Cost-Reduction Actions

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

During the three months ended September 30, 2020, the company recognized cost-reduction charges and other costs of $13.2 million. The charges (credits) related to work-force reductions were $0.7 million, principally related to severance costs, and were comprised of: (a) a charge of $2.7 million and (b) a credit of $(2.0) million for changes in estimates. In addition, the company recorded a credit of $(0.6) million for net foreign currency gains related to exiting foreign countries, a charge of $7.5 million for asset impairments and $5.6 million of other expenses. The charges (credits) were recorded in the following statement of income classifications: cost of revenue - services, $2.9 million; selling, general and administrative expenses, $10.8 million; research and development expenses, $0.1 million; and other expense, net, $(0.6) million.

During the three months ended September 30, 2019, the company recognized cost-reduction charges and other costs of $0.2 million. Charges (credits) were comprised of $0.7 million for lease abandonment costs and $(0.5) million for changes in estimates principally related to work-force reductions. The charges (credits) were recorded in the following statement of income classifications: cost of revenue - services, $(1.9) million and selling, general and administrative expenses, $2.1 million.

During the nine months ended September 30, 2020, the company recognized cost-reduction charges and other costs of $48.6 million. The charges related to work-force reductions were $6.2 million, principally related to severance costs, and were comprised of: (a) a charge of $14.0 million and (b) a credit of $(7.8) million for changes in estimates. In addition, the company recorded charges of $17.8 million for net foreign currency losses related to exiting foreign countries, $19.0 million for asset impairments and $5.6 million of other expenses. The charges were recorded in the following statement of income classifications: cost of revenue - services, $15.7 million; selling, general and administrative expenses, $14.8 million; research and development expenses, $0.3 million; and other expense, net, $17.8 million.

During the nine months ended September 30, 2019, the company recognized cost-reduction charges and other costs of $5.4 million. Charges were comprised of $5.0 million for lease abandonment costs and asset write-offs and $0.4 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, $(6.6) million; selling, general and administrative expenses, $10.7 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	14.0		4.0		10.0
Payments	(17.7)		(2.3)		(15.4)
Changes in estimates	(7.8)		—		(7.8)
Translation adjustments	0.7		—		0.7
Balance at September 30, 2020	$	39.0	$	6.9	$	32.1
Expected future utilization on balance at September 30, 2020:
2020 remaining three months	$	9.1	$	5.6	$	3.5
Beyond 2020	$	29.9	$	1.3	$	28.6