Cost-Reduction Actions

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

During the three months ended March 31, 2020, the company recognized cost-reduction charges and other costs of $27.5 million. The charges related to work-force reductions were $8.5 million, principally related to severance costs, and were comprised of: (a) a charge of $2.3 million for 67 employees for the U.S. and (b) a charge of $7.4 million for 223 employees and $(1.2) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.0 million for net foreign currency losses related to exiting foreign countries. The charges were recorded in the following statement of income classifications: cost of revenue - services, $5.9 million; selling, general and administrative expenses, $2.5 million; research and development expenses, $0.1 million; and other income (expense), net, $19.0 million.

During the three months ended March 31, 2019, the company recognized cost-reduction charges and other costs of $2.6 million. Charges were comprised of $3.5 million for lease abandonment and asset write-offs and $(0.9) million for changes in estimates principally related to work-force reductions. The charges were recorded in the following statement of income classifications: cost of revenue - services, $(3.7) million; selling, general and administrative expenses, $5.0 million; and research and development expenses, $1.3 million.

Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:



	Total			U.S.			International
Balance at December 31, 2019	$	49.8		$	5.2		$	44.6
Additional provisions	9.7			2.3			7.4
Payments	(8.6		)	(0.5		)	(8.1		)
Changes in estimates	(1.2		)	—			(1.2		)
Translation adjustments	(1.2		)	—			(1.2		)
Balance at March 31, 2020	$	48.5		$	7.0		$	41.5
Expected future utilization on balance at March 31, 2020:
2020 remaining nine months	$	41.4		$	6.8		$	34.6
Beyond 2020	$	7.1		$	0.2		$	6.9