from the acquired buw operations, partially offset by favorable currency exchange impacts and savings realized from our 2017 company-wide restructuring program. As a percentage of revenues, selling, general, and administrative expenses were 25.5% in the third quarter of 2017 compared to 23.0% in the prior year period. Depreciation expense of $26.2 decreased $4.1 from the prior year period, while amortization expense of $7.2 increased $0.1. The decrease in depreciation expense resulted from the timing of certain assets becoming fully depreciated, as well as lower depreciation from the fair value write-up of property and equipment acquired through business combinations.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

Total operating costs and expenses for the nine months endedSeptember 30, 2017 of $1,957.0 decreased 2% from $1,998.3 in the prior year. Operating costs associated with the acquired buw operations increased total costs and expenses by approximately 5%, due to an additional seven months of ownership in the nine months endedSeptember 30, 2017. Changes in currency exchange rates reduced operating costs and expenses by approximately 2% for the nine months endedSeptember 30, 2017. Total operating costs and expenses for the nine months endedSeptember 30, 2017 and 2016 also included charges for integration related expenses of $3.4 and $1.9, respectively, associated with business acquisitions. Operating costs for 2016 also included charges for transaction related expenses of $3.1 related to the acquisition of buw. As a percentage of revenues, the cost of providing services and products sold was 62.1% for the first nine months endedSeptember 30, 2017, compared to 63.3% in the prior year period, largely due to the timing of certain program implementations, changes in the mix of geographies where services are provided, and favorable currency exchange impacts. Selling, general and administrative expenses of $527.1 in the nine months endedSeptember 30, 2017 increased by 3% compared to the prior year period as a result of expenses from the acquired buw operations, partially offset by favorable currency exchange impacts and savings realized from our 2017 company-wide restructuring program. As a percentage of revenue, selling, general and administrative expense was 25.1% for the first nine months of 2017 compared to 23.7% in the prior year period. Depreciation expense of $80.6 decreased $12.7 from the prior year period, while amortization expense of $21.7 increased $0.8. The decrease in depreciation expense resulted from the timing of certain assets becoming fully depreciated, as well as lower depreciation from the fair value write-up of property and equipment acquired through business combinations. The increase in amortization expense resulted from acquired intangible assets from the buw acquisition. The increase in restructuring expense is a result of the $12.8 charge in the nine months ended September 30, 2017 associated with a company-wide initiative to reduce headcount and better align the Company’s resources, principally for corporate functions.

Operating Income and Adjusted Operating Income (a non-GAAP measure)

In order to assess the underlying operational performance of the continuing operations of the business and to have a basis to compare underlying results to prior and future periods, we provide the non-GAAP measures, Adjusted Operating Income and Adjusted Operating Margin (Adjusted Operating Income divided by Total Revenues), in the table below. For the three and nine months endedSeptember 30, 2017 and 2016, Adjusted Operating Income and Adjusted Operating Margin exclude the following operating charges:

1. Restructuring charges of $12.8 for the nine months endedSeptember 30, 2017, associated with a company-wide initiative to reduce headcount and better align the Company’s resources, principally for corporate functions;

2. Depreciation of $0.8 and $2.6 for the three and nine months endedSeptember 30, 2017, respectively, and $2.0 and $7.5, respectively, in the prior year periods, resulting from the fair value write-up of property and equipment acquired through business combinations;

3. Transaction expenses of $1.9 and 3.1 for the three and nine months endedSeptember 30, 2016, associated with the acquisition of buw, primarily related to fees paid for third-party consulting services;

4. Acquisition integration expenses of $0.8 and $3.4 for the three and nine months endedSeptember 30, 2017, respectively, and $0.8 and $1.9 for the three and nine months endedSeptember 30, 2016, respectively, primarily related to fees for third-party consulting services and severance expense;

5. Amortization of acquired intangible assets of $7.2 and $21.7 for the three and nine months endedSeptember 30, 2017, respectively, and $7.1 and $20.9, respectively, in the prior year periods.

Adjustments for these items are relevant in evaluating the overall performance of the business. Limitations associated with the use of these non-GAAP measures include that these measures do not present all of the amounts associated with our results as determined in accordance with GAAP. Management compensates for this limitation by using both the non-GAAP measures and the GAAP measures in its evaluation of performance. These non-GAAP measures should be considered supplemental in nature and should not be construed as being more important than comparable GAAP measures.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2017			2016			Change		%		2017			2016			Change		%
Operating Income		$48.1			$50.6		(2.5	)	(5	)		$145.8			$157.3		(11.5	)	(7	)
Operating Margin	7.0		%	6.8		%					6.9		%	7.3		%
Company-wide restructuring	—			—			—		—		12.8			—			12.8		100
Depreciation of property & equipment write-up	0.8			2.0			(1.2	)	(60	)	2.6			7.5			(4.9	)	(65	)
Transaction related expenses	—			1.9			(1.9	)	(100	)	—			3.1			(3.1	)	(100	)
Integration related expenses	0.8			0.8			—		—		3.4			1.9			1.5		79
Amortization of acquired intangible assets	7.2			7.1			0.1		1		21.7			20.9			0.8		4
Adjusted Operating Income (a non-GAAP measure)		$56.9			$62.4		(5.5	)	(9	)		$186.3			$190.7		(4.4	)	(2	)
Adjusted Operating Margin	8.3		%	8.4		%					8.9		%	8.8		%

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Operating income was $48.1 for the third quarter of 2017 compared to operating income of $50.6 in the prior year period. Excluding the impacts of the operating charges discussed above, adjusted operating income for the third quarter of 2017 was $56.9 compared to $62.4 in the same period in the prior year.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

Operating income was $145.8 for the first nine months of 2017 compared to operating income of $157.3 in the prior year period. Excluding the impacts of the operating charges discussed above, adjusted operating income for the first nine months of 2017 was $186.3 compared to $190.7 in the same period in the prior year.

Non-Operating Items

	Three Months Ended September 30,										Nine Months Ended September 30,
	2017			2016			Change		%		2017			2016			Change		%
Operating Income		$48.1			$50.6		(2.5	)	(5	)		$145.8			$157.3		(11.5	)	(7	)
Other (expense) income, net	(1.6		)	(1.2		)	(0.4	)	33		1.2			(3.2		)	4.4		NM
Interest expense	(4.5		)	(4.6		)	0.1		(2	)	(14.0		)	(13.6		)	(0.4	)	3
Income before Income Taxes		$42.0			$44.8		(2.8	)	(6	)		$133.0			$140.5		(7.5	)	(5	)

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Other expense increased by $0.4 compared to prior year primarily due to the $2.0 non-cash pension settlement charge in the third quarter, partially offset by interest income and foreign currency exchange gains. Interest expense decreased by $0.1 compared to the same period in the prior year primarily due to a decrease in the total debt outstanding.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

Other income increased by $4.4 compared to the same period in the prior year primarily due to $4.0 of foreign currency exchange gains and higher interest income in the first nine months of 2017, partially offset by the $2.0 non-cash pension settlement charge in 2017. Interest expense increased by $0.4 compared to the same period in the prior year due to a $1.0 extinguishment loss resulting from the repayment of the outstanding borrowings under the Credit Agreement.

Income Taxes

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017		2016		Change		%		2017		2016		Change		%
Income before Income Taxes		$42.0		$44.8	(2.8	)	(6	)		$133.0		$140.5	(7.5	)	(5	)
Income tax expense	7.2		7.1		0.1		1		20.5		25.0		(4.5	)	(18	)
Income from Continuing Operations, net of tax		$34.8		$37.7	(2.9	)	(8	)		$112.5		$115.5	(3.0	)	(3	)

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

The effective tax rate on net income from continuing operations was 17.1% for the three months ended September 30, 2017 compared to an effective tax rate of 15.8% 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 prior year effective tax rate was also impacted by tax expense of $1.3 associated with the repatriation of certain foreign earnings in conjunction with the Company’s acquisition of buw.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

The effective tax rate on net income from continuing operations was 15.4% for the nine months ended September 30, 2017 compared to an effective tax rate of 17.8% 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 prior year effective tax rate was also impacted by tax expense of $1.3 associated with the repatriation of certain foreign earnings in conjunction with the Company’s acquisition of buw.

Income from Continuing Operations, net of tax; Diluted Earnings per Share from Continuing Operations; Adjusted Income from Continuing Operations, net of tax (a non-GAAP measure); Adjusted Diluted Earnings per Share from Continuing Operations (a non-GAAP measure)

In order to assess the underlying operational performance of the continuing operations of the business, we provide non-GAAP measures in the tables below that exclude, in addition to the operating charges previously discussed, the following:

1. Non-cash pension settlement charge of $2.0 for the three and nine months ended September 30, 2017;

2. Tax expense of $1.3 for the three and nine months ended September 30, 2016 associated with the repatriation of certain foreign earnings in conjunction with the Company’s acquisition of buw.

We use income from continuing operations, net of tax, and earnings per share data excluding the operating charges discussed above and the income tax impact from these charges to assess the underlying operational performance of the continuing operations of the business and to have a basis to compare underlying results to prior and future periods. Adjustments for these items are relevant in evaluating the overall performance of the business. Limitations associated with the use of these non-GAAP measures include that these measures do not present all of the amounts associated with our results as determined in accordance with GAAP. Management compensates for these limitations by using the non-GAAP measures, income from continuing operations, net of tax and diluted earnings per share excluding these items, and the GAAP measures, income from continuing operations, net of tax and diluted earnings per share, in its evaluation of performance. These non-GAAP measures should be considered supplemental in nature and should not be construed as being more important than comparable GAAP measures.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2017			2016			Change		%		2017			2016			Change		%
Income from Continuing Operations, net of tax		$34.8			$37.7		(2.9	)	(8	)		$112.5			$115.5		(3.0	)	(3	)
Total operating charges from above	8.8			11.8			(3.0	)	(25	)	40.5			33.4			7.1		21
Income tax impact from total operating charges	(2.9		)	(3.0		)	0.1		(3	)	(14.2		)	(9.1		)	(5.1	)	56
Pension settlement charge	2.0			—			2.0		100		2.0			—			2.0		100
Income tax impact from pension settlement charge	(0.8		)	—			(0.8	)	100		(0.8		)	—			(0.8	)	100
Tax provision (benefit) related to unremitted non-U.S. earnings	—			1.3			(1.3	)	(100	)	—			1.3			(1.3	)	(100	)
Adjusted income from Continuing Operations, net of tax (a non-GAAP measure)		$41.9			$47.8		(5.9	)	(12	)		$140.0			$141.1		(1.1	)	(1	)
Diluted Earnings per Common Share:
Continuing Operations		$0.35			$0.36		(0.01	)	(3	)		$1.12			$1.11		0.01		1
Impact of net charges above included in Continuing Operations, net of tax	0.07			0.10			(0.03	)	(30	)	0.27			0.25			0.02		8
Adjusted diluted earnings per common share from Continuing Operations (a non-GAAP measure)		$0.42			$0.46		(0.04	)	(9	)		$1.39			$1.36		0.03		2

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Income from continuing operations, net of tax, for the third quarter of 2017 was $34.8 compared to $37.7 for the same period in 2016, while income from continuing operations per diluted share for the third quarter in 2017 was $0.35 compared to $0.36 for the same period in 2016. Excluding the operating charges discussed above and the income tax impact from these charges, adjusted income from continuing operations, net of tax, for the third quarter of 2017 was $41.9, or $0.42 per diluted share, compared to $47.8, or $0.46 per diluted share for the same period in 2016.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

Income from continuing operations, net of tax, for the first nine months of 2017 was $112.5 compared to $115.5 for the same period in 2016, while income from continuing operations per diluted share for the first nine months of 2017 was $1.12 compared to $1.11 for the same period in 2016. Excluding the operating charges discussed above and the income tax impact from these charges, adjusted income from continuing operations, net of tax, for the first nine months of 2017 was $140.0, or $1.39 per diluted share, compared to $141.1, or $1.36 per diluted share for the same period in 2016.

Results of Discontinued Operations, Results of Discontinued Operations per Diluted Share, Net Income and Net Income per Diluted Share

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017		2016		Change		%		2017		2016		Change		%
Income from Continuing Operations, net of tax		$34.8		$37.7	(2.9	)	(8	)		$112.5		$115.5	(3.0	)	(3	)
Income from Discontinued Operations, net of tax benefit of $10.0 for the three and nine months ended September 30, 2016, respectively.	—		10.0		(10.0	)	(100	)	—		10.0		(10.0	)	(100	)
Net Income		$34.8		$47.7	(12.9	)	(27	)		$112.5		$125.5	(13.0	)	(10	)
Diluted Earnings per Common Share:
Continuing Operations		$0.35		$0.36	(0.01	)	(3	)		$1.12		$1.11	0.01		1
Discontinued Operations	—		0.10		(0.10	)	(100	)	—		0.10		(0.10	)	(100	)
Net Diluted Earnings Per Common Share		$0.35		$0.46	(0.11	)	(24	)		$1.12		$1.21	(0.09	)	(7	)

Three Months Ended September 30, 2017 versus Three Months Ended September 30, 2016

Third quarter 2016 results from discontinued operations include a gain of $10.0, net of tax, related to the settlement or adjustment of certain contingencies and tax positions related to the sale of the Information Management business.

Including the results of discontinued operations, third quarter 2016 net income and diluted earnings per share were $47.7 and $0.46, respectively.

Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016

For the first nine months of 2016, results from discontinued operations included a gain of $10.0, net of tax, which related to the settlement or adjustment of certain contingencies and tax positions in connection with the sale of the Information Management business.

Including the results of discontinued operations, net income and diluted earnings per share were $125.5 and $1.21, respectively, for the first nine months of 2016.

EBITDA and Adjusted EBITDA (non-GAAP measures)

Management uses EBITDA, EBITDA margin (EBITDA divided by Total Revenues), Adjusted EBITDA, Adjusted EBITDA margin (Adjusted EBITDA divided by Total Revenues) and the GAAP measure, income from continuing operations, to monitor and evaluate the underlying performance of the business and believes the presentation of these measures enhances investors’ ability to analyze trends in the business and evaluate our underlying performance relative to other companies in the industry. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for income from continuing operations or other income statement data prepared in accordance with GAAP, and our presentation of EBITDA and adjusted EBITDA may not be comparable to similarly-titled measures used by other companies. These non-GAAP measures should be considered supplemental in nature and should not be construed as being more important than comparable GAAP measures.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Income from Continuing Operations, net of tax		$34.8			$37.7			$112.5			$115.5
Depreciation and Amortization	33.4			37.4			102.3			114.2
Interest expense	4.5			4.6			14.0			13.6
Income tax expense	7.2			7.1			20.5			25.0
EBITDA (a non-GAAP measure)	79.9			86.8			249.3			268.3
Pension settlement charge	2.0			—			2.0			—
Company-wide restructuring	—			—			12.8			—
Transaction related expenses	—			1.9			—			3.1
Integration related expenses	0.8			0.8			3.4			1.9
Adjusted EBITDA (a non-GAAP measure)		$82.7			$89.5			$267.5			$273.3
EBITDA Margin	11.6		%	11.7		%	11.9		%	12.4		%
Adjusted EBITDA Margin	12.0		%	12.1		%	12.7		%	12.7		%

RESTRUCTURING CHARGES

As discussed in Note 8 of the Notes to Consolidated Financial Statements, we recorded the following restructuring charges:

2017 Restructuring

Company-wide restructuring program

The Company recorded restructuring expenses of $12.8 for the nine months ended September 30, 2017, 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 $7.0 as of September 30, 2017, $8.2 as of June 30, 2017 and $10.2 as of March 31, 2017.

Other Severance

The Company recorded other severance expense of $2.3 and $6.2, respectively, for the three and nine months ended September 30, 2017, primarily related to headcount reductions resulting from certain client program completions. These actions impacted approximately 250 employees. This severance expense is included in Restructuring charges on the Consolidated Statements of Income. These severance-related charges were fully paid in cash by September 30, 2017.

buw integration

The Company recorded severance expense totaling $0.1 and $1.1, respectively, for the three and nine months ended September 30, 2017, related to the elimination of certain redundant positions as a result of the integration of the buw business. This severance expense was included in Transaction and 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 $0.4 as of September 30, 2017 and $0.5 as of both June 30, 2017 and 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. These severance-related charges were fully paid in cash by June 30, 2017.

Savings from Restructuring Plans

The 2017 company-wide restructuring program is expected to result in cost reductions of approximately $21.0 and cash savings of approximately $19.0 on an annualized basis. The impact of these cost reductions will be spread across our operating expenses, primarily in the selling, general and administrative expense caption of our Consolidated Statements of Income. The impact on liquidity was not material for any of our restructuring plans. Savings associated with the 2016 severance actions were not material.

CLIENT CONCENTRATION

During the first nine months of 2017, our three largest clients accounted for 30.6% of our revenues, compared to 36.2% in the same period of 2016. Our largest client, AT&T, accounted for 17.5% of revenues in the first nine months of 2017 and 21.2% of revenue in the same period in the prior year. No other client accounted for more than 10% of our consolidated revenues for the first nine months of 2017 and 2016. Revenues with our three largest clients are earned under multiple contracts and are subject to variation based on, among other things, general economic conditions, client outsourcing trends, geographical mix of where services are provided and seasonal patterns in our clients’ businesses.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Cash Flows

We believe that we have adequate liquidity from cash on hand and expected future cash flows to fund operations, invest in the business, make required debt payments and pay dividends at the discretion of the Board of Directors for the next twelve months. We also believe that available borrowings under existing credit facilities provide additional liquidity that can be used to invest in the business.

Cash flows from operating activities generally provide us with a significant source of funding for our investing and financing activities. Cash flows from operating activities totaled $186.1 in the first nine months of 2017 compared to $236.8 in the same period last year. The first nine months of 2017 and 2016 reflected $4.0 and $5.7, respectively, of payments for transaction and integration related expenses. Excluding these items, cash flows provided by operating activities totaled $190.1 and $242.5 for the nine months ended September 30, 2017 and 2016, respectively. This decrease was primarily a result of decreased cash flow from working capital in 2017, largely due to the timing of collections of accounts receivable and the payment of accounts payable.

Cash flows used in investing activities were $44.2 during the first nine months of 2017, resulting from $44.9 of capital expenditures during that period partially offset by $0.7 of net proceeds from the sale of a joint venture interest previously acquired in the buw acquisition. Cash flows used in investing activities were $194.3 during the first nine months of 2016, resulting from cash outflows of $129.9 (net of cash acquired) for the purchase of buw’s operations, $63.6 of capital expenditures and $0.8 for the purchase of short-term and other investments during that period. 

Cash flows used in financing activities were $112.9 during the first nine months of 2017 compared to $118.1 during the first nine months of 2016. Activity in the current year included net repayments of long-term debt of $116.4 and net proceeds of amounts drawn under the asset securitization facility of $95.0. Additionally, we settled in cash the repurchase of 2.8 of the Company’s common shares for $65.9, paid $26.4 in cash dividends and received proceeds of $0.8 from the exercise of stock options. During the first nine months of 2016, we had long-term debt repayments of $2.4 and net repayments of amounts drawn under the asset securitization facility of $39.0. Additionally, we settled in cash the repurchase of 2.1 of the Company's common shares for $54.3, paid $24.1 in cash dividends and received $1.1 of excess tax benefits from share-based payment arrangements and $0.6 from the exercise of stock options. 

Free Cash Flow and Adjusted Free Cash Flow (non-GAAP measures)

We use free cash flow and adjusted free cash flow, which are non-GAAP measures, to assess the financial performance of the Company. We define free cash flow as cash flows from operating activities less capital expenditures, and adjusted free cash flow as free cash flow less acquisition related items. A reconciliation of the GAAP measure, net cash provided by operating activities, to the non-GAAP measures, free cash flow and adjusted free cash flow, is as follows: 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net cash flow provided by operating activities under U.S. GAAP		$63.7			$80.5			$186.1			$236.8
Capital expenditures, net of proceeds from disposal of assets	(17.0		)	(29.3		)	(44.9		)	(63.6		)
Free cash flow (a non-GAAP measure)		$46.7			$51.2			$141.2			$173.2
Acquisition - cash paid for transaction and integration related expenses (A)	1.2			2.9			4.0			5.7
Adjusted free cash flow (a non-GAAP measure)		$47.9			$54.1			$145.2			$178.9

(A) Payments associated with investment activity for acquisition related items.

Adjusted free cash flow was $47.9 and $145.2 for the three and nine months ended September 30, 2017, compared to $54.1 and $178.9 for the corresponding periods in 2016. The decrease of $33.7 from the nine month period in the prior year is primarily a result of decreased cash flow from working capital in 2017, largely due to the timing of collections of accounts receivable and the payment of accounts payable.

We believe that free cash flow and adjusted free cash flow are useful to investors because they present the operating cash flow of the Company, excluding the capital that is spent to continue to improve business operations, such as investment in the Company’s existing business. Further, free cash flow and adjusted free cash flow provide an indication of the ongoing cash that is available for debt repayment, returning capital to shareholders and other opportunities. We also believe the presentation of these measures enhances investors’ ability to analyze trends in the business and evaluate the Company’s underlying performance relative to other companies in the industry. Limitations associated with the use of free cash flow and adjusted free cash flow include that they do not represent the residual cash flow available for discretionary expenditures as they do not incorporate certain cash payments, including payments made on capital lease obligations or cash payments for business acquisitions. Management compensates for these limitations by utilizing the non-GAAP measures, free cash flow and adjusted free cash flow, and the GAAP measure, cash flows from operating activities, in its evaluation of performance.

Capital Resources, Off-Balance Sheet Arrangements and Contractual Commitments

At September 30, 2017, total capitalization was $1,719.9, consisting of $280.1 of short-term and long-term debt and capital lease obligations, $1,379.9 of equity and $59.9 of temporary equity associated with the convertible debentures conversion feature. At December 31, 2016, total capitalization was $1,676.0, consisting of $298.8 of short-term and long-term debt and capital lease obligations, $1,315.9 of equity and $61.3 of temporary equity associated with the convertible debentures conversion feature. The total debt-to-capital ratio at September 30, 2017 was 16.3%, compared to 17.8% at December 31, 2016. This decrease is primarily due to a decrease in total debt outstanding as a result of decreased borrowings under the Company’s term loan.

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 one-year periods, 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 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, 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. 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 September 30, 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 September 30, 2017. The carrying value of the New Term Loan at September 30, 2017 reflects a discount of $0.8 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 (3.3% as of September 30, 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.

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. The entire balance of the 2029 Convertible Debentures remained outstanding and was convertible at the option of the holders as of September 30, 2017 and December 31, 2016.

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 September 30, 2017 and December 31, 2016, Convergys had drawn $115.0 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 September 30, 2017.

The Company repurchased 0.9 and 2.8 of its common shares during the three and nine months ended September 30, 2017 for a total of $21.9 and $65.6, respectively. Based upon timing of transactions, $0.9 of the shares repurchased in December 2016 settled during the first quarter of 2017. Additionally, $0.6 of the shares repurchased during September 30, 2017 had not settled as of September 30, 2017. These shares are excluded from outstanding shares at the end of the second quarter and were settled in cash during the third quarter of 2017. As of September 30, 2017, the Company had the authority to repurchase $77.5 of outstanding common shares pursuant to the Board of Directors’ August 2015 increase of its then-existing authorization of share repurchases to $250.0 in the aggregate. The timing and terms of any future share repurchases 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 existing credit agreement.

At September 30, 2017, we had outstanding letters of credit and bond obligations of approximately $22.3 related to performance guarantees. We believe that any guarantee obligation that may arise related to performance and payment guarantees of continuing operations will not be material. The Company also has future purchase commitments with telecommunications and transportation providers of $4.2 at September 30, 2017.

During 2016 and 2017, our Board of Directors declared the following dividends per common share, which were paid by the Company on the payment dates listed below:

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
May 8, 2017	June 23, 2017	$0.10	July 7, 2017
August 8, 2017	September 22, 2017	$0.10	October 6, 2017

On November 7, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per common share to be paid on January 5, 2017 to shareholders of record as of December 22, 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 our future earnings, cash flow, financial condition, financial covenants and other relevant factors. We intend to continue to use cash dividends as a means of returning capital to our shareholders, subject to our Board’s determination that cash dividends are in the best interests of our shareholders.

MARKET RISK

We are exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. Market risk is the potential loss arising from adverse changes in market rates and prices. Our risk management strategy includes the use of derivative instruments to reduce the effects on our operating results and cash flows from fluctuations caused by volatility in currency exchange rates. In using derivative financial instruments to hedge exposures to changes in exchange rates, we expose ourselves to counterparty credit risk. We manage exposure to counterparty credit risk by entering into derivative financial instruments with investment grade-rated institutions that can be expected to perform fully under the terms of the agreements and by diversifying the number of financial institutions with which we enter into such agreements.

Interest Rate Risk

At September 30, 2017, Convergys had $215.0 of variable rate debt outstanding under the New Term Loan and Asset Securitization Facility, which exposes Convergys to changes in interest rates. Holding other variables constant, including the total amount of outstanding indebtedness, a one hundred basis point increase in interest rates on our variable-rate debt would cause an estimated increase in interest expense of approximately $2.2 per year.

Foreign Currency Exchange Rate Risk

While most of our contracts are priced in U.S. dollars, we recognize a substantial amount of revenue under contracts that are denominated in Australian dollars, British pounds and euros. A significant increase in the value of the U.S. dollar relative to these currencies may have a material adverse impact on the value of those revenues when translated to U.S. dollars.

We serve many of our 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. Additionally, we have certain client contracts that are priced in Australian dollars, for which a substantial portion of the costs to deliver services are denominated in other currencies. As of September 30, 2017, we have hedged a portion of our exposure related to the anticipated cash flow requirements denominated in certain foreign currencies by entering into hedging contracts with several financial institutions to acquire a total of PHP 35,940.0 at a fixed price of $718.1 at various dates through June 2020, INR 11,925.0 at a fixed price of $164.6 at various dates through June 2020 and CAD 46.4 at a fixed price of $35.1 at various dates through December 2019 and COP 47,700.0 at a fixed price of $15.0 at various dates through June 2019, and to sell a total of AUD 34.7 at a fixed price of $26.9 at various dates through October 2018. The fair value of these derivative instruments as of September 30, 2017 is presented in Note 12 of the Notes to Consolidated Financial Statements. The potential loss in fair value at September 30, 2017 for such contracts resulting from a hypothetical 10% adverse change in the underlying foreign currency exchange rates is approximately $94.7. This loss would be substantially mitigated by corresponding gains on the underlying foreign currency exposures.

Other foreign currency exposures arise from transactions denominated in a currency other than the functional currency. We periodically enter into hedging contracts that are not designated as hedges. The purpose of these derivative instruments is to protect the Company against foreign currency exposure pertaining to receivables, payables and intercompany transactions that are denominated in currencies different from the functional currencies of the Company or its respective subsidiaries. As of September 30, 2017, the fair value of these derivatives not designated as hedges was a $6.3 payable.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

See “ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report for the year ended December 31, 2016 on Form 10-K for a discussion of our critical accounting policies and estimates.

There have been no material changes to our critical accounting policies and estimates in 2017.

6

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required by Item 3 is included in Item 2 of this Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer and Chief Financial Officer, together with the Company’s General Counsel, Chief Accounting Officer and other key members of management, evaluated the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Act)) as of the end of the quarter ended September 30, 2017 (Evaluation Date). Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the Evaluation Date to provide reasonable assurance that the information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure, and that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control

There were no changes in the Company’s internal control over financial reporting during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

7

PART II

ITEM 1. LEGAL PROCEEDINGS

For a discussion of certain legal proceedings, see Note 11 of the Notes to the Consolidated Financial Statements of this Form 10-Q, which is incorporated by reference herein.

ITEM 1A. RISK FACTORS

See “ITEM 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2016 for a discussion of our risk factors. There have been no material changes to our risk factors in 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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.

We repurchased 2.8 of our common shares for $65.6 during the nine months endedSeptember 30, 2017, as summarized in the following table:

	Shares repurchased	Average price per share
January 2017	254,598		$25.43
February 2017	257,000	24.22
March 2017	430,300	21.10
April 2017	337,600	21.68
May 2017	319,300	23.63
June 2017	293,100	24.26
July 2017	291,614	23.94
August 2017	354,300	23.49
September 2017	266,100	24.61
Total	2,803,912		$23.40

All share repurchases were made pursuant to a publicly announced program. At September 30, 2017, the Company had the authority to repurchase $77.5 of outstanding common shares pursuant to the Board of Directors’ most recent share repurchase authorization of $250.0 in August 2015. 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.

ITEM 5. OTHER INFORMATION

As previously disclosed, Marjorie M. Connelly, the Company’s Chief Operating Officer, will separate from the Company on December 15, 2017. Upon Ms. Connelly’s separation, Andre S. Valentine, the Company’s Chief Financial Officer, will assume oversight responsibility for the Company’s contact center operations. In connection with this expected transition, on November 2, 2017, the Board designated Mr. Valentine as the Company’s principal operating officer, effective December 15, 2017.

ITEM 6. EXHIBITS

(a) Exhibits

The following are filed as Exhibits to Part II of this Form 10-Q:

Exhibit Number

3.1	Amended Articles of Incorporation of the Company. (Incorporated by reference from Exhibit 3.1 to Form 10-Q filed on May 5, 2010.)
3.2	Amended and Restated Code of Regulations of Convergys Corporation. (Incorporated by reference from Exhibit 3.1 to Form 8-K filed on May 2, 2011.)
21	Subsidiaries of 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 September 30, 2017, filed on November 7, 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.

8

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CONVERGYS CORPORATION
November 7, 2017	By	/s/ Andre S. Valentine
		Andre S. Valentine Chief Financial Officer
		(on behalf of the Registrant and as principal financial officer)

9

EX-21

Exhibit 21 to 2017 10-Q
Convergys Corporation Direct and Indirect Subsidiaries
As of 9/30/2017
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
						Convergys Ireland Contact Services Limited (fka 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 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
			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
							Convergys Verwaltungs GmbH (fka buw Verwaltungs GmbH)			Austria
							Convergys Management Holding GmbH & Co. KG (fka buw Management Holding GmbH & Co. KG)			Germany
								Convergys Wuppertal GmbH (fka buw operations Wuppertal GmbH)		Germany
								Convergys Romania S.R.L. (fka buw Romania S.R.L.) (99.9767%)		Romania
								Convergys Hungary Kft. (fka buw Hungary Telefoninformációs Szolgáltató és Tanácsadó Kft.)		Hungary
								Convergys Osnabrück GmbH (fka buw operations Osnabrück GmbH)		Germany
									Convergys Romania S.R.L. (fka buw Romania S.R.L.) (0.0233%)	Romania
								Convergys Münster GmbH (fka buw operations Münster GmbH)		Germany
								Convergys Rechenzentrum GmbH (fka buw Rechenzentrum GmbH)		Germany
								Convergys Leipzig GmbH (fka buw operations Leipzig GmbH)		Germany
								Convergys Gera GmbH (fka buw operations Gera GmbH)		Germany
									Convergys Halle GmbH (fka buw operations Halle GmbH)	Germany
								Convergys Services GmbH (fka buw services GmbH)		Germany
								Convergys Frankfurt a. M. GmbH fka buw operations Frankfurt a. M. GmbH)		Germany
								Convergys Schwerin GmbH (fka buw operations Schwerin GmbH)		Germany
									Convergys Wismar GmbH (fka buw operations Wismar GmbH)	Germany
								Convergys Beteiligungen GmbH (fka buw Beteiligungen GmbH)		Germany
								Convergys Duisburg GmbH (fka buw operations GmbH)		Germany
									Convergys Düsseldorf GmbH (fka Call 4 performance GmbH)	Germany
						Convergys Netherlands Investments B.V. (fka SGS Netherlands Investment Corporation B.V.)				Netherlands
							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
							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.

EX-31.1

Certification

I, Andrea J. Ayers,certify that:

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.

November 7, 2017	/s/ Andrea J. Ayers
	Andrea J. Ayers
	Chief Executive Officer

EX-31.2

Certification

I, Andre S. Valentine,certify that:

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.

November 7, 2017	/s/ Andre S. Valentine
	Andre S. Valentine
	Chief Financial Officer

EX-32.1

Exhibit 32.1 to 2017 10-Q

CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Convergys Corporation (the "Company") for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on November 7, 2017 (the “Report”), I, Andrea J. Ayers, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

/s/ Andrea J. Ayers

Andrea J. Ayers

Chief Executive Officer

November 7, 2017

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report and shall not be considered filed as part of the Report.

EX-32.2

Exhibit 32.2 to 2017 10-Q

CERTIFICATION OF PERIODIC FINANCIAL REPORT BY CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Convergys Corporation (the "Company") for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on November 7, 2017 (the “Report”), I, Andre S. Valentine, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

/s/ Andre S. Valentine

Andre S. Valentine

Chief Financial Officer

November 7, 2017

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report and shall not be considered filed as part of the Report.

XML

Document and Entity Information Document	9 Months Ended
	Sep. 30, 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	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	92,412,178
Trading symbol	cvg

XML

Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 688.3	$ 741.2	$ 2,102.8	$ 2,155.6
Operating Costs and Expenses:
Cost of providing services and products sold	428.1	479.8	1,305.1	1,365.3
Selling, general and administrative expenses	175.5	170.5	527.1	511.1
Depreciation	26.2	30.3	80.6	93.3
Amortization	7.2	7.1	21.7	20.9
Restructuring charges	2.4	0.2	19.1	2.7
Transaction and integration costs	0.8	2.7	3.4	5.0
Total costs and expenses	640.2	690.6	1,957.0	1,998.3
Operating Income (Loss)	48.1	50.6	145.8	157.3
Other income (expense), net	(1.6)	(1.2)	1.2	(3.2)
Interest expense	(4.5)	(4.6)	(14.0)	(13.6)
Income (loss) before income taxes	42.0	44.8	133.0	140.5
Income tax expense	7.2	7.1	20.5	25.0
Income, net of tax	34.8	37.7	112.5	115.5
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	0.0	10.0	0.0	10.0
Net Income (Loss)	$ 34.8	$ 47.7	$ 112.5	$ 125.5
Basic Earnings (Loss) per share:
Basic Earnings per Common Share	$ 0.38	$ 0.39	$ 1.20	$ 1.20
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	0.00	0.10	0.00	0.10
Net basic earnings (loss) per share	$ 0.38	$ 0.50	$ 1.20	$ 1.31
Weighted average common shares outstanding:
Basic	92.8	95.6	93.6	96.1
Diluted	99.8	103.1	100.7	103.6
Diluted Earnings (Loss) per share:
Diluted Earnings per Common Share	$ 0.35	$ 0.36	$ 1.12	$ 1.11
Common Stock, Dividends, Per Share, Declared	0.10	0.09	0.29	0.26
Net diluted earnings (loss) per share	0.35	0.46	1.12	1.21
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	$ 0.00	$ 0.11	$ 0.00	$ 0.11

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Income (Loss)	$ 34.8	$ 47.7	$ 112.5	$ 125.5
Foreign currency translation adjustments	5.7	(2.0)	18.2	(3.2)
Change related to pension liability, net of tax	(0.1)	1.0	1.6	3.0
Unrealized gain (loss) on hedging activities, net of tax	2.1	(5.3)	17.8	9.8
Total other comprehensive income (loss)	7.7	(6.3)	37.6	9.6
Total Comprehensive Income (Loss)	$ 42.5	$ 41.4	$ 150.1	$ 135.1

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 167.8	$ 138.8
Short-term Investments	13.0	12.4
Receivables, net of allowances of $3.7 and $5.8	555.8	555.0
Prepaid expenses	44.0	38.6
Other current assets	38.4	40.0
Total current assets	819.0	784.8
Property and equipment, net	270.4	304.1
Goodwill	935.7	916.9
Other intangibles, net	293.2	307.6
Deferred income tax asset	24.2	17.7
Other assets	44.9	40.7
Total Assets	2,387.4	2,371.8
Liabilities and Shareholders' Equity
Debt and capital lease obligations maturing within one year	0.9	1.8
Payables and other current liabilities	314.1	345.8
Total current liabilities	315.0	347.6
Long-term debt and capital lease obligations	279.2	297.0
Deferred income tax liabilities	202.1	197.8
Accrued pension liabilites	80.3	80.3
Other long-term liabilities	71.0	71.9
Total liabilities	947.6	994.6
Convertible debentures conversion feature	59.9	61.3
Shareholders' Equity
Preferred shares - without par value, 5.0 authorized; none outstanding	0.0	0.0
Common shares - without par value, 500.0 authorized; 191.5 and 191.0 issued, 92.4 and 94.7 outstanding, as of September 30, 2017 and December 31, 2016, respectively	1,118.8	1,110.0
Treasury Stock - 99.1 and 96.3 shares as of September 30, 2017 and December 31, 2016, respectively	(1,702.0)	(1,635.3)
Retained earnings	2,039.3	1,955.0
Accumulated other comprehensive loss	(76.2)	(113.8)
Total shareholders' equity	1,379.9	1,315.9
Total Liabilities and Shareholders' Equity	$ 2,387.4	$ 2,371.8

XML

Balance Sheet Parenthetical (Parentheticals) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Allowance for Doubtful Accounts Receivable, Current	$ 3.7	$ 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	191.5	191.0
Common Stock, Shares, Outstanding	92.4	94.7
Treasury Stock, Shares	99.1	96.3

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 112.5	$ 125.5
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	0.0	10.0
Income, net of tax	112.5	115.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	102.3	114.2
Deferred income tax expense (benefit)	(13.2)	(6.0)
Stock compensation expense	12.5	12.8
Changes in assets and liabilities:
Change in receivables	(8.2)	23.1
Change in other current assets	2.6	(9.3)
Change in deferred charges, net	0.3	0.6
Change in other assets and liabilities	(1.3)	(1.2)
Change in payables and other current liabilities	(21.4)	(12.9)
Net cash provided by operating activities	186.1	236.8
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(44.9)	(63.6)
Payments for (Proceeds from) Short-term Investments	0.0	(0.8)
Payments to Acquire Businesses, Net of Cash Acquired	0.0	(129.9)
Proceeds from Divestiture of Interest in Joint Venture	0.7	0.0
Net cash used in investing activities	(44.2)	(194.3)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of other long-term debt	100.0	0.0
Repayments of other long-term debt (term loan and capital lease obligations)	(216.4)	(2.4)
Proceeds from Asset Securitization Facility	643.7	699.0
Repayments of Asset Securitization Facility	(548.7)	(738.0)
Repurchase of common shares	(65.9)	(54.3)
Proceeds from exercise of stock options	0.8	0.6
Payments of Dividends	(26.4)	(24.1)
Excess tax benefit from share-based payment arrangements	0.0	1.1
Net cash (used in) provided by financing activities	(112.9)	(118.1)
Net (decrease) increase in cash and cash equivalents	29.0	(75.6)
Cash and cash equivalents at beginning of period	138.8	204.7
Cash and cash equivalents at end of period	$ 167.8	$ 129.1

XML

Background And Basis Of Presentation

9 Months Ended

Sep. 30, 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 September 30, 2017, Convergys had approximately 120,000 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.

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Recent Accounting Pronouncements Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 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 September 30, 2016 were as follows:

	Three Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$480.5		($0.7	)		$479.8
Selling, general and administrative		$171.0		($0.5	)		$170.5
Total costs and expenses		$691.8		($1.2	)		$690.6
Operating Income		$49.4		$1.2			$50.6
Other income (expense), net		$—		($1.2	)		($1.2	)

	Nine Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$1,367.5		($2.2	)		$1,365.3
Selling, general and administrative		$512.7		($1.6	)		$511.1
Total costs and expenses		$2,002.1		($3.8	)		$1,998.3
Operating Income		$153.5		$3.8			$157.3
Other income (expense), net		$0.6		($3.8	)		($3.2	)

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 not 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 will adopt this standard on January 1, 2019 and 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. The Company will adopt this standard on January 1, 2018. The Company’s implementation activities related to this standard are aligned to meeting the required adoption date. The largest impacts to the Company’s financial statements will result from the new qualitative and quantitative disclosures that will be required upon adoption of the new standard, and the capitalization of certain direct and incremental contract costs that will be required to be capitalized and amortized over the life of the corresponding contract. The Company has concluded that it will apply the modified retrospective adoption alternative for this standard. Processes and controls are currently being implemented to identify and quantify the cumulative effect adjustment to retained earnings as of January 1, 2018.

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Business Combination Business Combination

9 Months Ended

Sep. 30, 2017

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 in 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.

Purchase Price Allocation

The Company accounted for its acquisition of 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 values of the assets acquired and liabilities assumed at the date of acquisition:

	August 1, 2016
Assets:
Receivables		$35.3
Other current assets	2.5
Property and equipment	6.9
Goodwill	98.5
Intangible assets	22.7
Other assets	0.3
Liabilities:
Accounts payable	(0.8		)
Accrued expenses	(15.0		)
Deferred tax - net	(6.7		)
Other long-term liabilities	(5.8		)
Total purchase price		$137.9

As of September 30, 2017, the purchase price allocation for the acquisition was final. Goodwill was 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:

			Life
Intangible asset type	Value		(years)
Customer relationship		$22.0	10
Trade name	0.7		1
Total		$22.7

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 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.

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Divestitures and Discontinued Operations Divestitures and Discontinued Operations

9 Months Ended

Sep. 30, 2017

Divestitures and Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4. DIVESTITURES AND DISCONTINUED OPERATIONS

Information Management

On May 16, 2012, the Company completed the sale of its Information Management line of business to NEC Corporation. During the three and nine months ended September 30, 2016, the Company recorded income from discontinued operations, net of $10.0 as certain contingencies and tax positions related to Information Management were settled or adjusted. 

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Earnings (Loss) Per Share and Shareholders' Equity

9 Months Ended

Sep. 30, 2017

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:

		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 September 30, 2017
Basic EPS	92.8		$34.8		$0.38		—			$—			$0.38
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.3	—		(0.03		)	—		—			(0.03		)
Diluted EPS	99.8		$34.8		$0.35		—			$—			$0.35
Nine Months Ended September 30, 2017
Basic EPS	93.6		$112.5		$1.20		—			$—			$1.20
Effect of dilutive securities:
Stock-based compensation arrangements	0.8	—		(0.01		)	—		—			(0.01		)
Convertible Debt	6.3	—		(0.07		)	—		—			(0.07		)
Diluted EPS	100.7		$112.5		$1.12		—			$—			$1.12
Three Months Ended September 30, 2016
Basic EPS	95.6		$37.7		$0.39			$10.0		$0.11			$0.50
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.8	—		(0.03		)	—		(0.01		)	(0.04		)
Diluted EPS	103.1		$37.7		$0.36			$10.0		$0.10			$0.46
Nine Months Ended September 30, 2016
Basic EPS	96.1		$115.5		$1.20			$10.0		$0.11			$1.31
Effect of dilutive securities:
Stock-based compensation arrangements	0.7			(0.01		)	—		—			(0.01		)
Convertible Debt	6.8			(0.08		)	—		(0.01		)	(0.09		)
Diluted EPS	103.6		$115.5		$1.11			$10.0		$0.10			$1.21

The diluted EPS calculation for the three and nine months endedSeptember 30, 2017 excludes 0.3 performance-based restricted stock units granted in 2015, as the performance criteria has not yet been achieved, as well as 0.6 performance-based restricted stock units (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.

The diluted EPS calculation for the three and nine months endedSeptember 30, 2017 includes 6.3 shares associated with the Company’s convertible debt. 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 September 30, 2017, the implied conversion price for the 2029 Convertible Debentures was approximately $11.21 per share, or eighty-nine and twenty-two hundredths shares per one thousand dollars in principal amount of debentures.

Shareholders’ Equity

The Company repurchased 0.9 and 2.8 of its common shares during the three and nine months endedSeptember 30, 2017 at average prices of $23.96 and $23.40 per share for a total of $21.9 and $65.6. Based upon the timing of transactions, $0.9 of the shares repurchased in December 2016 settled during the first quarter of 2017. Additionally, $0.6 of the shares repurchased during September 2017 had not settled as of September 30, 2017. These shares are excluded from outstanding shares at the end of the third quarter and were settled in cash during the fourth quarter of 2017.

As of September 30, 2017, the Company had the authority to repurchase $77.5 of outstanding common shares pursuant to the Board of Directors’ August 2015 increase of its then-existing authorization of share repurchases to $250.0 in the aggregate. The timing and terms of any future share repurchases 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 existing 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:

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
May 8, 2017	June 23, 2017	$0.10	July 7, 2017
August 8, 2017	September 22, 2017	$0.10	October 6, 2017

On November 7, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per common share to be paid on January 5, 2017 to shareholders of record as of December 22, 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.

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Goodwill and Other Intangible Assets and Long-Lived Assets

9 Months Ended

Sep. 30, 2017

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 $935.7 at September 30, 2017 compared to $916.9 at December 31, 2016. This increase was primarily 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 September 30, 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 September 30, 2017 and December 31, 2016, the Company’s other intangible assets consisted of the following:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships and other intangibles		$483.1		($191.5	)		$291.6
Trademarks	26.9		(25.3		)	1.6
Software (classified within Property and equipment, net)	41.3		(41.3		)	—
Total		$551.3		($258.1	)		$293.2
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

The intangible assets are being amortized using the following amortizable lives: 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 $21.7 and $20.9 for the nine months endedSeptember 30, 2017 and 2016, respectively, and is estimated to be approximately $28.8 for the year ended December 31, 2017. The related estimated expense for the five subsequent fiscal years is as follows:

For the year ended 2018		$24.8
For the year ended 2019	24.1
For the year ended 2020	23.4
For the year ended 2021	21.7
For the year ended 2022	21.5
Thereafter	170.6

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Debt And Capital Lease Obligation

9 Months Ended

Sep. 30, 2017

Long-term Debt and Capital Lease Obligations [Abstract]

Debt and Capital Lease Obligations

DEBT AND CAPITAL LEASE OBLIGATIONS

Debt and capital lease obligations consisted of the following:

	September 30, 2017		December 31, 2016
Term Loan, due 2019		$99.2		$212.9
Convertible Debentures, due 2029	65.1		63.7
Capital Lease Obligations	2.2		3.6
Accounts Receivable Securitization	115.0		20.0
Total debt	281.5		300.2
Less debt issuance costs	1.4		1.4
Total debt, net	280.1		298.8
Less current maturities	0.9		1.8
Long-term debt		$279.2		$297.0

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 for the nine months endedSeptember 30, 2017.

The New Revolving Credit Facility may be extended for two additional one-year periods, 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, 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. 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 September 30, 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 September 30, 2017. The carrying value of the New Term Loan at September 30, 2017 reflects a discount of $0.8 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 (3.3% as of September 30, 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 did 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 September 30, 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 $14.57) 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 September 30, 2017, the implied conversion price for the 2029 Convertible Debentures was approximately $11.21 per share, or eighty-nine and twenty-two hundredths shares per one thousand dollars in principal amount of debentures. The conversion rate is subject to adjustment for certain events outlined in the Indenture, including payment of dividends.

As of September 30, 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 $14.57, 130% of the conversion price of the 2029 Convertible Debentures at September 30, 2017, for at least 20 of the 30 consecutive trading days ending on September 30, 2017). As a result, the equity component of the 2029 Convertible Debentures equal to $59.9 (the difference between the par value and carrying value of the 2029 Convertible Debentures at September 30, 2017) has been classified as temporary equity within the September 30, 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 September 30, 2017, the fair value of the $125.0 aggregate principal amount of the Company’s 2029 Convertible Debentures is $297.6.

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 September 30, 2017 and December 31, 2016, Convergys had drawn $115.0 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 September 30, 2017.

At September 30, 2017, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt discounts) are as follows:

2017		$0.3
2018	46.9
2019	100.6
2020	69.4
2021	—
2022	—
Thereafter	125.0
Total		$342.2

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Restructuring

9 Months Ended

Sep. 30, 2017

Restructuring Charges [Abstract]

Restructuring

RESTRUCTURING

2017 Restructuring

Company-wide restructuring program

The Company recorded restructuring expenses of $12.8 for the nine months ended September 30, 2017, 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 $7.0 as of September 30, 2017, $8.2 as of June 30, 2017 and $10.2 as of March 31, 2017.

Other Severance

The Company recorded other severance expense of $2.3 and $6.2, respectively, for the three and nine months ended September 30, 2017, primarily related to headcount reductions resulting from certain client program completions. These actions impacted approximately 250 employees. This severance expense is included in Restructuring charges on the Consolidated Statements of Income. These severance-related charges were fully paid in cash by September 30, 2017.

buw integration

The Company recorded severance expense totaling $0.1 and $1.1, respectively, for the three and nine months ended September 30, 2017, related to the elimination of certain redundant positions as a result of the integration of the buw business. This severance expense was included in Transaction and 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 $0.4 as of September 30, 2017 and $0.5 as of both June 30, 2017 and 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. These severance-related charges have been fully paid in cash.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2017

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, 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. 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost		$1.4			$1.6			$4.1			$4.8
Interest cost on projected benefit obligation	1.8			2.1			5.5			6.4
Expected return on plan assets	(2.4		)	(2.6		)	(7.4		)	(7.6		)
Amortization and deferrals—net	1.7			1.7			4.6			5.2
Settlement charge	2.0			—			2.0			—
Total net pension cost		$4.5			$2.8			$8.8			$8.8

During the three and nine months ended September 30, 2017, the Company recognized a non-cash pension settlement charge of $2.0 resulting from a high volume of lump sum distributions from the cash balance plan. This pension settlement charge was included in Other (expense) income, net on the Consolidated Statements of Income.

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 income for the EDCP are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Service cost		$0.4		$0.3		$1.3		$0.9
Interest cost on projected benefit obligation	0.1		0.1		0.3		0.3
Total pension cost		$0.5		$0.4		$1.6		$1.2

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Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2017

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK-BASED COMPENSATION PLANS

The Company’s operating results for the three and nine months endedSeptember 30, 2017 included stock-based compensation expense of $4.6 and $13.1, respectively, compared to $5.2 and $14.4, respectively, for the same periods in 2016. Expense for the three and nine months endedSeptember 30, 2017 included $0.6 in each period, related to awards classified as liabilities that will ultimately settle in cash, compared to $0.7 and $1.6, respectively, for the same periods in the prior year.

Restricted Stock Units

Time-based Restricted Stock Units

During the three and nine months endedSeptember 30, 2017, the Company granted 0.4 and 0.6 shares, respectively, of time-based restricted stock units. The weighted average grant date fair values of these grants were $23.81 and $23.59, respectively. During the nine months endedSeptember 30, 2016, the Company granted 0.5 shares of time-based restricted stock units at a weighted average grant date fair value of $26.53. 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 September 30, 2017 was approximately $23.5, which is expected to be recognized over a weighted average period of 2.2 years. Changes to non-vested time-based restricted stock units for the nine months endedSeptember 30, 2017 were as follows:

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	0.6		23.59
Vested	(0.5	)	22.81
Forfeited	—		—
Non-vested at September 30, 2017	1.4			$23.49

Performance-based Restricted Stock Units

During the nine months endedSeptember 30, 2017 and 2016, the Company granted 0.3 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 September 30, 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 September 30, 2017 was approximately $2.2, which is expected to be recognized ratably over the remaining vesting period ending in February 2018. The performance metric for the 2015 grants had not yet been achieved at September 30, 2017.

Changes to non-vested performance-based restricted stock units for the nine months endedSeptember 30, 2017 were as follows:

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	)	26.19
Forfeited	—		—
Non-vested at September 30, 2017	0.3			$21.28

Stock Options

Presented below is a summary of Company stock option activity. Prior to 2017, all outstanding stock options were fully vested and the related expense had been fully recognized.

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 September 30, 2017	0.4		$13.34	3.7		$3.83
Options exercisable at September 30, 2017	0.4		$13.34	3.7		$3.83

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Commitments And Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Commitments

At September 30, 2017, the Company had outstanding letters of credit and bond obligations of $22.3 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 $4.2 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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Financial Instruments

9 Months Ended

Sep. 30, 2017

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 35,940.0 at a fixed price of $718.1 at various dates through June 2020, INR 11,925.0 at a fixed price of $164.6 at various dates through June 2020, CAD 46.4 at a fixed price of $35.1 at various dates through December 2019 and COP 47,700.0 at a fixed price of $15.0 at various dates through June 2019, and to sell a total of AUD 34.7 at a fixed price of $26.9 at various dates through October 2018. These instruments mature within the next 33 months and had a notional value of $947.5 at September 30, 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:

	September 30, 2017		December 31, 2016
Forward exchange contracts and options designated as hedging instruments:
Included within other current assets		$9.7		$3.0
Included within other non-current assets	4.9		2.3
Included within other current liabilities	18.7		31.3
Included within other long-term liabilities	8.5		15.4

The Company recorded a deferred tax benefit of $4.8 and $15.9 related to these derivatives at September 30, 2017 and December 31, 2016, respectively. A total of $7.7 and $25.5 of deferred losses, net of tax, related to these cash flow hedges at September 30, 2017 and December 31, 2016, respectively, were included in accumulated other comprehensive loss (OCL). As of September 30, 2017, deferred losses of $9.0 ($5.5 net of tax) on derivative instruments included in accumulated OCL are expected to be reclassified into earnings during the next 12 months. The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during the three and nine months endedSeptember 30, 2017 and 2016, respectively:

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)
Three Months Ended September 30, 2017
Foreign exchange contracts		($2.0	)		($5.3	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2017
Foreign exchange contracts		$10.8			($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Three Months Ended September 30, 2016
Foreign exchange contracts		($13.2	)		($4.6	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2016
Foreign exchange contracts		($2.1	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative

The gain or loss recognized related to the ineffective portion of the derivative instruments was immaterial for the three months ended September 30, 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 and nine months endedSeptember 30, 2017, losses of $5.3 and $17.3, respectively, were recognized related to changes in fair value of these derivative instruments not designated as hedges, compared to losses of $5.5 and $3.7 in the same periods 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 September 30, 2017 was a $6.3 payable.

Short-term Investments

As of September 30, 2017 and December 31, 2016, the Company held investment securities with a fair value of $13.0 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 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 (expense) income, net.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures

FAIR VALUE MEASUREMENTS

U.S. GAAP defines a hierarchy which prioritizes the inputs in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

At September 30, 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 nine months ended September 30, 2017 and September 30, 2016. The derivative assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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)		$15.2		$—		$15.2		$—
Foreign currency forward contracts (liability position)		$34.1		$—		$34.1		$—

	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		$—

The Company also had investment securities held in a grantor trust for the benefit of participants of the EDCP measured at fair value at September 30, 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 nine months ended September 30, 2017 and September 30, 2016. The assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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		$12.4		$12.4		$—		$—
Money market accounts	0.6		0.6		—		—
Total		$13.0		$13.0		$—		$—

	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		$—		$—

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective tax rate on net income from continuing operations was 17.1% and 15.4% for the three and nine months endedSeptember 30, 2017 compared to 15.8% and 17.8%, respectively, in the same periods last year. The effective tax rates for both periods were largely impacted by the geographic mix of worldwide income and certain discrete items, including tax expense of $1.3 for the three and nine months ended September 30, 2016 associated with the repatriation of certain foreign earnings in conjunction with the Company’s acquisition of buw.

The liability for unrecognized tax benefits was $21.4 and $20.8 at September 30, 2017 and December 31, 2016, respectively, and is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. As of September 30, 2017, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the Consolidated Financial Statements is $18.7. This amount includes interest and penalties of $9.6. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between approximately $2.1 and $17.0 in the next twelve months; however, actual developments in this area could differ from those currently expected.

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Payables and Other Current Liabilities

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

	At September 30, 2017		At December 31, 2016
Payables and other current liabilities:
Accounts payable		$38.2		$53.9
Accrued income and other taxes	29.1		44.1
Accrued payroll-related expenses	137.1		132.0
Derivative liabilities	25.6		33.6
Accrued expenses, other	64.4		63.7
Restructuring and exit costs	7.4		0.8
Deferred revenue and government grants	12.3		17.7
		$314.1		$345.8

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss) [Text Block]

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive (loss) income:

		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	)
	Other comprehensive loss before reclassifications	(11.2		)	(9.8		)	—			(21.0		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.9			1.0			3.9
Net current-period other comprehensive (loss) income		(11.2		)	(6.9		)	1.0			(17.1		)
Balance at June 30, 2016			($39.4	)		($11.0	)		($35.5	)		($85.9	)
	Other comprehensive (loss) income before reclassifications	(2.0		)	(8.1		)	—			(10.1		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.8			1.0			3.8
Net current-period other comprehensive income (loss)		(2.0		)	(5.3		)	1.0			(6.3		)
Balance at September 30, 2016			($41.4	)		($16.3	)		($34.5	)		($92.2	)
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 income, 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	)
	Other comprehensive income before reclassifications, net of tax	9.5			1.9			—			11.4
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.1			0.8			3.9
Net current-period other comprehensive income		9.5			5.0			0.8			15.3
Balance at June 30, 2017			($44.1	)		($9.8	)		($30.0	)		($83.9	)
	Other comprehensive income (loss) before reclassifications, net of tax	5.7			(1.2		)	(3.3		)	1.2
	Settlement of pension obligation, net of tax	—			—			1.2			1.2
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.3			2.0			5.3
Net current-period other comprehensive income		5.7			2.1			(0.1		)	7.7
Balance at September 30, 2017			($38.4	)		($7.7	)		($30.1	)		($76.2	)

The following table summarizes the reclassification out of accumulated other comprehensive income (loss):

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 September 30, 2017			Nine Months Ended September 30, 2017
Loss on derivative instruments		($5.3	)		($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	2.0			6.9			Income tax expense
Loss on derivative instruments, net of tax	(3.3		)	(11.2		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(3.3		)	(6.2		)	Selling, general and administrative
Tax benefit	1.3			2.6			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(2.0		)	(3.6		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($5.3	)		($14.8	)
	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Loss on derivative instruments		($4.6	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	1.8			7.0			Income tax expense
Loss on derivative instruments, net of tax	(2.8		)	(11.0		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(1.6		)	(4.8		)	Selling, general and administrative
Tax benefit	0.6			1.8			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(1.0		)	(3.0		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($3.8	)		($14.0	)

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Recent Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2016 were as follows:

	Three Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$480.5		($0.7	)		$479.8
Selling, general and administrative		$171.0		($0.5	)		$170.5
Total costs and expenses		$691.8		($1.2	)		$690.6
Operating Income		$49.4		$1.2			$50.6
Other income (expense), net		$—		($1.2	)		($1.2	)

	Nine Months Ended September 30, 2016
Consolidated Statement of Income Caption	Previously Reported		Change			Currently Reported
Cost of providing services and products sold		$1,367.5		($2.2	)		$1,365.3
Selling, general and administrative		$512.7		($1.6	)		$511.1
Total costs and expenses		$2,002.1		($3.8	)		$1,998.3
Operating Income		$153.5		$3.8			$157.3
Other income (expense), net		$0.6		($3.8	)		($3.2	)

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Business Combination Business Combination (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition:

	August 1, 2016
Assets:
Receivables		$35.3
Other current assets	2.5
Property and equipment	6.9
Goodwill	98.5
Intangible assets	22.7
Other assets	0.3
Liabilities:
Accounts payable	(0.8		)
Accrued expenses	(15.0		)
Deferred tax - net	(6.7		)
Other long-term liabilities	(5.8		)
Total purchase price		$137.9

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following details the total intangible assets identified:

			Life
Intangible asset type	Value		(years)
Customer relationship		$22.0	10
Trade name	0.7		1
Total		$22.7

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Earnings (Loss) Per Share and Shareholder’s Equity (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations:

		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 September 30, 2017
Basic EPS	92.8		$34.8		$0.38		—			$—			$0.38
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.3	—		(0.03		)	—		—			(0.03		)
Diluted EPS	99.8		$34.8		$0.35		—			$—			$0.35
Nine Months Ended September 30, 2017
Basic EPS	93.6		$112.5		$1.20		—			$—			$1.20
Effect of dilutive securities:
Stock-based compensation arrangements	0.8	—		(0.01		)	—		—			(0.01		)
Convertible Debt	6.3	—		(0.07		)	—		—			(0.07		)
Diluted EPS	100.7		$112.5		$1.12		—			$—			$1.12
Three Months Ended September 30, 2016
Basic EPS	95.6		$37.7		$0.39			$10.0		$0.11			$0.50
Effect of dilutive securities:
Stock-based compensation arrangements	0.7	—		—			—		—			—
Convertible Debt	6.8	—		(0.03		)	—		(0.01		)	(0.04		)
Diluted EPS	103.1		$37.7		$0.36			$10.0		$0.10			$0.46
Nine Months Ended September 30, 2016
Basic EPS	96.1		$115.5		$1.20			$10.0		$0.11			$1.31
Effect of dilutive securities:
Stock-based compensation arrangements	0.7			(0.01		)	—		—			(0.01		)
Convertible Debt	6.8			(0.08		)	—		(0.01		)	(0.09		)
Diluted EPS	103.6		$115.5		$1.11			$10.0		$0.10			$1.21

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:

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
May 8, 2017	June 23, 2017	$0.10	July 7, 2017
August 8, 2017	September 22, 2017	$0.10	October 6, 2017

On November 7, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per common share to be paid on January 5, 2017 to shareholders of record as of December 22, 2017.

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Goodwill and Other Intangible Assets and Long-Lived Assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations

As of September 30, 2017 and December 31, 2016, the Company’s other intangible assets consisted of the following:

September 30, 2017	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships and other intangibles		$483.1		($191.5	)		$291.6
Trademarks	26.9		(25.3		)	1.6
Software (classified within Property and equipment, net)	41.3		(41.3		)	—
Total		$551.3		($258.1	)		$293.2
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

Schedule Of Estimated Amortization Expense

Amortization expense for intangibles was $21.7 and $20.9 for the nine months endedSeptember 30, 2017 and 2016, respectively, and is estimated to be approximately $28.8 for the year ended December 31, 2017. The related estimated expense for the five subsequent fiscal years is as follows:

For the year ended 2018		$24.8
For the year ended 2019	24.1
For the year ended 2020	23.4
For the year ended 2021	21.7
For the year ended 2022	21.5
Thereafter	170.6

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Debt And Capital Lease Obliations (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2017		December 31, 2016
Term Loan, due 2019		$99.2		$212.9
Convertible Debentures, due 2029	65.1		63.7
Capital Lease Obligations	2.2		3.6
Accounts Receivable Securitization	115.0		20.0
Total debt	281.5		300.2
Less debt issuance costs	1.4		1.4
Total debt, net	280.1		298.8
Less current maturities	0.9		1.8
Long-term debt		$279.2		$297.0

Schedule Of Future Minimum Payments

At September 30, 2017, future minimum payments of the Company’s debt and capital lease arrangements (exclusive of any debt discounts) are as follows:

2017		$0.3
2018	46.9
2019	100.6
2020	69.4
2021	—
2022	—
Thereafter	125.0
Total		$342.2

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost		$1.4			$1.6			$4.1			$4.8
Interest cost on projected benefit obligation	1.8			2.1			5.5			6.4
Expected return on plan assets	(2.4		)	(2.6		)	(7.4		)	(7.6		)
Amortization and deferrals—net	1.7			1.7			4.6			5.2
Settlement charge	2.0			—			2.0			—
Total net pension cost		$4.5			$2.8			$8.8			$8.8

Other 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 EDCP are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Service cost		$0.4		$0.3		$1.3		$0.9
Interest cost on projected benefit obligation	0.1		0.1		0.3		0.3
Total pension cost		$0.5		$0.4		$1.6		$1.2

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Stock-Based Compensation Plans Schedule of Non-Vested Restricted Stock Units Activity (Tables)

9 Months Ended

Sep. 30, 2017

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 nine months endedSeptember 30, 2017 were as follows:

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	0.6		23.59
Vested	(0.5	)	22.81
Forfeited	—		—
Non-vested at September 30, 2017	1.4			$23.49

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 nine months endedSeptember 30, 2017 were as follows:

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	)	26.19
Forfeited	—		—
Non-vested at September 30, 2017	0.3			$21.28

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Stock-Based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 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 2017, all outstanding stock options were fully vested and the related expense had been fully recognized.

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 September 30, 2017	0.4		$13.34	3.7		$3.83
Options exercisable at September 30, 2017	0.4		$13.34	3.7		$3.83

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Of Derivative Instruments

The following table reflects the fair values of these derivative instruments:

	September 30, 2017		December 31, 2016
Forward exchange contracts and options designated as hedging instruments:
Included within other current assets		$9.7		$3.0
Included within other non-current assets	4.9		2.3
Included within other current liabilities	18.7		31.3
Included within other long-term liabilities	8.5		15.4

Effect Of Derivative Instruments On Consolidated Financial Statements

The following tables provide the effect of these derivative instruments on the Company’s Consolidated Financial Statements during the three and nine months endedSeptember 30, 2017 and 2016, respectively:

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)
Three Months Ended September 30, 2017
Foreign exchange contracts		($2.0	)		($5.3	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2017
Foreign exchange contracts		$10.8			($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Three Months Ended September 30, 2016
Foreign exchange contracts		($13.2	)		($4.6	)	Cost of providing services and products sold and Selling, general and administrative
Nine Months Ended September 30, 2016
Foreign exchange contracts		($2.1	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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)		$15.2		$—		$15.2		$—
Foreign currency forward contracts (liability position)		$34.1		$—		$34.1		$—

	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		$—

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 September 30, 2017 and December 31, 2016 were as follows:

	September 30, 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		$12.4		$12.4		$—		$—
Money market accounts	0.6		0.6		—		—
Total		$13.0		$13.0		$—		$—

	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		$—		$—

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Payables and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

	At September 30, 2017		At December 31, 2016
Payables and other current liabilities:
Accounts payable		$38.2		$53.9
Accrued income and other taxes	29.1		44.1
Accrued payroll-related expenses	137.1		132.0
Derivative liabilities	25.6		33.6
Accrued expenses, other	64.4		63.7
Restructuring and exit costs	7.4		0.8
Deferred revenue and government grants	12.3		17.7
		$314.1		$345.8

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive (loss) income:

		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	)
	Other comprehensive loss before reclassifications	(11.2		)	(9.8		)	—			(21.0		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.9			1.0			3.9
Net current-period other comprehensive (loss) income		(11.2		)	(6.9		)	1.0			(17.1		)
Balance at June 30, 2016			($39.4	)		($11.0	)		($35.5	)		($85.9	)
	Other comprehensive (loss) income before reclassifications	(2.0		)	(8.1		)	—			(10.1		)
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			2.8			1.0			3.8
Net current-period other comprehensive income (loss)		(2.0		)	(5.3		)	1.0			(6.3		)
Balance at September 30, 2016			($41.4	)		($16.3	)		($34.5	)		($92.2	)
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 income, 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	)
	Other comprehensive income before reclassifications, net of tax	9.5			1.9			—			11.4
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.1			0.8			3.9
Net current-period other comprehensive income		9.5			5.0			0.8			15.3
Balance at June 30, 2017			($44.1	)		($9.8	)		($30.0	)		($83.9	)
	Other comprehensive income (loss) before reclassifications, net of tax	5.7			(1.2		)	(3.3		)	1.2
	Settlement of pension obligation, net of tax	—			—			1.2			1.2
	Amounts reclassified from accumulated other comprehensive income, net of tax	—			3.3			2.0			5.3
Net current-period other comprehensive income		5.7			2.1			(0.1		)	7.7
Balance at September 30, 2017			($38.4	)		($7.7	)		($30.1	)		($76.2	)

The following table summarizes the reclassification out of accumulated other comprehensive income (loss):

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 September 30, 2017			Nine Months Ended September 30, 2017
Loss on derivative instruments		($5.3	)		($18.1	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	2.0			6.9			Income tax expense
Loss on derivative instruments, net of tax	(3.3		)	(11.2		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(3.3		)	(6.2		)	Selling, general and administrative
Tax benefit	1.3			2.6			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(2.0		)	(3.6		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($5.3	)		($14.8	)
	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Loss on derivative instruments		($4.6	)		($18.0	)	Cost of providing services and products sold and Selling, general and administrative
Tax benefit	1.8			7.0			Income tax expense
Loss on derivative instruments, net of tax	(2.8		)	(11.0		)	Income from Continuing Operations, net of tax
Adjustments of pension and other post employment obligations	(1.6		)	(4.8		)	Selling, general and administrative
Tax benefit	0.6			1.8			Income tax expense
Adjustment of pension and other post employment obligations, net of tax	(1.0		)	(3.0		)	Income from Continuing Operations, net of tax
Total reclassifications for the period		($3.8	)		($14.0	)

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Background And Basis Of Presentation Background And Basis Of Presentation (Details)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Entity Number of Employees	120,000
Entity Number of Contact Centers	149
Number of Countries in which Entity Operates	33
Number of Languages Spoken	58

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Recent Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets					$ 0.6
Cost of Revenue	$ 428.1	$ 479.8	$ 1,305.1	$ 1,365.3
Selling, General and Administrative Expense	175.5	170.5	527.1	511.1
Costs and Expenses	640.2	690.6	1,957.0	1,998.3
Operating Income (Loss)	48.1	50.6	145.8	157.3
Other Nonoperating Income (Expense)	$ (1.6)	(1.2)	$ 1.2	(3.2)
Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Revenue		480.5		1,367.5
Selling, General and Administrative Expense		171.0		512.7
Costs and Expenses		691.8		2,002.1
Operating Income (Loss)		49.4		153.5
Other Nonoperating Income (Expense)		0.0		0.6
Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Revenue		(0.7)		(2.2)
Selling, General and Administrative Expense		(0.5)		(1.6)
Costs and Expenses		(1.2)		(3.8)
Operating Income (Loss)		1.2		3.8
Other Nonoperating Income (Expense)		$ (1.2)		$ (3.8)

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Business Combination Business Combinations (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)	Aug. 01, 2016
Business Acquisition [Line Items]
Entity Number of Employees	120,000
Business Combination, Consideration Transferred	$ 137.9
Fair Value Inputs, Discount Rate	13.20%
buw Acquisition [Member]
Business Acquisition [Line Items]
Entity Number of Employees		6,000

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Business Combination Purchase Price Allocation (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Aug. 01, 2016
Business Combination Segment Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables			$ 35.3
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets			2.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			6.9
Goodwill	$ 935.7	$ 916.9	98.5
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			22.7
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets			0.3
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable			(0.8)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities			(15.0)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent			(6.7)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities			(5.8)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			$ 137.9

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Business Combination Intangible Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Aug. 01, 2016
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Customer Relationships, Gross			$ 22.0
Finite-Lived Trade Names, Gross			0.7
Finite-Lived Intangible Assets, Gross	$ 551.3	$ 541.8	$ 22.7
Customer Relationships [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 483.1	$ 474.0
Customer Relationships [Member] | buw Acquisition [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Trade Names [Member] | buw Acquisition [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Maximum [Member] | Customer Relationships [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	17 years
Minimum [Member] | Customer Relationships [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year

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Divestitures and Discontinued Operations Divestitures and Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Divestitures and Discontinued Operations [Abstract]
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 0.0	$ 10.0	$ 0.0	$ 10.0

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Earnings (Loss) Per Share and Shareholder’s Equity (Schedule Of Reconciliation Of The Numerator And Denominator Of The Basic And Diluted Earnings (Loss) Per Share (EPS) Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share
Basic	92.8	95.6	93.6	96.1
Stock-based compensation arrangements	0.7	0.7	0.8	0.7
Convertible Debt, Share	6.3	6.8	6.3	6.8
Diluted EPS	99.8	103.1	100.7	103.6
Income	$ 34.8	$ 37.7	$ 112.5	$ 115.5
Income, Diluted EPS	$ 34.8	$ 37.7	$ 112.5	$ 115.5
Income (loss), per basic share	$ 0.38	$ 0.39	$ 1.20	$ 1.20
Stock-based compensation arrangements, per share	0.00	0.00	(0.01)	(0.01)
Convertible debt, per share	(0.03)	(0.03)	(0.07)	(0.08)
Income (loss), per diluted share	$ 0.35	$ 0.36	$ 1.12	$ 1.11
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 0.0	$ 10.0	$ 0.0	$ 10.0
Income (loss) from discontinued operations, Diluted EPS	$ 0.0	$ 10.0	$ 0.0	$ 10.0
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	$ 0.00	$ 0.11	$ 0.00	$ 0.11
Stock-based compensation arrangements discontinued operations, per share	0.00	0.00	0.00	0.00
Convertible Debt, Discontinued Operations, Per Share	0.00	(0.01)	0.00	(0.01)
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	0.00	0.10	0.00	0.10
Net basic earnings (loss) per share	$ 0.38	$ 0.50	$ 1.20	$ 1.31
Stock-based compensation arrangements Per Share, Total	0.00	0.00	(0.01)	(0.01)
Interest On Convertible Debt Discontinuing Operation Per Share Total	$ (0.03)	$ (0.04)	$ (0.07)	$ (0.09)
Net diluted earnings (loss) per share	$ 0.35	$ 0.46	$ 1.12	$ 1.21

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Earnings (Loss) Per Share and Shareholder’s Equity (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended							9 Months Ended		12 Months Ended
	Dec. 31, 2017 $ / shares	Sep. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2017 $ / shares	Mar. 31, 2017 $ / shares	Dec. 31, 2016 USD ($) $ / shares	Sep. 30, 2016 $ / shares shares	Jun. 30, 2016 $ / shares	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 $ / shares shares	Dec. 31, 2009 USD ($) $ / shares
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities		6.3				6.8		6.3	6.8
Repurchase of shares		0.9						2.8
Repurchase of shares, average price per share | $ / shares		$ 23.96						$ 23.40
Repurchase of Common Shares | $		$ 21.9						$ 65.6
Stock repurchased but not settled in cash | $		0.6			$ 0.9
Stock Repurchase Program, Authorized Amount | $		77.5						77.5
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $		$ 250.0						$ 250.0
Common Stock, Dividends, Per Share, Cash Paid | $ / shares	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.09	$ 0.09	$ 0.08
Common Stock, Dividends, Per Share, Declared | $ / shares	$ 0.10	0.10				$ 0.09		$ 0.29	$ 0.26
5.75% Junior Subordinated Convertible Debentures [Member]
Debt Instrument, Face Amount | $										$ 125.0
Interest rate on unsecured senior notes										5.75%
Debt Instrument, Maturity Date										Sep. 15, 2029
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 11.21						$ 11.21		$ 12.07
Debt Instrument, Convertible, Conversion Ratio								89.22		82.82
Debt Instrument, Convertible, Terms of Conversion Feature								1000		1000
Restricted Stock Units (RSUs) [Member]
Antidilutive securities excluded from diluted EPS		0.6
Restricted Stock Units (RSUs) [Member] | 2015 Performance grants [Domain] [Domain]
Antidilutive securities excluded from diluted EPS		0.3
Restricted Stock Units (RSUs) [Member] | 2016 performance grants [Domain]
Antidilutive securities excluded from diluted EPS		0.3
Restricted Stock Units (RSUs) [Member] | 2017 performance grants [Domain]
Antidilutive securities excluded from diluted EPS		0.3

XML

Earnings (Loss) Per Share and Shareholder’s Equity Schedule of Dividends Declared and Paid (Details) - $ / shares	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Schedule of Dividends Declared and Paid [Abstract]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.09	$ 0.09	$ 0.08

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Goodwill and Other Intangible Assets and Long-Lived Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Aug. 01, 2016
Goodwill	$ 935.7		$ 935.7			$ 916.9	$ 98.5
Amortization	$ 7.2	$ 7.1	$ 21.7	$ 20.9
Customer Relationships [Member]
Weighted average amortization period			13 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] | 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					$ 28.8

XML

Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Total Intangible Assets Primarily Acquired Through Business Combinations) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Aug. 01, 2016
Gross Carrying Value	$ 551.3	$ 541.8	$ 22.7
Accumulated Amortization	(258.1)	(234.2)
Intangible assets, net	293.2	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	26.9	26.5
Accumulated Amortization	(25.3)	(21.5)
Intangible assets, net	1.6	5.0
Customer Relationships [Member]
Gross Carrying Value	483.1	474.0
Accumulated Amortization	(191.5)	(171.4)
Intangible assets, net	$ 291.6	$ 302.6

XML

Goodwill and Other Intangible Assets and Long-Lived Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Millions	Sep. 30, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
For the year ended 2018	$ 24.8
For the year ended 2019	24.1
For the year ended 2020	23.4
For the year ended 2021	21.7
For the year ended 2022	21.5
Thereafter	$ 170.6

XML

Debt (Schedule Of Debt And Capital Lease Obligations) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument
Term Loan, due 2019	$ 99.2	$ 212.9
Convertible Debentures, due 2029	65.1	63.7
Capital Lease Obligations	2.2	3.6
Accounts Receivable Securitization	115.0	20.0
Total debt	281.5	300.2
Less debt issuance costs	1.4	1.4
Total debt, net	280.1	298.8
Less current maturities	0.9	1.8
Long-term debt	$ 279.2	$ 297.0

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Debt (Revolving Credit Facility) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jan. 31, 2017	Dec. 31, 2016	Mar. 03, 2014
Line of credit, maximum borrowing capacity					$ 650.0
Credit facility, amount outstanding	$ 99.2			$ 212.9
Gain (Loss) on Extinguishment of Debt	$ 1.0
Line of Credit Facility, Description	250
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	$ 0.8
Debt Instrument, Interest Rate, Basis for Effective Rate	0.033
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

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Debt (Convertible Debentures) (Details) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($) $ / shares	Dec. 31, 2009 USD ($) $ / shares	Dec. 31, 2016 USD ($)
Debt Instrument
Deferred Tax Liabilities, Net, Noncurrent	$ 202.1		$ 197.8
Debt Instrument, Convertible, Threshold Trading Days	20
Debt Instrument, Convertible, Threshold Consecutive Trading Days	30 days
Temporary Equity, Par Value	$ 59.9		$ 61.3
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	130.00%
Debt Instrument, Convertible, Stock Price Trigger | $ / shares	$ 14.57
Maximum percentage of debenture trading price	98.00%
5.75% Junior Subordinated Convertible Debentures [Member]
Debt Instrument
Debt Instrument, Face Amount		$ 125.0
Debt Instrument, Interest Rate, Stated Percentage		5.75%
Convertible Debt, Fair Value Disclosures	$ 297.6	$ 56.3
Deferred Tax Liabilities, Net, Noncurrent		$ 32.7
Debt Instrument, Convertible, Terms of Conversion Feature	1000	1000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 11.21	$ 12.07
Debt Instrument, Convertible, Conversion Ratio	89.22	82.82
4.875% Unsecured Senior Notes [Member]
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage		4.875%
Extinguishment of Debt, Amount		$ 122.5

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Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Other) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2017
Debt Instrument [Line Items]
Accounts Receivable Securitization	$ 20.0	$ 115.0
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

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Debt And Capital Lease Obligations Debt and Capital Lease Obligations (Schedule of Future Minimum Payments) (Details) $ in Millions	Sep. 30, 2017 USD ($)
Long-term Debt and Capital Lease Obligations [Abstract]
2017	$ 0.3
2018	46.9
2019	100.6
2020	69.4
2021	0.0
2022	0.0
Thereafter	125.0
Total	$ 342.2

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Restructuring Restructuring (Details) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Severance Costs		$ 12.8
Employees affected		315
Restructuring Reserve	$ 7.0	$ 7.0		$ 8.2	$ 10.2
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Severance Costs	2.3	$ 6.2
Employees affected		250
2016 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance Costs			$ 3.7
Employees affected			760
buw Acquisition [Member]
Restructuring Cost and Reserve [Line Items]
Severance Costs	0.1	$ 1.1
Restructuring Reserve	$ 0.4	$ 0.4		$ 0.5	$ 0.5

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Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 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	$ 1.6	$ 4.1	$ 4.8
Defined Benefit Plan, Interest Cost	1.8	2.1	5.5	6.4
Defined Benefit Plan, Expected Return on Plan Assets	(2.4)	(2.6)	(7.4)	(7.6)
Defined Benefit Plan, Amortization of Gains (Losses)	1.7	1.7	4.6	5.2
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements	2.0	0.0	2.0	0.0
Defined Benefit Plan, Net Periodic Benefit Cost	4.5	2.8	8.8	8.8
Other Pension Plans, Defined Benefit [Member]
Defined Benefit Plan, Service Cost	0.4	0.3	1.3	0.9
Defined Benefit Plan, Interest Cost	0.1	0.1	0.3	0.3
Defined Benefit Plan, Net Periodic Benefit Cost	$ 0.5	$ 0.4	$ 1.6	$ 1.2
50% [Domain]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match			50.00%
2% [Domain]
Defined Contribution Plan, Contributions by Employee			2.00%

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Stock-Based Compensation Plans (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Dec. 31, 2016 $ / shares shares
Derivative Instruments Not Designated as Hedging Instruments, Gain | $	$ (5.5)		$ (3.7)
Options approved, weighted average exercise price | $ / shares	$ 13.34		$ 13.34		$ 13.34
Stock-based compensation expense | $	$ 4.6	$ 5.2	$ 13.1	$ 14.4
Awards Classified as Liabilities [Domain]
Stock-based compensation expense | $	$ 0.6	$ 0.7	$ 0.6	$ 1.6
Time-Based Restricted Stock [Member]
Restricted stock units, common shares to be issed upon exercise	1.4		1.4		1.3
Granted, shares	0.4		0.6	0.5
Restricted stock units granted, weighted average fair value at date of grant | $ / shares	$ 23.81		$ 23.59	$ 26.53
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 23.49		$ 23.49		$ 23.23
Total unrecognized compensation cost related to non-vested restricted stock and restricted stock units | $	$ 23.5		$ 23.5
Weighted average recognition period (in years)	2.2		2.2
Performance Shares [Member]
Restricted stock units, common shares to be issed upon exercise	0.3		0.3		0.3
Granted, shares			0.3
Restricted stock units granted, weighted average fair value at date of grant | $ / shares			$ 21.27
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 21.28		$ 21.28		$ 26.48
Performance Shares [Member] | Maximum [Member]
Payout range			200.00%
Performance Shares [Member] | Minimum [Member]
Payout range			50.00%
2014 Performance grants [Domain] | Performance Shares [Member]
Total unrecognized compensation cost related to non-vested restricted stock and restricted stock units | $	$ 2.2		$ 2.2
Key terms not yet established [Member] | Performance Shares [Member]
Granted, shares			0.3
Various Dates [Domain] | Performance Shares [Member]
Granted, shares			0.3

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Stock-Based Compensation Plans (Summary Of Stock Option Activity) (Details) - $ / shares shares in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 6 months	3 years 8 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 6 months	3 years 8 months
Stock option activity, outstanding
Outstanding, beginning balance, shares		0.4
Exercisable, beginning balance, shares		0.4
Granted, shares		0.0
Exercised, shares		0.0
Forfeited/cancelled, shares		0.0
Outstanding, ending balance, shares	0.4	0.4
Exercisable, ending balance, shares	0.4	0.4
Granted, weighted average exercise price		$ 0.00
Exercised, weighted average exercise price		0.00
Forfeited/cancelled, weighted average exercise price		$ 0.00
Outstanding, weighted average exercise price			$ 13.34	$ 13.34
Exercisable, weighted average exercise price			$ 13.34	$ 13.34
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, shares	0.4	0.4	0.4	0.4
Outstanding, weighted average exercise price			$ 13.34	$ 13.34
Exercisable, shares	0.4	0.4	0.4	0.4
Exercisable, weighted average exercise price			$ 13.34	$ 13.34
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award, Options, Outstanding Unvested Weighted Average Fair Value Grant Date			3.83	3.78
Share Based Compensation Arrangement By Share Based Payment Award, Options, Exercisable Weighted Average Fair Value			$ 3.83	$ 3.78

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Stock-Based Compensation Plans (Restricted Stock Units) (Details) - $ / shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Performance Shares [Member]
Changes to non-vested restricted stock and restricted stock units
Non-vested, beginning balance, shares		0.3
Non-vested, beginning balance, weighted average fair value at date of grant		$ 26.48
Granted, shares		0.3
Granted, weighted average fair value at date of grant		$ 21.27
Vested, shares		(0.3)
Vested, weighted average fair value at date of grant		$ 26.19
Forfeited, shares		0.0
Forfeited, weighted average fair value at date of grant		$ 0.00
Non-vested, ending balance, shares	0.3	0.3
Non-vested, ending balance, weighted average fair value at date of grant	$ 21.28	$ 21.28
Time-Based Restricted Stock [Member]
Changes to non-vested restricted stock and restricted stock units
Non-vested, beginning balance, shares		1.3
Non-vested, beginning balance, weighted average fair value at date of grant		$ 23.23
Granted, shares	0.4	0.6	0.5
Granted, weighted average fair value at date of grant	$ 23.81	$ 23.59	$ 26.53
Vested, shares		(0.5)
Vested, weighted average fair value at date of grant		$ 22.81
Forfeited, shares		0.0
Forfeited, weighted average fair value at date of grant		$ 0.00
Non-vested, ending balance, shares	1.4	1.4
Non-vested, ending balance, weighted average fair value at date of grant	$ 23.49	$ 23.49

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Commitments And Contingencies (Details) $ in Millions	Sep. 30, 2017 USD ($)
Letters of credit outstanding amount	$ 22.3
Purchase Commitments	$ 4.2

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Financial Instruments (Narrative) (Details) ₨ in Millions, PHP in Millions, COP in Millions, CAD in Millions, AUD in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2017 AUD	Sep. 30, 2017 INR (₨)	Sep. 30, 2017 COP	Sep. 30, 2017 CAD	Sep. 30, 2017 USD ($)	Sep. 30, 2017 PHP	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Derivatives
Derivative Instruments Not Designated as Hedging Instruments, Loss					$ (5.3)		$ (17.3)
Derivative, Notional Amount					947.5		947.5			$ 959.0
Deferred Tax Assets, Derivative Instruments					$ 4.8		4.8			15.9
Derivative instruments maturity period (in months)	33 months	33 months	33 months	33 months	33 months	33 months
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax					$ 7.7		7.7	$ 9.8	$ 14.8	25.5	$ 16.3	$ 11.0	$ 4.1	$ 26.1
Deferred gain on derivative instruments reclassified from OCI to earnings during the next the next twelve months, before tax					(9.0)
Deferred gain on derivative instruments reclassified from OCI to earnings during next twelve months, net of tax					(5.5)
Derivative Instruments Not Designated as Hedging Instruments, Gain					(5.5)		(3.7)
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value					(6.3)		(6.3)
Trading Securities, Fair Value Disclosure					13.0		13.0			$ 12.4
Forward Contracts PHP [Member]
Derivatives
Foreign currency acquired through forward exchange contracts | PHP						PHP 35,940.0
Derivative, Notional Amount					718.1		718.1
Forward Contracts INR [Member]
Derivatives
Foreign currency acquired through forward exchange contracts | ₨		₨ 11,925.0
Derivative, Notional Amount					164.6		164.6
Forward Contracts CAD [Member]
Derivatives
Foreign currency acquired through forward exchange contracts | CAD				CAD 46.4
Derivative, Notional Amount					35.1		35.1
Forward Contracts COP [Member]
Derivatives
Foreign currency acquired through forward exchange contracts | COP			COP 47,700.0
Derivative, Notional Amount					15.0		15.0
Forward Contracts AUD [Member]
Derivatives
Derivative, Notional Amount					$ 26.9		$ 26.9
Amount of Foreign Currency Sold through Forward Exchange Contracts | AUD	AUD 34.7

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Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Forward exchange contracts and options designated as hedging instruments, assets	$ 15.2	$ 5.6
Forward exchange contracts and options designated as hedging instruments, liabilities	34.1	49.0
Other Current Assets [Member]
Forward exchange contracts and options designated as hedging instruments, assets	9.7	3.0
Other Non-Current Assets [Member]
Forward exchange contracts and options designated as hedging instruments, assets	4.9	2.3
Other Current Liabilities [Member]
Forward exchange contracts and options designated as hedging instruments, liabilities	18.7	31.3
Other Noncurrent Liabilities [Member]
Forward exchange contracts and options designated as hedging instruments, liabilities	$ 8.5	$ 15.4

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Financial Instruments (Effect Of Derivative Instruments On Consolidated Financial Statements) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss)
Foreign exchange contracts, Gain (Loss) Recognized in OCL	$ (2.0)	$ (13.2)	$ 10.8	$ (2.1)
Foreign exchange contracts, Gain Reclassified from AOCL to Income	$ (5.3)	$ (4.6)	$ (18.1)	$ (18.0)

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Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Forward exchange contracts and options designated as hedging instruments, assets	$ 15.2	$ 5.6
Forward exchange contracts and options designated as hedging instruments, liabilities	34.1	49.0
Fair value assets	13.0	12.4
Equity Funds [Member]
Fair value assets	12.4	10.5
Common Stock [Member]
Fair value assets		1.3
Money Market Funds [Member]
Fair value assets	0.6	0.6
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Forward exchange contracts and options designated as hedging instruments, assets	0.0	0.0
Forward exchange contracts and options designated as hedging instruments, liabilities	0.0	0.0
Fair value assets	13.0	12.4
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Equity Funds [Member]
Fair value assets	12.4	10.5
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Common Stock [Member]
Fair value assets		1.3
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Money Market Funds [Member]
Fair value assets	0.6	0.6
Significant Other Observable Inputs (Level 2) [Member]
Forward exchange contracts and options designated as hedging instruments, assets	15.2	5.6
Forward exchange contracts and options designated as hedging instruments, liabilities	34.1	49.0
Fair value assets	0.0	0.0
Significant Other Observable Inputs (Level 2) [Member] | Equity Funds [Member]
Fair value assets	0.0	0.0
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member]
Fair value assets		0.0
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member]
Fair value assets	0.0	0.0
Significant Unobservable Inputs (Level 3) [Member]
Forward exchange contracts and options designated as hedging instruments, assets	0.0	0.0
Forward exchange contracts and options designated as hedging instruments, liabilities	0.0	0.0
Fair value assets	0.0	0.0
Significant Unobservable Inputs (Level 3) [Member] | Equity Funds [Member]
Fair value assets	0.0	0.0
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member]
Fair value assets		0.0
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member]
Fair value assets	$ 0.0	$ 0.0

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, Percent	17.10%	15.80%	15.40%	17.80%
Foreign Earnings Repatriated	$ 1.3		$ 1.3
Unrecognized Tax Benefits	21.4		21.4		$ 20.8
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	18.7		18.7
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense			9.6
Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	2.1		2.1
Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ 17.0		$ 17.0

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Schedule Of Payables And Other Current Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Additional Information [Line Items]
Accounts payable	$ 38.2	$ 53.9
Accrued taxes	29.1	44.1
Accrued payroll-related expenses	137.1	132.0
Derivative Liabilities	25.6	33.6
Accrued expenses, other	64.4	63.7
Restructuring and exit costs	7.4	0.8
Deferred Revenue, Current	12.3	17.7
Accounts Payable and Accrued Liabilities, Current	$ 314.1	$ 345.8

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Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ (38.4)	$ (44.1)	$ (53.6)	$ (41.4)	$ (39.4)	$ (28.2)	$ (38.4)	$ (41.4)	$ (56.6)	$ (38.2)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	5.7	9.5	3.0	(2.0)	(11.2)	10.0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0.0	0.0	0.0	0.0	0.0	0.0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	5.7	9.5	3.0	(2.0)	(11.2)	10.0	18.2	(3.2)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	(7.7)	(9.8)	(14.8)	(16.3)	(11.0)	(4.1)	(7.7)	(16.3)	(25.5)	(26.1)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(1.2)	1.9	6.0	(8.1)	(9.8)	16.7
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	3.3	3.1	4.7	2.8	2.9	5.3	(11.2)	(11.0)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	2.1	5.0	10.7	(5.3)	(6.9)	22.0
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(30.1)	(30.0)	(30.8)	(34.5)	(35.5)	(36.5)	(30.1)	(34.5)	(31.7)	(37.5)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax	(3.3)	0.0	0.0	0.0	0.0	0.0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Transition Asset (Obligation), Net of Tax	1.2
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax	2.0	0.8	0.9	1.0	1.0	1.0
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(0.1)	0.8	0.9	1.0	1.0	1.0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(76.2)	(83.9)	(99.2)	(92.2)	(85.9)	(68.8)	(76.2)	(92.2)	$ (113.8)	$ (101.8)
Other comprehensive income (loss) before relclassification	1.2	11.4	9.0	(10.1)	(21.0)	26.7
Amounts Reclassified from Accumulated Other Comprehensive Income due to Pension Settlement Obligation	1.2
Amounts reclassified from accumulated other comprehensive income	5.3	3.9	5.6	3.8	3.9	6.3
Total other comprehensive income (loss)	$ 7.7	$ 15.3	$ 14.6	$ (6.3)	$ (17.1)	$ 33.0	$ 37.6	$ 9.6

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Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income/(Loss) Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion	$ (5.3)			$ (4.6)			$ (18.1)	$ (18.0)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	2.0			1.8			6.9	7.0
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(3.3)	$ (3.1)	$ (4.7)	(2.8)	$ (2.9)	$ (5.3)	11.2	11.0
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, before Tax	(3.3)			(1.6)			(6.2)	(4.8)
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, Tax	1.3			0.6			2.6	1.8
Other Comprehensive Income (Loss), Reclassification Adjustment on Pension and Other Post Retirement Obligations included in Net Income, Net of Tax	(2.0)			(1.0)			(3.6)	(3.0)
Amounts Reclassifed from Accumulated Other Comprehensive Income, Net of Tax	$ (5.3)			$ (3.8)			$ (14.8)	$ (14.0)