Dispositions of Subsidiaries and Repositioning Actions

In the third quarter of 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 in an effort to continue to improve our strategic position and achieve operating efficiencies and recognized charges of $149.4 million.

A summary of our repositioning actions for the year ended December 31, 2018 is (dollars in millions):



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

At December 31, 2018, the liability for the incremental severance charge was $25.9 million and the liability for office lease consolidation and termination was $53.0 million. We expect that the remaining severance liability will be paid in the first quarter of 2019 and the remaining office lease consolidation and termination liability will be paid over the next two years. The $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 on operating expenses, income tax expense and noncontrolling interests for 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	—			—			—
Operating expenses	$	149.4		$	(178.4	)	$	(29.0	)

Income tax expense	$	(36.0	)	$	11.0		$	(25.0	)

Noncontrolling interests	$	—		$	6.9		$	6.9