Basis of Presentation and Significant Accounting Policies

Basis of Presentation

These unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company's 2015 Annual Report on Form 10-K. Accordingly, significant accounting policies and other disclosures normally provided have been reduced or omitted. The preparation of the consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Estimates have been prepared on the basis of the most current and best available information, but actual results could differ materially from those estimates. Intercompany transactions have been eliminated in the consolidated financial statements. Where the presentation of these intercompany eliminations differs between the consolidated and reportable segment financial statements, reconciliations of certain line items are provided. The results of operations of acquired companies are included in the Company’s results from the closing date of the acquisition and forward. Income or loss attributable to noncontrolling interests is deducted from net income/loss to determine net income/loss attributable to common shareholders.

Significant Accounting Policies

Other Current Assets

The following table outlines the Company’s other current assets:



(Dollars in millions)	March 31, 2016		December 31, 2015
Prepaid expenses	$	180.2	$	142.3
Value-added tax and income tax receivables	111.7		115.8
Miscellaneous receivables	95.1		50.5
Inventory	50.6		48.9
Fixed assets held for sale	18.4		—
Other current assets	41.0		43.5
Total Other Current Assets	$	497.0	$	401.0

Intangible Assets with Definite Lives

The Company’s intangible assets subject to amortization consist of customer relationships, trade names, non-compete agreements, and other intangibles. Customer relationships are amortized on an accelerated basis over the period of economic benefit based on the estimated cash flows attributable to the related intangible asset or on a straight-line basis over the useful lives of the related intangible asset. Trade names are amortized on an accelerated basis over the period of economic benefit based on the estimated cash flows attributable to the related intangible assets. Non-compete agreements and other intangibles are amortized on a straight-line basis over the estimated useful lives of the related intangible asset. The range of estimated useful lives and the weighted-average useful lives of the respective intangible assets by type are as follows:



Classification	Estimated Useful Life	Weighted-Average Amortization Period
Customer relationships	1.5 to 16 years	13.33 years
Trade names	1.2 to 3.5 years	2.86 years
Non-compete agreements	Term of agreement	4.57 years
Other intangible assets	1.5 to 5 years	4.24 years

For additional information refer to Note 7—Intangible Assets.

Accrued Expenses

The following table outlines the Company’s accrued expenses:



(Dollars in millions)	March 31, 2016		December 31, 2015
Accrued salaries and wages	$	503.3	$	558.6
Accrued transportation and facility charges	173.2		156.1
Accrued value-added tax and other taxes	169.1		153.3
Accrued insurance claims	107.8		95.3
Accrued estimated litigation liabilities	84.2		66.1
Accrued interest	74.2		56.8
Accrued purchased services	45.1		42.0
Accrued short-term restructuring costs	44.1		46.8
Accrued cash-settled restricted stock	18.6		19.3
Other accrued expenses	132.7		97.5
Total Accrued Expenses	$	1,352.3	$	1,291.8

Other Current Liabilities

The following table outlines the Company’s other current liabilities:



(Dollars in millions)	March 31, 2016		December 31, 2015
Deferred revenue	$	52.9	$	62.4
Bank overdrafts	48.8		29.5
Employee benefits	35.4		38.7
Acquisition earn-out liability	21.8		21.8
Litigation costs	17.4		22.1
Income taxes payable	13.9		—
Current portion of interest rate swap liability	4.9		5.2
Other current liabilities	33.5		23.9
Total Other Current Liabilities	$	228.6	$	203.6

Fair Value Measurements

FASB ASC Topic 820, "Fair Value Measurements and Disclosures," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and classifies the inputs used to measure fair value into the following hierarchy:


•	Level 1—Quoted prices for identical instruments in active markets;


•	Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and


•	Level 3—Valuations based on inputs that are unobservable, generally utilizing pricing models or other valuation techniques that reflect management’s judgment and estimates.

The aggregate net fair value estimates are based upon certain market assumptions and pertinent information available to management. The respective carrying value of certain financial instruments approximated their fair values as of March 31, 2016 and December 31, 2015, respectively. These financial instruments include cash, accounts receivable, accounts payable, accrued expenses and current maturities of long-term debt. Fair values approximate carrying values for these financial instruments since they are short-term in nature and are receivable or payable on demand. The fair value of the asset financing arrangements ("Asset Financing") approximates carrying value since the debt is primarily issued at a floating rate, may be prepaid any time at par without penalty and the remaining life is short-term in nature.

Cash equivalents consist of short-term interest-bearing instruments (primarily commercial paper, certificates of deposit and money market funds) with maturities of three months or less at the date of purchase. The carrying amounts for money market funds are a reasonable estimate of fair value and quoted market prices are available, and accordingly, are classified as Level 1 instruments. Commercial paper and certificates of deposit are generally valued using published interest rates for instruments with similar terms and maturities, and accordingly, are classified as Level 2 instruments. The fair value of the Company's Senior Notes due 2022, Senior Notes due 2019, Senior Notes due 2018 (collectively described as the “Senior Notes” when referring to the Senior Notes due 2018, Senior Notes due 2019, Senior Notes due 2021, and Senior Notes due 2022), Senior Debentures due 2034 (the “Senior Debentures”), and the 4.50% Convertible Senior Notes due October 1, 2017 (the “Convertible Notes”) was estimated using quoted market prices for identical instruments in active markets. The fair value of the Company's Term Loan Facility (the “Term Loan Facility”), Senior Notes due 2021 and Euro private placement notes due 2020 (the “Euro Private Placement Notes”) was estimated using inputs that are readily available market inputs for long-term debt with similar terms and maturities. The Company's derivative instruments include over-the-counter derivatives that are primarily valued using models that rely on observable market inputs, such as currency exchange rates and yield curves. For additional information refer to Note 12—Derivative Instruments.

The following table summarizes the carrying value and valuation of financial instruments within the fair value hierarchy:



	March 31, 2016
(Dollars in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash equivalents	$	93.3	$	93.3	$	29.6	$	63.7	$	—
Financial Liabilities:
Senior Notes due 2022	1,577.7		1,568.0		1,568.0		—		—
Senior Notes due 2021	561.5		541.5		—		541.5		—
Senior Notes due 2019	900.3		936.0		936.0		—		—
Senior Notes due 2018	268.0		272.1		272.1		—		—
Term loan facility	1,537.9		1,600.0		—		1,600.0		—
Senior Debentures due 2034	199.5		219.0		219.0		—		—
Convertible senior notes	47.5		98.9		98.9		—		—
Euro private placement notes due 2020	15.0		14.9		—		14.9		—
Derivative instruments	42.8		42.8		—		42.8		—

	December 31, 2015
(Dollars in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash equivalents	$	83.2	$	83.2	$	9.1	$	74.1	$	—
Financial Liabilities:
Senior Notes due 2022	1,577.0		1,479.8		1,479.8		—		—
Senior Notes due 2021	536.6		507.5		—		507.5		—
Senior Notes due 2019	900.4		920.3		920.3		—		—
Senior Notes due 2018	268.2		271.0		—		271.0		—
Term loan facility	1,540.3		1,590.0		—		1,590.0		—
Senior Debentures due 2034	199.0		201.0		—		201.0		—
Convertible senior notes	46.8		89.1		89.1		—		—
Euro private placement notes due 2020	14.5		13.9		—		13.9		—
Derivative instruments	8.8		8.8		—		8.8		—

New Accounting Standards

In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurements (Topic 820): "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." This ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company's adoption of this standard in the first quarter of 2016 had no material impact to the consolidated financial statements and related disclosures.

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): "Simplifying the Accounting for Measurement-Period Adjustments," which simplifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. The standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted this standard in the first quarter of 2016. See Note 3 - Acquisitions for the current-quarter impact.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which clarifies the implementation guidance on principal versus agent considerations. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted for the first interim period within annual reporting periods beginning after December 15, 2016. The Company will adopt this standard in the first quarter of 2018. The Company is currently evaluating the standard and the impact on the consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): "Improvements to Employee Share-based Payment Accounting," which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the standard and the impacts, if any, on its consolidated financial statements and related disclosures.