Dispositions of Subsidiaries and Repositioning Actions

During the three months ended September 30, 2018, we disposed of certain businesses and recorded a net gain of $178.4 million primarily related to the sale of Sellbytel, our European-based outsourced sales, service and support company. Additionally, during the third quarter, we took certain repositioning actions and we recognized charges of $149.4 million in an effort to continue to improve our strategic position and achieve operating efficiencies.

A summary of our repositioning actions for the three months ended September 30, 2018 is (dollars in millions):



Severance	$	68.4
Office lease consolidation and terminations	73.5
Asset write-offs related to disposals and other costs	7.5
	$	149.4

We expect that substantially all the incremental severance charge of $68.4 million will be paid over the next nine months. We expect that substantially all the charges related to the office lease consolidation and terminations of $73.5 million will be paid over the next two years. The remaining $7.5 million of other charges is primarily comprised of non-cash items.

The impact of the repositioning actions and net gain on disposition of subsidiaries, which were recorded in the third quarter of 2018, on operating expenses for the three and nine months ended September 30, 2018 was (dollars in millions):



	Increase (Decrease)
	Repositioning Actions		Net Gain on Disposition of Subsidiaries			Total
Salary and service costs	$	73.7	$	—		$	73.7
Occupancy and other costs	73.5		—			73.5
Net gain on disposition of subsidiaries	—		(178.4		)	(178.4		)
Cost of services	147.2		(178.4		)	(31.2		)
Selling, general and administrative expenses	2.2		—			2.2
Depreciation and amortization	—		—			—
	$	149.4	$	(178.4	)	$	(29.0	)