ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 38-0387840 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
801 Lakeview Drive, Suite 100 Blue Bell, Pennsylvania | 19422 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ý | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 571.1 | $ | 370.6 | |||
Accounts and notes receivable, net | 573.9 | 505.8 | |||||
Inventories: | |||||||
Parts and finished equipment | 17.1 | 14.0 | |||||
Work in process and materials | 15.3 | 15.0 | |||||
Prepaid expenses and other current assets | 135.1 | 121.9 | |||||
Total current assets | 1,312.5 | 1,027.3 | |||||
Properties | 908.9 | 886.6 | |||||
Less-Accumulated depreciation and amortization | 757.5 | 741.3 | |||||
Properties, net | 151.4 | 145.3 | |||||
Outsourcing assets, net | 178.1 | 172.5 | |||||
Marketable software, net | 134.0 | 137.0 | |||||
Prepaid postretirement assets | 42.6 | 33.3 | |||||
Deferred income taxes | 149.9 | 146.1 | |||||
Goodwill | 180.0 | 178.6 | |||||
Restricted cash | 19.1 | 30.5 | * | ||||
Other long-term assets | 151.3 | 151.0 | * | ||||
Total assets | $ | 2,318.9 | $ | 2,021.6 | |||
Liabilities and deficit | |||||||
Current liabilities | |||||||
Current maturities of long-term-debt | $ | 11.3 | $ | 106.0 | |||
Accounts payable | 199.0 | 189.0 | |||||
Deferred revenue | 346.6 | 337.4 | |||||
Other accrued liabilities | 329.1 | 349.2 | |||||
Total current liabilities | 886.0 | 981.6 | |||||
Long-term debt | 629.8 | 194.0 | |||||
Long-term postretirement liabilities | 2,230.3 | 2,292.6 | |||||
Long-term deferred revenue | 116.3 | 117.6 | |||||
Other long-term liabilities | 86.6 | 83.2 | |||||
Commitments and contingencies | |||||||
Deficit | |||||||
Common stock, shares issued: | |||||||
2017; 53.4, 2016; 52.8 | 0.5 | 0.5 | |||||
Accumulated deficit | (1,972.5 | ) | (1,893.4 | ) | |||
Treasury stock, shares at cost: | |||||||
2017; 2.9, 2016; 2.7 | (102.7 | ) | (100.5 | ) | |||
Paid-in capital | 4,521.5 | 4,515.2 | |||||
Accumulated other comprehensive loss | (4,067.4 | ) | (4,152.8 | ) | |||
Total Unisys stockholders’ deficit | (1,620.6 | ) | (1,631.0 | ) | |||
Noncontrolling interests | (9.5 | ) | (16.4 | ) | |||
Total deficit | (1,630.1 | ) | (1,647.4 | ) | |||
Total liabilities and deficit | $ | 2,318.9 | $ | 2,021.6 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | ||||||||||||||||
Services | $ | 574.8 | $ | 613.8 | $ | 1,160.1 | $ | 1,208.9 | ||||||||
Technology | 91.4 | 135.1 | 170.6 | 206.8 | ||||||||||||
666.2 | 748.9 | 1,330.7 | 1,415.7 | |||||||||||||
Costs and expenses | ||||||||||||||||
Cost of revenue: | ||||||||||||||||
Services | 526.7 | 529.1 | 1,031.2 | 1,062.8 | ||||||||||||
Technology | 37.0 | 41.5 | 76.8 | 76.1 | ||||||||||||
563.7 | 570.6 | 1,108.0 | 1,138.9 | |||||||||||||
Selling, general and administrative | 114.2 | 115.7 | 223.3 | 225.8 | ||||||||||||
Research and development | 13.1 | 13.1 | 26.9 | 29.1 | ||||||||||||
691.0 | 699.4 | 1,358.2 | 1,393.8 | |||||||||||||
Operating profit (loss) | (24.8 | ) | 49.5 | (27.5 | ) | 21.9 | ||||||||||
Interest expense | 14.3 | 7.8 | 20.0 | 12.2 | ||||||||||||
Other income (expense), net | (3.2 | ) | 2.6 | (11.6 | ) | 1.4 | ||||||||||
Income (loss) before income taxes | (42.3 | ) | 44.3 | (59.1 | ) | 11.1 | ||||||||||
Provision (benefit) for income taxes | (3.8 | ) | 18.8 | 9.1 | 24.3 | |||||||||||
Consolidated net income (loss) | (38.5 | ) | 25.5 | (68.2 | ) | (13.2 | ) | |||||||||
Net income attributable to noncontrolling interests | 3.5 | 3.9 | 6.5 | 5.1 | ||||||||||||
Net income (loss) attributable to Unisys Corporation | $ | (42.0 | ) | $ | 21.6 | $ | (74.7 | ) | $ | (18.3 | ) | |||||
Income (loss) per share attributable to Unisys Corporation | ||||||||||||||||
Basic | $ | (0.83 | ) | $ | 0.43 | $ | (1.48 | ) | $ | (0.37 | ) | |||||
Diluted | $ | (0.83 | ) | $ | 0.36 | $ | (1.48 | ) | $ | (0.37 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Consolidated net income (loss) | $ | (38.5 | ) | $ | 25.5 | $ | (68.2 | ) | $ | (13.2 | ) | |||||
Other comprehensive income | ||||||||||||||||
Foreign currency translation | 42.7 | (48.9 | ) | 73.8 | (38.4 | ) | ||||||||||
Postretirement adjustments, net of tax of $(7.1) and $(8.1) in 2017 and $11.9 and $14.6 in 2016 | (10.4 | ) | 101.4 | 12.0 | 146.9 | |||||||||||
Total other comprehensive income | 32.3 | 52.5 | 85.8 | 108.5 | ||||||||||||
Comprehensive income (loss) | (6.2 | ) | 78.0 | 17.6 | 95.3 | |||||||||||
Less comprehensive income attributable to noncontrolling interests | (3.7 | ) | (3.1 | ) | (6.9 | ) | (4.3 | ) | ||||||||
Comprehensive income (loss) attributable to Unisys Corporation | $ | (9.9 | ) | $ | 74.9 | $ | 10.7 | $ | 91.0 |
Six Months Ended June 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities | ||||||||
Consolidated net loss | $ | (68.2 | ) | $ | (13.2 | ) | ||
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities: | ||||||||
Foreign currency transaction losses | 5.1 | 0.4 | ||||||
Non-cash interest expense | 4.4 | 2.8 | ||||||
Loss on debt extinguishment | 1.5 | — | ||||||
Employee stock compensation | 6.2 | 5.3 | ||||||
Depreciation and amortization of properties | 19.8 | 19.3 | ||||||
Depreciation and amortization of outsourcing assets | 26.3 | 25.7 | ||||||
Amortization of marketable software | 31.8 | 32.4 | ||||||
Other non-cash operating activities | 2.5 | 1.0 | ||||||
Loss on disposal of capital assets | 4.2 | 1.6 | ||||||
Pension contributions | (71.2 | ) | (64.1 | ) | ||||
Pension expense | 45.8 | 41.8 | ||||||
Increase in deferred income taxes, net | (0.4 | ) | (9.7 | ) | ||||
Changes in operating assets and liabilities | ||||||||
(Increase) decrease in receivables, net | (57.4 | ) | 24.9 | |||||
(Increase) decrease in inventories | (2.6 | ) | 5.8 | |||||
Decrease in accounts payable and other accrued liabilities | (28.3 | ) | (35.6 | )* | ||||
(Decrease) increase in other liabilities | (8.6 | ) | 12.3 | |||||
(Increase) decrease in other assets | (1.1 | ) | 6.2 | * | ||||
Net cash (used for) provided by operating activities | (90.2 | ) | 56.9 | * | ||||
Cash flows from investing activities | ||||||||
Proceeds from investments | 2,502.0 | 2,236.8 | ||||||
Purchases of investments | (2,487.1 | ) | (2,238.0 | ) | ||||
Investment in marketable software | (28.8 | ) | (30.2 | ) | ||||
Capital additions of properties | (15.9 | ) | (11.0 | ) | ||||
Capital additions of outsourcing assets | (36.9 | ) | (28.8 | ) | ||||
Other | (0.3 | ) | (0.2 | )* | ||||
Net cash used for investing activities | (67.0 | ) | (71.4 | )* | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of long-term debt | 445.0 | 213.5 | ||||||
Payments for capped call transactions | — | (27.3 | ) | |||||
Issuance costs relating to long-term debt | (11.7 | ) | (7.3 | ) | ||||
Payments of long-term debt | (97.7 | ) | (1.3 | ) | ||||
Payments of short-term borrowings | — | (65.8 | ) | |||||
Other | (2.1 | ) | (0.4 | )* | ||||
Net cash provided by financing activities | 333.5 | 111.4 | * | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12.8 | 0.1 | * | |||||
Increase in cash, cash equivalents and restricted cash | 189.1 | 97.0 | * | |||||
Cash, cash equivalents and restricted cash, beginning of period | 401.1 | 396.8 | * | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 590.2 | $ | 493.8 | * |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Basic earnings (loss) per common share computation: | ||||||||||||||||
Net income (loss) attributable to Unisys Corporation | $ | (42.0 | ) | $ | 21.6 | $ | (74.7 | ) | $ | (18.3 | ) | |||||
Weighted average shares | 50,437 | 50,069 | 50,346 | 50,036 | ||||||||||||
Basic earnings (loss) per common share | $ | (0.83 | ) | $ | 0.43 | $ | (1.48 | ) | $ | (0.37 | ) | |||||
Diluted earnings (loss) per common share computation: | ||||||||||||||||
Net income (loss) attributable to Unisys Corporation | $ | (42.0 | ) | $ | 21.6 | $ | (74.7 | ) | $ | (18.3 | ) | |||||
Add interest expense on convertible notes, net of tax of zero | — | 4.5 | — | — | ||||||||||||
Net income (loss) attributable to Unisys Corporation for diluted earnings per share | $ | (42.0 | ) | $ | 26.1 | $ | (74.7 | ) | $ | (18.3 | ) | |||||
Weighted average shares | 50,437 | 50,069 | 50,346 | 50,036 | ||||||||||||
Plus incremental shares from assumed conversions: | ||||||||||||||||
Employee stock plans | — | 167 | — | — | ||||||||||||
Convertible notes | — | 21,550 | — | — | ||||||||||||
Adjusted weighted average shares | 50,437 | 71,786 | 50,346 | 50,036 | ||||||||||||
Diluted earnings (loss) per common share | $ | (0.83 | ) | $ | 0.36 | $ | (1.48 | ) | $ | (0.37 | ) |
Work-Force Reductions | Idle Leased Facilities Costs | |||||||||||||||
Total | U.S. | Int’l. | ||||||||||||||
Balance at December 31, 2016 | $ | 36.6 | $ | 1.8 | $ | 33.4 | $ | 1.4 | ||||||||
Additional provisions | 40.4 | 5.3 | 32.2 | 2.9 | ||||||||||||
Payments | (12.9 | ) | (1.7 | ) | (10.5 | ) | (0.7 | ) | ||||||||
Changes in estimates | (0.8 | ) | (0.2 | ) | (0.6 | ) | — | |||||||||
Translation adjustments | 3.9 | — | 3.7 | 0.2 | ||||||||||||
Balance at June 30, 2017 | $ | 67.2 | $ | 5.2 | $ | 58.2 | $ | 3.8 | ||||||||
Expected future utilization on balance at June 30, 2017: | ||||||||||||||||
2017 remaining six months | $ | 29.3 | $ | 5.2 | $ | 23.3 | $ | 0.8 | ||||||||
Beyond 2017 | 37.9 | — | 34.9 | 3.0 |
Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Total | U.S. Plans | Int’l. Plans | Total | U.S. Plans | Int’l. Plans | |||||||||||||||||||
Service cost | $ | 1.6 | $ | — | $ | 1.6 | $ | 2.1 | $ | — | $ | 2.1 | ||||||||||||
Interest cost | 70.9 | 53.2 | 17.7 | 81.4 | 58.1 | 23.3 | ||||||||||||||||||
Expected return on plan assets | (90.1 | ) | (58.8 | ) | (31.3 | ) | (100.0 | ) | (63.2 | ) | (36.8 | ) | ||||||||||||
Amortization of prior service benefit | (1.2 | ) | (0.7 | ) | (0.5 | ) | (1.4 | ) | (0.7 | ) | (0.7 | ) | ||||||||||||
Recognized net actuarial loss | 45.3 | 32.3 | 13.0 | 39.4 | 29.3 | 10.1 | ||||||||||||||||||
Curtailment gain | (5.2 | ) | — | (5.2 | ) | — | — | — | ||||||||||||||||
Net periodic pension expense | $ | 21.3 | $ | 26.0 | $ | (4.7 | ) | $ | 21.5 | $ | 23.5 | $ | (2.0 | ) |
Six Months Ended June 30, 2017 | Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Total | U.S. Plans | Int’l. Plans | Total | U.S. Plans | Int’l. Plans | |||||||||||||||||||
Service cost | $ | 3.2 | $ | — | $ | 3.2 | $ | 3.9 | $ | — | $ | 3.9 | ||||||||||||
Interest cost | 140.8 | 105.7 | 35.1 | 161.9 | 115.7 | 46.2 | ||||||||||||||||||
Expected return on plan assets | (179.5 | ) | (117.6 | ) | (61.9 | ) | (199.4 | ) | (126.6 | ) | (72.8 | ) | ||||||||||||
Amortization of prior service benefit | (2.5 | ) | (1.3 | ) | (1.2 | ) | (2.8 | ) | (1.3 | ) | (1.5 | ) | ||||||||||||
Recognized net actuarial loss | 89.0 | 63.2 | 25.8 | 78.2 | 58.0 | 20.2 | ||||||||||||||||||
Curtailment gain | (5.2 | ) | — | (5.2 | ) | — | — | — | ||||||||||||||||
Net periodic pension expense | $ | 45.8 | $ | 50.0 | $ | (4.2 | ) | $ | 41.8 | $ | 45.8 | $ | (4.0 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | ||||||||
Interest cost | 1.5 | 1.6 | 3.0 | 3.2 | ||||||||||||
Expected return on assets | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Recognized net actuarial loss | 0.3 | 0.3 | 0.6 | 0.6 | ||||||||||||
Amortization of prior service benefit | (0.1 | ) | — | (0.2 | ) | — | ||||||||||
Net periodic postretirement benefit expense | $ | 1.7 | $ | 1.9 | $ | 3.4 | $ | 3.8 |
Six Months Ended June 30, 2016 | ||||
Weighted-average fair value of grant | $ | 4.53 | ||
Risk-free interest rate | 1.29 | % | ||
Expected volatility | 51.30 | % | ||
Expected life of options in years | 4.90 | |||
Expected dividend yield | — |
Options | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Outstanding at December 31, 2016 | 2,099 | $ | 25.41 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (1 | ) | 10.65 | ||||||||||
Forfeited and expired | (306 | ) | 20.04 | ||||||||||
Outstanding at June 30, 2017 | 1,792 | 26.33 | 2.09 | $ | — | ||||||||
Expected to vest at June 30, 2017 | 211 | 22.72 | 4.00 | — | |||||||||
Exercisable at June 30, 2017 | 1,574 | 26.84 | 1.82 | — |
Restricted Stock Units | Weighted- Average Grant-Date Fair Value | ||||||
Outstanding at December 31, 2016 | 1,454 | $ | 12.68 | ||||
Granted | 977 | 14.06 | |||||
Vested | (544 | ) | 13.30 | ||||
Forfeited and expired | (162 | ) | 11.41 | ||||
Outstanding at June 30, 2017 | 1,725 | 13.46 |
• | Cloud & infrastructure services. This represents revenue from helping clients apply cloud and as-a-service delivery models to capitalize on business opportunities, make their end users more productive and manage and secure their IT infrastructure and operations more economically. |
• | Application services. This represents revenue from helping clients transform their business processes by providing advanced solutions for select industries, developing and managing new leading-edge applications, providing digital transformation services, offering advanced data analytics and modernizing existing enterprise applications. |
• | Business process outsourcing services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs. |
Total | Corporate | Services | Technology | |||||||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||
Customer revenue | $ | 666.2 | $ | — | $ | 574.8 | $ | 91.4 | ||||||||
Intersegment | — | (5.4 | ) | — | 5.4 | |||||||||||
Total revenue | $ | 666.2 | $ | (5.4 | ) | $ | 574.8 | $ | 96.8 | |||||||
Operating income (loss) | $ | (24.8 | ) | $ | (49.8 | ) | $ | (9.4 | ) | $ | 34.4 | |||||
Three Months Ended June 30, 2016 | ||||||||||||||||
Customer revenue | $ | 748.9 | $ | — | $ | 613.8 | $ | 135.1 | ||||||||
Intersegment | — | (5.9 | ) | — | 5.9 | |||||||||||
Total revenue | $ | 748.9 | $ | (5.9 | ) | $ | 613.8 | $ | 141.0 | |||||||
Operating income (loss) | $ | 49.5 | $ | (30.8 | ) | $ | 12.7 | $ | 67.6 |
Six Months Ended June 30, 2017 | ||||||||||||||||
Customer revenue | $ | 1,330.7 | $ | — | $ | 1,160.1 | $ | 170.6 | ||||||||
Intersegment | — | (10.7 | ) | — | 10.7 | |||||||||||
Total revenue | $ | 1,330.7 | $ | (10.7 | ) | $ | 1,160.1 | $ | 181.3 | |||||||
Operating income (loss) | $ | (27.5 | ) | $ | (92.8 | ) | $ | 17.9 | $ | 47.4 | ||||||
Six Months Ended June 30, 2016 | ||||||||||||||||
Customer revenue | $ | 1,415.7 | $ | — | $ | 1,208.9 | $ | 206.8 | ||||||||
Intersegment | — | (11.5 | ) | — | 11.5 | |||||||||||
Total revenue | $ | 1,415.7 | $ | (11.5 | ) | $ | 1,208.9 | $ | 218.3 | |||||||
Operating income (loss) | $ | 21.9 | $ | (76.5 | ) | $ | 16.7 | $ | 81.7 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Total segment operating income | $ | 25.0 | $ | 80.3 | $ | 65.3 | $ | 98.4 | ||||||||
Interest expense | (14.3 | ) | (7.8 | ) | (20.0 | ) | (12.2 | ) | ||||||||
Other income (expense), net | (3.2 | ) | 2.6 | (11.6 | ) | 1.4 | ||||||||||
Cost reduction charges(a) | (27.7 | ) | (10.2 | ) | (47.8 | ) | (37.1 | ) | ||||||||
Corporate and eliminations | (22.1 | ) | (20.6 | ) | (45.0 | ) | (39.4 | ) | ||||||||
Total income (loss) before income taxes | $ | (42.3 | ) | $ | 44.3 | $ | (59.1 | ) | $ | 11.1 |
(a) | The three and six months ended June 30, 2017 excludes $(0.2) million and $5.1 million, respectively, for foreign currency translation (gains) losses related to exiting foreign countries which are reported in Other income (expense), net in the consolidated statements of income. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Services | ||||||||||||||||
Cloud & infrastructure services | $ | 326.9 | $ | 340.0 | $ | 662.2 | $ | 675.9 | ||||||||
Application services | 196.4 | 220.4 | 397.9 | 431.0 | ||||||||||||
Business process outsourcing services | 51.5 | 53.4 | 100.0 | 102.0 | ||||||||||||
574.8 | 613.8 | 1,160.1 | 1,208.9 | |||||||||||||
Technology | 91.4 | 135.1 | 170.6 | 206.8 | ||||||||||||
Total | $ | 666.2 | $ | 748.9 | $ | 1,330.7 | $ | 1,415.7 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
United States | $ | 308.5 | $ | 348.4 | $ | 642.3 | $ | 679.3 | ||||||||
United Kingdom | 66.6 | 109.3 | 145.5 | 191.3 | ||||||||||||
Other foreign | 291.1 | 291.2 | 542.9 | 545.1 | ||||||||||||
Total | $ | 666.2 | $ | 748.9 | $ | 1,330.7 | $ | 1,415.7 |
Total | Translation Adjustments | Postretirement Plans | ||||||||||
Balance at December 31, 2016 | $ | (4,152.8 | ) | $ | (927.1 | ) | $ | (3,225.7 | ) | |||
Other comprehensive income before reclassifications | 12.5 | 74.2 | (61.7 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 72.9 | (5.1 | ) | 78.0 | ||||||||
Current period other comprehensive income | 85.4 | 69.1 | 16.3 | |||||||||
Balance at June 30, 2017 | $ | (4,067.4 | ) | $ | (858.0 | ) | $ | (3,209.4 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Translation Adjustments: | ||||||||||||||||
Adjustment for substantial completion of liquidation of foreign subsidiaries(a) | $ | 0.2 | $ | — | $ | (5.1 | ) | $ | — | |||||||
Postretirement Plans: | ||||||||||||||||
Amortization of prior service cost(b) | (1.4 | ) | (1.4 | ) | (2.8 | ) | (2.8 | ) | ||||||||
Amortization of actuarial losses(b) | 44.9 | 39.4 | 88.2 | 78.0 | ||||||||||||
Curtailment gain(b) | (5.2 | ) | — | (5.2 | ) | — | ||||||||||
Total before tax | 38.5 | 38.0 | 75.1 | 75.2 | ||||||||||||
Income tax benefit | (0.5 | ) | (1.5 | ) | (2.2 | ) | (2.9 | ) | ||||||||
Total reclassification for the period | $ | 38.0 | $ | 36.5 | $ | 72.9 | $ | 72.3 |
(a) | Reported in Other income (expense), net in the consolidated statements of income |
(b) | These items are included in net periodic postretirement cost (see Note 3). |
Noncontrolling Interests | |||
Balance at December 31, 2016 | $ | (16.4 | ) |
Net income | 6.5 | ||
Translation adjustments | 4.7 | ||
Postretirement plans | (4.3 | ) | |
Balance at June 30, 2017 | $ | (9.5 | ) |
June 30, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 571.1 | $ | 370.6 | |||
Restricted cash | 19.1 | 30.5 | |||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | 590.2 | $ | 401.1 |
June 30, 2017 | December 31, 2016 | ||||||||
10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $11.5 million) | $ | 428.5 | — | $ | — | ||||
5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $30.9 million and $34.4 million) | 182.6 | 179.1 | |||||||
6.25% senior notes | — | 94.7 | |||||||
Capital leases | 8.5 | 10.1 | |||||||
Other debt | 21.5 | 16.1 | |||||||
Total | 641.1 | 300.0 | |||||||
Less – current maturities | 11.3 | 106.0 | |||||||
Total long-term debt | $ | 629.8 | $ | 194.0 |
Total | Services | Technology | ||||||||||
Balance at December 31, 2016 | $ | 178.6 | $ | 69.9 | $ | 108.7 | ||||||
Translation adjustments | 1.4 | 1.4 | — | |||||||||
Balance at June 30, 2017 | $ | 180.0 | $ | 71.3 | $ | 108.7 |
• | Cloud & infrastructure services. This represents revenue from helping clients apply cloud and as-a-service delivery models to capitalize on business opportunities, make their end users more productive and manage and secure their IT infrastructure and operations more economically. |
• | Application services. This represents revenue from helping clients transform their business processes by providing advanced solutions for select industries, developing and managing new leading-edge applications, providing digital transformation services, offering advanced data analytics and modernizing existing enterprise applications. |
• | Business process outsourcing services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs. |
Total | Eliminations | Services | Technology | |||||||||||||
Three Months Ended June 30, 2017 | ||||||||||||||||
Customer revenue | $ | 666.2 | $ | — | $ | 574.8 | $ | 91.4 | ||||||||
Intersegment | — | (5.4 | ) | — | 5.4 | |||||||||||
Total revenue | $ | 666.2 | $ | (5.4 | ) | $ | 574.8 | $ | 96.8 | |||||||
Gross profit percent | 15.4 | % | 14.1 | % | 58.8 | % | ||||||||||
Operating profit (loss) percent | (3.7 | )% | (1.6 | )% | 35.5 | % | ||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||
Customer revenue | $ | 748.9 | $ | — | $ | 613.8 | $ | 135.1 | ||||||||
Intersegment | — | (5.9 | ) | — | 5.9 | |||||||||||
Total revenue | $ | 748.9 | $ | (5.9 | ) | $ | 613.8 | $ | 141.0 | |||||||
Gross profit percent | 23.8 | % | 16.8 | % | 66.9 | % | ||||||||||
Operating profit percent | 6.6 | % | 2.1 | % | 48.0 | % |
Three Months Ended June 30, | Percent Change | ||||||||||
2017 | 2016 | ||||||||||
Services | |||||||||||
Cloud & infrastructure services | $ | 326.9 | $ | 340.0 | (3.9 | )% | |||||
Application services | 196.4 | 220.4 | (10.9 | )% | |||||||
Business process outsourcing services | 51.5 | 53.4 | (3.6 | )% | |||||||
574.8 | 613.8 | (6.4 | )% | ||||||||
Technology | 91.4 | 135.1 | (32.3 | )% | |||||||
Total | $ | 666.2 | $ | 748.9 | (11.0 | )% |
Total | Eliminations | Services | Technology | |||||||||||||
Six Months Ended June 30, 2017 | ||||||||||||||||
Customer revenue | $ | 1,330.7 | $ | — | $ | 1,160.1 | $ | 170.6 | ||||||||
Intersegment | — | (10.7 | ) | — | 10.7 | |||||||||||
Total revenue | $ | 1,330.7 | $ | (10.7 | ) | $ | 1,160.1 | $ | 181.3 | |||||||
Gross profit percent | 16.7 | % | 16.2 | % | 53.1 | % | ||||||||||
Operating profit (loss) percent | (2.1 | )% | 1.5 | % | 26.1 | % | ||||||||||
Six Months Ended June 30, 2016 | ||||||||||||||||
Customer revenue | $ | 1,415.7 | $ | — | $ | 1,208.9 | $ | 206.8 | ||||||||
Intersegment | — | (11.5 | ) | — | 11.5 | |||||||||||
Total revenue | $ | 1,415.7 | $ | (11.5 | ) | $ | 1,208.9 | $ | 218.3 | |||||||
Gross profit percent | 19.6 | % | 15.5 | % | 60.4 | % | ||||||||||
Operating profit percent | 1.5 | % | 1.4 | % | 37.4 | % |
Six Months Ended June 30, | Percent Change | ||||||||||
2017 | 2016 | ||||||||||
Services | |||||||||||
Cloud & infrastructure services | $ | 662.2 | $ | 675.9 | (2.0 | )% | |||||
Application services | 397.9 | 431.0 | (7.7 | )% | |||||||
Business process outsourcing services | 100.0 | 102.0 | (2.0 | )% | |||||||
1,160.1 | 1,208.9 | (4.0 | )% | ||||||||
Technology | 170.6 | 206.8 | (17.5 | )% | |||||||
Total | $ | 1,330.7 | $ | 1,415.7 | (6.0 | )% |
• | our ability to improve revenue and margins in our services business; |
• | our ability to maintain our installed base and sell new products in our technology business; |
• | our ability to effectively anticipate and respond to volatility and rapid technological innovation in our industry; |
• | our ability to access financing markets; |
• | our significant pension obligations and requirements to make significant cash contributions to our defined benefit pension plans; |
• | our ability to realize additional anticipated cost savings and successfully implement our cost reduction initiatives to drive efficiencies across all of our operations; |
• | our ability to retain significant clients; |
• | the potential adverse effects of aggressive competition in the information services and technology marketplace; |
• | cybersecurity breaches could result in significant costs and could harm our business and reputation; |
• | our ability to attract, motivate and retain experienced and knowledgeable personnel in key positions; |
• | the risks of doing business internationally when a significant portion of our revenue is derived from international operations; |
• | our contracts may not be as profitable as expected or provide the expected level of revenues; |
• | contracts with U.S. governmental agencies may subject us to audits, criminal penalties, sanctions and other expenses and fines; |
• | a significant disruption in our IT systems could adversely affect our business and reputation; |
• | we may face damage to our reputation or legal liability if our clients are not satisfied with our services or products; |
• | the performance and capabilities of third parties with whom we have commercial relationships; |
• | a termination of the company’s U.S. defined benefit pension plan |
• | the adverse effects of global economic conditions, acts of war, terrorism or natural disasters; |
• | the potential for intellectual property infringement claims to be asserted against us or our clients; |
• | the possibility that pending litigation could affect our results of operations or cash flow; and |
• | the business and financial risk in implementing future dispositions or acquisitions. |
(a) | Exhibits |
UNISYS CORPORATION | ||
Date: August 2, 2017 | By: | /s/ Inder M. Singh |
Inder M. Singh | ||
Senior Vice President and | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
By: | /s/ Michael M. Thomson | |
Michael M. Thomson | ||
Vice President and | ||
Corporate Controller | ||
(Principal Accounting Officer) |
Exhibit Number | Description |
Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on April 30, 2010) | |
Certificate of Amendment of the Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on April 28, 2011) | |
Certificate of Amendment of the Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on April 28, 2017) | |
Bylaws of Unisys Corporation, as amended through April 30, 2015 (incorporated by reference to Exhibit 3.3 to the Company’s Quarterly Report on Form 10-Q filed on April 30, 2015) | |
Indenture, dated as of April 17, 2017, among Unisys Corporation, Unisys Holding Corporation, Unisys AP Investment Company I, Unisys NPL, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K filed on April 17, 2017) | |
Security Agreement, dated as of April 17, 2017, by and among Unisys Corporation, Unisys Holding Corporation, Unisys AP Investment Company I, Unisys NPL, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on April 17, 2017) | |
Collateral Trust Agreement, dated as of April 17, 2017, by and among Unisys Corporation, Unisys Holding Corporation, Unisys AP Investment Company I, Unisys NPL, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on April 17, 2017) | |
ABL-Notes Intercreditor Agreement, dated as of April 17, 2017, by and among Unisys Corporation, Unisys Holding Corporation, Unisys AP Investment Company I, Unisys NPL, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.3 to the registrant's Current Report on Form 8-K filed on April 17, 2017) | |
Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | |
Certification of Peter A. Altabef required by Rule 13a-14(a) or Rule 15d-14(a) | |
Certification of Inder M. Singh required by Rule 13a-14(a) or Rule 15d-14(a) | |
Certification of Peter A. Altabef required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 | |
Certification of Inder M. Singh required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 | |
101.INSXBRL | Instance Document |
101.SCHXBRL | Taxonomy Extension Schema Document |
101.CALXBRL | Taxonomy Extension Calculation Linkbase Document |
101.LABXBRL | Taxonomy Extension Labels Linkbase Document |
101.PREXBRL | Taxonomy Extension Presentation Linkbase Document |
101.DEFXBRL | Taxonomy Extension Definition Linkbase Document |
Six Months Ended June 30, 2017 | Years Ended December 31 | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense | $ | 20.0 | $ | 27.4 | $ | 11.9 | $ | 9.2 | $ | 9.9 | $ | 27.5 | ||||||||||||
Interest capitalized during the period | 2.2 | 3.0 | 3.1 | 4.0 | 3.2 | 5.3 | ||||||||||||||||||
Amortization of revolving credit facility expenses | 0.2 | 0.4 | 1.5 | 1.6 | 1.6 | 1.7 | ||||||||||||||||||
Portion of rental expense representative of interest | 12.6 | 25.8 | 26.9 | 27.9 | 28.4 | 28.2 | ||||||||||||||||||
Total Fixed Charges | 35.0 | 56.6 | 43.4 | 42.7 | 43.1 | 62.7 | ||||||||||||||||||
Preferred stock dividend requirements (a) | — | — | — | 2.7 | 16.2 | 16.2 | ||||||||||||||||||
Total fixed charges and preferred stock dividends | 35.0 | 56.6 | 43.4 | 45.4 | 59.3 | 78.9 | ||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) before income taxes | (59.1 | ) | 20.5 | (58.8 | ) | 145.5 | 219.4 | 254.1 | ||||||||||||||||
Add amortization of capitalized interest | 1.6 | 3.1 | 3.7 | 4.5 | 5.0 | 7.5 | ||||||||||||||||||
Subtotal | (57.5 | ) | 23.6 | (55.1 | ) | 150.0 | 224.4 | 261.6 | ||||||||||||||||
Fixed charges per above | 35.0 | 56.6 | 43.4 | 42.7 | 43.1 | 62.7 | ||||||||||||||||||
Less interest capitalized during the period | (2.2 | ) | (3.0 | ) | (3.1 | ) | (4.0 | ) | (3.2 | ) | (5.3 | ) | ||||||||||||
Total earnings | $ | (24.7 | ) | $ | 77.2 | $ | (14.8 | ) | $ | 188.7 | $ | 264.3 | $ | 319.0 | ||||||||||
Ratio of earnings to fixed charges | * | 1.36 | * | 4.42 | 6.13 | 5.09 | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends (b) | N/A | 1.36 | N/A | 4.16 | 4.46 | 4.04 |
(a) | Amounts have not been grossed up for income taxes since the preferred stock was issued by the U.S. parent corporation which has a valuation allowance against its net deferred tax assets. |
(b) | The ratio of earnings to fixed charges and preferred stock dividends is calculated by dividing total earnings by total fixed charges and preferred stock dividends. |
* | Earnings for the six months ended June 30, 2017 and the year ended December 31, 2015, were inadequate to cover fixed charges by $59.7 million and $58.2 million, respectively. |
/s/ Peter A. Altabef | ||
Name: | Peter A. Altabef | |
Title: | President and | |
Chief Executive Officer |
/s/ Inder M. Singh | ||
Name: | Inder M. Singh | |
Title: | Senior Vice President and | |
Chief Financial Officer |
/s/ Peter A. Altabef | |
Peter A. Altabef | |
President and | |
Chief Executive Officer |
/s/ Inder M. Singh | |
Inder M. Singh | |
Senior Vice President and | |
Chief Financial Officer |
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2017
shares
| |
Document And Entity Information [Abstract] | |
Entity Registrant Name | UNISYS CORP |
Trading Symbol | UIS |
Entity Central Index Key | 0000746838 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2017 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 50,469,877 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares shares in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 53.4 | 52.8 |
Treasury stock, shares (in shares) | 2.9 | 2.7 |
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenue | ||||
Services | $ 574.8 | $ 613.8 | $ 1,160.1 | $ 1,208.9 |
Technology | 91.4 | 135.1 | 170.6 | 206.8 |
Total revenue | 666.2 | 748.9 | 1,330.7 | 1,415.7 |
Cost of revenue: | ||||
Services | 526.7 | 529.1 | 1,031.2 | 1,062.8 |
Technology | 37.0 | 41.5 | 76.8 | 76.1 |
Total cost of revenue | 563.7 | 570.6 | 1,108.0 | 1,138.9 |
Selling, general and administrative | 114.2 | 115.7 | 223.3 | 225.8 |
Research and development | 13.1 | 13.1 | 26.9 | 29.1 |
Total costs and expenses | 691.0 | 699.4 | 1,358.2 | 1,393.8 |
Operating profit (loss) | (24.8) | 49.5 | (27.5) | 21.9 |
Interest expense | 14.3 | 7.8 | 20.0 | 12.2 |
Other income (expense), net | (3.2) | 2.6 | (11.6) | 1.4 |
Income (loss) before income taxes | (42.3) | 44.3 | (59.1) | 11.1 |
Provision (benefit) for income taxes | (3.8) | 18.8 | 9.1 | 24.3 |
Consolidated net income (loss) | (38.5) | 25.5 | (68.2) | (13.2) |
Net income attributable to noncontrolling interests | 3.5 | 3.9 | 6.5 | 5.1 |
Net income (loss) attributable to Unisys Corporation | $ (42.0) | $ 21.6 | $ (74.7) | $ (18.3) |
Income (loss) per share attributable to Unisys Corporation | ||||
Basic (in dollars per share) | $ (0.83) | $ 0.43 | $ (1.48) | $ (0.37) |
Diluted (in dollars per share) | $ (0.83) | $ 0.36 | $ (1.48) | $ (0.37) |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income (loss) | $ (38.5) | $ 25.5 | $ (68.2) | $ (13.2) |
Other comprehensive income | ||||
Foreign currency translation | 42.7 | (48.9) | 73.8 | (38.4) |
Postretirement adjustments, net of tax of $(7.1) and $(8.1) in 2017 and $11.9 and $14.6 in 2016 | (10.4) | 101.4 | 12.0 | 146.9 |
Total other comprehensive income | 32.3 | 52.5 | 85.8 | 108.5 |
Comprehensive income (loss) | (6.2) | 78.0 | 17.6 | 95.3 |
Less comprehensive income attributable to noncontrolling interests | (3.7) | (3.1) | (6.9) | (4.3) |
Comprehensive income (loss) attributable to Unisys Corporation | $ (9.9) | $ 74.9 | $ 10.7 | $ 91.0 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Postretirement adjustments, tax | $ (7.1) | $ 11.9 | $ (8.1) | $ 14.6 |
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Cash flows from operating activities | |||||
Consolidated net loss | $ (68.2) | $ (13.2) | |||
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities: | |||||
Foreign currency transaction losses | 5.1 | 0.4 | |||
Non-cash interest expense | 4.4 | 2.8 | |||
Loss on debt extinguishment | 1.5 | 0.0 | |||
Employee stock compensation | 6.2 | 5.3 | |||
Depreciation and amortization of properties | 19.8 | 19.3 | |||
Depreciation and amortization of outsourcing assets | 26.3 | 25.7 | |||
Amortization of marketable software | 31.8 | 32.4 | |||
Other non-cash operating activities | 2.5 | 1.0 | |||
Loss on disposal of capital assets | 4.2 | 1.6 | |||
Pension contributions | (71.2) | (64.1) | |||
Pension expense | 45.8 | 41.8 | |||
Increase in deferred income taxes, net | (0.4) | (9.7) | |||
Changes in operating assets and liabilities | |||||
(Increase) decrease in receivables, net | (57.4) | 24.9 | |||
(Increase) decrease in inventories | (2.6) | 5.8 | |||
Decrease in accounts payable and other accrued liabilities | (28.3) | (35.6) | [1] | ||
(Decrease) increase in other liabilities | (8.6) | 12.3 | |||
(Increase) decrease in other assets | (1.1) | 6.2 | [1] | ||
Net cash (used for) provided by operating activities | (90.2) | 56.9 | [1] | ||
Cash flows from investing activities | |||||
Proceeds from investments | 2,502.0 | 2,236.8 | |||
Purchases of investments | (2,487.1) | (2,238.0) | |||
Investment in marketable software | (28.8) | (30.2) | |||
Capital additions of properties | (15.9) | (11.0) | |||
Capital additions of outsourcing assets | (36.9) | (28.8) | |||
Other | (0.3) | (0.2) | [1] | ||
Net cash used for investing activities | (67.0) | (71.4) | [1] | ||
Cash flows from financing activities | |||||
Proceeds from issuance of long-term debt | 445.0 | 213.5 | |||
Payments for capped call transactions | 0.0 | (27.3) | |||
Issuance costs relating to long-term debt | (11.7) | (7.3) | |||
Payments of long-term debt | (97.7) | (1.3) | |||
Payments of short-term borrowings | 0.0 | (65.8) | |||
Other | (2.1) | (0.4) | [1] | ||
Net cash provided by financing activities | 333.5 | 111.4 | [1] | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12.8 | 0.1 | [1] | ||
Increase in cash, cash equivalents and restricted cash | 189.1 | 97.0 | [1] | ||
Cash, cash equivalents and restricted cash, beginning of period | 401.1 | 396.8 | [1] | ||
Cash, cash equivalents and restricted cash, end of period | $ 590.2 | $ 493.8 | [1] | ||
|
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | In the opinion of management, the financial information furnished herein reflects all adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income and cash flows for the interim periods specified. These adjustments consist only of normal recurring accruals except as disclosed herein. Because of seasonal and other factors, results for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, assumptions used in the calculation for systems integration projects, income taxes and retirement and other post-employment benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. The company’s accounting policies are set forth in detail in Note 1 of the notes to the consolidated financial statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“2016 Form 10-K”) filed with the Securities and Exchange Commission. Such Annual Report also contains a discussion of the company’s critical accounting policies. The company believes that these critical accounting policies affect its more significant estimates and judgments used in the preparation of the company’s consolidated financial statements. There have been no changes in the company’s critical accounting policies from those disclosed in the company’s 2016 Form 10-K. |
Earnings Per Share |
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Earnings Per Share | Earnings Per Share The following table shows how the income (loss) per share attributable to Unisys Corporation was computed for the three and six months ended June 30, 2017 and 2016 (shares in thousands):
In the six months ended June 30, 2017 and 2016, the following weighted-average number of stock options and restricted stock units were antidilutive and therefore excluded from the computation of diluted earnings per share (in thousands): 3,517 and 3,684, respectively. In the six months ended June 30, 2017 and 2016, the following weighted-average number of common shares issuable upon conversion of the 5.50% convertible senior notes due 2021 were antidilutive and therefore excluded from the computation of diluted earnings per share (in thousands): 21,868 and 12,593, respectively. |
Cost Reduction Actions |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost Reduction Actions | Cost Reduction Actions In 2015, in connection with organizational initiatives to create a more competitive cost structure and rebalance the company’s global skill set, the company initiated a plan to incur restructuring charges currently estimated at approximately $300 million through 2017. During 2016 and 2015, the company recognized charges in connection with this plan and other costs of $82.1 million and $118.5 million, respectively, principally related to a reduction in employees. During the three months ended June 30, 2017, the company recognized charges in connection with this plan and other costs of $27.5 million. Charges related to work-force reductions were $24.2 million, principally related to severance costs, and were comprised of: (a) a charge of $4.8 million for 369 employees and $(0.1) million for changes in estimates in the U.S. and (b) a charge of $19.8 million for 301 employees and $(0.3) million for changes in estimates outside the U.S. In addition, the company recorded charges of $3.3 million comprised of $1.9 million for contract amendment and termination costs, $1.6 million for professional fees and other expenses related to the cost reduction effort and $(0.2) million for foreign currency translation gains related to exiting foreign countries. The charges were recorded in the following statement of income classifications: cost of revenue – services, $19.1 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $8.2 million; and other income (expense), net, $(0.2) million. During the six months ended June 30, 2017, the company recognized charges in connection with this plan and other costs of $52.9 million. Charges related to work-force reductions were $36.7 million, principally related to severance costs, and were comprised of: (a) a charge of $5.3 million for 414 employees and $(0.2) million for changes in estimates in the U.S. and (b) a charge of $24.0 million for 376 employees, $8.2 million for additional benefits provided in 2017 and $(0.6) million for changes in estimates outside the U.S. In addition, the company recorded charges of $16.2 million comprised of $2.9 million for idle leased facilities costs, $5.2 million for contract amendment and termination costs, $3.0 million for professional fees and other expenses related to the cost reduction effort and $5.1 million for foreign currency translation losses related to exiting foreign countries. The charges were recorded in the following statement of income classifications: cost of revenue – services, $27.6 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $19.5 million; research and development expenses, $0.3 million; and other income (expense), net, $5.1 million. During the three months ended June 30, 2016, the company recognized charges of $10.2 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $6.5 million, principally related to severance costs, and were comprised of: (a) a charge of $1.2 million for 69 employees in the U.S. and (b) a charge of $5.3 million for 262 employees outside the U.S. In addition, the company recorded charges of $3.7 million for other expenses related to the cost reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue - services, $5.1 million; selling, general and administrative expenses, $5.5 million; and research and development expenses, $(0.4) million. During the six months ended June 30, 2016, the company recognized charges of $37.1 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $28.6 million, principally related to severance costs, and were comprised of: (a) a charge of $5.4 million for 244 employees in the U.S. and (b) a charge of $23.2 million for 599 employees outside the U.S. In addition, the company recorded charges of $8.5 million for other expenses related to the cost reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue – services, $16.6 million; selling, general and administrative expenses, $18.8 million; and research and development expenses, $1.7 million. Liabilities and expected future payments related to these costs are as follows:
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Pension and Postretirement Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits | Pension and Postretirement Benefits Net periodic pension expense for the three and six months ended June 30, 2017 and 2016 is presented below:
In 2017, the company expects to make cash contributions of approximately $141.0 million to its worldwide defined benefit pension plans, which are comprised of $54.4 million for the company’s U.S. qualified defined benefit pension plan and $86.6 million primarily for the company’s non-U.S. defined benefit pension plans. In 2016, the company made cash contributions of $132.5 million to its worldwide defined benefit pension plans. For the six months ended June 30, 2017 and 2016, the company made cash contributions of $71.2 million and $64.1 million, respectively. Net periodic postretirement benefit expense for the three and six months ended June 30, 2017 and 2016 is presented below:
The company expects to make cash contributions of approximately $13.0 million to its postretirement benefit plan in 2017 compared to $13.6 million in 2016. For the six months ended June 30, 2017 and 2016, the company made cash contributions of $5.0 million and $5.4 million, respectively. |
Fair Value Measurements |
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Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. The company uses derivative financial instruments to reduce its exposure to market risks from changes in foreign currency exchange rates on such balances. The company enters into foreign exchange forward contracts, generally having maturities of three months or less, which have not been designated as hedging instruments. At June 30, 2017 and 2016, the notional amount of these contracts was $408.0 million and $473.8 million, respectively. At June 30, 2017 and 2016, the fair value of such contracts was a net gain of $7.1 million and a net loss of $17.3 million, respectively, of which $8.6 million and $1.9 million, respectively, has been recognized in “Prepaid expenses and other current assets” and $1.5 million and $19.2 million, respectively, has been recognized in “Other accrued liabilities” in the company’s consolidated balance sheets. For the six months ended June 30, 2017 and 2016, changes in the fair value of these instruments were a gain of $21.5 million and a loss of $14.1 million, respectively, which has been recognized in earnings in “Other income (expense), net” in the company’s consolidated statements of income. The fair value of these forward contracts is based on quoted prices for similar but not identical financial instruments; as such, the inputs are considered Level 2 inputs. Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other accrued liabilities. The carrying amounts of these financial assets and liabilities approximate fair value due to their short maturities. The fair value of long-term debt is based on market prices (Level 2 inputs). At June 30, 2017, the fair value of the company’s senior secured notes due 2022, which were issued in April 2017, was $481.8 million. The fair value of the company’s convertible senior notes due 2021 was $318.9 million and $379.8 million at June 30, 2017 and December 31, 2016, respectively. At December 31, 2016, the fair value of the company’s senior notes due 2017, which were retired in May 2017, was $97.8 million. |
Stock Options |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options | Stock Options Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units may be granted to officers, directors and other key employees. At June 30, 2017, 3.1 million shares of unissued common stock of the company were available for granting under these plans. There were no grants of stock option awards during the six months ended June 30, 2017. For the six months ended June 30, 2016, the fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values:
Restricted stock unit awards may contain time-based units, performance-based units or a combination of both. Each performance-based unit will vest into zero to two shares depending on the degree to which the performance goals are met. Compensation expense resulting from these awards is recognized as expense ratably for each installment from the date of grant until the date the restrictions lapse, and is based on the fair market value at the date of grant and the probability of achievement of the specific performance-related goals. The company records all share-based expense in selling, general and administrative expense. During the six months ended June 30, 2017 and 2016, the company recorded $6.2 million and $5.3 million of share-based compensation expense, respectively, which was comprised of $5.6 million and $4.3 million of restricted stock unit expense and $0.6 million and $1.0 million of stock option expense, respectively. A summary of stock option activity for the six months ended June 30, 2017 follows (shares in thousands):
The aggregate intrinsic value represents the total pretax value of the difference between the company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all option holders exercised their options on June 30, 2017. The intrinsic value of the company’s stock options changes based on the closing price of the company’s stock. The total intrinsic value of options exercised for the six months ended June 30, 2017 was immaterial, and for the six months ended June 30, 2016 was zero. As of June 30, 2017, $0.7 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of one year. A summary of restricted stock unit activity for the six months ended June 30, 2017 follows (shares in thousands):
The fair value of restricted stock units is determined based on the trading price of the company’s common shares on the date of grant. The aggregate weighted-average grant-date fair value of restricted stock units granted during the six months ended June 30, 2017 and 2016 was $13.7 million and $12.5 million, respectively. As of June 30, 2017, there was $14.7 million of total unrecognized compensation cost related to outstanding restricted stock units granted under the company’s plans. That cost is expected to be recognized over a weighted-average period of 2.3 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the six months ended June 30, 2017 and 2016 was $7.2 million and $3.4 million, respectively. Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units are newly issued shares. Cash received from the exercise of stock options for the six months ended June 30, 2017 was immaterial, and for the six months ended June 30, 2016 was zero. In light of its tax position, the company is currently not recognizing any tax benefits from the exercise of stock options or upon issuance of stock upon lapse of restrictions on restricted stock units. Tax benefits resulting from tax deductions in excess of the compensation costs recognized are classified as operating cash flows. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The company has two business segments: Services and Technology. Revenue classifications within the Services segment are as follows:
The accounting policies of each business segment are the same as those followed by the company as a whole. Intersegment sales and transfers are priced as if the sales or transfers were to third parties. Accordingly, the Technology segment recognizes intersegment revenue and manufacturing profit on hardware and software shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profits on such shipments of company hardware and software to customers. The Services segment also includes the sale of hardware and software products sourced from third parties that are sold to customers through the company’s Services channels. In the company’s consolidated statements of income, the manufacturing costs of products sourced from the Technology segment and sold to Services customers are reported in cost of revenue for Services. Also included in the Technology segment’s sales and operating profit are sales of hardware and software sold to the Services segment for internal use in Services engagements. The amount of such profit included in operating income of the Technology segment for the three months ended June 30, 2017 and 2016 was $0.9 million and $0.4 million, respectively. The amount for the six months ended June 30, 2017 and 2016 was $1.0 million and $0.5 million, respectively. The sales and profit on these transactions are eliminated in Corporate. The company evaluates business segment performance based on operating income exclusive of pension income or expense, restructuring charges and unusual and nonrecurring items, which are included in Corporate. All other corporate and centrally incurred costs are allocated to the business segments based principally on revenue, employees, square footage or usage. A summary of the company’s operations by business segment for the three and six month periods ended June 30, 2017 and 2016 is presented below:
Presented below is a reconciliation of total business segment operating income to consolidated income (loss) before income taxes:
Customer revenue by classes of similar products or services, by segment, is presented below:
Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Accumulated other comprehensive loss as of December 31, 2016 and June 30, 2017 is as follows:
Amounts reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2017 and 2016 are as follows:
Noncontrolling interests as of December 31, 2016 and June 30, 2017 are as follows:
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
Restricted cash consists of cash the company is contractually obligated to maintain in accordance with the terms of its U.K. business process outsourcing joint venture agreement, cash required to be held on deposit for the settlement of litigation and tax claims and other cash that is restricted from withdrawal. Cash paid, net of refunds, for income taxes during the six months ended June 30, 2017 and 2016 was $23.7 million and $24.5 million, respectively. Cash paid for interest during the six months ended June 30, 2017 and 2016 was $10.5 million and $7.2 million, respectively. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies There are various lawsuits, claims, investigations and proceedings that have been brought or asserted against the company, which arise in the ordinary course of business, including actions with respect to commercial and government contracts, labor and employment, employee benefits, environmental matters, intellectual property and non-income tax matters. The company records a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information and events pertinent to a particular matter. The company believes that it has valid defenses with respect to legal matters pending against it. Based on its experience, the company also believes that the damage amounts claimed in the lawsuits disclosed below are not a meaningful indicator of the company’s potential liability. Litigation is inherently unpredictable, however, and it is possible that the company’s results of operations or cash flow could be materially affected in any particular period by the resolution of one or more of the legal matters pending against it. In April 2007, the Ministry of Justice of Belgium sued Unisys Belgium SA-NV, a Unisys subsidiary (Unisys Belgium), in the Court of First Instance of Brussels. The Belgian government had engaged the company to design and develop software for a computerized system to be used to manage the Belgian court system. The Belgian State terminated the contract and in its lawsuit has alleged that the termination was justified because Unisys Belgium failed to deliver satisfactory software in a timely manner. It claims damages of approximately €28 million. Unisys Belgium filed its defense and counterclaim in April 2008, in the amount of approximately €18.5 million. The company believes it has valid defenses to the claims and contends that the Belgian State’s termination of the contract was unjustified. The company’s Brazilian operations, along with those of many other companies doing business in Brazil, are involved in various litigation matters, including numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax-related matters pertain to value added taxes, customs, duties, sales and other non-income related tax exposures. The labor-related matters include claims related to compensation matters. The company believes that appropriate accruals have been established for such matters based on information currently available. At June 30, 2017, excluding those matters that have been assessed by management as being remote as to the likelihood of ultimately resulting in a loss, the amount related to unreserved tax-related matters, inclusive of any related interest, is estimated to be up to approximately $129 million. On June 26, 2014, the State of Louisiana filed a Petition for Damages against, among other defendants, the company and Molina Information Systems, LLC, in the Parish of East Baton Rouge, 19th Judicial District. The State alleged that between 1989 and 2012 the defendants, each acting successively as the State’s Medicaid fiscal intermediary, utilized an incorrect reimbursement formula for the payment of pharmaceutical claims causing the State to pay excessive amounts for prescription drugs. The State contends overpayments of approximately $68 million for the period January 2002 through July 2011 and is seeking data to identify the claims at issue for the remaining time period. The company believes that it has valid defenses to Louisiana’s claims and is asserting them in the pending litigation. With respect to the specific legal proceedings and claims described above, except as otherwise noted, either (i) the amount or range of possible losses in excess of amounts accrued, if any, is not reasonably estimable or (ii) the company believes that the amount or range of possible losses in excess of amounts accrued that are estimable would not be material. Litigation is inherently unpredictable and unfavorable resolutions could occur. Accordingly, it is possible that an adverse outcome from such matters could exceed the amounts accrued in an amount that could be material to the company’s financial condition, results of operations and cash flows in any particular reporting period. Notwithstanding that the ultimate results of the lawsuits, claims, investigations and proceedings that have been brought or asserted against the company are not currently determinable, the company believes that at June 30, 2017, it has adequate provisions for any such matters. |
Income Taxes |
6 Months Ended |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Accounting rules governing income taxes require that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. These rules also require that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or the entire deferred tax asset will not be realized. The company evaluates the realizability of its deferred tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the company’s historical profitability, forecast of future taxable income and available tax-planning strategies that could be implemented to realize the net deferred tax assets. The company uses tax-planning strategies to realize or renew net deferred tax assets to avoid the potential loss of future tax benefits. A full valuation allowance is currently maintained for substantially all U.S. and certain foreign deferred tax assets in excess of deferred tax liabilities. The company will record a tax provision or benefit for those international subsidiaries that do not have a full valuation allowance against their net deferred tax assets. Any profit or loss recorded for the company’s U.S. operations will have no provision or benefit associated with it due to such valuation allowance, except with respect to refundable tax credits and withholding taxes not creditable against future taxable income. As a result, the company’s provision or benefit for taxes may vary significantly depending on the geographic distribution of income. In the second quarter of 2017, the company elected to receive cash refunds of a portion of its U.S. alternative minimum tax (AMT) credit carryforwards in lieu of claiming bonus depreciation as provided by Internal Revenue Code Section 168(k)(4). The company expects to receive a refund in 2017 of approximately $9 million and refunds in future periods currently estimated at $11 million. The decision to make this election resulted in a tax benefit of $20.0 million in the current quarter due to the release of a portion of the valuation allowance previously offsetting the deferred tax asset associated with the company’s existing AMT credit carryforwards. |
Accounting Standards |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Accounting Standards Effective January 1, 2017, the company adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amended guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Adoption of this new guidance had no impact on the company’s consolidated results of operations and financial position. Effective January 1, 2017, the company adopted new guidance issued by the FASB which allows the recognition of deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. The new guidance has been applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit. At January 1, 2017, the adjustment to accumulated deficit was an increase of $4.4 million. Effective January 1, 2017, the company adopted new guidance which clarifies the treatment of several cash flow categories. In addition, the guidance also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The company previously reported premium payments on and proceeds from the settlement of corporate-owned life insurance policies as cash flows from operating activities in the company’s consolidated statement of cash flows. Under the new guidance, these amounts were reclassified to investing activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, $0.8 million was reclassified from “(increase) decrease in other assets” in operating activities to “other” in investing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted new guidance that changes certain aspects of accounting for share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the standard requires all tax-related cash flows resulting from share-based payments to be reported as operating activities on the consolidated statement of cash flows, and any cash payments made to taxing authorities on an employee’s behalf as financing activities, which the company previously reported as operating activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, $0.4 million was reclassified from “decrease in accounts payable and other accrued liabilities” in operating activities to “other” in financing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted new guidance issued by the FASB which requires companies to include amounts generally described as restricted cash or restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance has been applied on retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, the reclassification in the consolidated statements of cash flows resulted in a $3.1 million reduction to “(increase) decrease in other assets” in operating activities, a $1.3 million increase in “other” in investing activities, a $0.4 million increase in “effect of exchange rate changes on cash, cash equivalents and restricted cash,” a $31.6 million increase in “cash, cash equivalents and restricted cash, beginning of period” and a $30.2 million increase in “cash, cash equivalents and restricted cash, end of period.” In March 2017, the FASB issued new guidance on the presentation of net periodic benefit cost in the income statement. The new guidance requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line items that include service cost and outside the subtotal of operating income. This update is effective for annual periods beginning after December 15, 2017, which for the company is January 1, 2018. Adoption of this new guidance will result in the reclassification of net periodic benefit cost, other than service costs ($42.6 million for the six months ended June 30, 2017), from operating income to non-operating income. There will be no overall impact on the company’s consolidated financial position. In June 2016, the FASB issued new guidance that introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, loans and other financial instruments. This update is effective for annual periods beginning after December 15, 2019, with earlier adoption permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued a new lease accounting standard entitled “Leases.” The new standard is intended to improve financial reporting about leasing transactions. The new rule will require organizations that lease assets, referred to as lessees, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the company is January 1, 2019. Earlier adoption is permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated results of operations and financial position. In 2014, the FASB issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” The objective of the standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. The standard, and its various amendments, is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. Generally the new standard would require the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the current rules would allow. The company will adopt the standard on January 1, 2018 using the modified retrospective method. The company is currently monitoring the impact the adoption of this new standard will have on its consolidated results of operations and financial position and currently does not believe there will be a material impact upon adoption or on a go-forward basis. However, the final impact cannot be determined until the end of 2017 and it will be impacted by transactions entered into during 2017. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt is comprised of the following:
On April 17, 2017, the company issued $440 million aggregate principal amount of 10.75% Senior Secured Notes due 2022 (the “notes”). The notes are initially fully and unconditionally guaranteed on a senior secured basis by Unisys Holding Corporation, Unisys AP Investment Company I and Unisys NPL, Inc. (together with the Company, the “Grantors”). In the future, the notes will be guaranteed by each material domestic subsidiary and each restricted subsidiary that guarantees the secured revolving credit facility and other indebtedness of the company or another subsidiary guarantor. The notes and the guarantees will rank equally in right of payment with all of the existing and future senior debt of the company and the subsidiary guarantors. The notes and the guarantees will be structurally subordinated to all existing and future liabilities (including preferred stock, trade payables and pension liabilities) of the company’s subsidiaries that are not subsidiary guarantors. The notes will pay interest semiannually on April 15 and October 15, commencing on October 15, 2017, at an annual rate of 10.75%, and will mature on April 15, 2022, unless earlier repurchased or redeemed. The company may, at its option, redeem some or all of the notes at any time on or after April 15, 2020 at a redemption price determined in accordance with the redemption schedule set forth in the indenture governing the notes (the “indenture”), plus accrued and unpaid interest, if any. Prior to April 15, 2020, the company may, at its option, redeem some or all of the notes at any time, at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium, plus accrued and unpaid interest, if any. The company may also redeem, at its option, up to 35% of the notes at any time prior to April 15, 2020, using the proceeds of certain equity offerings at a redemption price of 110.75% of the principal amount thereof, plus accrued and unpaid interest, if any. In addition, the company may redeem all (but not less than all) of the notes at any time that the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio (as such terms are described below and further defined in the indenture) at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest, if any. The indenture contains covenants that limit the ability of the company and its restricted subsidiaries to, among other things: (i) incur additional indebtedness and guarantee indebtedness; (ii) pay dividends or make other distributions or repurchase or redeem its capital stock; (iii) prepay, redeem or repurchase certain debt; (iv) make certain prepayments in respect of pension obligations; (v) issue certain preferred stock or similar equity securities; (vi) make loans and investments (including investments by the company and subsidiary guarantors in subsidiaries that are not guarantors); (vii) sell assets; (viii) create or incur liens; (ix) enter into transactions with affiliates; (x) enter into agreements restricting its subsidiaries’ ability to pay dividends; and (xi) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to several important limitations and exceptions. The indenture also includes a covenant requiring that the company maintain a Collateral Coverage Ratio of not less than 1.50:1.00 (the “Required Collateral Coverage Ratio”) as of any test date. The Collateral Coverage Ratio is based on the ratio of (A) Grantor unrestricted cash and cash equivalents plus 4.75 multiplied by of the greater of (x) Grantor EBITDA for the most recently ended four fiscal quarters and (y) (i) the average quarterly Grantor EBITDA for the most recently ended seven fiscal quarters, multiplied by (ii) four, to (B) secured indebtedness of the Grantors. The Collateral Coverage Ratio is tested quarterly. If the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio as of any test date, and the company has not redeemed the notes within 90 days thereafter, this will be an event of default under the indenture. If the company experiences certain kinds of changes of control, it must offer to purchase the notes at 101% of the principal amount of the notes, plus accrued and unpaid interest, if any. In addition, if the company sells assets under certain circumstances it must apply the proceeds towards an offer to repurchase notes at a price equal to par plus accrued and unpaid interest, if any. The indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding notes to be due and payable immediately. On May 8, 2017, the company redeemed all of its then outstanding 6.25% senior notes due 2017. As a result of this redemption, the company recognized a charge of $1.5 million in “Other income (expense), net” in the three months ended June 30, 2017, which is comprised of $1.3 million of premium and expenses paid and $0.2 million for the write off of unamortized discount and fees related to the portion of the notes redeemed. For the three months ended June 30, 2017 and 2016, $4.7 million and $4.5 million, respectively, was recorded as interest expense on the convertible notes due 2021, which includes the contractual interest coupon: (2017 - $2.9 million, 2016 - $2.9 million), amortization of the debt discount: (2017 - $1.5 million, 2016 - $1.3 million), and amortization of the debt issuance costs: (2017 - $0.3 million, 2016 - $0.3 million). For the six months ended June 30, 2017 and 2016, $9.4 million and $5.2 million, respectively, was recorded as interest expense on the convertible notes due 2021, which includes the contractual interest coupon: (2017 - $5.9 million, 2016 - $3.4 million), amortization of the debt discount: (2017 - $2.9 million, 2016 - $1.5 million), and amortization of the debt issuance costs: (2017 - $0.6 million, 2016 - $0.3 million). |
Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill At June 30, 2017, the amount of goodwill allocated to reporting units with negative net assets was as follows: Business Process Outsourcing Services, $10.7 million. Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2017 was as follows:
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Accounting Standards (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Effective January 1, 2017, the company adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amended guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Adoption of this new guidance had no impact on the company’s consolidated results of operations and financial position. Effective January 1, 2017, the company adopted new guidance issued by the FASB which allows the recognition of deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. The new guidance has been applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit. At January 1, 2017, the adjustment to accumulated deficit was an increase of $4.4 million. Effective January 1, 2017, the company adopted new guidance which clarifies the treatment of several cash flow categories. In addition, the guidance also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The company previously reported premium payments on and proceeds from the settlement of corporate-owned life insurance policies as cash flows from operating activities in the company’s consolidated statement of cash flows. Under the new guidance, these amounts were reclassified to investing activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, $0.8 million was reclassified from “(increase) decrease in other assets” in operating activities to “other” in investing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted new guidance that changes certain aspects of accounting for share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the standard requires all tax-related cash flows resulting from share-based payments to be reported as operating activities on the consolidated statement of cash flows, and any cash payments made to taxing authorities on an employee’s behalf as financing activities, which the company previously reported as operating activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, $0.4 million was reclassified from “decrease in accounts payable and other accrued liabilities” in operating activities to “other” in financing activities in the company’s consolidated statements of cash flows. Effective January 1, 2017, the company adopted new guidance issued by the FASB which requires companies to include amounts generally described as restricted cash or restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance has been applied on retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the six months ended June 30, 2016, the reclassification in the consolidated statements of cash flows resulted in a $3.1 million reduction to “(increase) decrease in other assets” in operating activities, a $1.3 million increase in “other” in investing activities, a $0.4 million increase in “effect of exchange rate changes on cash, cash equivalents and restricted cash,” a $31.6 million increase in “cash, cash equivalents and restricted cash, beginning of period” and a $30.2 million increase in “cash, cash equivalents and restricted cash, end of period.” In March 2017, the FASB issued new guidance on the presentation of net periodic benefit cost in the income statement. The new guidance requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line items that include service cost and outside the subtotal of operating income. This update is effective for annual periods beginning after December 15, 2017, which for the company is January 1, 2018. Adoption of this new guidance will result in the reclassification of net periodic benefit cost, other than service costs ($42.6 million for the six months ended June 30, 2017), from operating income to non-operating income. There will be no overall impact on the company’s consolidated financial position. In June 2016, the FASB issued new guidance that introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, loans and other financial instruments. This update is effective for annual periods beginning after December 15, 2019, with earlier adoption permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued a new lease accounting standard entitled “Leases.” The new standard is intended to improve financial reporting about leasing transactions. The new rule will require organizations that lease assets, referred to as lessees, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the company is January 1, 2019. Earlier adoption is permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated results of operations and financial position. In 2014, the FASB issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” The objective of the standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. The standard, and its various amendments, is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. Generally the new standard would require the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the current rules would allow. The company will adopt the standard on January 1, 2018 using the modified retrospective method. The company is currently monitoring the impact the adoption of this new standard will have on its consolidated results of operations and financial position and currently does not believe there will be a material impact upon adoption or on a go-forward basis. However, the final impact cannot be determined until the end of 2017 and it will be impacted by transactions entered into during 2017. |
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings (Loss) Per Common Share Attributable to Unisys Corporation | The following table shows how the income (loss) per share attributable to Unisys Corporation was computed for the three and six months ended June 30, 2017 and 2016 (shares in thousands):
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Cost Reduction Actions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individual Components of Work Force Reduction and Idle Lease Cost | Liabilities and expected future payments related to these costs are as follows:
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Pension and Postretirement Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Expense | Net periodic pension expense for the three and six months ended June 30, 2017 and 2016 is presented below:
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Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Expense | Net periodic postretirement benefit expense for the three and six months ended June 30, 2017 and 2016 is presented below:
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Stock Options (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions on Stock Options | For the six months ended June 30, 2016, the fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values:
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Summary of Stock Option Activity | A summary of stock option activity for the six months ended June 30, 2017 follows (shares in thousands):
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Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the six months ended June 30, 2017 follows (shares in thousands):
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operations by Business Segment | A summary of the company’s operations by business segment for the three and six month periods ended June 30, 2017 and 2016 is presented below:
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Reconciliation of Segment Operating Income to Consolidated Loss Before Income Taxes | Presented below is a reconciliation of total business segment operating income to consolidated income (loss) before income taxes:
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Customer Revenue by Classes of Similar Products or Services | Customer revenue by classes of similar products or services, by segment, is presented below:
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Revenue by Geographic Segment | Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss as of December 31, 2016 and June 30, 2017 is as follows:
|
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Amounts Reclassified Out of Accumulated Other Comprehensive Income | Amounts reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2017 and 2016 are as follows:
|
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Noncontrolling Interests | Noncontrolling interests as of December 31, 2016 and June 30, 2017 are as follows:
|
Supplemental Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
|
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Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.
|
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Long-term Debt | Long-term debt is comprised of the following:
|
Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the six months ended June 30, 2017 was as follows:
|
Earnings Per Share - Computation of Loss Per Common Share Attributable to Unisys Corporation (Detail) - USD ($) $ / shares in Units, shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Basic earnings (loss) per common share computation: | ||||
Net income (loss) attributable to Unisys Corporation | $ (42,000,000) | $ 21,600,000 | $ (74,700,000) | $ (18,300,000) |
Weighted average shares (in shares) | 50,437 | 50,069 | 50,346 | 50,036 |
Basic earnings (loss) per common share (in dollars per share) | $ (0.83) | $ 0.43 | $ (1.48) | $ (0.37) |
Diluted earnings (loss) per common share computation: | ||||
Net income (loss) attributable to Unisys Corporation | $ (42,000,000) | $ 21,600,000 | $ (74,700,000) | $ (18,300,000) |
Add interest expense on convertible notes, net of tax of zero | 0 | 4,500,000 | 0 | 0 |
Interest expense on convertible notes, tax | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Unisys Corporation for diluted earnings per share | $ (42,000,000) | $ 26,100,000 | $ (74,700,000) | $ (18,300,000) |
Weighted average shares (in shares) | 50,437 | 50,069 | 50,346 | 50,036 |
Plus incremental shares from assumed conversions: | ||||
Employee stock plans (in shares) | 0 | 167 | 0 | 0 |
Convertible notes (in shares) | 0 | 21,550 | 0 | 0 |
Adjusted weighted average shares (in shares) | 50,437 | 71,786 | 50,346 | 50,036 |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.83) | $ 0.36 | $ (1.48) | $ (0.37) |
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Stock options and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 3,517 | 3,684 |
5.50% Convertible Senior Notes due 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 21,868 | 12,593 |
Convertible senior notes interest rate | 5.50% |
Cost Reduction Actions - Additional Information (Detail) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
employee
|
Jun. 30, 2016
USD ($)
employee
|
Jun. 30, 2017
USD ($)
employee
|
Jun. 30, 2016
USD ($)
employee
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated pretax restructuring charges | $ 300.0 | |||||
Restructuring charges | $ 27.5 | $ 10.2 | $ 52.9 | $ 37.1 | $ 82.1 | $ 118.5 |
Severance costs | 24.2 | 6.5 | 36.7 | 28.6 | ||
Other expenses related to the cost reduction effort | 3.3 | 3.7 | 16.2 | 8.5 | ||
Cost of Revenue | Services | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 19.1 | 5.1 | 27.6 | 16.6 | ||
Cost of Revenue | Technology | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0.4 | 0.4 | ||||
Selling, general and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 8.2 | 5.5 | 19.5 | 18.8 | ||
Research and development expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0.4 | 0.3 | 1.7 | |||
Other income (expense), net | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | (0.2) | 5.1 | ||||
Idle leased facilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 2.9 | |||||
Other expenses related to the cost reduction effort | 2.9 | |||||
Contract amendment and termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other expenses related to the cost reduction effort | 1.9 | 5.2 | ||||
Professional fees and other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other expenses related to the cost reduction effort | 1.6 | 3.0 | ||||
Foreign currency translation adjustment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other expenses related to the cost reduction effort | (0.2) | 5.1 | ||||
Foreign currency translation adjustment | Other income (expense), net | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | (0.2) | 5.1 | ||||
United States | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 4.8 | $ 1.2 | $ 5.3 | $ 5.4 | ||
Number of employees | employee | 369 | 69 | 414 | 244 | ||
United States | Changes in estimates | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ (0.1) | $ (0.2) | ||||
Non-US | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 19.8 | $ 5.3 | $ 24.0 | $ 23.2 | ||
Number of employees | employee | 301 | 262 | 376 | 599 | ||
Non-US | Changes in estimates | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ (0.3) | $ (0.6) | ||||
Non-US | Additional benefits provided in 2017 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 8.2 |
Cost Reduction Actions - Individual Components of Work Force Reduction and Idle Lease Cost (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Reserve [Roll Forward] | |||||||
Additional provisions | $ 27.5 | $ 10.2 | $ 52.9 | $ 37.1 | $ 82.1 | $ 118.5 | |
Total | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance at beginning of period | $ 67.2 | 36.6 | |||||
Additional provisions | 40.4 | ||||||
Payments | (12.9) | ||||||
Changes in estimates | (0.8) | ||||||
Translation adjustments | 3.9 | ||||||
Balance at end of period | 67.2 | 67.2 | 36.6 | ||||
Total | Forecast | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Payments | (29.3) | ||||||
Expected future utilization on balance at June 30, 2017 | 37.9 | ||||||
Work-Force Reductions | United States | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance at beginning of period | 5.2 | 1.8 | |||||
Additional provisions | 5.3 | ||||||
Payments | (1.7) | ||||||
Changes in estimates | (0.2) | ||||||
Translation adjustments | 0.0 | ||||||
Balance at end of period | 5.2 | 5.2 | 1.8 | ||||
Work-Force Reductions | United States | Forecast | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Payments | (5.2) | ||||||
Expected future utilization on balance at June 30, 2017 | 0.0 | ||||||
Work-Force Reductions | International | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance at beginning of period | 58.2 | 33.4 | |||||
Additional provisions | 32.2 | ||||||
Payments | (10.5) | ||||||
Changes in estimates | (0.6) | ||||||
Translation adjustments | 3.7 | ||||||
Balance at end of period | 58.2 | 58.2 | 33.4 | ||||
Work-Force Reductions | International | Forecast | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Payments | (23.3) | ||||||
Expected future utilization on balance at June 30, 2017 | 34.9 | ||||||
Idle Leased Facilities Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance at beginning of period | 3.8 | 1.4 | |||||
Additional provisions | 2.9 | ||||||
Payments | (0.7) | ||||||
Changes in estimates | 0.0 | ||||||
Translation adjustments | 0.2 | ||||||
Balance at end of period | $ 3.8 | $ 3.8 | $ 1.4 | ||||
Idle Leased Facilities Costs | Forecast | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Payments | (0.8) | ||||||
Expected future utilization on balance at June 30, 2017 | $ 3.0 |
Pension and Postretirement Benefits - Components of Net Periodic Benefit Expense (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.6 | $ 2.1 | $ 3.2 | $ 3.9 |
Interest cost | 70.9 | 81.4 | 140.8 | 161.9 |
Expected return on plan assets | (90.1) | (100.0) | (179.5) | (199.4) |
Amortization of prior service benefit | (1.2) | (1.4) | (2.5) | (2.8) |
Recognized net actuarial loss | 45.3 | 39.4 | 89.0 | 78.2 |
Curtailment gain | (5.2) | 0.0 | (5.2) | 0.0 |
Net periodic pension/postretirement benefit expense | 21.3 | 21.5 | 45.8 | 41.8 |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest cost | 53.2 | 58.1 | 105.7 | 115.7 |
Expected return on plan assets | (58.8) | (63.2) | (117.6) | (126.6) |
Amortization of prior service benefit | (0.7) | (0.7) | (1.3) | (1.3) |
Recognized net actuarial loss | 32.3 | 29.3 | 63.2 | 58.0 |
Curtailment gain | 0.0 | 0.0 | 0.0 | 0.0 |
Net periodic pension/postretirement benefit expense | 26.0 | 23.5 | 50.0 | 45.8 |
International Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.6 | 2.1 | 3.2 | 3.9 |
Interest cost | 17.7 | 23.3 | 35.1 | 46.2 |
Expected return on plan assets | (31.3) | (36.8) | (61.9) | (72.8) |
Amortization of prior service benefit | (0.5) | (0.7) | (1.2) | (1.5) |
Recognized net actuarial loss | 13.0 | 10.1 | 25.8 | 20.2 |
Curtailment gain | (5.2) | 0.0 | (5.2) | 0.0 |
Net periodic pension/postretirement benefit expense | (4.7) | (2.0) | (4.2) | (4.0) |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.2 | 0.2 |
Interest cost | 1.5 | 1.6 | 3.0 | 3.2 |
Expected return on plan assets | (0.1) | (0.1) | (0.2) | (0.2) |
Amortization of prior service benefit | (0.1) | 0.0 | (0.2) | 0.0 |
Recognized net actuarial loss | 0.3 | 0.3 | 0.6 | 0.6 |
Net periodic pension/postretirement benefit expense | $ 1.7 | $ 1.9 | $ 3.4 | $ 3.8 |
Pension and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash contributions, pension plans | $ 71.2 | $ 64.1 | $ 132.5 |
Cash contributions, other postretirement benefit plans | 5.0 | $ 5.4 | $ 13.6 |
Pension Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2017 | 141.0 | ||
U.S. Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2017 | 54.4 | ||
International Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2017 | 86.6 | ||
Other Postretirement Benefit Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2017 | $ 13.0 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Fair Value Measurements [Line Items] | |||
Maturity period limit of foreign currency exchange instruments (in months) | 3 months | ||
Net fair value gain (loss) on foreign exchange forward contracts | $ 7.1 | $ (17.3) | |
Senior Secured Notes due 2022 | |||
Fair Value Measurements [Line Items] | |||
Fair value of long-term debt | 481.8 | ||
Convertible Senior Notes Due 2021 | |||
Fair Value Measurements [Line Items] | |||
Fair value of long-term debt | 318.9 | $ 379.8 | |
Senior Notes due 2017 | |||
Fair Value Measurements [Line Items] | |||
Fair value of long-term debt | $ 97.8 | ||
Other Income (Expense), Net | |||
Fair Value Measurements [Line Items] | |||
Gain (loss) on foreign exchange forward contracts | 21.5 | (14.1) | |
Prepaid Expenses and Other Current Assets | |||
Fair Value Measurements [Line Items] | |||
Net fair value gain (loss) on foreign exchange forward contracts | 8.6 | 1.9 | |
Other Accrued Liabilities | |||
Fair Value Measurements [Line Items] | |||
Net fair value gain (loss) on foreign exchange forward contracts | (1.5) | (19.2) | |
Foreign Exchange Contract | |||
Fair Value Measurements [Line Items] | |||
Notional amount of foreign exchange forward contracts not designated as hedging instruments | $ 408.0 | $ 473.8 |
Stock Options - Additional Information (Detail) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unissued common stock available for grant under the plans (in shares) | 3,100,000 | |
Granted (in shares) | 0 | |
Share-based compensation expense | $ 6,200,000 | $ 5,300,000 |
Proceeds from exercise of stock options | $ 0 | 0 |
Performance-Based Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals (in shares) | 0 | |
Performance-Based Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals (in shares) | 2.0 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 5,600,000 | 4,300,000 |
Total unrecognized compensation cost | $ 14,700,000 | |
Unrecognized compensation cost, Weighted-average recognition period | 2 years 3 months 19 days | |
Aggregate weighted-average grant-date fair value of units granted | $ 13,700,000 | 12,500,000 |
Aggregate weighted-average grant-date fair value of units vested | $ 7,200,000 | 3,400,000 |
Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Share-based compensation expense | $ 600,000 | 1,000,000 |
Total intrinsic value of options exercised | 0 | $ 0 |
Total unrecognized compensation cost | $ 700,000 | |
Unrecognized compensation cost, Weighted-average recognition period | 1 year |
Stock Options - Fair Value Assumptions on Stock Option (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average fair value of grant (in dollars per share) | $ 4.53 |
Risk-free interest rate | 1.29% |
Expected volatility | 51.30% |
Expected life of options in years | 4 years 10 months 24 days |
Expected dividend yield | 0.00% |
Stock Options - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
$ / shares
shares
| |
Shares | |
Granted (in shares) | 0 |
Employee Stock Options | |
Shares | |
Outstanding at beginning of period (in shares) | 2,099,000 |
Granted (in shares) | 0 |
Exercised (in shares) | (1,000) |
Forfeited and expired (in shares) | (306,000) |
Outstanding at end of period (in shares) | 1,792,000 |
Expected to vest at end of period (in shares) | 211,000 |
Exercisable at end of period (in shares) | 1,574,000 |
Weighted- Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 25.41 |
Granted (in dollars per share) | $ / shares | 0.00 |
Exercised (in dollars per share) | $ / shares | 10.65 |
Forfeited and expired (in dollars per share) | $ / shares | 20.04 |
Outstanding at end of period (in dollars per share) | $ / shares | 26.33 |
Expected to vest at end of period (in dollars per share) | $ / shares | 22.72 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 26.84 |
Weighted- Average Remaining Contractual Term (years) | |
Outstanding at end of period | 2 years 1 month 2 days |
Expected to vest at end of period | 4 years |
Exercisable at end of period | 1 year 9 months 25 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 0.0 |
Expected to vest at end of period | $ | 0.0 |
Exercisable at end of period | $ | $ 0.0 |
Stock Options - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2017
$ / shares
shares
| |
Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 1,454 |
Granted (in shares) | shares | 977 |
Vested (in shares) | shares | (544) |
Forfeited and expired (in shares) | shares | (162) |
Outstanding at end of period (in shares) | shares | 1,725 |
Weighted- Average Grant-Date Fair Value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 12.68 |
Granted (in dollars per share) | $ / shares | 14.06 |
Vested (in dollars per share) | $ / shares | 13.30 |
Forfeited and expired (in dollars per share) | $ / shares | 11.41 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 13.46 |
Segment Information - Additional Information (Detail) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
Segment
|
Jun. 30, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of business segments | Segment | 2 | |||
Operating profit (loss) | $ (24.8) | $ 49.5 | $ (27.5) | $ 21.9 |
Other Technology | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss) | $ 0.9 | $ 0.4 | $ 1.0 | $ 0.5 |
Segment Information - Summary of Operations by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 666.2 | $ 748.9 | $ 1,330.7 | $ 1,415.7 |
Operating income (loss) | (24.8) | 49.5 | (27.5) | 21.9 |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 574.8 | 613.8 | 1,160.1 | 1,208.9 |
Operating income (loss) | (9.4) | 12.7 | 17.9 | 16.7 |
Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 91.4 | 135.1 | 170.6 | 206.8 |
Operating income (loss) | 34.4 | 67.6 | 47.4 | 81.7 |
Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (5.4) | (5.9) | (10.7) | (11.5) |
Intersegment | Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0.0 | 0.0 | 0.0 | 0.0 |
Intersegment | Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5.4 | 5.9 | 10.7 | 11.5 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 25.0 | 80.3 | 65.3 | 98.4 |
Operating Segments | Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 574.8 | 613.8 | 1,160.1 | 1,208.9 |
Operating Segments | Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 96.8 | 141.0 | 181.3 | 218.3 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (5.4) | (5.9) | (10.7) | (11.5) |
Operating income (loss) | $ (49.8) | $ (30.8) | $ (92.8) | $ (76.5) |
Segment Information - Reconciliation of Segment Operating Income to Consolidated Loss Before Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating profit (loss) | $ (24.8) | $ 49.5 | $ (27.5) | $ 21.9 | ||
Interest expense | (14.3) | (7.8) | (20.0) | (12.2) | ||
Other income (expense), net | (3.2) | 2.6 | (11.6) | 1.4 | ||
Cost reduction charges | (27.5) | (10.2) | (52.9) | (37.1) | $ (82.1) | $ (118.5) |
Total income (loss) before income taxes | (42.3) | 44.3 | (59.1) | 11.1 | ||
Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating profit (loss) | 25.0 | 80.3 | 65.3 | 98.4 | ||
Segment Reconciling Items | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Cost reduction charges | (27.7) | (10.2) | (47.8) | (37.1) | ||
Corporate and eliminations | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Operating profit (loss) | (22.1) | $ (20.6) | (45.0) | $ (39.4) | ||
Other income (expense), net | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Cost reduction charges | 0.2 | (5.1) | ||||
Other income (expense), net | Foreign currency translation adjustment | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Cost reduction charges | $ 0.2 | $ (5.1) |
Segment Information - Customer Revenue by Classes of Similar Products or Services (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenue from External Customer [Line Items] | ||||
Revenues | $ 666.2 | $ 748.9 | $ 1,330.7 | $ 1,415.7 |
Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 574.8 | 613.8 | 1,160.1 | 1,208.9 |
Technology | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 91.4 | 135.1 | 170.6 | 206.8 |
Cloud & infrastructure services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 326.9 | 340.0 | 662.2 | 675.9 |
Application services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 196.4 | 220.4 | 397.9 | 431.0 |
Business process outsourcing services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 51.5 | $ 53.4 | $ 100.0 | $ 102.0 |
Segment Information - Revenue, Properties and Outsourcing Assets by Geographic Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 666.2 | $ 748.9 | $ 1,330.7 | $ 1,415.7 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 308.5 | 348.4 | 642.3 | 679.3 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 66.6 | 109.3 | 145.5 | 191.3 |
Other foreign | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 291.1 | $ 291.2 | $ 542.9 | $ 545.1 |
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (1,647.4) | |||
Other comprehensive income before reclassifications | 12.5 | |||
Amounts reclassified from accumulated other comprehensive income | $ 38.0 | $ 36.5 | 72.9 | $ 72.3 |
Current period other comprehensive income | 85.4 | |||
Ending balance | (1,630.1) | (1,630.1) | ||
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,152.8) | |||
Ending balance | (4,067.4) | (4,067.4) | ||
Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (927.1) | |||
Other comprehensive income before reclassifications | 74.2 | |||
Amounts reclassified from accumulated other comprehensive income | (5.1) | |||
Current period other comprehensive income | 69.1 | |||
Ending balance | (858.0) | (858.0) | ||
Postretirement Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (3,225.7) | |||
Other comprehensive income before reclassifications | (61.7) | |||
Amounts reclassified from accumulated other comprehensive income | 78.0 | |||
Current period other comprehensive income | 16.3 | |||
Ending balance | $ (3,209.4) | $ (3,209.4) |
Accumulated Other Comprehensive Income - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense), net | $ (3.2) | $ 2.6 | $ (11.6) | $ 1.4 |
Total reclassification for the period | 38.0 | 36.5 | 72.9 | 72.3 |
Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassification for the period | (5.1) | |||
Amortization of prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of postretirement plan items, before tax | (1.4) | (1.4) | (2.8) | (2.8) |
Amortization of actuarial losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of postretirement plan items, before tax | 44.9 | 39.4 | 88.2 | 78.0 |
Curtailment gain | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of postretirement plan items, before tax | (5.2) | 0.0 | (5.2) | 0.0 |
Postretirement Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of postretirement plan items, before tax | 38.5 | 38.0 | 75.1 | 75.2 |
Income tax benefit | (0.5) | (1.5) | (2.2) | (2.9) |
Total reclassification for the period | 78.0 | |||
Adjustment for substantial completion of liquidation of foreign subsidiaries | Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense), net | $ 0.2 | $ 0.0 | $ (5.1) | $ 0.0 |
Accumulated Other Comprehensive Income - Noncontrolling Interests (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ (16.4) | |||
Net income | $ 3.5 | $ 3.9 | 6.5 | $ 5.1 |
Translation adjustments | 4.7 | |||
Postretirement plans | (4.3) | |||
Ending balance | $ (9.5) | $ (9.5) |
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
[2] | Dec. 31, 2015 |
[2] | |||||
---|---|---|---|---|---|---|---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | |||||||||||
Cash and cash equivalents | $ 571.1 | $ 370.6 | |||||||||
Restricted cash | 19.1 | 30.5 | [1] | ||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 590.2 | $ 401.1 | $ 493.8 | $ 396.8 | |||||||
|
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid, net of refunds | $ 23.7 | $ 24.5 |
Cash paid for interest | $ 10.5 | $ 7.2 |
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions |
1 Months Ended | 115 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2007
EUR (€)
|
Jul. 31, 2011
USD ($)
|
Jun. 30, 2017
USD ($)
|
Apr. 30, 2008
EUR (€)
|
|
Loss Contingencies [Line Items] | ||||
Amount related to unreserved tax-related matters, inclusive of interest | $ | $ 129 | |||
Ministry of Justice of Belgium | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | € | € 28.0 | |||
Counterclaim against termination of contract | € | € 18.5 | |||
Pharmaceutical Claims | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | $ | $ 68 |
Income Taxes (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Expected refund in 2017 | $ 9.0 |
Expected refunds in future periods | 11.0 |
Tax benefit due to release of a portion of valuation allowance previously offsetting deferred tax assets associated with existing AMT credit carryforwards | $ 20.0 |
Accounting Standards - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) in operating activities, (Increase) decrease in other assets | $ 1.1 | $ (6.2) | [1] | |||
Increase (decrease) in other investing activities | 0.3 | 0.2 | [1] | |||
Reclassification from operating activities, Decrease in accounts payable and other accrued liabilities | (28.3) | (35.6) | [1] | |||
Increase (decrease) in other financing activities | (2.1) | (0.4) | [1] | |||
Increase in effect of exchange rate changes on cash, cash equivalents and restricted cash | 12.8 | 0.1 | [1] | |||
Cash, cash equivalents and restricted cash, beginning of period | 401.1 | 396.8 | [1] | |||
Cash, cash equivalents and restricted cash, end of period | 590.2 | 493.8 | [1] | |||
Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification from operating activities, Decrease in accounts payable and other accrued liabilities | 0.4 | |||||
Increase (decrease) in other financing activities | (0.4) | |||||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net periodic benefit cost, other than service cost | $ 42.6 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-15 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) in operating activities, (Increase) decrease in other assets | 0.8 | |||||
Increase (decrease) in other investing activities | (0.8) | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase (decrease) in operating activities, (Increase) decrease in other assets | (3.1) | |||||
Increase (decrease) in other investing activities | 1.3 | |||||
Increase in effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.4 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 31.6 | |||||
Cash, cash equivalents and restricted cash, end of period | $ 30.2 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accumulated Deficit | Accounting Standards Update 2016-16 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative-effect adjustment | $ 4.4 | |||||
|
Debt - Schedule of Components of Long-term Debt (Details) - USD ($) |
Jun. 30, 2017 |
May 08, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Other debt | $ 21,500,000 | $ 16,100,000 | |
Total | 641,100,000 | 300,000,000 | |
Less – current maturities | 11,300,000 | 106,000,000 | |
Total long-term debt | 629,800,000 | 194,000,000 | |
Senior Notes | 10.75% senior notes due April 15, 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 428,500,000 | 0 | |
Interest rate | 10.75% | ||
Face value | $ 440,000,000 | ||
Unamortized discount and fees | 11,500,000 | ||
Senior Notes | 5.50% convertible senior notes due March 1, 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 182,600,000 | 179,100,000 | |
Interest rate | 5.50% | ||
Face value | $ 213,500,000 | 213,500,000 | |
Unamortized discount and fees | 30,900,000 | 34,400,000 | |
Senior Notes | 6.25% senior notes | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 0 | 94,700,000 | |
Interest rate | 6.25% | 6.25% | |
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Capital leases | $ 8,500,000 | $ 10,100,000 |
Debt - Additional Information (Detail) |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 17, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
May 08, 2017 |
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | |||||||
Charge recognized as a result of redemption | $ 1,500,000 | $ 0 | |||||
Senior Secured Notes Due 2022 | Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 440,000,000 | ||||||
Interest rate | 10.75% | ||||||
Redemption price, percent of principal amount of notes redeemed | 100.00% | ||||||
Percent of notes with option to redeem | 35.00% | ||||||
Redemption price, percentage of principal amount | 110.75% | ||||||
Redemption price if required collateral coverage ratio not met, percentage of principal amount | 100.00% | ||||||
Minimum collateral coverage ratio | 1.5 | ||||||
Collateral coverage ratio, amount added to cash and cash equivalents | 4.75 | ||||||
Collateral coverage ratio, multiplier for Average Grantor EBITDA for seven most recent fiscal quarters | 4 | ||||||
Period to redeem notes without default if required collateral coverage ratio not met | 90 days | ||||||
Redemption price if company experiences change of control, percent of principal amount | 101.00% | ||||||
Senior Notes Due 2017 | Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.25% | 6.25% | 6.25% | ||||
Charge recognized as a result of redemption | $ 1,500,000 | ||||||
Premium and expenses paid for redemption of debt | 1,300,000 | ||||||
Write off of unamortized discount and fees related to the portion of the notes redeemed | 200,000 | ||||||
Convertible Senior Notes Due 2021 | Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 213,500,000 | $ 213,500,000 | $ 213,500,000 | ||||
Interest rate | 5.50% | 5.50% | |||||
Interest expense, debt | $ 4,700,000 | $ 4,500,000 | $ 9,400,000 | 5,200,000 | |||
Contractual interest coupon | 2,900,000 | 2,900,000 | 5,900,000 | 3,400,000 | |||
Amortization of debt discount | 1,500,000 | 1,300,000 | 2,900,000 | 1,500,000 | |||
Amortization of debt issuance costs | $ 300,000 | $ 300,000 | $ 600,000 | $ 300,000 |
Goodwill (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 180.0 | $ 178.6 |
Services | ||
Goodwill [Line Items] | ||
Goodwill | 71.3 | $ 69.9 |
Business process outsourcing services | Services | ||
Goodwill [Line Items] | ||
Goodwill | $ 10.7 |
Goodwill - Schedule of Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 178.6 |
Translation adjustments | 1.4 |
Ending balance | 180.0 |
Services | |
Goodwill [Roll Forward] | |
Beginning balance | 69.9 |
Translation adjustments | 1.4 |
Ending balance | 71.3 |
Technology | |
Goodwill [Roll Forward] | |
Beginning balance | 108.7 |
Translation adjustments | 0.0 |
Ending balance | $ 108.7 |
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