Repositioning Actions and Supplemental Data

6 Months Ended

Jun. 30, 2011

Repositioning Actions and Supplemental Data [Abstract]

Repositioning Actions and Supplemental Data [Text Block]

9. Repositioning Actions and Supplemental Data

Repositioning Actions

In connection with a continuing review of our businesses focused on enhancing our strategic position, improving our operations and rebalancing our workforce, in the first quarter of 2011, we recorded $131.3 million of charges related to repositioning actions for severance, real estate lease terminations and asset and goodwill write-offs related to disposals and other costs.

A summary of our repositioning actions for the six months ended June 30, 2011 is (dollars in millions):

Severance	$	92.8
Real estate lease terminations		15.3
Asset and goodwill write-offs related to disposals and other costs		23.2
	$	131.3

At June 30, 2011, the liability for severance related to our repositioning actions, net of payments through June 30, 2011 of $66.1 million, was $26.7 million. We expect that substantially all of the remaining balance will be paid prior to the end of 2011. Substantially all payments related to real estate lease terminations were made as of June 30, 2011. The remaining $23.2 million is primarily comprised of non-cash charges.

Salary and Service Costs and Office and General Expenses

The components of operating expenses for the three months and six months ended June 30, 2011 and 2010 were (dollars in millions):

	Three Months Ended June 30				Six Months Ended June 30
	2011		2010		2011		2010
Salary and service costs	$	2,472.8	$	2,153.4	$	4,891.1	$	4,315.8
Office and general expenses		526.5		472.4		937.4		939.0
Operating expenses	$	2,999.3	$	2,625.8	$	5,828.5	$	5,254.8

The impact of the repositioning actions and the remeasurement gain, which were recorded in the first quarter of 2011 as described in Notes 8 and 9, on operating expenses for the six months ended June 30, 2011 was (dollars in millions):

	Increase (Decrease)
	Respositioning Actions		Remeasurement Gain
Salary and service costs	$	92.8
Office and general expenses		38.5	$	(123.4	)
	$	131.3	$	(123.4	)

Cash Flow

Supplemental cash flow data for the six months ended June 30, 2011 and 2010 were (dollars in millions):

	2011			2010
Decrease in accounts receivable	$	299.5		$	168.8
Increase in work in progress and other current assets		(115.9	)		(255.2	)
Decrease in accounts payable		(813.0	)		(498.5	)
Decrease in customer advances and other current liabilities		(418.1	)		(213.0	)
Increase in severance liability related to repositioning actions		26.7			—
Change in other assets and liabilities, net		207.6			41.8
Change in operating capital	$	(813.2	)	$	(756.1	)
Income taxes paid	$	168.5		$	179.2
Interest paid		72.9			77.8