Dispositions of Subsidiaries and Repositioning Actions

12 Months Ended

Dec. 31, 2019

Dispositions of Subsidiaries and Repositioning Actions [Abstract]

Dispositions of Subsidiaries and Repositioning Actions [Text Block]

Dispositions of Subsidiaries and Repositioning Actions

In the third quarter of 2018, we disposed of certain businesses, primarily in our CRM Execution & Support discipline, and recorded a net gain of $178.4 million. Additionally, we took certain repositioning actions in an effort to continue to improve our strategic position and achieve operating efficiencies and recorded charges of $149.4 million, which included $68.4 million for severance, $73.5 million for office lease consolidation and termination and other costs of $7.5 million.

At December 31, 2019 and 2018, the liability for incremental severance and office lease consolidation and termination incurred in connection with our repositioning actions was $25.1 million and $78.9 million, respectively.

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 (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