Cost-Reduction Actions

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

During the three months ended September 30, 2021, the company recognized cost-reduction charges and other costs of $0.8 million. The charges (credits) related to work-force reductions were $(0.6) million, principally related to severance costs, and were comprised of: (a) a charge of $0.7 million and (b) a credit of $(1.3) million for changes in estimates. In addition, the company recorded net charges (credits) of $1.4 million comprised of a charge of $1.3 million for net foreign currency losses related to exiting foreign countries, a charge of $0.5 million for asset impairments and a credit of $(0.4) million related to other cost-reduction efforts.

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 a charge of $5.6 million of other expenses.

During the nine months ended September 30, 2021, the company recognized cost-reduction charges and other costs of $14.4 million. The charges (credits) related to work-force reductions were $(2.5) million, principally related to severance costs, and were comprised of: (a) a charge of $6.5 million and (b) a credit of $(9.0) million for changes in estimates. In addition, the company recorded charges of $16.9 million comprised of $2.9 million for net foreign currency losses related to exiting foreign countries, $7.3 million for asset impairments and $6.7 million of other expenses related to the cost-reduction effort.

During the nine months ended September 30, 2020, the company recognized cost-reduction charges and other costs of $48.6 million. The charges (credits) 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 (credits) were recorded in the following statement of income classifications:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenue - services	$	(0.2)	$	2.9	$	0.9	$	15.7
Selling, general and administrative	(0.1)		10.8		8.7		14.8
Research and development	(0.2)		0.1		1.9		0.3
Other expense, net	1.3		(0.6)		2.9		17.8
Total	$	0.8	$	13.2	$	14.4	$	48.6

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, 2020	$	55.9	$	13.1	$	42.8
Additional provisions	6.5		4.0		2.5
Payments	(31.8)		(11.8)		(20.0)
Changes in estimates	(9.0)		(0.5)		(8.5)
Translation adjustments	(1.3)		—		(1.3)
Balance at September 30, 2021	$	20.3	$	4.8	$	15.5
Expected future utilization on balance at September 30, 2021:
Short-term	$	17.1	$	4.8	$	12.3
Long-term	$	3.2	$	—	$	3.2