10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number 1-8729

UNISYS CORPORATION

(Exact name of registrant as specified in its charter)

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)

Registrant’s telephone number, including area code: (215) 986-4011

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, par value $.01	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ¨  Yes    ý  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ¨  Yes    ý  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ý  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ý  Yes    ¨  No

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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    ¨  Yes    ý  No

Aggregate market value of the voting and non-voting common equity held by non-affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter: approximately $647.8 million.

The amount shown is based on the closing price of Unisys Common Stock as reported on the New York Stock Exchange composite tape on June 29, 2018. Voting stock beneficially held by officers and directors is not included in the computation. However, Unisys Corporation has not determined that such individuals are “affiliates” within the meaning of Rule 405 under the Securities Act of 1933.

Number of shares of Unisys Common Stock, par value $.01, outstanding as of January 31, 2019: 51,034,601

DOCUMENTS INCORPORATED BY REFERENCE

Portions of Unisys Corporation’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.

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Table of Contents

Part I		Page Number
Item 1.	Business	5
	Executive Officers of the Registrant	8
Item 1A.	Risk Factors	10
Item 1B.	Unresolved Staff Comments	14
Item 2.	Properties	14
Item 3.	Legal Proceedings	14
Item 4.	Mine Safety Disclosures	14
Part II
Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	15
Item 6.	Selected Financial Data	16
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	27
Item 8.	Financial Statements and Supplementary Data	28
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	70
Item 9A.	Controls and Procedures	70
Item 9B.	Other Information	70
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	71
Item 11.	Executive Compensation	71
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	71
Item 13.	Certain Relationships and Related Transactions, and Director Independence	71
Item 14.	Principal Accountant Fees and Services	71
Part IV
Item 15.	Exhibits, Financial Statement Schedules	72
Item 16.	Form 10-K Summary	74
	Signatures	75

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Disclosure Regarding Forward-Looking Statements

In this Annual Report on Form 10-K, we have included information that may constitute “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events and include any statement that does not directly relate to any historical or current fact. Words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “projects” and similar expressions may identify such forward-looking statements.

Factors that could affect our future results include, but are not limited to, the following:

• our ability to improve revenue and margins in our Services business;

• our ability to maintain our installed base and sell new solutions in our Technology business;

• the potential adverse effects of aggressive competition in the information services and technology marketplace;

• our significant pension obligations and required cash contributions and requirements to make additional significant cash contributions to our defined benefit pension plans;

• cybersecurity breaches could result in significant costs and could harm our business and reputation;

• the potential adverse effects of a U.S. Federal government shutdown;

• our ability to effectively anticipate and respond to volatility and rapid technological innovation in our industry;

• our ability to retain significant clients;

• our contracts may not be as profitable as expected or provide the expected level of revenues;

• the risks of doing business internationally when a significant portion of our revenue is derived from international operations;

• our ability to access financing markets;

• our ability to attract, motivate and retain experienced and knowledgeable personnel in key positions;

• 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 business and financial risk in implementing future acquisitions or dispositions;

• the performance and capabilities of third parties with whom we have commercial relationships;

• an involuntary termination of the company’s U.S. qualified defined benefit pension plans;

• the potential for intellectual property infringement claims to be asserted against us or our clients;

• the possibility that legal proceedings could affect our results of operations or cash flow or may adversely affect our business or reputation; and

• the adverse effects of global economic conditions, acts of war, terrorism or natural disasters.

Any forward-looking statement should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. All forward-looking statements rely on assumptions and are subject to risks, uncertainties and other factors that could cause the company’s actual results to differ materially from expectations. Factors that could affect future results include, but are not limited to, those discussed in “Risk Factors” in Part I, Item 1A of this Form 10-K. Any forward-looking statement speaks only as of the date on which that statement is made. Unisys Corporation assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.

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PART I

ITEM 1. BUSINESS

General

Unisys Corporation, a Delaware corporation (“Unisys,” “we,” “our,” or the “company”), is a global information technology (“IT”) company that builds high-performance, security-centric solutions for clients across the Government, Financial Services and Commercial markets. Unisys offerings include security software and services; digital transformation and workplace services; industry applications and services; and innovative software operating environments for high-intensity enterprise computing.

We operate in two business segments – Services and Technology.

Principal Products and Services

We deliver high-performance, security-centric, leveraged services across industries, industry-specific application products and technology solutions worldwide to our primary target markets: Government (the U.S. federal government and other public sector organizations around the world), Commercial (e.g., travel and transportation and life sciences and healthcare) and Financial Services (e.g., commercial and retail banking).

Our solutions are designed to build better outcomes - securely - for our clients, enabling them to:

• Enhance enterprise security;

• Transform core business processes to compete more effectively in their markets;

• Improve user engagement for customers and workers, streamline operations and enhance go-to-market efforts;

• Optimize IT infrastructure to meet digital-business requirements; and

• Simplify management of IT infrastructure and service delivery.

Within Services, our principal solutions include cloud and infrastructure services, application services and business process outsourcing services, each of which is delivered with advanced security built in.

• In cloud and infrastructure services, we help 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.

• In application services, we help clients transform their business processes by developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications.

• In business process outsourcing services, we assume management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs.

In Technology, we design and develop software and offer hardware and other related products to help clients improve security and flexibility, reduce costs and improve the efficiency of their data-center environments. As a pioneer in large-scale computing, we offer deep experience and rich technological capabilities in transaction-intensive, mission-critical operating environments. We provide a range of data-center, infrastructure management and cloud computing offerings to help clients virtualize and automate their data-center environments.

Our Technology products include:

• Unisys ClearPath Forward^®, a secure, scalable software operating environment for high-intensity enterprise computing capable of delivering Unisys security across multiple platforms. The ClearPath Forward operating environment is hardware-independent and provides a tested, integrated stack of software products that run on a range of contemporary, commonly-deployed Intel x86 server platforms and select virtualization environments of the client’s choice.

• Unisys Stealth^® security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure, encrypted channels. Stealth™ establishes irrefutable user authentication, prevents lateral attacker movement and reduces data center, mobile and cloud attack surfaces. Stealth also reduces the cost and complexity of securing information and operation technology such as industrial control systems, allowing organizations to meet compliance and security mandates.

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Our industry application products include solutions that securely help law enforcement agencies solve crime and social services case workers assist families; travel and transportation companies manage freight and distribution; life sciences and healthcare companies manage medical devices; and financial institutions deliver omnichannel banking.

We market our security-centric solutions primarily through a direct sales force. Complementing our direct sales force, we make use of a select group of resellers and alliance partners to market our services and product portfolio. In certain foreign countries, we market primarily through distributors.

Materials

Unisys purchases components and supplies from a number of suppliers around the world. For certain Technology products, we rely on a single or limited number of suppliers, although we make every effort to assure that alternative sources are available if the need arises. The failure of our suppliers to deliver components and supplies in sufficient quantities and in a timely manner could adversely affect our business. For more information on the risks associated with purchasing components and supplies, see “Risk Factors” (Part I, Item 1A of this Form 10-K).

Patents, Trademarks and Licenses

As of January 31, 2019, Unisys owns over 615 active U.S. patents and over 50 active patents granted in twelve non-U.S. jurisdictions. These patents cover systems and methods related to a wide variety of technologies, including, but not limited to, information security, cloud computing, virtualization, database encryption/management and user interfaces. We have granted licenses covering both single patents, and particular groups of patents, to others. Likewise, we have active licensing agreements granting us rights under patents owned by other entities. However, our business is not materially dependent upon any single patent, patent license, or related group thereof.

Unisys also maintains 28 U.S. trademark and service mark registrations, and over 540 additional trademark and service mark registrations in over 80 non-U.S. jurisdictions as of January 31, 2019. These marks are valuable assets used on or in connection with our services and products, and as such are actively monitored, policed and protected by Unisys and its agents.

Seasonality

Our revenue is affected by such factors as the introduction of new services and products, the length of sales cycles and the seasonality of purchases. Seasonality has generally resulted in higher fourth quarter revenues than in other quarters.

Customers

No single client accounted for more than 10% of our revenue in the year ended December 31, 2018. Sales of commercial services and products to various agencies of the U.S. government represented approximately 20% of total consolidated revenue in 2018. For more information on the risks associated with contracting with governmental entities, see “Risk Factors” (Part I, Item 1A of this Form 10-K).

Backlog

In the Services segment, firm order backlog at December 31, 2018 was $4.8 billion, compared to $4.3 billion at December 31, 2017. Approximately $1.9 billion (40%) of 2018 backlog is expected to be converted to revenue in 2019. Although we believe that this backlog is firm, we may, for commercial reasons, allow the orders to be cancelled, with or without penalty. In addition, funded government contracts included in this backlog are generally subject to termination, in whole or part, at the convenience of the government or if funding becomes unavailable. In such cases, we are generally entitled to receive payment for work completed plus allowable termination or cancellation costs.

Because of the relatively short cycle between order and shipment in our Technology segment, we believe that backlog information for this segment is not material to the understanding of our business.

Competition

Our business is affected by rapid change in technology in the information services and technology industries and aggressive competition from many domestic and foreign companies. Principal competitors are systems integrators, consulting and other professional services firms, outsourcing providers, infrastructure services providers, computer hardware manufacturers and software providers. We compete primarily on the basis of service, product performance, technological innovation, and price. We believe that our continued focused investment in engineering and research and development, coupled with our sales and marketing capabilities, will have a favorable impact on our competitive position. For more information on the competitive risks we face, see “Risk Factors” (Part I, Item 1A of this Form 10-K).

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Environmental Matters

Our capital expenditures, earnings and competitive position have not been materially affected by compliance with federal, state and local laws regulating the protection of the environment. Capital expenditures for environmental control facilities are not expected to be material in 2019 and 2020.

Employees

At December 31, 2018, we employed approximately 22,000 employees serving clients around the world.

Available Information

Our Investor web site is located at www.unisys.com/investor. Through our web site, we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after this material is electronically filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). We also make available on our web site our Guidelines on Significant Corporate Governance Issues, the charters of the Audit and Finance Committee, Compensation Committee, and Nominating and Corporate Governance Committee of our board of directors, and our Code of Ethics and Business Conduct. This information is also available in print to stockholders upon request. We do not intend for information on our web site to be part of this Annual Report on Form 10-K.

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EXECUTIVE OFFICERS OF THE REGISTRANT

Information concerning the executive officers of Unisys as of February 15, 2019 is set forth below.

Name	Age	Position with Unisys
Peter A. Altabef	59	Chairman, President and Chief Executive Officer
Katie Ebrahimi	49	Senior Vice President and Chief Human Resources Officer
Vishal Gupta	47	Senior Vice President, Technology, and Chief Technology Officer
Eric Hutto	54	Senior Vice President and President, Enterprise Solutions
Gerald P. Kenney	67	Senior Vice President, General Counsel and Secretary
Venkatapathi R. Puvvada	58	Senior Vice President and President, Unisys Federal
Jeffrey E. Renzi	58	Senior Vice President and President, Global Sales
Ann S. Ruckstuhl	56	Senior Vice President and Chief Marketing Officer
Inder M. Singh	60	Senior Vice President and Chief Financial Officer
Shalabh Gupta	57	Vice President and Treasurer
Michael M. Thomson	50	Vice President and Corporate Controller

There is no family relationship among any of the above-named executive officers. The By-Laws provide that the officers of Unisys shall be elected annually by the Board of Directors and that each officer shall hold office for a term of one year and until a successor is elected and qualified, or until the officer’s earlier resignation or removal.

Mr. Altabef is President and Chief Executive Officer and is a member and Chairman of the Board of Directors. Prior to joining Unisys in 2015, Mr. Altabef was the President and Chief Executive Officer, and a member of the board of directors, of MICROS Systems, Inc. from 2013 through 2014, when MICROS Systems, Inc. was acquired by Oracle Corporation. He previously served as President and Chief Executive Officer of Perot Systems Corporation from 2004 until 2009, when Perot Systems was acquired by Dell, Inc. Thereafter, Mr. Altabef served as President of Dell Services (a unit of Dell Inc.) until his departure in 2011. Mr. Altabef also serves on the President’s National Security Telecommunications Advisory Committee, the Board of Directors of NiSource Inc. and Petrus Trust Company, L.T.A., the Board of the East West Institute and the Board of Advisors of Merit Energy Company, LLC. He previously served as Senior Advisor to 2M Companies, Inc. in 2012, and served as a director of Belo Corporation from 2011 through 2013. Mr. Altabef has been an officer since 2015.

Ms. Ebrahimi has been Senior Vice President and Chief Human Resources Officer since April 2018. Ms. Ebrahimi served as Vice President of Human Resources, Global Delivery at DXC Technology from 2017 to 2018 prior to joining Unisys. From 2015 to 2017, she was Vice President of Human Resources, Enterprise Services, Global Practices & Solutioning for Hewlett-Packard Enterprise. She also served in increasingly senior roles with Cisco Systems, Inc. (2009-2015), Sun Microsystems, Inc. (2000-2009) and McAfee, LLC. Ms. Ebrahimi has been an officer since April 2018.

Mr. Vishal Gupta has been Senior Vice President, Technology, and Chief Technology Officer since July 2018. Prior to joining Unisys, he served as Senior Vice President, Engineering at Symantec Corporation from 2015 to 2018. Prior to his tenure at Symantec, from 2014 to 2015, Mr. Gupta was Chief Product and IoT Officer for Silent Circle, a cybersecurity and privacy company in the mobile communications space. He has also held senior leadership roles with Cisco Systems (2006-2014), Metasolv Software (2002-2006), Nortel Networks (1996-2002) and Mercer Management Consulting (1994-1996). Mr. Gupta has been an officer since July 2018.

Mr. Hutto has been Senior Vice President and President, Enterprise Solutions since 2015, after joining Unisys earlier in that year as Vice President and General Manager, U.S. and Canada, Enterprise Solutions. Prior to joining Unisys, Mr. Hutto held senior leadership positions with Dell Services (a unit of Dell Inc.) (2006-2015), serving most recently as Global Vice President/General Manager, Infrastructure, Cloud and Consulting and Vice President/General Manager, Americas. Mr. Hutto has been an officer since 2015.

Mr. Kenney has been Senior Vice President, General Counsel and Secretary since 2013. Prior to joining Unisys, he had been with NEC Corporation of America, the North American subsidiary of global technology company NEC Corporation, since 1999, serving most recently as Senior Vice President, General Counsel and Corporate Secretary (2004-2013). Mr. Kenney has been an officer since 2013.

Mr. Puvvada has been Senior Vice President and President, Federal Systems since 2015. Mr. Puvvada had been serving as acting President of Federal Systems since 2014. Prior to that time, he served as group Vice President for the Unisys federal civilian agency business since 2010. From 2005 to 2010, he was Managing Partner and Chief Technology Officer for Unisys Federal Systems. Previously, Mr. Puvvada held various management positions since joining Unisys in 1992. Mr. Puvvada has been an officer since 2015.

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Mr. Renzi has been Senior Vice President and President, Global Sales since 2014. Prior to joining Unisys, Mr. Renzi was Senior Vice President, Sales & Marketing, at Arise Virtual Solutions (2012-2013). From 2009 to 2012, Mr. Renzi held key sales and service management roles at Dell Corporation. From 2003 to 2009, Mr. Renzi served as Executive Vice President, Global Sales and Marketing, Alliances & Procurement, at Perot Systems. Prior to Perot Systems, he held a variety of sales leadership and individual sales contributor roles at Electronic Data Systems from 1989 to 2003. Mr. Renzi has been an officer since 2014.

Ms. Ruckstuhl has been Senior Vice President and Chief Marketing Officer since 2016. Prior to joining Unisys, she had been the Chief Marketing Officer at SOASTA, Inc., a digital performance management platform provider acquired by Akamai Technologies, Inc., from 2015 to 2016. Previously, Ms. Ruckstuhl was the Chief Marketing Officer at Live Ops (2012-2015), and head of marketing at Symantec’s NortonLive Services (2009-2011). She has also held marketing leadership positions with several other technology companies including Sybase, Inc., eBay, Inc. and Hewlett-Packard. Ms. Ruckstuhl has been an officer since 2016.

Mr. Singh has been Senior Vice President and Chief Financial Officer since 2016. He joined Unisys as Senior Vice President, Chief Marketing and Strategy Officer earlier that year. Prior to joining Unisys, he had been a Managing Director focusing on the technology, media and telecommunications sectors at SunTrust Robinson Humphrey, Inc. from 2014 to 2016. Previously, Mr. Singh served as Senior Vice President, Strategy and Finance for Comcast Corporation from 2012 to 2014 and as Vice President, Corporate Financial Strategy at Cisco Systems from 2009 to 2012. He has held other leadership roles at Cisco Systems, Lehman Brothers, Prudential Securities, Lucent Technologies, Inc., AT&T Corporation, and the American Express Company. Mr. Singh has been an officer since 2016.

Mr. Shalabh Gupta has been Vice President and Treasurer since 2017. Prior to Unisys, Mr. Gupta served as Vice President and Corporate Treasurer for Avon Products from 2012 until 2016. He also served as Treasurer for Evraz North America, Inc. (2011 - 2012) and held the roles of Senior Vice President and Corporate Treasurer (2007 - 2011), Vice President and Assistant Treasurer (2005 - 2007) and Managing Director, Capital Markets, Pensions, Foreign Exchange (2004 - 2005) at Sara Lee Corporation. Mr. Gupta also held treasury roles at Delphi Corporation and General Motors Corporation. Mr. Gupta has been an officer since 2017.

Mr. Thomson has been Vice President and Corporate Controller since 2015. Prior to joining Unisys, Mr. Thomson served as Controller of Towers Watson & Co. from 2010 until 2015, and he previously held the same position at Towers Perrin from 2007 until the consummation of that firm’s merger with Watson Wyatt in 2010. He also served as principal accounting officer of Towers Watson from 2012 until October 2015. Prior to that, Mr. Thomson worked for Towers Perrin as Director of Financial Systems from 2001 to 2004 and then Assistant Controller from 2004 to 2007. Prior to joining Towers Perrin, Mr. Thomson was with RCN Corporation, where he served as Director of Financial Reporting & Financial Systems from 1997 to 2001. Mr. Thomson has been an officer since 2015.

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ITEM 1A. RISK FACTORS

Factors that could affect future results include the following:

Future results may be adversely impacted if the company is unable to improve revenue and margins in its Services business.

The company’s strategy places an emphasis on an industry go-to-market approach with an increased focus within the company’s Services business on improving revenue trends, including specifically on higher value and higher margin offerings. The company’s ability to grow revenue and profitability in this business will depend on the level of demand for projects and the portfolio of solutions the company offers for specific industries. It will also depend on an efficient utilization of services delivery personnel. Revenue and profit margins in this business are a function of both the portfolio of solutions sold in a given period and the rates the company is able to charge for services and the chargeability of its professionals. If the company is unable to attain sufficient rates and chargeability for its professionals, revenue and profit margins will be adversely affected. The rates the company is able to charge for services are affected by a number of factors, including clients’ perception of the company’s ability to add value through its services; introduction of new services or products by the company or its competitors; pricing policies of competitors; and general economic conditions. Chargeability is also affected by a number of factors, including the company’s ability to transition resources from completed projects to new engagements and across geographies, and its ability to forecast demand for services and thereby maintain appropriate resource levels. The company’s results of operations and financial condition may be adversely impacted if sales of higher margin offerings do not offset declines resulting from lower margin offerings.

Future results may be adversely impacted if the company is unable to maintain its installed base and sell new solutions in its Technology business.

The company continues to invest in its ClearPath Forward operating system software in order to retain existing clients in its Technology business. If clients do not believe in the value proposition provided by ClearPath Forward or choose not to renew their contracts for any other reason, there may not be a meaningful return on these investments, and revenue could decline meaningfully. The company also continues to invest in its Stealth family of software, as well as in industry-specific software and solutions for its focus industries. If the company is unsuccessful in selling these Stealth products or industry-specific solutions and related services, there may not be a meaningful return on these investments. Further, the revenues generated by Stealth and other new solutions and related services may be insufficient to offset any revenue declines caused if the company is unable to retain its installed base.

The company faces aggressive competition in the information services and technology marketplace, which could lead to reduced demand for the company’s services and products and could have an adverse effect on the company’s business.

The information services and technology markets in which the company operates include a large number of companies vying for customers and market share both domestically and internationally. The company’s competitors include systems integrators, consulting and other professional services firms, outsourcing providers, infrastructure services providers, computer hardware manufacturers and software providers. Some of the company’s competitors may develop competing services and products that offer better price-performance or that reach the market in advance of the company’s offerings. Some competitors also have or may develop greater financial and other resources than the company, with enhanced ability to compete for market share, in some instances through significant economic incentives to secure contracts. Some also may be better able to compete for skilled professionals. Any of these factors could lead to reduced demand for the company’s services and products and could have an adverse effect on the company’s business. Future results will depend on the company’s ability to mitigate the effects of aggressive competition on revenues, pricing and margins and on the company’s ability to attract and retain talented people.

The company has significant pension obligations and required cash contributions and may be required to make additional significant cash contributions to its defined benefit pension plans.

The company has significant unfunded obligations under its U.S. and non-U.S. defined benefit pension plans. In 2018, the company made cash contributions of $129.7 million to its worldwide defined benefit pension plans. Based on current legislation, global regulations, recent interest rates and expected returns, in 2019 the company estimates that it will make cash contributions to its worldwide defined benefit pension plans of approximately $105.6 million, which are comprised of approximately $67.2 million for the company’s U.S. qualified defined benefit pension plans and approximately $38.4 million primarily for non-U.S. defined benefit pension plans. Although estimates for future cash contributions are likely to change based on a number of factors including market conditions and changes in discount rates, the company currently anticipates that its required cash contributions will increase in 2020 and for the next several years.

Deterioration in the value of the company’s worldwide defined benefit pension plan assets, as well as discount rate changes or changes in economic or demographic trends, could require the company to make cash contributions to its defined benefit pension plans in the future in an amount larger than currently anticipated. Increased cash contribution requirements or an acceleration in the due date of such cash contributions would reduce the cash available for working capital, capital expenditures and other corporate uses and may have an adverse impact on the company’s operations, financial condition and liquidity.

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Cybersecurity breaches could result in the company incurring significant costs and could harm the company’s business and reputation.

The company’s business includes managing, processing, storing and transmitting proprietary and confidential data, including personal information, intellectual property and proprietary business information, within the company’s own IT systems and those that the company designs, develops, hosts or manages for clients. Cybersecurity breaches involving these systems by hackers, other third parties or the company’s employees, despite established security controls, could disrupt these systems or result in the loss or corruption of data or the unauthorized disclosure or misuse of information of the company, its clients or others. This could result in claims, investigations, litigation and legal liability for the company, lead to the loss of existing or potential clients and adversely affect the market’s perception of the security and reliability of the company’s services and products. In addition, such breaches could subject the company to fines and penalties for violations of laws and result in the company incurring other significant costs. This may negatively impact the company’s reputation and financial results.

A U.S. Federal government shutdown may adversely affect the company’s results of operations and cash flows.

Approximately 20% of the company’s total consolidated revenue is derived from sales of commercial services and products to various agencies of the U.S. Federal government. The impact of a U.S. Federal government shutdown for a significant duration could result in the suspension of work on contracts in process or in payment delays which could have an adverse effect on the company’s revenue, profit and cash flows.

The company’s future results may be adversely impacted if it is unable to effectively anticipate and respond to volatility and rapid technological innovation in its industry.

The company operates in a highly volatile industry characterized by rapid technological innovation, evolving technology standards, short product life cycles and continually changing customer demand patterns. Future success will depend in part on the company’s ability to anticipate and respond to these market trends and to design, develop, introduce, deliver or obtain new and innovative services and products on a timely and cost-effective basis using new delivery models such as cloud computing. The company may not be successful in anticipating or responding to changes in technology, industry standards or customer preferences, and the market may not demand or accept its services and product offerings. In addition, services and products developed by competitors may make the company’s offerings less competitive.

The company’s future results will depend on its ability to retain significant clients.

The company has a number of significant long-term contracts with clients, including governmental entities, and its future success will depend, in part, on retaining its relationships with these clients. The company could lose clients for reasons such as contract expiration, conversion to a competing service provider, disputes with clients or a decision to in-source services, including contracts with governmental entities as part of the rebid process. The company could also lose clients as a result of their merger, acquisition or business failure. The company may not be able to replace the revenue and earnings from any such lost client.

The company’s contracts may not be as profitable as expected or provide the expected level of revenues.

In a number of the company’s long-term services contracts, the company’s revenue is based on the volume of services and products provided. As a result, revenue levels anticipated at the contract’s inception are not guaranteed. In addition, some of these contracts may permit termination at the customer’s discretion before the end of the contract’s term or may permit termination or impose other penalties if the company does not meet the performance levels specified in the contracts.

The company’s contracts with governmental entities are subject to the availability of appropriated funds. These contracts also contain provisions allowing the governmental entity to terminate the contract at the governmental entity’s discretion before the end of the contract’s term. In addition, if the company’s performance is unacceptable to the customer under a government contract, the government retains the right to pursue remedies under the affected contract, which remedies could include termination.

Certain of the company’s services agreements require that the company’s prices be benchmarked if the customer requests it and provide that those prices may be adjusted downward if the pricing for similar services in the market has changed. As a result, revenues anticipated at the beginning of the terms of these contracts may decline in the future.

Some of the company’s services contracts are fixed-price contracts under which the company assumes the risk for delivery of the contracted services and products at an agreed-upon fixed price. Should the company experience problems in performing fixed-price contracts on a profitable basis, adjustments to the estimated cost to complete may be required. Future results will depend on the company’s ability to perform these services contracts profitably.

A significant portion of the company’s revenue is derived from operations outside of the United States, and the company is subject to the risks of doing business internationally.

A significant portion of the company’s total revenue is derived from international operations. The risks of doing business internationally include foreign currency exchange rate fluctuations, currency restrictions and devaluations, changes in political or economic conditions, trade protection measures, import or export licensing requirements, multiple and possibly overlapping

11

and conflicting tax laws, new tax legislation, weaker intellectual property protections in some jurisdictions and additional legal and regulatory compliance requirements applicable to businesses that operate internationally, including the U.S. Foreign Corrupt Practices Act, economic and trade sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control, regulations in the European Union such as the General Data Protection Regulation, the U.K. Bribery Act and other U.S. and non-U.S. laws and regulations.

If the company is unable to access the financing markets, it may adversely impact the company’s business and liquidity.

Market conditions may impact the company’s ability to access the financing markets on terms acceptable to the company or at all. If the company is unable to access the financing markets, the company would be required to use cash on hand to fund operations and repay outstanding debt as it comes due. There is no assurance that the company will generate sufficient cash to fund its operations and refinance such debt. A failure by the company to generate such cash would have a material adverse effect on its business if the company were unable to access financing markets. Market conditions may also impact the company’s ability to utilize surety bonds, letters of credit, foreign exchange derivatives or other financial instruments the company uses to conduct its business.

If the company is unable to attract, motivate and retain experienced and knowledgeable personnel in key positions, its future results could be adversely impacted.

The success of the company’s business is dependent upon its ability to employ and train individuals with the requisite knowledge, skills and experience to execute the company’s business model and achieve its business objectives. The failure of the company to retain key personnel or implement an appropriate succession plan could adversely impact the company’s ability to successfully carry out its business strategy and retain other key personnel.

The company’s contracts with U.S. governmental agencies may subject the company to audits, criminal penalties, sanctions and other expenses and fines.

The company frequently enters into contracts with governmental entities. U.S. government agencies, including the Defense Contract Audit Agency and the Department of Labor, routinely audit government contractors. These agencies review a contractor’s performance under its contracts, cost structure and compliance with applicable laws, regulations and standards. The U.S. government also may review the adequacy of, and a contractor’s compliance with, contract terms and conditions, and its systems and policies, including the contractor’s purchasing, property, estimating, billing, accounting, compensation and management information systems. Any costs found to be overcharged or improperly allocated to a specific contract or any amounts improperly billed or charged for products or services will be subject to reimbursement to the government. In addition, government contractors, such as the company, are required to disclose credible evidence of certain violations of law and contract overcharging to the federal government. If the company is found to have participated in improper or illegal activities, the company may be subject to civil and criminal penalties and administrative sanctions, including termination of contracts, forfeiture of profits, suspension of payments, fines and suspension or prohibition from doing business with the U.S. government. Any negative publicity related to such contracts, regardless of the accuracy of such publicity, may adversely affect the company’s business or reputation.

A significant disruption in the company’s IT systems could adversely affect the company’s business and reputation.

We rely extensively on our IT systems to conduct our business and perform services for our clients. Our systems are subject to damage or interruption from power outages, telecommunications failures, computer viruses and malicious attacks, cybersecurity breaches and catastrophic events. If our systems are accessed without our authorization, damaged or fail to function properly, we could incur substantial repair or replacement costs, experience data loss and impediments to our ability to conduct our business, and damage the market’s perception of our services and products. In addition, a disruption could result in the company failing to meet performance standards and obligations in its client contracts, which could subject the company to liability, penalties and contract termination. This may adversely affect the company’s reputation and financial results.

The company may face damage to its reputation or legal liability if its clients are not satisfied with its services or products.

The success of the company’s business is dependent on strong, long-term client relationships and on its reputation for responsiveness and quality. As a result, if a client is not satisfied with the company’s services or products, its reputation could be damaged and its business adversely affected. Allegations by private litigants or regulators of improper conduct, as well as negative publicity and press speculation about the company, whatever the outcome and whether or not valid, may harm its reputation. In addition to harm to reputation, if the company fails to meet its contractual obligations, it could be subject to legal liability, which could adversely affect its business, operating results and financial condition.

The company could face business and financial risk in implementing future acquisitions or dispositions.

As part of the company’s business strategy, it may from time to time consider acquiring complementary technologies, products and businesses, or disposing of existing technologies, products and businesses that may no longer be in alignment with its strategic direction, including transactions of a material size. Any acquisitions may result in the incurrence of substantial additional indebtedness or contingent liabilities. Acquisitions could also result in potentially dilutive issuances of equity

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securities and an increase in amortization expenses related to intangible assets. Additional potential risks associated with acquisitions include integration difficulties; difficulties in maintaining or enhancing the profitability of any acquired business; risks of entering markets in which the company has no or limited prior experience; potential loss of employees or failure to maintain or renew any contracts of any acquired business; and expenses of any undiscovered or potential liabilities of the acquired product or business, including relating to employee benefits contribution obligations or environmental requirements. Potential risks with respect to dispositions include difficulty finding buyers or alternative exit strategies on acceptable terms in a timely manner; potential loss of employees or clients; dispositions at unfavorable prices or on unfavorable terms, including relating to retained liabilities; and post-closing indemnity claims. Further, with respect to both acquisitions and dispositions, management’s attention could be diverted from other business concerns. Adverse credit conditions could also affect the company’s ability to consummate acquisitions or dispositions. The risks associated with acquisitions and dispositions could have a material adverse effect upon the company’s business, financial condition and results of operations. There can be no assurance that the company will be successful in consummating future acquisitions or dispositions on favorable terms or at all.

Future results will depend in part on the performance and capabilities of third parties with whom the company has commercial relationships.

The company maintains business relationships with suppliers, channel partners and other parties that have complementary products, services or skills. Future results will depend, in part, on the performance and capabilities of these third parties, on the ability of external suppliers to deliver components at reasonable prices and in a timely manner, and on the financial condition of, and the company’s relationship with, distributors and other indirect channel partners, which can affect the company’s capacity to effectively and efficiently serve current and potential customers and end users.

An involuntary termination of the company’s U.S. qualified defined benefit pension plans would adversely affect the company’s financial condition and results of operations.

As of December 31, 2018, the company had approximately $1.4 billion of underfunded pension obligations under its U.S. qualified defined benefit pension plans. The Pension Benefit Guaranty Corporation (the “PBGC”) has authority under the Employment Retirement Income Security Act of 1974, as amended, to terminate an underfunded defined benefit pension plan under certain circumstances, including when (1) the plan has not met the minimum funding requirements, (2) the plan cannot pay current benefits when due, or (3) the loss to the PBGC is reasonably expected to increase unreasonably over time if the plan is not terminated. If the PBGC were to terminate the company’s U.S. qualified defined benefit pension plans, the company’s obligations with respect to such plans would become due and payable in full. Any such event or the failure by the company to pay its pension plan insurance premiums with respect to its U.S. qualified defined benefit pension plans could result in the PBGC obtaining a lien on the company’s assets. Such an event would result in an event of default under the company’s debt agreements and would materially and adversely affect the Company’s financial condition and results of operations.

The company’s services or products may infringe upon the intellectual property rights of others.

The company cannot be sure that its services and products do not infringe on the intellectual property rights of third parties, and it may have infringement claims asserted against it or against its clients. These claims could cost the company money, prevent it from offering some services or products, or damage its reputation.

Legal proceedings could affect the company’s results of operations or cash flow or may adversely affect the company’s business or reputation.

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. See Note 15, “Litigation and contingencies,” of the Notes to Consolidated Financial Statements (Part II, Item 8 of this Form 10-K) (the “Notes to Consolidated Financial Statements”) for more information on litigation. The company believes that it has valid defenses with respect to legal matters pending against it. Litigation is inherently unpredictable, however, and it is possible that the company’s results of operations or cash flows could be materially affected in any particular period by the resolution of one or more of the legal matters pending against it. Additional legal proceedings may arise in the future with respect to the company’s existing and legacy operations, and may adversely affect the company’s business or reputation.

The company’s business can be adversely affected by global economic conditions, acts of war, terrorism or natural disasters.

If global economic conditions deteriorate, the company could see reductions in demand and increased pressure on revenue and profit margins. The company could also see a further consolidation of clients, which could also result in a decrease in demand. The company’s business could also be affected by acts of war, terrorism or natural disasters. Current world tensions could escalate, and this could have unpredictable consequences on the world economy and on the company’s business.

Other factors discussed in this report, although not listed here, also could materially affect our future results.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

As of December 31, 2018, we had eight major facilities in the United States, with an aggregate floor space of approximately 1.1 million square feet, located in Minnesota, Pennsylvania, Virginia, Utah, California and Georgia. We owned one of these facilities, with aggregate floor space of approximately 0.3 million square feet; seven of these facilities, with approximately 0.8 million square feet of floor space, were leased to us. Approximately 1.0 million square feet of the U.S. facilities were in current operation and approximately 0.1 million square feet were subleased to others.

As of December 31, 2018, we had seven major facilities outside the United States, with an aggregate floor space of approximately 0.7 million square feet, located in the United Kingdom, India, Australia, Hungary and New Zealand. We owned none of these facilities; seven of these facilities, with approximately 0.7 million square feet of floor space, were leased to us. Approximately 0.6 million square feet of the facilities outside the United States were in current operation and approximately 0.1 million square feet were subleased to others.

Our major facilities include offices, data centers, call centers, engineering centers and sales centers. We believe that our facilities are suitable and adequate for current and presently projected needs. We continuously review our anticipated requirements for facilities and will from time to time acquire additional facilities, expand existing facilities, and dispose of existing facilities or parts thereof, as necessary.

ITEM 3. LEGAL PROCEEDINGS

Information with respect to litigation is set forth in Note 15, “Litigation and contingencies,” of the Notes to Consolidated Financial Statements and is incorporated herein by reference.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Unisys Common Stock is listed for trading on the New York Stock Exchange (trading symbol “UIS”) and London Stock Exchange (trading symbol “USY”). At December 31, 2018, there were approximately 51.1 million shares outstanding.

Holders of Record

At January 31, 2019, there were approximately 5,200 stockholders of record.

Dividend Policy

Unisys has not declared or paid any cash dividends on its Common Stock since 1990, and we do not anticipate declaring or paying cash dividends in the foreseeable future.

Repurchase of Equity Securities

None.

Stock Performance

The following graph compares the cumulative total stockholder return on Unisys common stock during the five fiscal years ended December 31, 2018, with the cumulative total return on the Standard & Poor’s 500 Stock Index and the Standard & Poor’s 500 IT Services Index. The comparison assumes $100 was invested on December 31, 2013, in Unisys common stock and in each of such indices and assumes reinvestment of any dividends.

	2013		2014		2015		2016		2017		2018
Unisys Corporation	$	100	$	88	$	33	$	45	$	24	$	35
S&P 500	$	100	$	114	$	115	$	129	$	157	$	150
S&P 500 IT Services	$	100	$	105	$	112	$	124	$	162	$	170

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ITEM 6. SELECTED FINANCIAL DATA

Five-year summary of selected financial data

(Dollars in millions, except per share data)	2018(i)			2017(i)			2016(i)			2015(i)			2014
Results of operations
Revenue	$	2,825.0		$	2,741.8		$	2,820.7		$	3,015.1		$	3,356.4
Operating profit	284.1			97.1		*	129.2		*	54.3		*	230.8		*
Income (loss) before income taxes	143.2			(72.1		)	20.5			(58.8		)	145.5
Net income (loss) attributable to noncontrolling interests	3.4			(1.3		)	11.0			6.7			12.6
Net income (loss) attributable to Unisys Corporation common shareholders	75.5			(65.3		)	(47.7		)	(109.9		)	44.0
Earnings (loss) per common share
Basic	1.48			(1.30		)	(0.95		)	(2.20		)	0.89
Diluted	1.30			(1.30		)	(0.95		)	(2.20		)	0.89
Financial position
Total assets	$	2,457.6		$	2,542.4		$	2,021.6		$	2,130.0		$	2,321.0
Long-term debt	642.8			633.9			194.0			233.7			219.2
Deficit	(1,299.6		)	(1,326.5		)	(1,647.4		)	(1,378.6		)	(1,452.4		)
Other data
Capital additions of properties	$	35.6		$	25.8		$	32.5		$	49.6		$	53.3
Capital additions of outsourcing assets	73.0			86.3			51.3			102.0			85.9
Investment in marketable software	80.7			64.4			63.3			62.1			73.6
Depreciation and amortization
Properties	40.4			39.7			38.9			57.5			52.0
Outsourcing assets	66.8			53.7			51.9			55.7			58.1
Amortization of marketable software	56.9			63.1			64.8			66.9			58.5
Common shares outstanding (millions)	51.1			50.5			50.1			49.9			49.7
Stockholders of record (thousands)	5.2			5.6			6.0			6.2			11.1
Employees (thousands)	21.7			20.5			21.0			23.0			23.2

*Amounts were changed to conform to the current-year presentation. See Note 2 of the Notes to Consolidated Financial Statements.

⁽ⁱ⁾ Includes pretax cost-reduction and other charges of $19.7 million, $146.8 million, $82.1 million and $118.5 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively. See Note 3, “Cost-reduction actions,” of the Notes to Consolidated Financial Statements.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

As described in Note 2, “Recent accounting pronouncements and accounting changes,” of the Notes to Consolidated Financial Statements, effective January 1, 2018, the company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method whereby prior periods were not restated. Topic 606 required the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the prior rules would allow and required the company to recognize software license extensions and renewals (the most significant impact upon adoption) later than the prior rules would allow. The cumulative effect of the adoption was recognized as an increase in the company’s accumulated deficit of $21.4 million on January 1, 2018.

Included in 2018 Technology revenue and profit is a $53.0 million ($47.7 million, net of tax) adjustment that was recorded in the first quarter of 2018. The adjustment represents revenue from software license extensions and renewals, which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million, is January 1, 2018. Upon adoption of ASU No. 2014-09, the company was required to include this $53.0 million in the cumulative effect adjustment to retained earnings on January 1, 2018.

The company reported 2018 net income attributable to Unisys Corporation of $75.5 million, or income of $1.30 per diluted share, compared with a 2017 net loss of $65.3 million, or a loss of $1.30 per diluted share. The company’s results of operations in the current year were positively impacted by the Topic 606 adjustment described above, lower cost-reduction charges and savings due to prior-years’ cost-reduction actions partially offset by a decline in Services gross margins due to the impact of new contracts in implementation stage.

Results of operations

Company results

Revenue for 2018 was $2.83 billion compared with $2.74 billion for 2017, an increase of 3.0% principally due to the impact of the Topic 606 adjustment described above. Excluding this adjustment, revenue increased 1.1%. Foreign currency fluctuations had an immaterial impact on revenue in the current year compared with the year-ago period.

Services revenue increased2.5% and Technology revenue increased6.1% year over year. Excluding the Topic 606 adjustment of $53.0 million, Technology revenue decreased 6.7%. Foreign currency fluctuations had an immaterial impact on Services and Technology revenue in the current year compared with the year-ago period.

Revenue for 2017 was $2.74 billion compared with 2016 revenue of $2.82 billion, a decrease of 3%. Foreign currency had a 1-percentage-point positive impact on revenue in 2017 compared with 2016.

Services revenue in 2017decreased by 3% compared with 2016. Technology revenue was relatively flat in 2017 compared with 2016.

Revenue from international operations in 2018, 2017 and 2016 was $1.59 billion, $1.48 billion and $1.51 billion, respectively. Without the Topic 606 adjustment, 2018 revenue from international operations was $1.54 billion. Foreign currency had an immaterial impact on international revenue in 2018 compared with 2017, and a 1-percentage-point positive impact on international revenue in 2017 compared with 2016. Revenue from U.S. operations was $1.24 billion in 2018, $1.26 billion in 2017 and $1.31 billion in 2016. Excluding the Topic 606 adjustment, U.S. revenue was $1.23 billion in 2018.

In the fourth quarter of 2018, the company committed to a reduction of 589 employees. This resulted in charges, principally related to severance costs, of $27.7 million, which were comprised of: (a) a charge of $5.2 million for 264 employees in the U.S. and (b) a charge of $22.5 million for 325 employees outside the U.S. The charges were recorded in the following statement of income classifications: cost of revenue – services, $25.4 million and selling, general and administrative expenses, $2.3 million.

In connection with the company’s prior-year cost-reduction program, a benefit of $8.0 million was recorded in the current year for changes in estimates. The benefit was recorded in the following statement of income classifications: cost of revenue – services, $7.3 million and selling, general and administrative expenses, $0.7 million.

During 2017, the company recognized charges in connection with its cost-reduction plan and other costs of $146.8 million. The charges related to work-force reductions were $117.9 million, principally related to severance costs, and were comprised of: (a)

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a charge of $9.4 million for 542 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $109.4 million for 2,274 employees, $8.2 million for additional benefits provided in 2017 and $(7.8) million for changes in estimates outside the U.S. In addition, the company recorded charges of $28.9 million comprised of $4.7 million for idle leased facilities costs, $5.4 million for contract amendment and termination costs, $5.2 million for professional fees and other expenses related to the cost-reduction effort, $1.8 million for net asset sales and write-offs and $11.8 million for net foreign currency losses related to exiting foreign countries. The 2017 charges were recorded in the following statement of income classifications: cost of revenue - services, $99.6 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $33.6 million; research and development expenses, $1.4 million; and other income (expense), net, $11.8 million.

During 2016, the company recognized charges of $82.1 million in connection with its cost-reduction plan. The charges related to work-force reductions were $62.6 million, principally related to severance costs, and were comprised of: (a) a charge of $8.3 million for 351 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $58.6 million for 1,048 employees and $(3.0) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.5 million comprised of $1.4 million for idle leased facilities costs, $4.1 million for contract amendment and termination costs, $13.3 million for professional fees and other expenses related to the cost-reduction effort and $0.7 million for net assets sales and write-offs. The 2016 charges were recorded in the following statement of income classifications: cost of revenue - services, $42.4 million; selling, general and administrative expenses, $38.0 million; and research and development expenses, $1.7 million.

Gross profit as a percent of total revenue, or gross profit percent, was 24.3% in 2018, 20.0% in 2017 and 21.9% in 2016. Included in the 2018 gross profit were cost-reduction charges of $18.1 million compared with charges of $100.0 million in 2017. Gross profit in 2018 was positively impacted by the Topic 606 adjustment described above and benefits derived in 2018 from the prior-years’ cost-reduction actions. Excluding the Topic 606 adjustment, total 2018 gross profit percent was 22.8%. The decline in 2017 compared to 2016 was principally due to higher cost-reduction charges in 2017 of $57.6 million.

Selling, general and administrative expenses were $370.3 million in 2018 (13.1% of revenue), $411.9 million in 2017 (15.0% of revenue) and $441.2 million in 2016 (15.6% of revenue). Cost-reduction charges of $1.6 million, $33.6 million and $38.0 million were recorded in selling, general and administrative expenses in 2018, 2017 and 2016, respectively. Exclusive of these charges, the decline in 2018 was due to a $7.3 million gain on the sale of property in the U.K. recorded in 2018 and benefits derived in 2018 from prior-years’ cost-reduction actions.

Research and development (“R&D”) expenses in 2018 were $31.9 million compared with $38.7 million in 2017 and $47.0 million in 2016. The decline in 2018 was principally driven by an increase in capitalized marketable software, and in 2017 was principally driven by savings due to prior-years’ cost-reduction actions.

In 2018, the company reported an operating profit of $284.1 million compared with an operating profit of $97.1 million and $129.2 million in 2017 and 2016, respectively. The principal items affecting the comparison of 2018 to 2017 are the Topic 606 adjustment of $53.0 million described above, a decrease of $115.3 million in cost-reduction charges, a $7.3 million gain on the sale of property in the U.K. recorded in 2018 and benefits derived in 2018 from prior-years’ cost-reduction actions. Excluding the Topic 606 adjustment, operating profit in 2018 was $231.1 million. The decline in 2017 compared to 2016 is principally attributed to an increase of $52.9 million in cost-reduction charges partially offset by savings derived from prior-years’ cost-reduction actions.

Interest expense was $64.0 million in 2018, $52.8 million in 2017 and $27.4 million in 2016. The increase in 2017 compared with 2016 was principally caused by the issuance of senior secured notes (see Note 12, “Debt,” of the Notes to Consolidated Financial Statements).

Pension expense for 2018 was $79.7 million compared with $92.4 million in 2017 and $82.7 million in 2016. For 2019, the company expects to recognize pension expense of approximately $90.5 million. The expected increase in pension expense in 2019 compared with 2018 is principally due to lower expected returns on plan assets and higher interest costs partially offset by lower amortization of net actuarial losses for the company’s U.S. defined benefit pension plans. The company records the service cost component of pension income or expense, as well as other employee-related costs such as payroll taxes and medical insurance costs, in operating income in the following income statement categories: cost of revenue; selling, general and administrative expenses; and research and development expenses. The amount allocated to each category is based on where the salaries of active employees are charged. All other components of pension income or expense are recorded in other income (expense), net in the consolidated statements of income.

Other income (expense), net was expense of $76.9 million in 2018, compared with expense of $116.4 million and $81.3 million in 2017 and 2016, respectively. Included in 2018 was postretirement expense of $80.3 million, a foreign non-income tax settlement gain of $13.9 million and foreign exchange losses of $5.9 million. Included in 2017 was postretirement expense of $92.5 million, $11.8 million of net foreign currency losses related to exiting foreign countries in connection with the company’s restructuring plan and $9.9 million of foreign exchange losses. Other expense in 2016 included postretirement expense of $81.6 million and $2.3 million of foreign exchange gains.

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Income (loss) before income taxes in 2018 was income of $143.2 million compared with a loss of $72.1 million in 2017 and income of $20.5 million in 2016.

The provision (benefit) for income taxes in 2018, 2017 and 2016 was $64.3 million, $(5.5) million and $57.2 million, respectively. Included in 2017 was a benefit of $50.4 million principally related to the Tax Cuts and Jobs Act’s elimination of the corporate Alternative Minimum Tax (“AMT”) and refund of all remaining AMT credits (see Note 6, “Income taxes,” of the Notes to Consolidated Financial Statements).

The company evaluates quarterly the realizability of its deferred tax assets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The company records a tax provision or benefit for those international subsidiaries that do not have a full valuation allowance against their 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 the company’s 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 period to period depending on the geographic distribution of income.

The realization of the company’s net deferred tax assets as of December 31, 2018 is primarily dependent on forecasted future taxable income within certain foreign jurisdictions. Any reduction in estimated forecasted future taxable income may require the company to record an additional valuation allowance against the remaining deferred tax assets. Any increase or decrease in the valuation allowance would result in additional or lower income tax expense in such period and could have a significant impact on that period’s earnings.

Net income (loss) attributable to Unisys Corporation common shareholders for 2018 was income of $75.5 million, or income of $1.30 per diluted common share, compared with a loss of $65.3 million, or loss of $1.30 per diluted common share, in 2017 and a loss of $47.7 million, or loss of $0.95 per diluted common share, in 2016.

Segment results

Effective January 1, 2018, the company changed the grouping of certain of its classes of services. As a result, prior-periods’ customer revenue by classes of similar services have been reclassified to conform to the current-year period.

The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segment are as follows:

• Cloud and 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 developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications.

• Business process outsourcing (“BPO”) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs.

• Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients improve security and flexibility, reduce costs and improve the efficiency of their data-center environments.

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 software and hardware shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profits on such shipments of company software and hardware to customers. The Services segment also includes the sale of software and hardware 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 software and hardware 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 years ended December 31, 2018, 2017 and 2016 was $4.2 million, $6.3 million and $0.7 million, respectively. The profit on these transactions is eliminated in Corporate.

The company evaluates business segment performance based on operating income exclusive of postretirement 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. See Note 17, “Segment information,” of the Notes to Consolidated Financial Statements.

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Information by business segment for 2018, 2017 and 2016 is presented below:

(millions)	Total				Corporate			Services			Technology
2018
Customer revenue	$	2,825.0			$	—		$	2,386.3		$	438.7
Intersegment	—				(24.7		)	—			24.7
Total revenue	$	2,825.0			$	(24.7	)	$	2,386.3		$	463.4
Gross profit percent	24.3		%					16.0		%	69.4		%
Operating profit percent	10.1		%					2.8		%	51.3		%
2017
Customer revenue	$	2,741.8			$	—		$	2,328.2		$	413.6
Intersegment	—				(25.9		)	—			25.9
Total revenue	$	2,741.8			$	(25.9	)	$	2,328.2		$	439.5
Gross profit percent	20.0		%	*				16.8		%	59.4		%
Operating profit percent	3.5		%	*				2.8		%	38.8		%
2016
Customer revenue	$	2,820.7			$	—		$	2,406.3		$	414.4
Intersegment	—				(22.6		)	—			22.6
Total revenue	$	2,820.7			$	(22.6	)	$	2,406.3		$	437.0
Gross profit percent	21.9		%	*				16.2		%	59.9		%
Operating profit percent	4.6		%	*				1.9		%	37.0		%

Gross profit percent and operating income percent are as a percent of total revenue.

*Amounts were changed to conform to the current-year presentation. See Note 2 of the Notes to Consolidated Financial Statements.

Customer revenue by classes of similar products or services, by segment, for 2018, 2017 and 2016 is presented below:

Year ended December 31 (millions)	2018		2017			Percentage Change		2016			Percentage Change
Services
Cloud & infrastructure services	$	1,363.4	$	1,334.3	*	2.2	%	$	1,356.4	*	(1.6	)%
Application services	772.4		791.0		*	(2.4	)%	855.5		*	(7.5	)%
BPO services	250.5		202.9			23.5	%	194.4			4.4	%
Total Services	2,386.3		2,328.2			2.5	%	2,406.3			(3.2	)%
Technology	438.7		413.6			6.1	%	414.4			(0.2	)%
Total customer revenue	$	2,825.0	$	2,741.8		3.0	%	$	2,820.7		(2.8	)%

*Amounts were changed to conform to the current-year presentation.

In the Services segment, customer revenue was $2.4 billion in 2018, $2.3 billion in 2017 and $2.4 billion in 2016. Foreign currency fluctuations had an immaterial impact on revenue in 2018 compared with 2017.

Revenue from cloud & infrastructure services was $1.4 billion in 2018up2.2% compared with 2017, and 2017 was down1.6% from 2016. Foreign currency fluctuations had an immaterial impact on cloud & infrastructure services revenue in the current period compared with the year-ago period.

Application services revenue decreased2.4% in 2018 compared with 2017, and 2017 was down7.5% compared with 2016. Foreign currency fluctuations had an immaterial impact on application services revenue in the current period compared with the year-ago period.

Business process outsourcing services revenue increased23.5% in 2018 compared with 2017, and was up4.4% in 2017 compared with 2016. Foreign currency fluctuations had a 2-percentage-point positive impact on business process outsourcing services revenue in the current period compared with the year-ago period. This services line contains the company’s U.K. business process outsourcing joint venture, which contributed to the majority of the increase in 2018.

Services gross profit percent was 16.0% in 2018 compared with 16.8% in 2017 and 16.2% in 2016. Services operating profit percent was 2.8% in 2018 compared with 2.8% in 2017 and 1.9% in 2016. Current-period margins were negatively impacted by

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new Services contracts in implementation stage. Current-period operating profit margin, although negatively impacted by new Services contracts in implementation stage, was offset by a gain on the sale of property in the U.K.

In the Technology segment, customer revenue increased6.1% to $438.7 million in 2018 compared with $413.6 million in 2017. The increase is principally attributed to the Topic 606 adjustment of $53.0 million described above. Excluding the Topic 606 adjustment, customer revenue decreased 6.7% principally due to a lighter ClearPath Forward® renewal schedule. Foreign currency translation had an immaterial impact on Technology revenue in 2018 compared with 2017. Revenue in 2017 was relatively flat compared with 2016.

Technology gross profit percent was 69.4% in 2018 compared with 59.4% in 2017 and 59.9% in 2016. Technology operating profit percent was 51.3% in 2018 compared with 38.8% in 2017 and 37.0% in 2016. The increase in gross profit and operating profit percent in 2018 was primarily due to the Topic 606 adjustment coupled with an improved mix of higher margin software sales and lower R&D costs (due to an increase in capitalized marketable software). Excluding the impact of the Topic 606 adjustment, gross profit percent was 65.4% and operating profit percent was 45.0% in the current year.

New accounting pronouncements

See Note 2, “Recent accounting pronouncements and accounting changes,” of the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements, including the expected dates of adoption and estimated effects on the company’s consolidated financial statements.

Financial condition

The company’s principal sources of liquidity are cash on hand, cash from operations and its revolving credit facility, discussed below. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks. The company believes that it will have adequate sources of liquidity to meet its expected 2019 cash requirements.

Cash and cash equivalents at December 31, 2018 were $605.0 million compared with $733.9 million at December 31, 2017.

As of December 31, 2018, $325.8 million of cash and cash equivalents were held by the company’s foreign subsidiaries and branches operating outside of the U.S. In the future, if these funds are needed for the company’s operations in the U.S., it is expected the company would be required to pay taxes on only a limited portion of this balance. See Note 6, “Income taxes,” of the Notes to Consolidated Financial Statements regarding the company’s intention to indefinitely reinvest earnings of foreign subsidiaries.

During 2018, cash provided by operations was $73.9 million compared with $166.4 million in 2017. The fluctuation in cash flows from operating activities was principally driven by higher working capital needs, which included a delay in the collection of $28.0 million of cash resulting from the U.S. Federal government shutdown.

Cash used for investing activities in 2018 was $185.0 million compared with cash usage of $152.5 million in 2017. Net purchases of investments in 2018 were $14.0 million compared with net proceeds of $24.8 million in 2017. Proceeds from investments and purchases of investments represent derivative financial instruments used to manage the company’s currency exposure to market risks from changes in foreign currency exchange rates. In addition, capital additions of properties were $35.6 million in 2018 compared with $25.8 million in 2017, capital additions of outsourcing assets were $73.0 million in 2018 compared with $86.3 million in 2017 and the investment in marketable software was $80.7 million in 2018 compared with $64.4 million in 2017. The increase in capital expenditures is due in part to new Public sector business signed in 2018, which required more capital investment. Additionally, the current year includes net proceeds of $19.2 million related to the sale of property in the U.K.

Cash used for financing activities during 2018 was $4.8 million compared with cash provided by financing activities of $329.9 million in 2017. In 2017, the company issued $440.0 million of senior notes and received net proceeds of $427.9 million and retired the remaining aggregate principal amount of $95.0 million of its 6.25% senior notes.

At December 31, 2018, total debt was $652.8 million compared with $644.7 million at December 31, 2017. The increase is primarily due to the amortization of debt issuance costs and fees.

The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit. During the second quarter of 2018, the maximum amount available under the facility was increased from $125.0 million to $145.0 million (with a limit on letters of credit of $30.0 million). The accordion feature contained in the Credit Agreement that permitted this increase allows for an increase in the facility up to $150.0 million. Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At December 31, 2018, the company had no borrowings and $6.5 million of letters of credit outstanding, and availability under the facility was $138.5 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity (i) on the date that is 91 days prior to the maturity date of the company’s convertible notes due 2021 unless, on such date, certain conditions are met; or (ii) on the date that is 60 days prior to the maturity date of the company’s secured notes due 2022 unless, by such date, such secured notes have not been redeemed or refinanced.

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The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility.

The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15.0 million.

The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million.

At December 31, 2018, the company has met all covenants and conditions under its various lending and funding agreements. The company expects to continue to meet these covenants and conditions.

At December 31, 2018, the company had outstanding standby letters of credit and surety bonds totaling approximately $272 million related to performance and payment guarantees. On the basis of experience with these arrangements, the company believes that any obligations that may arise will not be material.

As described more fully in Note 3, “Cost-reduction actions,” Note 4, “Rental expense and commitments” and Note 12, “Debt,” of the Notes to Consolidated Financial Statements, at December 31, 2018, the company had certain cash obligations, which are due as follows:

(millions)	Total		Less than 1 year		1-3 years		4-5 years		After 5 years
Long-term debt (including current portion)	$	652.8	$	10.0	$	200.0	$	436.6	$	6.2
Interest payments on debt	200.0		60.1		114.1		24.9		0.9
Operating leases	180.1		48.5		72.1		35.1		24.4
Work-force reductions	86.2		74.4		9.5		2.2		0.1
Total	$	1,119.1	$	193.0	$	395.7	$	498.8	$	31.6

As described in Note 14, “Employee plans,” of the Notes to Consolidated Financial Statements, in 2019, the company expects to make cash contributions to its worldwide defined benefit pension plans of approximately $105.6 million, which is comprised of $38.4 million primarily for international defined benefit pension plans and $67.2 million for the company’s U.S. qualified defined benefit pension plans.

The company maintains a shelf registration statement with the Securities and Exchange Commission that covers the offer and sale of up to $700.0 million of debt or equity securities. Subject to the company’s ongoing compliance with securities laws, the company may offer and sell debt and equity securities from time to time under the shelf registration statement.

In addition, from time to time the company has explored, and expects to continue to explore, a variety of debt and equity sources to fund its liquidity and capital needs.

The company may, from time to time, redeem, tender for, or repurchase its securities in the open market or in privately negotiated transactions depending upon availability, market conditions and other factors.

Critical accounting policies and estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Certain accounting policies, methods and estimates are particularly important because of their significance to the financial statements and because of the possibility that future events affecting them may differ from management’s current judgments. The company bases its estimates and judgments on historical experience and on other assumptions that it believes are reasonable under the circumstances; however, to the extent there are material differences between these estimates, judgments and assumptions and actual results, the financial statements will be affected. Although there are a number of accounting policies, methods and estimates affecting the company’s financial statements as described in Note 1, “Summary of significant accounting policies,” of the Notes to Consolidated Financial Statements, the following critical accounting policies reflect the significant estimates, judgments and assumptions. The development and selection of these critical accounting policies have been determined by management of the company and the related disclosures have been reviewed with the Audit and Finance Committee of the Board of Directors.

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Revenue recognition

Many of the company’s sales agreements contain standard business terms and conditions; however, some agreements contain

multiple elements or non-standard terms and conditions. As discussed in Note 1, “Summary of significant accounting policies,” of the Notes to Consolidated Financial Statements, the company enters into multiple-element arrangements, which may include any combination of hardware, software or services. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the performance obligations specified in a multiple-element arrangement should be treated as separate performance obligations for revenue recognition purposes, and when to recognize revenue for each performance obligation.

The company must apply its judgment to determine the timing of the satisfaction of performance obligations as well as the transaction price and the amounts allocated to performance obligations including estimating variable consideration, adjusting the consideration for the effects of the time value of money and assessing whether an estimate of variable consideration is constrained.

Revenue and profit under systems integration contracts are recognized over time as the company transfers control of goods or services. The company measures its progress toward satisfaction of its performance obligations using the cost-to-cost method, or when services have been performed, depending on the nature of the project.

For contracts accounted for using the cost-to-cost method, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. The company follows this method because reasonably dependable estimates of the revenue and costs applicable to various elements of a contract can be made. The financial reporting of these contracts depends on estimates, which are assessed continually during the term of the contracts and therefore, recognized revenues and profit are subject to revisions as the contract progresses to completion. Revisions in profit estimates are reflected in the period in which the facts that give rise to the revision become known. Accordingly, favorable changes in estimates result in additional revenue and profit recognition, and unfavorable changes in estimates result in a reduction of recognized revenue and profit. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident. As work progresses under a loss contract, revenue continues to be recognized, and a portion of the contract costs incurred in each period is charged to the contract loss reserve.

Outsourcing

Typically, the initial terms of the company’s outsourcing contracts are between 3 and 5 years. Revenue under these contracts is recognized when the company performs the services or processes transactions in accordance with contractual performance standards. Customer prepayments (even if nonrefundable) are deferred (classified as a liability) and recognized systematically as revenue over the initial contract term.

Costs on outsourcing contracts are charged to expense as incurred. However, direct costs incurred related to the inception of an outsourcing contract (principally initial customer setup) are deferred and charged to expense over the initial contract term. In addition, the costs of equipment and software, some of which are internally developed, are capitalized and depreciated over the shorter of their life or the initial contract term.

Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if the assets are impaired. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow approach. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates.

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.

At December 31, 2018 and 2017, the company had deferred tax assets in excess of deferred tax liabilities of $1,636.9 million and $1,551.8 million, respectively. For the reasons cited below, at December 31, 2018 and 2017, management determined that it is more likely than not that $89.4 million and $110.7 million, respectively, of such assets will be realized, resulting in a valuation allowance of $1,547.5 million and $1,441.1 million, respectively.

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. Failure to achieve forecasted taxable income might affect the ultimate realization of the net deferred tax assets. Factors that may affect the company’s ability to achieve sufficient forecasted taxable income include, but are not

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limited to, the following: increased competition, a decline in sales or margins, loss of market share, delays in product availability or technological obsolescence. See “Item 1A. Risk Factors.”

Internal Revenue Code Sections 382 and 383 provide annual limitations with respect to the ability of a corporation to utilize its net operating loss (as well as certain built-in losses) and tax credit carryforwards, respectively (“Tax Attributes”), against future U.S. taxable income, if the corporation experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. The company regularly monitors ownership changes (as calculated for purposes of Section 382). The company has determined that, for purposes of the rules of Section 382 described above, an ownership change occurred in February 2011. Any future transaction or transactions and the timing of such transaction or transactions could trigger additional ownership changes under Section 382.

As a result of the February 2011 ownership change, utilization for certain of the company’s Tax Attributes, U.S. net operating losses and tax credits, is subject to an overall annual limitation of $70.6 million. The cumulative limitation as of December 31, 2018 is approximately $454.9 million. This limitation will be applied first to any recognized built in losses, then to any net operating losses, and then to any other Tax Attributes. Any unused limitation may be carried over to later years. Based on presently available information and the existence of tax planning strategies, the company does not expect to incur a U.S. cash tax liability in the near term. The company maintains a full valuation allowance against the realization of all U.S. deferred tax assets as well as certain foreign deferred tax assets in excess of deferred tax liabilities. See Note 6, “Income taxes,” of the Notes to Consolidated Financial Statements.

The company’s provision for income taxes and the determination of the resulting deferred tax assets and liabilities involve a significant amount of management judgment and are based on the best information available at the time. The company operates within federal, state and international taxing jurisdictions and is subject to audit in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. As a result, the actual income tax liabilities in the jurisdictions with respect to any fiscal year are ultimately determined long after the financial statements have been published.

Accounting rules governing income taxes also prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The company maintains reserves for estimated tax exposures including penalties and interest. Income tax exposures include potential challenges of intercompany pricing and other tax matters. Exposures are settled primarily through the settlement of audits within these tax jurisdictions, but can also be affected by changes in applicable tax law or other factors, which could cause management of the company to believe a revision of past estimates is appropriate. Management believes that an appropriate liability has been established for estimated exposures; however, actual results may differ materially from these estimates. The liabilities are reviewed quarterly for their adequacy and appropriateness. See Note 6, “Income taxes,” of the Notes to Consolidated Financial Statements.

Pensions

Accounting rules governing defined benefit pension plans require that amounts recognized in financial statements be determined on an actuarial basis. The measurement of the company’s pension obligations, costs and liabilities is dependent on a variety of assumptions selected by the company and used by the company’s actuaries. These assumptions include estimates of the present value of projected future pension payments to plan participants, taking into consideration the likelihood of potential future events such as demographic experience. The assumptions used in developing the required estimates include the following key factors: discount rates, retirement rates, inflation, expected return on plan assets and mortality rates.

As permitted for purposes of computing pension expense, the company uses a calculated value of plan assets (which is further described below). This allows the effects of the performance of the pension plan’s assets on the company’s computation of pension income or expense to be amortized over future periods. A substantial portion of the company’s pension plan assets relates to its qualified defined benefit plans in the United States.

A significant element in determining the company’s pension income or expense is the expected long-term rate of return on plan assets. The company sets the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. The company considers the current expectations for future returns and the actual historical returns of each asset class. Also, because the company’s investment policy is to actively manage certain asset classes where the potential exists to outperform the broader market, the expected returns for those asset classes are adjusted to reflect the expected additional returns. For 2019, the company has assumed that the expected long-term rate of return on U.S. plan assets will be 6.80%, and on the company’s non-U.S. plan assets will be 4.18%. A change of 25 basis points in the expected long-term rate of return for the company’s U.S. and non-U.S. pension plans causes a change of approximately $8 million and $6 million, respectively, in 2019 pension expense. The assumed long-term rate of return on assets is applied to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in pension income or expense. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset gains or losses affects the calculated value of plan

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assets and, ultimately, future pension income or expense. At December 31, 2018, for the company’s U.S. qualified defined benefit pension plans, the calculated value of plan assets was $3.35 billion and the fair value was $3.11 billion.

At the end of each year, the company determines the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the current interest rate at which the pension liabilities could be effectively settled at the end of the year. In estimating this rate, the company looks to rates of return on high-quality, fixed-income investments that (a) receive one of the two highest ratings given by a recognized ratings agency and (b) are currently available and expected to be available during the period to maturity of the pension benefits. At December 31, 2018, the company determined this rate to be 4.50% for its U.S. defined benefit pension plans, an increase of 63 basis points from the rate used at December 31, 2017, and 2.55% for the company’s non-U.S. defined benefit pension plans, an increase of 31 basis points from the rate used at December 31, 2017. A change of 25 basis points in the U.S. and non-U.S. discount rates causes a change in 2019 pension expense of approximately $1 million and $300 thousand, respectively, and a change of approximately $104 million and $109 million, respectively, in the benefit obligation. These estimates are intended to be illustrative based on a single 25 basis point change. The sensitivity to rate changes is not linear and additional changes in rates may result in a different impact on the pension liability. The net effect of changes in the discount rate, as well as the net effect of other changes in actuarial assumptions and experience, has been deferred, as permitted.

Funding requirements for its U.S. qualified pension plans are calculated by the plan’s actuaries based on certain assumptions including, as permitted under the Bi-partisan Budget Act of 2015, a discount rate constrained to be within 10% of the 25-year average of the relevant rates. The effect of this limitation is that the funding discount rate is higher than the GAAP discount rate applied for balance sheet purposes, and the liability is therefore lower. In addition, this constraint mitigates the effect of changes in market interest rates on the funding discount rate and the funding liability. Changes to the benefit obligation caused by a 25 basis point change noted above are related to the balance sheet obligation and are not necessarily indicative of the impact on the funding liability.

Gains and losses are defined as changes in the amount of either the projected benefit obligation or plan assets resulting from experience different from that assumed and from changes in assumptions. Because gains and losses may reflect refinements in estimates as well as real changes in economic values and because some gains in one period may be offset by losses in another and vice versa, the accounting rules do not require recognition of gains and losses as components of net pension cost of the period in which they arise.

At a minimum, amortization of an unrecognized net gain or loss must be included as a component of net pension cost for a year if, as of the beginning of the year, that unrecognized net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the calculated value of plan assets. If amortization is required, the minimum amortization is that excess above the 10 percent divided by the average remaining life expectancy of the plan participants. For the company’s U.S. qualified defined benefit pension plans and the company’s non-U.S. pension plans, that period is approximately 17 and 24 years, respectively. At December 31, 2018, the estimated unrecognized loss for the company’s U.S. qualified defined benefit pension plans and the company’s non-U.S. pension plans was $2.90 billion and $0.76 billion, respectively.

For the year ended December 31, 2018, the company recognized consolidated pension expense of $79.7 million, compared with $92.4 million for the year ended December 31, 2017. For 2019, the company expects to recognize pension expense of approximately $90.5 million. See Note 14, “Employee plans,” of the Notes to Consolidated Financial Statements.

Goodwill

Accounting rules governing goodwill require a company test goodwill for impairment at least annually, as well as whenever there are events or changes in circumstances (triggering events) which suggest that the carrying amount may not be recoverable.

When determining the fair value of a reporting unit, as appropriate for the individual reporting unit, the company uses both an income and market approach. The methodology used to determine the fair values using the income and market approaches, as described below, are weighted to determine the fair value for each reporting unit.

The income approach is a forward-looking approach to estimating fair value and relies primarily on internal forecasts. Within the income approach, the method used is the discounted cash flow method. The company starts with a forecast of all expected net cash flows associated with the reporting unit, which includes the application of a terminal value, and then a reporting unit-specific discount rate is applied to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include the amount and timing of projected net cash flows, long-term growth rate and the discount rate. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit.

The market approach relies primarily on external information for estimating the fair value. Some of the more significant estimates and assumptions inherent in this approach include the selection of appropriate guideline companies and the selected performance metric used in this approach.

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Estimating the fair value of reporting units requires the use of estimates and significant judgments about key assumptions. There are a number of factors including potential events and changes in circumstances that could change in future periods, including: projected operating results; valuation multiples exhibited by the company and by companies considered comparable to the reporting units; and other macro-economic factors that could impact the discount rate. It is reasonably possible that the judgments and estimates described above could change in future periods.

Goodwill by reporting unit at December 31, 2018, was as follows (dollars in millions):

Reporting unit	Carrying Value
Cloud and infrastructure	$	32.4
Application services	26.3
Business process outsourcing	10.4
Technology	108.7
Total	$	177.8

As a result of the impairment review, the company concluded that none of its goodwill was impaired as of December 31, 2018, and does not believe that any of its reporting units are at risk of failing the impairment test since all reporting unit fair values were substantially in excess of carrying value as of the last impairment test.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest rate risk

The company has exposure to interest rate risk from its debt. In general, the company’s long-term debt is fixed rate and, to the extent it has any, its short-term debt is variable rate. See Note 12, “Debt,” of the Notes to Consolidated Financial Statements for components of the company’s long-term debt. The company believes that the market risk assuming a hypothetical 10% increase in interest rates would not be material to the fair value of these financial instruments, or the related cash flows, or future results of operations.

Market risk

As of December 31, 2018, the company had outstanding $432.0 million ($440.0 million face value) of senior secured notes due 2022 and $194.2 million ($213.5 million face value) of convertible senior notes due 2021. The interest rates on these notes are fixed and therefore do not expose the company to risk related to rising interest rates. As of December 31, 2018, the fair value of the convertible senior notes was $298.5 million. In connection with the offering of the convertible senior notes, the company paid $27.3 million to purchase a capped call covering approximately 21.9 million shares of the company’s common stock. If the price per share of the company’s common stock is below $9.76, these capped call transactions would provide no benefit from potential dilution. If the price per share of the company’s common stock is above $12.75, then to the extent of the excess, these capped call transactions would result in no additional benefit for potential dilution at conversion.

Foreign currency exchange rate risk

The company is also exposed to foreign currency exchange rate risks. The company is a net receiver of currencies other than the U.S. dollar and, as such, can benefit from a weaker dollar, and can be adversely affected by a stronger dollar relative to currencies worldwide. Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, may adversely affect consolidated revenue and operating margins as expressed in U.S. dollars. Currency exposure gains and losses are mitigated by purchasing components and incurring expenses in local currencies.

In addition, the company uses derivative financial instruments, primarily foreign exchange forward contracts, to reduce its exposure to market risks from changes in foreign currency exchange rates on intercompany balances. See Note 9, “Financial instruments and concentration of credit risks,” of the Notes to Consolidated Financial Statements for additional information on the company’s derivative financial instruments.

The company has performed a sensitivity analysis assuming a hypothetical 10% adverse movement in foreign currency exchange rates applied to these derivative financial instruments described above. As of December 31, 2018 and 2017, the analysis indicated that such market movements would have reduced the estimated fair value of these derivative financial instruments by approximately $34 million and $39 million, respectively. Based on changes in the timing and amount of interest rate and foreign currency exchange rate movements and the company’s actual exposures and hedges, actual gains and losses in the future may differ from the above analysis.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index	Page Number
Report of Management	29
Reports of Independent Registered Public Accounting Firm	30
Consolidated Statements of Income	32
Consolidated Statements of Comprehensive Income	33
Consolidated Balance Sheets	34
Consolidated Statements of Cash Flows	35
Consolidated Statements of Deficit	36
Notes to Consolidated Financial Statements	37

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Report of Management

Management’s Report on the Financial Statements

The management of the company is responsible for the integrity of its financial statements. These statements have been prepared in conformity with U.S. generally accepted accounting principles and include amounts based on the best estimates and judgments of management. Financial information included elsewhere in this report is consistent with that in the financial statements.

KPMG LLP, an independent registered public accounting firm, has audited the company’s financial statements. Its accompanying report is based on an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States).

The Board of Directors, through its Audit and Finance Committee, which is composed entirely of independent directors, oversees management’s responsibilities in the preparation of the financial statements and selects the independent registered public accounting firm, subject to stockholder ratification. The Audit and Finance Committee meets regularly with the independent registered public accounting firm, representatives of management, and the internal auditors to review the activities of each and to assure that each is properly discharging its responsibilities. To ensure complete independence, the internal auditors and representatives of KPMG LLP have full access to meet with the Audit and Finance Committee, with or without management representatives present, to discuss the results of their audits and their observations on the adequacy of internal controls and the quality of financial reporting.

Management’s Report on Internal Control Over Financial Reporting

The management of the company is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Management assessed the effectiveness of the company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, we concluded that the company maintained effective internal control over financial reporting as of December 31, 2018, based on the specified criteria.

KPMG LLP, an independent registered public accounting firm, has audited the company’s internal control over financial reporting as of December 31, 2018, as stated in its report that appears herein.

/s/ Peter A. Altabef	/s/ Inder M. Singh
Peter A. Altabef	Inder M. Singh
Chairman, President and Chief Executive Officer	Senior Vice President and Chief Financial Officer

29

Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors

Unisys Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Unisys Corporation and subsidiaries (the Company) as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, cash flows and deficit for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement Schedule II referred to in Item 15(1) of this Form 10-K (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 4, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Changes in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for revenue recognition effective January 1, 2018 due to the adoption of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606).

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for pensions effective January 1, 2018 due to the adoption of ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company’s auditor since 2008.

Philadelphia, Pennsylvania

March 4, 2019

30

Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors

Unisys Corporation:

Opinion on Internal Control Over Financial Reporting

We have audited Unisys Corporation and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, cash flows and deficit for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement Schedule II referred to in Item 15(1) of this Form 10-K (collectively, the consolidated financial statements), and our report dated March 4, 2019 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Philadelphia, Pennsylvania

March 4, 2019

31

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Millions, except per share data)

Year ended December 31,	2018			2017			2016
Revenue
Services	$	2,386.3		$	2,328.2		$	2,406.3
Technology	438.7			413.6			414.4
	2,825.0			2,741.8			2,820.7
Costs and expenses
Cost of revenue:
Services	2,010.5			2,033.8		*	2,035.2		*
Technology	128.2			160.3		*	168.1		*
	2,138.7			2,194.1		*	2,203.3		*
Selling, general and administrative expenses	370.3			411.9		*	441.2		*
Research and development expenses	31.9			38.7		*	47.0		*
	2,540.9			2,644.7		*	2,691.5		*
Operating income	284.1			97.1		*	129.2		*
Interest expense	64.0			52.8			27.4
Other income (expense), net	(76.9		)	(116.4		)*	(81.3		)*
Income (loss) before income taxes	143.2			(72.1		)	20.5
Provision (benefit) for income taxes	64.3			(5.5		)	57.2
Consolidated net income (loss)	78.9			(66.6		)	(36.7		)
Net income (loss) attributable to noncontrolling interests	3.4			(1.3		)	11.0
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5		$	(65.3	)	$	(47.7	)
Earnings (loss) per common share attributable to Unisys Corporation
Basic	$	1.48		$	(1.30	)	$	(0.95	)
Diluted	$	1.30		$	(1.30	)	$	(0.95	)

*Amounts were changed to conform to the current-year presentation. See Note 2.

See notes to consolidated financial statements.

32

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Millions)

Year ended December 31,	2018			2017			2016
Consolidated net income (loss)	$	78.9		$	(66.6	)	$	(36.7	)
Other comprehensive income
Foreign currency translation	(81.8		)	117.8			(108.4		)
Postretirement adjustments, net of tax of $7.1 in 2018, $18.3 in 2017 and $(13.3) in 2016	33.8			265.1			(137.6		)
Total other comprehensive income (loss)	(48.0		)	382.9			(246.0		)
Comprehensive income (loss)	30.9			316.3			(282.7		)
Comprehensive income (loss) attributable to noncontrolling interests	15.7			44.6			(27.5		)
Comprehensive income (loss) attributable to Unisys Corporation	$	15.2		$	271.7		$	(255.2	)

See notes to consolidated financial statements.

33

UNISYS CORPORATION

CONSOLIDATED BALANCE SHEETS

(Millions)

As of December 31,	2018			2017
Assets
Current assets
Cash and cash equivalents	$	605.0		$	733.9
Accounts receivable, net	509.2			503.3
Contract assets	29.7			—
Inventories:
Parts and finished equipment	14.0			13.6
Work in process and materials	13.3			12.5
Prepaid expenses and other current assets	130.2			126.2
Total current assets	1,301.4			1,389.5
Properties	800.2			898.8
Less – Accumulated depreciation and amortization	678.9			756.3
Properties, net	121.3			142.5
Outsourcing assets, net	216.4			202.3
Marketable software, net	162.1			138.3
Prepaid postretirement assets	147.6			148.3
Deferred income taxes	109.3			119.9
Goodwill	177.8			180.8
Restricted cash	19.1			30.2
Other long-term assets	202.6			190.6
Total assets	$	2,457.6		$	2,542.4
Liabilities and deficit
Current liabilities:
Current maturities of long-term debt	$	10.0		$	10.8
Accounts payable	268.9			241.8
Deferred revenue	294.4			327.5
Other accrued liabilities	350.0			391.5
Total current liabilities	923.3			971.6
Long-term debt	642.8			633.9
Long-term postretirement liabilities	1,956.5			2,004.4
Long-term deferred revenue	157.2			159.0
Other long-term liabilities	77.4			100.0
Commitments and contingencies
Deficit:
Common stock, par value $.01 per share (150.0 million shares authorized; 54.2 million shares and 53.4 million shares issued)	0.5			0.5
Accumulated deficit	(1,694.0		)	(1,963.1		)
Treasury stock, at cost	(105.0		)	(102.7		)
Paid-in capital	4,539.8			4,526.4
Accumulated other comprehensive loss	(4,084.8		)	(3,815.8		)
Total Unisys stockholders’ deficit	(1,343.5		)	(1,354.7		)
Noncontrolling interests	43.9			28.2
Total deficit	(1,299.6		)	(1,326.5		)
Total liabilities and deficit	$	2,457.6		$	2,542.4

See notes to consolidated financial statements.

34

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions)

Year ended December 31,	2018			2017			2016
Cash flows from operating activities
Consolidated net income (loss)	$	78.9		$	(66.6	)	$	(36.7	)
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Foreign currency transaction losses	7.4			21.7			0.4
Non-cash interest expense	10.5			9.5			7.0
Loss on debt extinguishment	—			1.5			4.0
Employee stock compensation	13.2			11.2			9.5
Depreciation and amortization of properties	40.4			39.7			38.9
Depreciation and amortization of outsourcing assets	66.8			53.7			51.9
Amortization of marketable software	56.9			63.1			64.8
Other non-cash operating activities	(4.8		)	3.2			1.9
Loss on disposal of capital assets	0.8			5.0			6.2
Gain on sale of properties	(7.3		)	—			—
Postretirement contributions	(138.7		)	(150.6		)*	(146.1		)*
Postretirement expense	84.1			98.1		*	89.4		*
Decrease in deferred income taxes, net	8.2			3.4			2.7
Changes in operating assets and liabilities:
Receivables, net	(50.5		)	5.9			87.3
Inventories	(5.5		)	4.1			15.3
Other assets	(23.9		)	(27.5		)	16.5
Accounts payable and other accrued liabilities	(62.2		)	48.6			7.5
Other liabilities	(0.4		)	42.4		*	(2.3		)*
Net cash provided by operating activities	73.9			166.4			218.2
Cash flows from investing activities
Proceeds from investments	3,708.0			4,717.2			4,455.9
Purchases of investments	(3,722.0		)	(4,692.4		)	(4,490.0		)
Capital additions of properties	(35.6		)	(25.8		)	(32.5		)
Capital additions of outsourcing assets	(73.0		)	(86.3		)	(51.3		)
Investment in marketable software	(80.7		)	(64.4		)	(63.3		)
Net proceeds from sale of properties	19.2			—			—
Other	(0.9		)	(0.8		)	(0.9		)
Net cash used for investing activities	(185.0		)	(152.5		)	(182.1		)
Cash flows from financing activities
Payments of long-term debt	(2.3		)	(107.5		)	(129.8		)
Financing fees	(0.2		)	(1.1		)	—
Proceeds from issuance of long-term debt	—			452.9			213.5
Issuance costs relating to long-term debt	—			(12.1		)	(7.3		)
Net payments from short-term borrowings	—			—			(65.8		)
Payments for capped call transactions	—			—			(27.3		)
Other	(2.3		)	(2.3		)	(0.4		)
Net cash (used for) provided by financing activities	(4.8		)	329.9			(17.1		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(24.1		)	19.2			(14.7		)
(Decrease) increase in cash, cash equivalents and restricted cash	(140.0		)	363.0			4.3
Cash, cash equivalents and restricted cash, beginning of year	764.1			401.1			396.8
Cash, cash equivalents and restricted cash, end of year	$	624.1		$	764.1		$	401.1

*Amounts were changed to conform to the current-year presentation. See Note 2.

See notes to consolidated financial statements.

35

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF DEFICIT

(Millions)

				Unisys Corporation
	Total			Total Unisys Corporation			Common Stock Par Value		Accumu-lated Deficit			Treasury Stock At Cost			Paid-in Capital			Accumu-lated Other Compre-hensive Loss			Non-controlling Interests
Balance at December 31, 2015	$	(1,378.6	)	$	(1,389.7	)	$	0.5	$	(1,845.7	)	$	(100.1	)	$	4,500.9		$	(3,945.3	)	$	11.1
Consolidated net income (loss)	(36.7		)	(47.7		)			(47.7		)										11.0
Stock-based compensation	8.8			8.8								(0.4		)	9.2
Discount on debt issuance	33.6			33.6											33.6
Capped call on debt issuance	(27.3		)	(27.3		)									(27.3		)
Expenses of convertible notes	(1.2		)	(1.2		)									(1.2		)
Translation adjustments	(108.4		)	(93.3		)												(93.3		)	(15.1		)
Postretirement plans	(137.6		)	(114.2		)												(114.2		)	(23.4		)
Balance at December 31, 2016	$	(1,647.4	)	$	(1,631.0	)	$	0.5	$	(1,893.4	)	$	(100.5	)	$	4,515.2		$	(4,152.8	)	$	(16.4	)
Cumulative effect adjustment - ASU No. 2016-16	(4.4		)	(4.4		)			(4.4		)
Consolidated net loss	(66.6		)	(65.3		)			(65.3		)										(1.3		)
Stock-based compensation	9.0			9.0								(2.2		)	11.2
Translation adjustments	117.8			110.1														110.1			7.7
Postretirement plans	265.1			226.9														226.9			38.2
Balance at December 31, 2017	$	(1,326.5	)	$	(1,354.7	)	$	0.5	$	(1,963.1	)	$	(102.7	)	$	4,526.4		$	(3,815.8	)	$	28.2
Cumulative effect adjustment - ASU No. 2014-09	(21.4		)	(21.4		)			(21.4		)
Cumulative effect adjustment - ASU No. 2017-05	6.3			6.3					6.3
Reclassification pursuant to ASU No. 2018-02	—			—					208.7									(208.7		)
Consolidated net income	78.9			75.5					75.5												3.4
Stock-based compensation	11.1			11.1								(2.3		)	13.4
Translation adjustments	(81.8		)	(79.7		)												(79.7		)	(2.1		)
Postretirement plans	33.8			19.4														19.4			14.4
Balance at December 31, 2018	$	(1,299.6	)	$	(1,343.5	)	$	0.5	$	(1,694.0	)	$	(105.0	)	$	4,539.8		$	(4,084.8	)	$	43.9

See notes to consolidated financial statements.

36

UNISYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in millions, except share and per share amounts)

Note 1 — Summary of significant accounting policies

Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries.

Use of estimates 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 measurement of progress toward completion 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.

Cash and Cash equivalents Cash and cash equivalents consist of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty.

Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily 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 and other cash that is restricted from withdrawal.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows.

As of December 31,	2018		2017
Cash and cash equivalents	$	605.0	$	733.9
Restricted cash	19.1		30.2
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	624.1	$	764.1

Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method.

Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method. The estimated lives used, in years, are as follows: buildings, 20 – 50; machinery and office equipment, 4 – 7; rental equipment, 4; and internal-use software, 3 – 10.

Advertising costs All advertising costs are expensed as incurred. The amount charged to expense during 2018, 2017 and 2016 was $2.8 million, $1.6 million and $2.7 million, respectively.

Shipping and handling Costs related to shipping and handling are included in cost of revenue.

Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date.

The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified.

The company estimates the fair value of each reporting unit using a combination of the income approach and market approach.

The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s

37

estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit.

The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit.

If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, the company gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long-term growth prospects, among other factors.

In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization).

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods.

Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods and services to a customer. The company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the company satisfies a performance obligation.

Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction and collected by the company from a customer (e.g., sales, use and value-added taxes). Revenue includes payments for shipping and handling activities.

At contract inception, the company assesses the goods and services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: (1) a good or service (or a bundle of goods or services) that is distinct or (2) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. The company recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer.

The company must apply its judgment to determine the timing of the satisfaction of performance obligations as well as the transaction price and the amounts allocated to performance obligations including estimating variable consideration, adjusting the consideration for the effects of the time value of money and assessing whether an estimate of variable consideration is constrained.

Revenue from hardware sales is recognized upon the transfer of control to a customer, which is defined as an entity’s ability to direct the use of and obtain substantially all of the remaining benefits of an asset.

Revenue from software licenses is recognized at the inception of either the initial license term or the inception of an extension or renewal to the license term.

Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term.

Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred.

Revenue and profit under systems integration contracts are recognized over time as the company transfers control of goods or services. The company measures its progress toward satisfaction of its performance obligations using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for using the cost-to-cost method, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident.

Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract.

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The company also enters into multiple-element arrangements, which may include any combination of hardware, software or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple performance obligations, with control over hardware and software transferred in one reporting period and the software support and hardware maintenance services performed across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long-term multiple-year basis and periodically sell hardware and license software products to the client. The services are provided on a continuous basis across multiple reporting periods and control over the hardware and software products occurs in one reporting period. To the extent that a performance obligation in a multiple-deliverable arrangement is subject to specific guidance, that performance obligation is accounted for in accordance with such specific guidance. An example of such an arrangement may include leased assets which are subject to specific leasing accounting guidance.

In multiple-element arrangements, the company allocates the total transaction price to be earned under the arrangement among the various performance obligations in proportion to their standalone selling prices (relative standalone selling price basis). The standalone selling price for a performance obligation is the price at which the company would sell a promised good or service separately to a customer.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of the company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The primary methods used to estimate standalone selling price are as follows: (1) the expected cost plus margin approach, under which the company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service and (2) the percent discount off of list price approach.

In the Services segment, substantially all of the company’s performance obligations are satisfied over time as work progresses and therefore substantially all of the revenue in this segment is recognized over time. The company generally receives payment for these contracts over time as the performance obligations are satisfied.

In the Technology segment, substantially all of the company’s goods and services are transferred to customers at a single point in time. Revenue on these contracts is recognized when control over the product is transferred to the customer or a software license term begins. The company generally receives payment for these contracts upon signature or within 30 to 60 days.

At December 31, 2018, the company had approximately $1.2 billion of remaining performance obligations of which approximately 40% is estimated to be recognized as revenue by the end of 2019. The company does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less and (2) contracts for which the company recognizes revenue at the amount to which it has the right to invoice for services performed.

The company discloses disaggregation of its customer revenue by geographic areas and by classes of similar products and services, by segment (see note 17).

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, contract assets and deferred revenue (contract liabilities).

The disclosure of contract assets is a new requirement due to the adoption of Topic 606. At December 31, 2017, contract assets were included in accounts receivable, net on the company’s consolidated balance sheet. At December 31, 2018, $22.2 million of long-term contract assets were included in other long-term assets on the company’s consolidated balance sheet.

At December 31, 2018, deposit liabilities of $21.2 million were principally included in current deferred revenue. These deposit liabilities represent upfront consideration received from customers for services such as post-contract support and maintenance that allow the customer to terminate the contract at any time for convenience.

Significant changes during 2018 in the above contract asset and liability balances were as follows: revenue of $307.1 million was recognized that was included in deferred revenue at December 31, 2017.

The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At December 31, 2018 and December 31, 2017, the company had $12.1 million and $11.0 million, respectively, of deferred commissions. For the year ended December 31, 2018, $6.9 million of amortization expense related to deferred commissions was recorded in selling, general and administrative expense in the company’s consolidated statement of income.

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Costs to fulfill a contract, which are incurred upon initiation of certain services contracts and are related to initial customer setup, are included in outsourcing assets, net in the company’s consolidated balance sheet. The amount of such cost at December 31, 2018 and December 31, 2017 was $79.5 million and $76.0 million, respectively. These costs are amortized over the initial contract life and reported in Services cost of sales. During 2018, $21.7 million was amortized. Recoverability of these costs are subject to various business risks. Quarterly, the company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. If impaired, these assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual cash flows could differ from these estimates.

Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company releases the income tax effects of deferred tax balances that have a valuation allowance from accumulated other comprehensive income once the reason the tax effects were established ceases to exist (e.g. postretirement plan is liquidated). The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income.

The company treats the global intangible low-taxed income tax, or GILTI, as a period cost when included in U.S. taxable income, and the base erosion and anti-abuse tax, or BEAT, as a period cost when incurred.

Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally 3 years following product release. The company continually reassesses the estimated revenue-producing lives of the products and will revise the lives as necessary. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue.

Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above.

Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above.

Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates.

Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net.

For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net.

Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. Compensation expense for performance-based restricted stock unit awards is recognized as expense ratably for each installment from the date of the 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. Compensation expense for market-based awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. The fair value of restricted stock units with time and performance conditions is determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions is estimated using a Monte Carlo simulation. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The

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company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses.

Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income.

At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency.

Fair value measurements Fair value is defined 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. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 12), derivatives (see note 9) and to its postretirement plan assets (see note 14).

Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services.

Note 2 — Recent accounting pronouncements and accounting changes

Accounting Pronouncements Adopted

Effective January 1, 2018, the company adopted ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost issued by the Financial Accounting Standards Board (“FASB”) which 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. The other components of net periodic benefit cost are presented separately from the line items that include service cost and outside the subtotal of operating income. ASU No. 2017-07 allows a practical expedient that permits an entity to use amounts disclosed in its pension and other postretirement benefit plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The new guidance has been applied on a retrospective basis, using the practical expedient, whereby prior-period financial statements have been adjusted to reflect the adoption of the new guidance, as required by the FASB. For the years ended December 31, 2017 and 2016, $92.5 million and $81.6 million, respectively, of net periodic benefit cost other than service cost, was reclassified from cost of revenue, selling, general and administrative expenses and research and development expenses to other income (expense), net in the company’s consolidated results of operations (see note 14).

Effective January 1, 2018, the company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) issued by the FASB which establishes 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. Topic 606 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. Topic 606 requires the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the prior rules would allow and requires the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the prior rules would allow. Topic 606 also requires significantly expanded disclosure requirements. The company has adopted the standard using the modified

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retrospective method and applied the standard to all contracts that were not completed as of January 1, 2018. The cumulative effect of the adoption was recognized as an increase in the company’s accumulated deficit of $21.4 million on January 1, 2018.

The following table summarizes the effects of adopting ASU No. 2014-09 on the company’s consolidated financial statements as of and for the year ended December 31, 2018.

	As Reported			Adjustments			Balances Without Adoption of Topic 606
For the year ended December 31, 2018
Statement of Income
Revenue
Services	$	2,386.3		$	(6.2	)	$	2,380.1
Technology	438.7			(139.9		)	298.8
Costs and expenses
Cost of revenue
Services	2,010.5			(3.0		)	2,007.5
Technology	128.2			(5.8		)	122.4
Selling, general and administrative expenses	370.3			0.9			371.2
Operating income	284.1			(138.2		)	145.9
Income before income taxes	143.2			(138.2		)	5.0
Provision for income taxes	64.3			(18.6		)	45.7
Consolidated net income	78.9			(119.6		)	(40.7		)
Net income attributable to Unisys Corporation	75.5			(119.6		)	(44.1		)
As of December 31, 2018
Balance Sheet
Assets
Accounts receivable, net current	$	509.2		$	10.9		$	520.1
Contract assets	29.7			(29.7		)	—
Inventories	27.3			10.6			37.9
Prepaid expenses and other current assets	130.2			1.5			131.7
Deferred income taxes - long-term	109.3			1.7			111.0
Other long-term assets	202.6			(27.8		)	174.8
Total assets	2,457.6			(32.8		)	2,424.8
Liabilities
Deferred revenue - current	294.4			70.3			364.7
Other accrued liabilities - current	350.0			(20.7		)	329.3
Long-term deferred revenue	157.2			10.4			167.6
Other long-term liabilities	77.4			5.5			82.9
Equity
Accumulated deficit	(1,694.0		)	(98.3		)	(1,792.3		)
Total liabilities and deficit	2,457.6			(32.8		)	2,424.8

Included in the Technology revenue adjustments for the year ended December 31, 2018 in the above table is $53.0 million of revenue from software license extensions and renewals which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Upon adoption of the new revenue recognition rules (Topic 606) on January 1, 2018, and since the company adopted Topic 606 under the modified retrospective method whereby prior periods were not restated, the company was required to include this $53.0 million in the cumulative effect adjustment to retained earnings on January 1, 2018. Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million is January 1,

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2018. The company has excluded revenue and related profit for these software licenses to reflect the balances without the adoption of Topic 606 in the above table. This is a one-time adjustment and it will not reoccur in future periods. There are additional adjustments being made in the above table, but they do not represent previously recorded revenue. Those additional adjustments represent other differences between Topic 605 and Topic 606, principally extended payment term software licenses and short-term software licenses both of which are recorded at the inception of the license term under Topic 606, but were required to be recognized ratably over the software license term under Topic 605. An additional adjustment is that under Topic 605, a company was not able to recognize software license revenue until the last software license is delivered due to the lack of vendor specific objective evidence, whereas under Topic 606, a company is required to use the standalone selling price for all performance obligations. This resulted in software license revenue being recognized sooner under Topic 606 compared with Topic 605.

In 2018, the company adopted ASU No. 2017-05 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) issued by the FASB which clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The company adopted the standard using the modified retrospective method. The cumulative effect of the adoption was recognized as a decrease in the company’s accumulated deficit of $6.3 million.

Effective July 1, 2018, the company adopted ASU No. 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income by applying the changes in the period of adoption. The new guidance permits companies to reclassify stranded tax effects in accumulated other comprehensive income (“AOCI”) caused by the U.S. Tax Cuts and Jobs Act of 2017 (“TCJA”) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances and related valuation allowances were remeasured to the lower enacted U.S. corporate tax rate. In accordance with its accounting policy, the company releases the income tax effects of deferred tax balances that have a valuation allowance from AOCI once the reason the tax effects were established cease to exist (e.g. postretirement plan is liquidated). The new guidance allows for the reclassification of stranded tax effects as a result of the change in tax rates from the TCJA to be recorded upon adoption of the guidance rather than at cessation date. On July 1, 2018, $208.7 million related to postretirement plans was reclassified from AOCI to retained earnings.

In September 2018, the company adopted SEC Release No. 33-10532, Disclosure Update and Simplification which amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the rule expands the disclosure requirements on changes in stockholders’ equity for interim periods. Under this rule, a reconciliation of changes in stockholders' equity is required for each period for which an income statement is presented. The company applied the new disclosure requirements retrospectively to all periods presented. There was no overall impact on the company’s consolidated financial statements.

Effective for the annual reporting period ended December 31, 2018, the company adopted ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans which adds, removes and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. The company applied the changes on a retrospective basis for all periods presented. There was no overall impact on the company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This update is effective for fiscal years ending after December 15, 2019, with earlier adoption permitted. The new guidance can be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which 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 ASU No. 2016-02 Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU requires 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 also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising

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from leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provides an alternative transition method permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption rather than restating comparative periods in transition as originally prescribed by Topic 842. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the company is January 1, 2019. The company will adopt the new guidance utilizing the alternative transition method. The company reviewed lease contracts, implemented new lease accounting software, established new processes and internal controls and evaluated the impact of certain accounting policy elections. The adoption is expected to have a material impact on the consolidated financial position, and is not expected to have a material impact on the consolidated results of operations and cash flows.

Note 3 — Cost-reduction actions

2018 Cost-reduction Plan

In the fourth quarter of 2018, the company committed to a reduction of 589 employees. This resulted in charges, principally related to severance costs, of $27.7 million, which were comprised of: (a) a charge of $5.2 million for 264 employees in the U.S. and (b) a charge of $22.5 million for 325 employees outside the U.S. The charges were recorded in the following statement of income classifications: cost of revenue – services, $25.4 million and selling, general and administrative expenses, $2.3 million.

2015 Cost-reduction Plan

There were no additional cost-reduction charges recorded during 2018; however, a benefit of $8.0 million was recorded in the current year for changes in estimates. The benefit was recorded in the following statement of income classifications: cost of revenue – services, $7.3 million and selling, general and administrative expenses, $0.7 million.

During 2017, the company recognized cost-reduction charges and other costs of $146.8 million, principally related to a reduction in employees. The charges related to work-force reductions were $117.9 million, principally related to severance costs, and were comprised of: (a) a charge of $9.4 million for 542 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $109.4 million for 2,274 employees, $8.2 million for additional benefits provided in 2017 and $(7.8) million for changes in estimates outside the U.S. In addition, the company recorded charges of $28.9 million comprised of $4.7 million for idle leased facilities costs, $5.4 million for contract amendment and termination costs, $5.2 million for professional fees and other expenses related to the cost-reduction effort, $1.8 million for net asset sales and write-offs and $11.8 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, $99.6 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $33.6 million; research and development expenses, $1.4 million; and other income (expense), net, $11.8 million.

During 2016, the company recognized cost-reduction charges and other costs of $82.1 million, principally related to a reduction in employees. The charges related to work-force reductions were $62.6 million, principally related to severance costs, and were comprised of: (a) a charge of $8.3 million for 351 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $58.6 million for 1,048 employees and $(3.0) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.5 million comprised of $1.4 million for idle leased facilities costs, $4.1 million for contract amendment and termination costs, $13.3 million for professional fees and other expenses related to the cost-reduction effort and $0.7 million for net asset sales and write-offs. The charges were recorded in the following statement of income classifications: cost of revenue - services, $42.4 million; selling, general and administrative expenses, $38.0 million; and research and development expenses, $1.7 million.

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

				Work-Force Reductions						Idle Leased
	Total			U.S.			International			Facilities Costs
Balance at January 1, 2016	$	33.0		$	4.2		$	28.8		$	—
Additional provisions	68.3			8.3			58.6			1.4
Payments	(59.3		)	(9.4		)	(49.9		)	—
Changes in estimates	(4.3		)	(1.3		)	(3.0		)	—
Translation adjustments	(1.1		)	—			(1.1		)	—
Balance at December 31, 2016	36.6			1.8			33.4			1.4
Additional provisions	131.2			9.4			117.6			4.2
Payments	(49.3		)	(6.0		)	(41.3		)	(2.0		)
Changes in estimates	(8.6		)	(1.3		)	(7.8		)	0.5
Translation adjustments	7.9			—			7.7			0.2
Balance at December 31, 2017	117.8			3.9			109.6			4.3
Additional provisions	27.7			5.2			22.5			—
Payments	(44.4		)	(3.1		)	(39.3		)	(2.0		)
Changes in estimates	(8.0		)	0.1			(8.8		)	0.7
Translation adjustments	(4.0		)	—			(3.9		)	(0.1		)
Balance at December 31, 2018	$	89.1		$	6.1		$	80.1		$	2.9
Expected future payments on balance at December 31, 2018:
In 2019	$	75.8		$	5.6		$	68.8		$	1.4
Beyond 2019	13.3			0.5			11.3			1.5

Note 4 — Rental expense and commitments

Rental expense and income from subleases for the three years ended December 31, 2018 were as follows:

Year ended December 31,	2018		2017		2016
Rental expense, less income from subleases	$	67.4	$	71.7	$	77.4
Income from subleases	$	3.1	$	4.4	$	7.8

Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2018, substantially all of which relate to real properties, were as follows:

Year
2019	$	48.5
2020	42.1
2021	30.0
2022	20.8
2023	14.3
Thereafter	24.4
Total	$	180.1

Such rental commitments have been reduced by minimum sublease rentals of $2.7 million, due in the future under noncancelable subleases.

At December 31, 2018, the company had outstanding standby letters of credit and surety bonds totaling approximately $272 million related to performance and payment guarantees. On the basis of experience with these arrangements, the company believes that any obligations that may arise will not be material. In addition, at December 31, 2018, the company had deposits and collateral of approximately $15 million in other long-term assets, principally related to tax contingencies in Brazil.

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Note 5 — Foreign currency

Effective July 1, 2018, the company’s Argentinian subsidiary began to apply highly inflationary accounting due to cumulative inflation of approximately 100 percent or more over the last 3-year period. For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net. The impact of applying highly inflationary accounting in the third quarter of 2018 was immaterial. At December 31, 2018, the company’s operations in Argentina had net monetary assets denominated in local currency of approximately $5.1 million.

During the years ended December 31, 2018, 2017 and 2016, the company recognized foreign exchange gains (losses) in “Other income (expense), net” in its consolidated statements of income of $(5.9) million, $(9.9) million and $2.3 million, respectively. The year ended December 31, 2017 also includes $11.8 million of net foreign currency losses related to exiting foreign countries in connection with the company’s restructuring plan.

Note 6 — Income taxes

Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2018.

Year ended December 31,	2018			2017			2016
Income (loss) before income taxes
United States	$	(53.6	)	$	(152.7	)	$	(88.3	)
Foreign	196.8			80.6			108.8
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5
Provision for income taxes
Current
United States	$	4.7		$	(42.8	)	$	6.7
Foreign	51.4			33.9			47.7
Total	56.1			(8.9		)	54.4
Deferred
Foreign	8.2			3.4			2.8
Total provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

Following is a reconciliation of the provision (benefit) for income taxes at the United States statutory tax rate to the provision for income taxes as reported:

Year ended December 31,	2018			2017			2016
United States statutory income tax provision (benefit)	$	30.1		$	(25.2	)	$	7.2
Income and losses for which no provision or benefit has been recognized	22.2			70.3			65.5
Foreign rate differential and other foreign tax expense	9.5			(11.3		)	(21.1		)
Income tax withholdings	19.3			16.8			22.8
Permanent items	(5.0		)	(3.0		)	(4.7		)
Enacted rate changes	(2.3		)	(0.4		)	3.5
Change in uncertain tax positions	(1.2		)	2.3			0.4
Change in valuation allowances due to changes in judgment	(5.9		)	(4.6		)	(16.4		)
Income tax credits, U.S.	(2.4		)	(50.4		)	—
Provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

The Tax Cuts & Jobs Act (“TCJA”) reduced the U.S. federal income tax rate from 35% to 21% effective January 1, 2018, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets.

Included in 2017 was a benefit of $50.4 million principally related to the TCJA’s elimination of the corporate Alternative Minimum Tax (“AMT”) and refund of all remaining AMT credits.

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The 2018 and 2016 provisions for income taxes included $(2.2) million and $3.5 million due to reductions in the Netherlands and U.K. income tax rates, respectively. The Netherlands rate reduction was enacted in the fourth quarter of 2018 and reduced the rate from 25% to 20.5% effective January 1, 2021. The U.K. rate reduction was enacted in the third quarter of 2016 and reduced the rate from 18% to 17% effective April 1, 2020.

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows:

As of December 31,	2018			2017
Deferred tax assets
Tax loss carryforwards	$	860.0		$	837.6
Postretirement benefits	440.3			437.7
Foreign tax credit carryforwards	221.6			127.0
Other tax credit carryforwards	29.8			29.1
Deferred revenue	37.1			40.9
Employee benefits and compensation	31.1			35.2
Purchased capitalized software	22.9			22.2
Depreciation	20.1			24.5
Warranty, bad debts and other reserves	4.8			5.3
Capitalized costs	5.1			3.1
Other	30.4			39.3
	1,703.2			1,601.9
Valuation allowance	(1,547.5		)	(1,441.1		)
Total deferred tax assets	$	155.7		$	160.8
Deferred tax liabilities
Capitalized research and development	$	36.1		$	24.3
Other	30.2			25.8
Total deferred tax liabilities	$	66.3		$	50.1
Net deferred tax assets	$	89.4		$	110.7

2017 includes a remeasurement of U.S. deferred tax balances as the TCJA reduced the U.S. federal income tax rate from 35% to 21% effective January 1, 2018, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets.

At December 31, 2018, the company has tax effected tax loss carryforwards as follows:

As of December 31,	2018
U.S. Federal	$	349.6
State and local	257.5
Foreign	252.9
Total tax loss carryforwards	$	860.0

These carryforwards will expire as follows:

Year
2019	$	7.7
2020	25.9
2021	14.1
2022	15.1
2023	14.3
Thereafter	782.9
Total	$	860.0

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The company also has available tax credit carryforwards, which will expire as follows:

Year
2019	$	11.8
2020	24.5
2021	41.9
2022	38.1
2023	27.0
Thereafter	108.1
Total	$	251.4

Failure to achieve forecasted taxable income might affect the ultimate realization of the company’s net deferred tax assets. Factors that may affect the company’s ability to achieve sufficient forecasted taxable income include, but are not limited to, the following: increased competition, a decline in sales or margins, loss of market share, the impact of the economic environment, delays in product availability and technological obsolescence.

Under U.S. tax law effective through December 31, 2017, undistributed earnings of foreign subsidiaries were generally taxable upon repatriation to the U.S shareholder. Under the TCJA, effective January 1, 2018, distributions from foreign subsidiaries to U.S. shareholders are generally exempt from taxation.

With this change in U.S. taxation of earnings of foreign subsidiaries under the TCJA, future distributions of earnings from foreign subsidiaries will generally be exempt from U.S. taxation. Consequently, the deferred income tax liability on undistributed earnings is generally limited to any foreign withholding or other foreign taxes that will be imposed on such distributions. As the company currently intends to indefinitely reinvest the earnings of certain foreign subsidiaries, no provision has been made for income taxes that may become payable upon distribution of the earnings of such subsidiaries. The unrecognized deferred income tax liability at December 31, 2018 approximated $25.3 million.

As of January 1, 2018 the U.S. taxable income will include GILTI, which essentially includes net foreign subsidiaries’ earnings above a routine 10% return on their aggregate specified tangible assets. At December 31, 2017, the company made an accounting policy election to treat the GILTI as a period cost when included in U.S. taxable income.

Cash paid for income taxes, net of refunds, for the three years ended December 31, 2018, was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for income taxes, net of refunds	$	39.1	$	34.3	$	46.4

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Year ended December 31,	2018			2017			2016
Balance at January 1	$	27.9		$	35.8		$	27.7
Additions based on tax positions related to the current year	2.6			4.2			2.7
Changes for tax positions of prior years	(6.1		)	(11.2		)	12.0
Reductions as a result of a lapse of applicable statute of limitations	(2.4		)	(2.7		)	(2.8		)
Settlements	(1.5		)	(0.2		)	(0.1		)
Changes due to foreign currency	(1.6		)	2.0			(3.7		)
Balance at December 31	$	18.9		$	27.9		$	35.8

The company recognizes penalties and interest accrued related to income tax liabilities in the provision for income taxes in its consolidated statements of income. At December 31, 2018 and 2017, the company had an accrual of $2.6 million and $2.3 million, respectively, for the payment of penalties and interest.

At December 31, 2018, all of the company’s liability for unrecognized tax benefits, if recognized, would affect the company’s effective tax rate. Within the next 12 months, the company believes that it is reasonably possible that the amount of unrecognized tax benefits may significantly change; however, various events could cause this belief to change in the future.

The company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Several U.S. state and foreign income tax audits are in process. The company is under an audit in India, for which years prior to 2007 are closed. For the most significant jurisdictions outside the U.S., the audit periods through 2013 are closed

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for Brazil, and the audit periods through 2014 are closed for the United Kingdom. All of the various ongoing income tax audits throughout the world are not expected to have a material impact on the company’s financial position.

Internal Revenue Code Sections 382 and 383 provide annual limitations with respect to the ability of a corporation to utilize its net operating loss (as well as certain built-in losses) and tax credit carryforwards, respectively (“Tax Attributes”), against future U.S. taxable income, if the corporation experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. The company regularly monitors ownership changes (as calculated for purposes of Section 382). The company has determined that, for purposes of the rules of Section 382 described above, an ownership change occurred in February 2011. Any future transaction or transactions and the timing of such transaction or transactions could trigger additional ownership changes under Section 382.

As a result of the February 2011 ownership change, utilization for certain of the company’s Tax Attributes, U.S. net operating losses and tax credits, is subject to an overall annual limitation of $70.6 million. The cumulative limitation as of December 31, 2018 is approximately $454.9 million. This limitation will be applied first to any recognized built in losses, then to any net operating losses, and then to any other Tax Attributes. Any unused limitation may be carried over to later years. Based on presently available information and the existence of tax planning strategies, the company does not expect to incur a U.S. cash tax liability in the near term. The company maintains a full valuation allowance against the realization of all U.S. deferred tax assets as well as certain foreign deferred tax assets in excess of deferred tax liabilities.

Note 7 — Earnings per common share

The following table shows how earnings (loss) per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2018 (shares in thousands).

Year ended December 31,	2018		2017			2016
Basic earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Basic earnings (loss) per common share	$	1.48	$	(1.30	)	$	(0.95	)
Diluted earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Add interest expense on convertible senior notes, net of tax of zero	19.6		—			—
Net income (loss) attributable to Unisys Corporation for diluted earnings per share	$	95.1	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Plus incremental shares from assumed conversions:
Employee stock plans	541		—			—
Convertible senior notes	21,868		—			—
Adjusted weighted average shares	73,355		50,409			50,060
Diluted earnings (loss) per common share	$	1.30	$	(1.30	)	$	(0.95	)
Anti-dilutive weighted-average stock options and restricted stock units(i)	1,226		2,206			3,553
Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes(i)	—		21,868			17,230

⁽ⁱ⁾Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

Note 8 — Accounts receivable

Accounts receivable consist principally of trade accounts receivable from customers and are generally unsecured and due within 30 to 90 days. Credit losses relating to these receivables consistently have been within management’s expectations. Expected credit losses are recorded as an allowance for doubtful accounts in the consolidated balance sheets. Estimates of expected credit losses are based primarily on the aging of the accounts receivable balances. The company records a specific reserve for individual accounts when it becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The collection policies and procedures of the company vary by credit class and prior payment history of customers.

Revenue recognized in excess of billings on services contracts, or unbilled accounts receivable, was $94.4 million and $109.4 million at December 31, 2018 and 2017, respectively.

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As of December 31, 2018, receivables under sales-type leases before the allowance for unearned income were collectible as follows:

Year
2019	$	36.2
2020	15.2
2021	10.7
2022	10.1
2023	10.2
Thereafter	8.6
Total	$	91.0

Unearned income, which is deducted from accounts receivable, was $8.4 million and $12.5 million at December 31, 2018 and 2017, respectively. The allowance for doubtful accounts, which is reported as a deduction from accounts receivable, was $13.7 million and $22.0 million at December 31, 2018 and 2017, respectively. The provision for doubtful accounts, which is reported in selling, general and administrative expenses in the consolidated statements of income, was (income) expense of $(5.1) million, $3.1 million and $2.2 million, in 2018, 2017 and 2016, respectively.

Note 9 — Financial instruments and concentration of credit risks

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 December 31, 2018 and 2017, the notional amount of these contracts was $384.7 million and $514.0 million, respectively. 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.

The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2018 and 2017.

As of December 31,	2018		2017
Balance Sheet Location
Prepaid expenses and other current assets	$	3.4	$	4.9
Other accrued liabilities	0.3		1.6
Total fair value	$	3.1	$	3.3

The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts

for the three years ended December 31, 2018.

Year Ended December 31,	2018			2017		2016
Statement of Income Location
Other income (expense), net	$	(14.2	)	$	27.5	$	(29.1	)

Financial instruments also include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits which may be withdrawn at any time at the discretion of the company without penalty. At December 31, 2018 and 2017, the company’s cash equivalents principally have maturities of less than one month or can be withdrawn at any time at the discretion of the company without penalty. Due to the short maturities of these instruments, they are carried on the consolidated balance sheets at cost plus accrued interest, which approximates market value. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2018 and 2017, the company had no significant concentrations of credit risk with any one customer. At December 31, 2018 and 2017, the company had $85.8 million and $75.8 million, respectively, of receivables due from various U.S. federal governmental agencies. At December 31, 2018 and 2017, the carrying amount of cash and cash equivalents approximated fair value.

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Note 10 — Properties

Properties comprise the following:

As of December 31,	2018		2017
Land	$	2.3	$	2.8
Buildings	63.5		91.3
Machinery and office equipment	530.0		601.7
Internal-use software	164.7		157.4
Rental equipment	39.7		45.6
Total properties	$	800.2	$	898.8

In the second quarter of 2018, the company sold a building and land located in the United Kingdom. The company received net

proceeds of $19.2 million and recorded a pretax gain of $7.3 million which was recorded in selling, general and administrative

expenses in the consolidated statements of income.

Note 11 — Goodwill

During the fourth quarter of 2018, the company performed its annual impairment test of goodwill for all of our reporting units. The fair values of each of the reporting units exceeded their carrying values; therefore, no goodwill impairment was required.

At December 31, 2018, the amount of goodwill allocated to reporting units with negative net assets was as follows: Business Process Outsourcing Services, $10.4.

Changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows:

	Total			Services			Technology
Balance at December 31, 2016	$	178.6		$	69.9		$	108.7
Translation adjustments	2.2			2.2			—
Balance at December 31, 2017	180.8			72.1			108.7
Translation adjustments	(3.0		)	(3.0		)	—
Balance at December 31, 2018	$	177.8		$	69.1		$	108.7

Note 12 — Debt

Long-term debt is comprised of the following:

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $8.0 million and $10.4 million at December 31, 2018 and 2017, respectively)	$	432.0	$	429.6
5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $19.3 million and $27.2 million at December 31, 2018 and 2017, respectively)	194.2		186.3
Capital leases	5.8		7.5
Other debt	20.8		21.3
Total	652.8		644.7
Less – current maturities	10.0		10.8
Total long-term debt	$	642.8	$	633.9

Long-term debt is carried at amortized cost and its estimated fair value is based on market prices classified as Level 2 in the fair value hierarchy. Presented below are the estimated fair values of long-term debt as of December 31, 2018 and 2017.

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022	$	486.8	$	492.8
5.50% convertible senior notes due March 1, 2021	298.5		237.9

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Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows:

Year	Total		Long-Term Debt		Capital Leases
2019	$	10.0	$	8.4	$	1.6
2020	2.5		0.9		1.6
2021	197.5		195.9		1.6
2022	434.8		433.8		1.0
2023	1.8		1.8		—
Thereafter	6.2		6.2		—
Total	$	652.8	$	647.0	$	5.8

Cash paid for interest and capitalized interest expense during the three years ended December 31, 2018 was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for interest	$	59.5	$	39.9	$	22.1
Capitalized interest expense	$	6.0	$	4.2	$	3.0

Senior Secured Notes

In 2017, the company issued $440.0 million aggregate principal amount of 10.75% Senior Secured Notes due 2022 (the “2022 Notes”). The 2022 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 2022 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 2022 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 2022 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 2022 Notes pay interest semiannually on April 15 and October 15 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 2022 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 2022 Notes at any time, at a price equal to 100% of the principal amount of the 2022 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 2022 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 2022 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 2022 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.

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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 2022 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 2022 Notes at 101% of the principal amount of the 2022 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 the 2022 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 2022 Notes to be due and payable immediately.

Interest expense related to the 2022 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	47.3	$	33.2	$	—
Amortization of debt issuance costs	2.4		1.7		—
Total	$	49.7	$	34.9	$	—

Convertible Senior Notes

In 2016, the company issued $213.5 million aggregate principal amount of Convertible Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes, which are senior unsecured obligations, bear interest at a coupon rate of 5.50% (or 9.5% effective interest rate) per year until maturity, payable semiannually in arrears on March 1 and September 1 of each year. The 2021 Notes are not redeemable prior to maturity and are convertible into shares of the company’s common stock. The conversion rate for the 2021 Notes is 102.4249 shares of the company’s common stock per $1,000 principal amount of the 2021 Notes (or a total amount of 21,867,716 shares), which is equivalent to an initial conversion price of approximately $9.76 per share of the company’s common stock. Upon any conversion, the company will settle its conversion obligation in cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election.

In connection with the issuance of the 2021 Notes, the company also paid $27.3 million to enter into privately negotiated capped call transactions with the initial purchasers and/or affiliates of the initial purchasers. The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the company’s common stock that will initially underlie the 2021 Notes. The capped call transactions will effectively raise the conversion premium on the 2021 Notes from approximately 22.5% to approximately 60%, which raises the initial conversion price from approximately $9.76 per share of common stock to approximately $12.75 per share of common stock. The capped call transactions are expected to reduce potential dilution to the company’s common stock and/or offset potential cash payments the company is required to make in excess of the principal amount upon any conversion of the 2021 Notes.

Interest expense related to the 2021 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	11.8	$	11.8	$	9.2
Amortization of debt discount	6.6		6.0		4.3
Amortization of debt issuance costs	1.2		1.2		1.0
Total	$	19.6	$	19.0	$	14.5

Revolving Credit Facility

The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit. During the second quarter of 2018, the maximum amount available under the facility was increased from $125.0 million to$145.0 million (with a limit on letters of credit of $30.0 million). The accordion feature contained in the Credit Agreement that permitted this increase allows for an increase in the amount of the facility up to $150.0 million. Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At December 31, 2018, the company had no borrowings and $6.5 million of letters of credit outstanding, and availability under the facility was $138.5 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity (i) on the date that is 91 days prior to the maturity date of the 2021 Notes unless, on such date, certain conditions are met; or (ii) on the date that is 60 days prior to the maturity date of the 2022 Notes unless, by such date, such secured notes have not been redeemed or refinanced.

The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility.

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The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15.0 million.

The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million.

At December 31, 2018, the company has met all covenants and conditions under its various lending agreements. The company expects to continue to meet these covenants and conditions.

The company’s principal sources of liquidity are cash on hand, cash from operations and its revolving credit facility, discussed above. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks.

The company’s anticipated future cash expenditures include anticipated contributions to its defined benefit pension plans. The company believes that it has adequate sources of liquidity to meet its expected 2019 cash requirements.

Note 13 — Other accrued liabilities

Other accrued liabilities (current) are comprised of the following:

As of December 31,	2018		2017
Payrolls and commissions	$	108.1	$	120.2
Cost-reduction	75.8		87.7
Accrued vacations	41.2		42.8
Income taxes	32.3		26.0
Taxes other than income taxes	31.2		29.1
Postretirement	14.8		18.5
Accrued interest	13.8		13.8
Other	32.8		53.4
Total other accrued liabilities	$	350.0	$	391.5

Note 14 — Employee plans

Stock plans 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 December 31, 2018, 2.4 million shares of unissued common stock of the company were available for granting under these plans.

As of December 31, 2018, the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expenses, and recognizes the compensation cost for only those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures.

During the years ended December 31, 2018, 2017 and 2016, the company recognized $13.2 million, $11.2 million and $9.5 million of share-based compensation expense, which is comprised of $13.1 million, $10.1 million and $7.5 million of restricted stock unit expense and $0.1 million, $1.1 million and $2.0 million of stock option expense, respectively.

There were no grants of stock option awards for the years ended December 31, 2018 and 2017. In 2016, the company granted 11 thousand stock option awards. The weighted-average fair value of the grant, which was estimated using the Black-Scholes option pricing model was $4.53. As of December 31, 2018, 1.1 million stock option awards with a weighted-average exercise price of $27.90 are outstanding.

Restricted stock unit awards may contain time-based units, performance-based units, total shareholder return market-based units, or a combination of these units. Each performance-based and market-based unit will vest into zero to two shares depending on the degree to which the performance or market conditions are met. Compensation expense for performance-based 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. Compensation expense for market-based awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. Time-based restricted stock unit grants for the company’s directors vest upon award and compensation expense for such awards is recognized upon grant.

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A summary of restricted stock unit activity for the year ended December 31, 2018 follows (shares in thousands):

	Restricted Stock Units		Weighted-Average Grant-Date Fair Value
Outstanding at December 31, 2017	1,688		$	13.39
Granted	1,449		12.53
Vested	(778	)	13.43
Forfeited and expired	(208	)	12.53
Outstanding at December 31, 2018	2,151		12.90

The aggregate weighted-average grant-date fair value of restricted stock units granted during the years ended December 31, 2018, 2017 and 2016 was $17.9 million, $14.4 million and $12.9 million, respectively. The fair value of restricted stock units with time and performance conditions is determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions is estimated using a Monte Carlo simulation with the following weighted-average assumptions.

Year Ended December 31,	2018
Weighted-average fair value of grant	$	15.20
Risk-free interest rate(i)	2.26		%
Expected volatility(ii)	52.97		%
Expected life of restricted stock unts in years(iii)	2.88
Expected dividend yield	—

(i)	Represents the continuously compounded semi-annual zero-coupon U.S. treasury rate commensurate with the remaining performance period
(ii)	Based on historical volatility for the company that is commensurate with the length of the performance period
(iii)	Represents the remaining life of the longest performance period

As of December 31, 2018, there was $12.2 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 1.9 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the years ended December 31, 2018, 2017 and 2016 was $10.4 million, $7.4 million and $3.5 million, respectively.

Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units are newly issued shares. During 2018 and 2017, the company did not recognize any tax benefits from the exercise of stock options or upon issuance of stock upon lapse of restrictions on restricted stock units because of its tax position. Any such tax benefits resulting from tax deductions in excess of the compensation costs recognized are classified as operating cash flows.

Defined contribution and compensation plans U.S. employees are eligible to participate in an employee savings plan. Under this plan, employees may contribute a percentage of their pay for investment in various investment alternatives. The company matches 50 percent of the first 6 percent of eligible pay contributed by participants to the plan on a before-tax basis (subject to IRS limits). The company funds the match with cash. The charge to income related to the company match for the years ended December 31, 2018, 2017 and 2016, was $11.1 million, $10.8 million and $10.7 million, respectively.

The company has defined contribution plans in certain locations outside the United States. The charge to income related to these plans was $21.3 million, $18.5 million and $19.0 million, for the years ended December 31, 2018, 2017 and 2016, respectively.

The company has non-qualified compensation plans, which allow certain highly compensated employees and directors to defer the receipt of a portion of their salary, bonus and fees. Participants can earn a return on their deferred balance that is based on hypothetical investments in various investment vehicles. Changes in the market value of these investments are reflected as an adjustment to the liability with an offset to expense. As of December 31, 2018 and 2017, the liability to the participants of these plans was $11.6 million and $13.4 million, respectively. These amounts reflect the accumulated participant deferrals and earnings thereon as of that date. The company makes no contributions to the deferred compensation plans and remains contingently liable to the participants.

Retirement benefits For the company’s more significant defined benefit pension plans, including the U.S., U.K. and the Netherlands, accrual of future benefits under the plans has ceased.

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During 2018, cash lump-sum payments were paid to certain plan participants in two of the company’s international defined benefit pension plans which resulted in a non-cash pension settlement charge of $6.4 million for the year ended December 31, 2018.

Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2018 and 2017 follows:

	U.S. Plans						International Plans
As of December 31,	2018			2017			2018			2017
Change in projected benefit obligation
Benefit obligation at beginning of year	$	5,001.6		$	4,972.0		$	3,189.7		$	3,076.2
Service cost	—			—			3.2			5.1
Interest cost	186.6			211.3			67.3			72.8
Plan participants’ contributions	—			—			1.5			1.9
Plan amendment	—			—			20.6			(52.5		)
Plan curtailment	—			—			—			(2.2		)
Plan settlement	—			—			(16.4		)	—
Actuarial loss (gain)	(270.7		)	177.0			(169.5		)	(93.8		)
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation adjustments	—			—			(158.2		)	299.3
Benefit obligation at end of year	$	4,558.0		$	5,001.6		$	2,829.5		$	3,189.7
Change in plan assets
Fair value of plan assets at beginning of year	$	3,578.4		$	3,452.1		$	2,833.9		$	2,429.7
Actual return on plan assets	(193.3		)	424.0			(75.4		)	172.3
Employer contribution	87.2			61.0			42.5			77.4
Plan participants’ contributions	—			—			1.5			1.9
Plan settlement	—			—			(16.4		)	—
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation and other adjustments	—			—			(138.0		)	269.7
Fair value of plan assets at end of year	$	3,112.8		$	3,578.4		$	2,539.4		$	2,833.9
Funded status at end of year	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	—		$	—		$	146.4		$	147.4
Other accrued liabilities	(6.7		)	(6.8		)	(0.1		)	(0.2		)
Long-term postretirement liabilities	(1,438.5		)	(1,416.4		)	(436.4		)	(503.0		)
Total funded status	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Accumulated other comprehensive loss, net of tax
Net loss	$	2,718.6		$	2,960.6		$	988.0		$	1,067.8
Prior service credit	$	(37.3	)	$	(39.8	)	$	(46.8	)	$	(69.8	)
Accumulated benefit obligation	$	4,558.0		$	5,001.6		$	2,828.2		$	3,188.0

Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Accumulated benefit obligation	$	6,433.6	$	7,151.7
Fair value of plan assets	$	4,553.2	$	5,227.0

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Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Projected benefit obligation	$	6,434.9	$	7,153.4
Fair value of plan assets	$	4,553.2	$	5,227.0

Net periodic pension cost (income) for 2018, 2017 and 2016 includes the following components:

	U.S. Plans									International Plans
Year ended December 31,	2018			2017			2016			2018			2017			2016
Service cost(i)	$	—		$	—		$	—		$	3.2		$	5.1		$	7.4
Interest cost	186.6			211.3			231.3			67.3			72.8			87.8
Expected return on plan assets	(230.6		)	(235.2		)	(253.1		)	(114.4		)	(127.5		)	(139.5		)
Amortization of prior service credit	(2.5		)	(2.5		)	(2.5		)	(3.7		)	(2.4		)	(3.0		)
Recognized net actuarial loss	125.1			126.4			116.0			42.3			49.8			40.3
Curtailment gain	—			—			—			—			(5.4		)	(2.0		)
Settlement loss	—			—			—			6.4			—			—
Net periodic pension cost (income)	$	78.6		$	100.0		$	91.7		$	1.1		$	(7.6	)	$	(9.0	)

⁽ⁱ⁾ Service cost is reported in cost of revenue - services and selling, general and administrative expenses. All other components of net periodic pension cost are reported in other income (expense), net in the consolidated statements of income.

Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows:

	U.S. Plans						International Plans
Year ended December 31,	2018		2017		2016		2018		2017		2016
Discount rate	3.87	%	4.38	%	4.56	%	2.24	%	2.34	%	3.30	%
Expected long-term rate of return on assets	6.80	%	6.80	%	6.80	%	4.38	%	5.30	%	5.99	%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	4.50	%	3.87	%	4.38	%	2.55	%	2.24	%	2.34	%

The company’s investment policy targets and ranges for each asset category are as follows:

	U.S.			International
Asset Category	Target		Range	Target		Range
Equity securities	42	%	36-48%	22	%	16-28%
Debt securities	38	%	35-41%	62	%	55-68%
Real estate	0	%	0%	1	%	0-3%
Cash	0	%	0-5%	1	%	0-5%
Other	20	%	10-30%	14	%	7-21%

The company periodically reviews its asset allocation, taking into consideration plan liabilities, local regulatory requirements, plan payment streams and then-current capital market assumptions. The actual asset allocation for each plan is monitored at least quarterly, relative to the established policy targets and ranges. If the actual asset allocation is close to or out of any of the ranges, a review is conducted. Rebalancing will occur toward the target allocation, with due consideration given to the liquidity of the investments and transaction costs.

The objectives of the company’s investment strategies are as follows: (a) to provide a total return that, over the long term, increases the ratio of plan assets to liabilities by maximizing investment return on assets, at a level of risk deemed appropriate, (b) to maximize return on assets by investing primarily in equity securities in the U.S. and for international plans by investing in appropriate asset classes, subject to the constraints of each plan design and local regulations, (c) to diversify investments

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within asset classes to reduce the impact of losses in single investments, and (d) for the U.S. plan to invest in compliance with the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended and any subsequent applicable regulations and laws, and for international plans to invest in a prudent manner in compliance with local applicable regulations and laws.

The company sets the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. The company considered the current expectations for future returns and the actual historical returns of each asset class. Also, since the company’s investment policy is to actively manage certain asset classes where the potential exists to outperform the broader market, the expected returns for those asset classes were adjusted to reflect the expected additional returns.

In 2019, the company expects to make cash contributions of $105.6 million to its worldwide defined benefit pension plans, which are comprised of $38.4 million primarily for international defined benefit pension plans and $67.2 million for the company’s U.S. qualified defined benefit pension plans.

As of December 31, 2018, the following benefit payments are expected to be paid from the defined benefit pension plans:

Year ending December 31,	U.S.		International
2019	$	362.2	$	97.8
2020	359.4		101.2
2021	357.1		104.2
2022	354.4		112.2
2023	350.9		118.2
2024 - 2028	1,652.1		627.4

Other postretirement benefits A reconciliation of the benefit obligation, fair value of the plan assets and the funded status of the postretirement benefit plans at December 31, 2018 and 2017, follows:

As of December 31,	2018			2017
Change in accumulated benefit obligation
Benefit obligation at beginning of year	$	103.2		$	120.1
Service cost	0.6			0.5
Interest cost	4.8			5.6
Plan participants’ contributions	3.1			3.5
Amendments	—			(7.4		)
Actuarial gain	(4.2		)	(4.3		)
Federal drug subsidy	0.2			0.3
Benefits paid	(11.5		)	(15.7		)
Foreign currency translation and other adjustments	—			0.6
Benefit obligation at end of year	$	96.2		$	103.2
Change in plan assets
Fair value of plan assets at beginning of year	$	7.6		$	7.9
Actual return on plan assets	(0.4		)	(0.3		)
Employer contributions	9.0			12.2
Plan participants’ contributions	3.1			3.5
Benefits paid	(11.5		)	(15.7		)
Fair value of plan assets at end of year	$	7.8		$	7.6
Funded status at end of year	$	(88.4	)	$	(95.6	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	1.2		$	0.9
Other accrued liabilities	(8.0		)	(11.5		)
Long-term postretirement liabilities	(81.6		)	(85.0		)
Total funded status	$	(88.4	)	$	(95.6	)
Accumulated other comprehensive loss, net of tax
Net loss	$	10.5		$	14.9
Prior service credit	(8.2		)	(9.8		)

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Net periodic postretirement benefit cost for 2018, 2017 and 2016, follows:

Year ended December 31,	2018			2017			2016
Service cost(i)	$	0.6		$	0.5		$	0.4
Interest cost	4.8			5.6			6.2
Expected return on assets	(0.4		)	(0.5		)	(0.4		)
Amortization of prior service cost	(1.6		)	(0.7		)	—
Recognized net actuarial loss	1.0			0.8			0.5
Net periodic benefit cost	$	4.4		$	5.7		$	6.7

⁽ⁱ⁾ Service cost is reported in selling, general and administrative expenses. All other components of net periodic benefit cost are reported in other income (expense), net in the consolidated statements of income.

Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.30	%	5.53	%	5.61	%
Expected return on plan assets	5.50	%	5.50	%	5.50	%

Weighted-average assumptions used to determine benefit obligation at December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.67	%	5.30	%	5.53	%

The company reviews its asset allocation periodically, taking into consideration plan liabilities, plan payment streams and then-current capital market assumptions. The company sets the long-term expected return on asset assumption, based principally on the long-term expected return on debt securities. These return assumptions are based on a combination of current market conditions, capital market expectations of third-party investment advisors and actual historical returns of the asset classes. In 2019, the company expects to contribute approximately $8 million to its postretirement benefit plans.

Assumed health care cost trend rates at December 31,	2018		2017
Health care cost trend rate assumed for next year	6.8	%	6.6	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.8	%
Year that the rate reaches the ultimate trend rate	2023		2023

As of December 31, 2018, the following benefits are expected to be paid from the company’s postretirement plans:

Year ending December 31,	Expected Payments
2019	$	9.1
2020	9.6
2021	9.1
2022	8.5
2023	7.9
2024 – 2028	30.9

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The following provides a description of the valuation methodologies and the levels of inputs used to measure fair value, and the general classification of investments in the company’s U.S. and international defined benefit pension plans, and the company’s other postretirement benefit plan.

Level 1 – These investments include cash, common stocks, real estate investment trusts, exchange traded funds, futures and options and U.S. government securities. These investments are valued using quoted prices in an active market. Payables, receivables and cumulative futures contracts variation margin received from brokers are also included as Level 1 investments and are valued at face value.

Level 2 – These investments include the following:

Pooled Funds – These investments are comprised of money market funds and fixed income securities. The money market funds are valued using the readily determinable fair value (“RDFV”) provided by trustees of the funds. The fixed income securities are valued based on quoted prices for identical or similar investments in markets that may not be active.

Commingled Funds – These investments are comprised of debt, equity and other securities and are valued using the RDFV provided by trustees of the funds. The fair value per share for these funds are published and are the basis for current transactions.

Other Fixed Income – These investments are comprised of corporate and government fixed income investments and asset and mortgage-backed securities for which there are quoted prices for identical or similar investments in markets that may not be active.

Derivatives – These investments include forward exchange contracts and options, which are traded on an active market, but not on an exchange; therefore, the inputs may not be readily observable. These investments also include fixed income futures and other derivative instruments.

Level 3 – These investments include the following:

Insurance Contracts – These investments are insurance contracts which are carried at book value, are not publicly traded and are reported at a fair value determined by the insurance provider.

Certain investments are valued using net asset value (“NAV”) as a practical expedient. These investments may not be redeemable on a daily basis and may have redemption notice periods of up to 90 days. These investments include the following:

Commingled Funds – These investments are comprised of debt, equity and other securities.

Private Real Estate and Private Equity - These investments represent interests in limited partnerships which invest in privately-held companies or privately-held real estate or other real assets. Net asset values are developed and reported by the general partners that manage the partnerships. These valuations are based on property appraisals, utilization of market transactions that provide valuation information for comparable companies, discounted cash flows, and other methods. These valuations are reported quarterly and adjusted as necessary at year end based on cash flows within the most recent period.

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The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2018.

	U.S. Plans										International Plans
As of December 31, 2018	Fair Value			Level 1			Level 2		Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	911.7		$	909.0		$	2.7	$	—	$	—		$	—		$	—	$	—
Commingled Funds	494.8						494.8				165.6						165.6
Debt Securities
U.S. Govt. Securities	498.5			498.5
Other Fixed Income	374.6						374.6				145.5			0.2			145.3
Insurance Contracts											123.7								123.7
Commingled Funds	196.6						196.6				321.4						321.4
Real Estate
Real Estate Investment Trusts	17.0			17.0							1.3			—			1.3
Commingled Funds	156.7						156.7
Other
Derivatives(i)	35.8			33.6			2.2				2.4						2.4
Commingled Funds											317.0						317.0
Pooled Funds	143.7						143.7				123.6						123.6
Cumulative futures contracts variation margin received from brokers	(29.3		)	(29.3		)
Cash	3.7			3.7							29.6			29.6
Receivables	20.5			20.5							2.0			2.0
Payables	(1.4		)	(1.4		)					(2.3		)	(2.3		)
Total plan assets in fair value hierarchy	$	2,822.9		$	1,451.6		$	1,371.3	$	—	$	1,229.8		$	29.5		$	1,076.6	$	123.7
Plan assets measured using NAV as a practical expedient(ii):
Commingled Funds
Equity	$	—									$	454.9
Debt	—										814.0
Other	110.2										23.9
Private Real Estate	179.1										16.8
Private Equity	0.6										—
Total pension plan assets	$	3,112.8									$	2,539.4
Other postretirement plans
Insurance Contracts	$	7.8							$	7.8

⁽ⁱ⁾ Level 1 derivatives represent unrealized appreciation or depreciation on open futures contracts. The value of open futures contracts includes derivatives and the cumulative futures contracts variation margin received from brokers.

⁽ⁱⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

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The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2017.

	U.S. Plans											International Plans
As of December 31, 2017	Fair Value			Level 1			Level 2			Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	1,465.1		$	1,461.9		$	3.2		$	—	$	—		$	—		$	—	$	—
Commingled Funds	584.4						584.4					84.0						84.0
Debt Securities
U.S. Govt. Securities	139.8			139.8
Other Fixed Income	830.6						830.6					254.1			2.6			251.5
Insurance Contracts												135.8								135.8
Commingled Funds												267.5						267.5
Real Estate
Real Estate Investment Trusts	113.5			113.5								1.4			0.4			1.0
Other
Derivatives	2.6			13.1			(10.5		)			1.2						1.2
Commingled Funds												357.1						357.1
Pooled Funds	228.0						228.0					29.2						29.2
Cash	34.8			34.8								25.1			25.1
Receivables	58.1			58.1								19.9			19.9
Payables	(116.7		)	(116.7		)						(1.5		)	(1.5		)
Total plan assets in fair value hierarchy	$	3,340.2		$	1,704.5		$	1,635.7		$	—	$	1,173.8		$	46.5		$	991.5	$	135.8
Plan assets measured using NAV as a practical expedient(i):
Commingled Funds
Equity	$	—										$	780.7
Debt	19.8											837.7
Other	105.1											25.2
Private Real Estate	112.4											16.5
Private Equity	0.9											—
Total pension plan assets	$	3,578.4										$	2,833.9
Other postretirement plans
Insurance Contracts	$	7.6								$	7.6

⁽ⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

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The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2018.

	January 1, 2018		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2018			December 31, 2018
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.6	$	(0.4	)	$	0.6	$	—		$	—		$	7.8
International pension plans
Insurance Contracts	$	135.8	$	—		$	3.5	$	(11.7	)	$	(3.9	)	$	123.7

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2017.

	January 1, 2017		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017		December 31, 2017
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.9	$	(0.2	)	$	0.2	$	(0.3	)	$	—	$	7.6
International pension plans
Insurance Contracts	$	116.2	$	—		$	10.8	$	(11.4	)	$	20.2	$	135.8

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The following table presents additional information about plan assets valued using the net asset value as a practical expedient within the fair value hierarchy table.

	2018						2017
	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range
U.S. plans
Commingled Funds
Debt	$	—	$	—			$	19.8	$	—	Daily	5 days
Other	110.2		—		Monthly	5 days	105.1		—		Monthly	5 days
Private Real Estate(i)	179.1		—		Quarterly	60-90 days	112.4		—		Quarterly	Up to 90 days
Private Equity(ii)	0.6		—				0.9		—
Total	$	289.9	$	—			$	238.2	$	—
International pension plans
Commingled Funds
Equity	$	454.9	$	—	Weekly	Up to 2 days	$	780.7	$	—	Weekly, Monthly	Up to 30 days
Debt	814.0		—		Daily, Weekly, Biweekly, Bimonthly	Up to 30 days	837.7		—		Weekly, Biweekly, Bimonthly, Monthly	Up to 30 days
Other	23.9		—		Monthly	Up to 30 days	25.2		—		Monthly	Up to 30 days
Private Real Estate	16.8		—		Monthly	Up to 90 days	16.5		—		Monthly	Up to 90 days
Total	$	1,309.6	$	—			$	1,660.1	$	—

⁽ⁱ⁾ Includes investments in private real estate funds and limited partnerships. The funds invest in U.S. real estate and allow redemptions quarterly, though queues, restrictions and gates may extend the period. The limited partnerships include investments in primarily U.S. real estate, and can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next year.

⁽ⁱⁱ⁾ Includes investments in limited partnerships, which invest primarily in U.S. buyouts and venture capital. The investments can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years.

Note 15 — Litigation 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 flows 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 €28.0 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.

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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. The company believes that appropriate accruals have been established for such matters based on information currently available. At December 31, 2018, 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 $101.0 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 $68.0 million for the period January 2002 through July 2011 and sought data to identify the claims at issue for the remaining time period. On August 14, 2018, the Louisiana Court of Appeal for the First Circuit dismissed the case. On September 27, 2018, the Court denied the State’s motion for a rehearing. On October 26, 2018, the State applied for a writ of review to the Louisiana Supreme Court, which was granted on January 18, 2019. The Louisiana Supreme Court will calendar the case for further briefing.

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 December 31, 2018, it has adequate provisions for any such matters.

Note 16 — Stockholders’ equity

The company has 150 million authorized shares of common stock, par value $.01 per share, and 40 million shares of authorized preferred stock, par value $1 per share, issuable in series.

At December 31, 2018, 34.4 million shares of unissued common stock of the company were reserved for stock-based incentive plans and the company’s convertible senior notes.

Accumulated other comprehensive income (loss) as of December 31, 2018, 2017 and 2016, is as follows:

	Total			Translation Adjustments			Postretirement Plans
Balance at December 31, 2015	$	(3,945.3	)	$	(833.8	)	$	(3,111.5	)
Other comprehensive income before reclassifications	(64.9		)	(93.3		)	28.4
Amounts reclassified from accumulated other comprehensive income	(142.6		)	—			(142.6		)
Current period other comprehensive income	(207.5		)	(93.3		)	(114.2		)
Balance at December 31, 2016	(4,152.8		)	(927.1		)	(3,225.7		)
Other comprehensive income before reclassifications	506.8			121.9			384.9
Amounts reclassified from accumulated other comprehensive income	(169.8		)	(11.8		)	(158.0		)
Current period other comprehensive income	337.0			110.1			226.9
Balance at December 31, 2017	(3,815.8		)	(817.0		)	(2,998.8		)
Reclassification pursuant to ASU No. 2018-02	(208.7		)	—			(208.7		)
Other comprehensive income before reclassifications	96.7			(79.7		)	176.4
Amounts reclassified from accumulated other comprehensive income	(157.0		)	—			(157.0		)
Current period other comprehensive income	(269.0		)	(79.7		)	(189.3		)
Balance at December 31, 2018	$	(4,084.8	)	$	(896.7	)	$	(3,188.1	)

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Amounts reclassified out of accumulated other comprehensive income for the three years ended December 31, 2018 are as follows:

Year ended December 31,	2018			2017			2016
Translation Adjustments:
Adjustment for substantial completion of liquidation of foreign subsidiaries(i)	$	—		$	(11.8	)	$	—
Postretirement Plans:
Amortization of prior service cost(ii)	7.1			5.6			5.6
Amortization of actuarial losses(ii)	(165.9		)	(174.1		)	(155.2		)
Curtailment gain(ii)	—			5.4			2.0
Settlement loss(ii)	(3.9		)	—			—
Total before tax	(162.7		)	(174.9		)	(147.6		)
Income tax benefit	5.7			5.1			5.0
Total reclassifications for the period	$	(157.0	)	$	(169.8	)	$	(142.6	)

⁽ⁱ⁾ Reported in other income (expense), net in the consolidated statements of income

⁽ⁱⁱ⁾ Included in net periodic postretirement cost (see Note 14)

The following table summarizes the changes in shares of common stock and treasury stock during the three years ended December 31, 2018:

	Common Stock	Treasury Stock
Balance at December 31, 2015	52.6	2.7
Stock-based compensation	0.2	—
Balance at December 31, 2016	52.8	2.7
Stock-based compensation	0.6	0.2
Balance at December 31, 2017	53.4	2.9
Stock-based compensation	0.8	0.2
Balance at December 31, 2018	54.2	3.1

Note 17 — Segment information

As described in Note 2, effective January 1, 2018, the company adopted the requirements of Topic 606 which resulted in an adjustment to Technology revenue and profit of $53.0 million in the first quarter of 2018. The adjustment represents revenue from software license extensions and renewals, which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million, is January 1, 2018.

Effective January 1, 2018, the company changed the grouping of certain of its classes of services. As a result, prior-periods’ customer revenue by classes of similar services have been reclassified to conform to the current-year period.

The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segment are as follows:

• Cloud and 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 developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications.

• Business process outsourcing (“BPO”) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs.

• Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients improve security, reduce costs and flexibility and improve the efficiency of their data-center environments.

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

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intersegment revenue and manufacturing profit on software and hardware shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profits on such shipments of company software and hardware to customers. The Services segment also includes the sale of software and hardware 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 software and hardware 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 years ended December 31, 2018, 2017 and 2016 was $4.2 million, $6.3 million and $0.7 million, respectively. The profit on these transactions is eliminated in Corporate.

The company evaluates business segment performance based on operating income exclusive of postretirement 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. No single customer accounts for more than 10% of revenue. Revenue from various agencies of the U.S. Government, which is reported in both business segments, was approximately $574 million, $571 million and $564 million in 2018, 2017 and 2016, respectively.

Corporate assets are principally cash and cash equivalents, prepaid postretirement assets and deferred income taxes. The expense or income related to corporate assets is allocated to the business segments.

Customer revenue by classes of similar products or services, by segment, is presented below:

Year ended December 31,	2018		2017			2016
Services
Cloud & infrastructure services	$	1,363.4	$	1,334.3	*	$	1,356.4	*
Application services	772.4		791.0		*	855.5		*
BPO services	250.5		202.9			194.4
Total Services	2,386.3		2,328.2			2,406.3
Technology	438.7		413.6			414.4
Total customer revenue	$	2,825.0	$	2,741.8		$	2,820.7

*Amounts were changed to conform to the current-year presentation.

Presented below is a reconciliation of segment operating income to consolidated income (loss) before income taxes:

Year ended December 31,	2018			2017			2016
Total segment operating income	$	305.4		$	235.4		$	208.4
Interest expense	(64.0		)	(52.8		)	(27.4		)
Other income (expense), net	(76.9		)	(116.4		)*	(81.3		)*
Cost reduction charges(i)	(19.7		)	(135.0		)	(82.1		)
Corporate and eliminations	(1.6		)	(3.3		)*	2.9		*
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5

*Amounts were changed to conform to the current-year presentation. See Note 2

⁽ⁱ⁾ Year ended December 31, 2017 excludes $11.8 million for net foreign currency losses related to exiting foreign countries which are reported in other income (expense), net in the consolidated statements of income.

Presented below is a reconciliation of total business segment assets to consolidated assets:

As of December 31,	2018		2017		2016
Total segment assets	$	1,436.6	$	1,364.5	$	1,339.0
Cash and cash equivalents	605.0		733.9		370.6
Deferred income taxes	109.3		119.9		146.1
Prepaid postretirement assets	147.6		148.3		33.3
Other corporate assets	159.1		175.8		132.6
Total assets	$	2,457.6	$	2,542.4	$	2,021.6

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A summary of the company’s operations by business segment for 2018, 2017 and 2016 is presented below:

	Total			Corporate			Services		Technology
2018
Customer revenue	$	2,825.0		$	—		$	2,386.3	$	438.7
Intersegment	—			(24.7		)	—		24.7
Total revenue	$	2,825.0		$	(24.7	)	$	2,386.3	$	463.4
Operating income (loss)	$	284.1		$	(21.3	)	$	67.6	$	237.8
Depreciation and amortization	164.1			—			97.2		66.9
Total assets	2,457.6			1,021.0			1,013.1		423.5
Capital expenditures	189.3			8.0			92.9		88.4
2017
Customer revenue	$	2,741.8		$	—		$	2,328.2	$	413.6
Intersegment	—			(25.9		)	—		25.9
Total revenue	$	2,741.8		$	(25.9	)	$	2,328.2	$	439.5
Operating income (loss)	$	97.1	*	$	(138.3	)*	$	64.8	$	170.6
Depreciation and amortization	156.5			—			84.6		71.9
Total assets	2,542.4			1,177.9			985.9		378.6
Capital expenditures	176.5			4.3			102.7		69.5
2016
Customer revenue	$	2,820.7		$	—		$	2,406.3	$	414.4
Intersegment	—			(22.6		)	—		22.6
Total revenue	$	2,820.7		$	(22.6	)	$	2,406.3	$	437.0
Operating income (loss)	$	129.2	*	$	(79.2	)*	$	46.9	$	161.5
Depreciation and amortization	155.6			—			81.8		73.8
Total assets	2,021.6			682.6			963.3		375.7
Capital expenditures	147.1			3.0			74.8		69.3

*Amounts were changed to conform to the current-year presentation. See Note 2

Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below:

Year ended December 31,	2018		2017		2016
Revenue
United States	$	1,240.0	$	1,257.0	$	1,309.3
United Kingdom	360.7		315.8		348.0
Other foreign	1,224.3		1,169.0		1,163.4
Total Revenue	$	2,825.0	$	2,741.8	$	2,820.7
Properties, net
United States	$	85.3	$	85.8	$	91.4
United Kingdom	5.3		16.7		15.1
Other foreign	30.7		40.0		38.8
Total Properties, net	$	121.3	$	142.5	$	145.3
Outsourcing assets, net
United States	$	97.6	$	81.1	$	105.1
United Kingdom	86.5		89.9		39.0
Australia	21.7		18.1		11.5
Other foreign	10.6		13.2		16.9
Total Outsourcing assets, net	$	216.4	$	202.3	$	172.5

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Note 18 — Quarterly financial information (unaudited)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
2018
Revenue	$	708.4		$	667.4		$	688.3		$	760.9		$	2,825.0
Gross profit	201.2			152.9			153.8			178.4			686.3
Income before income taxes	62.6			20.3			22.2			38.1			143.2
Net income attributable to Unisys Corporation common shareholders	40.6			3.8			6.1			25.0			75.5
Earnings per common share attributable to Unisys Corporation
Basic	0.80			0.07			0.12			0.49			1.48
Diluted	0.62			0.07			0.12			0.41			1.30
2017
Revenue	$	664.5		$	666.2		$	666.3		$	744.8		$	2,741.8
Gross profit	138.6		*	118.7		*	103.6		*	186.8		*	547.7		*
Income (loss) before income taxes	(16.8		)	(42.3		)	(40.4		)	27.4			(72.1		)
Net income (loss) attributable to Unisys Corporation common shareholders	(32.7		)	(42.0		)	(41.1		)	50.5			(65.3		)
Earnings (loss) per common share attributable to Unisys Corporation
Basic	(0.65		)	(0.83		)	(0.81		)	1.00			(1.30		)
Diluted	(0.65		)	(0.83		)	(0.81		)	0.76			(1.30		)

*Amounts were changed to conform to the current-year presentation. See Note 2

In the first, second, third and fourth quarters of 2018, the company recorded pretax cost-reduction and other charges (benefits) of $(2.9) million, $0.7 million, $(0.9) million and $22.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

In the first, second, third and fourth quarters of 2017, the company recorded pretax cost-reduction and other charges of $25.4 million, $27.5 million, $46.1 million and $47.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this Annual Report, management performed, with the participation of the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), an evaluation of the effectiveness of the company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based upon that evaluation, the CEO and the CFO concluded that, as of December 31, 2018, the company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the SEC, and that such information is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control Over Financial Reporting

Refer to Management's Report on Internal Control over Financial Reporting on page 29.

Changes in Internal Control over Financial Reporting

During the fourth quarter ended December 31, 2017, we reported the following material weakness in the company’s internal control over financial reporting:

Our risk assessment procedures over Technology revenue did not adequately identify risks and consider changes in business operations and the demands on personnel created by the efforts required to adopt the new revenue accounting pronouncement that will impact future financial reporting. As a result, the company had missing process level controls and insufficient trained personnel to operate process level controls over the measurement and recognition of multiple-element arrangements within Technology revenue.

Throughout fiscal year 2018, we implemented the following measures which resulted in the remediation of this material weakness during the the year ended December 31, 2018:

• Implemented enhanced procedures and controls relative to our comprehensive reviews which are being performed for certain Technology transactions

• Enhanced processes, reviews and controls relative to the recording of revenue related to all major multiple-element transactions

• Provided additional revenue recognition training to responsible staff

• Added resources with an appropriate level of U.S. GAAP revenue recognition knowledge and experience by hiring additional resources or by internal realignment

• Supplemented existing revenue recognition resources with consultants where necessary

• Added data elements that support enhanced analytics and controls to the revenue recognition process

ITEM 9B. OTHER INFORMATION

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information regarding our executive officers appears in Part I, Item 1 of this Form 10-K.

The following information is incorporated herein by reference to our Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders (the “Proxy Statement”):

• Information regarding our directors is set forth under the heading “Information Regarding Nominees.”

• Information regarding the Unisys Code of Ethics and Business Conduct is set forth under the heading “Code of Ethics and Business Conduct.”

• Information regarding our audit and finance committee and audit committee financial experts is set forth under the heading “Committees.”

• Information regarding compliance with Section 16(a) is set forth under the heading “Section 16(a) Beneficial Ownership Reporting Compliance.”

• Information regarding our director nomination process is set forth under the heading “Director Nomination Process.”

ITEM 11. EXECUTIVE COMPENSATION

Information regarding executive compensation is set forth under the heading “EXECUTIVE COMPENSATION” in the Proxy Statement and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following information is incorporated herein by reference to the Proxy Statement:

• Information regarding securities authorized for issuance under equity compensation plans is set forth under the heading “EQUITY COMPENSATION PLAN INFORMATION.”

• Information regarding the security ownership of certain beneficial owners, directors and executive officers is set forth under the heading “SECURITY OWNERSHIP BY CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.”

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The following information is incorporated herein by reference to the Proxy Statement:

• Information regarding transactions with related persons is set forth under the heading “Related Party Transactions.”

• Information regarding director independence is set forth under the heading “Independence of Directors.”

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information concerning fees and services of the company’s principal accountants is set forth under the heading “Independent Registered Public Accounting Firm Fees and Services” in the Proxy Statement and is incorporated herein by reference.

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PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

1. Unisys Corporation’s consolidated financial statements are filed as a part of this report on Form 10-K in Item 8, Financial Statements and Supplementary Data, and a list of Unisys Corporation’s consolidated financial statements are found on page 28 on this report. Schedule II, Valuation and Qualifying Accounts, is found on page 76 on this report; all other financial statement schedules are omitted because the required information is not applicable, or because the information required is included in the consolidated financial statements and notes thereto.

2. Exhibits required to be filed by Item 601 of Regulation S-K:

Exhibit Number	Description
3.1	Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 30, 2010)
3.2	Certificate of Amendment of the Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8–K filed on April 28, 2011)
3.3	Certificate of Amendment of the Restated Certificate of Incorporation of Unisys Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 28, 2017)
3.4	By-Laws 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)
4.1	Agreement to furnish to the Commission on request a copy of any instrument defining the rights of the holders of long-term debt which authorizes a total amount of debt not exceeding 10% of the total assets of the Company (incorporated by reference to Exhibit 4 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1982 (File No. 1-145))
4.2	Indenture, dated as of March 15, 2016, between Unisys Corporation and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 15, 2016)
4.3	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)
4.4	Specimen Stock Certificate representing the Company’s common stock, par value $.01 share (incorporated by reference to Exhibit 4.9 to the Company’s Form S-3 filed on June 12, 2018)
10.1	Form of Indemnification Agreement between Unisys Corporation and each of its Directors (incorporated by reference to Exhibit B to the Company’s Proxy Statement, dated March 22, 1988, for its 1988 Annual Meeting of Stockholders)
10.2	Unisys Corporation Director Stock Unit Plan, as amended and restated effective September 22, 2000 (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2000)
10.3	Deferred Compensation Plan for Directors of Unisys Corporation, as amended and restated effective April 22, 2004 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004)
10.4	2005 Deferred Compensation Plan for Directors of Unisys Corporation, as amended and restated effective December 2, 2010 except as otherwise noted therein (incorporated by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010)
10.5	Unisys Corporation 2003 Long-Term Incentive and Equity Compensation Plan, as amended and restated effective January 1, 2009 (incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)
10.6	Amendment to Unisys Corporation 2003 Long-Term Incentive and Equity Compensation Plan, effective February 12, 2009 (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)

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10.7	Unisys Corporation 2007 Long-Term Incentive and Equity Compensation Plan, as amended and restated effective January 1, 2009 (incorporated by reference to Exhibit 10.20 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)
10.8	Amendment to Unisys Corporation 2007 Long-Term Incentive and Equity Compensation Plan, effective February 12, 2009 (incorporated by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)
10.9	Unisys Corporation 2010 Long-Term Incentive and Equity Compensation Plan (incorporated by reference to Appendix E to the Company’s Proxy Statement, dated March 18, 2010, for its 2010 Annual Meeting of Stockholders)
10.10	Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016)
10.11	Form of Performance-Based Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.10 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015)
10.12	Form of Performance-Based Restricted Stock Unit Agreement
10.13	Form of Time-Based Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014)
10.14	Form of Stock Option Agreement (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014)
10.15	Form of Performance Cash Award Agreement (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016)
10.16	Unisys Executive Annual Variable Compensation Plan (incorporated by reference to Exhibit A to the Company’s Proxy Statement, dated March 23, 1993, for its 1993 Annual Meeting of Stockholders)
10.17	Unisys Corporation Deferred Compensation Plan as amended and restated effective September 22, 2000 (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2000)
10.18	Unisys Corporation 2005 Deferred Compensation Plan, as amended and restated effective September 19, 2014 except as otherwise noted therein (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014)
10.19	Form of Executive Employment Agreement for U.S. executive officers (incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012)
10.20	Form of letter agreement by and between Unisys Corporation and each of its executive officers who report directly to the Chief Executive Officer (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on December 16, 2014)
10.21	Unisys Corporation Executive Life Insurance Program, as amended and restated effective April 22, 2004 (incorporated by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005)
10.22	Amendment to the Unisys Corporation Executive Life Insurance Program, effective January 1, 2009 (incorporated by reference to Exhibit 10.23 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)
10.23	Unisys Corporation Supplemental Executive Retirement Income Plan, as amended and restated effective January 1, 2009 (incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008)
10.24	Unisys Corporation Savings Plan, as amended and restated effective January 1, 2016 (incorporated by reference to Exhibit 10.23 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015)
10.25	Amendment 2017-1 to the Unisys Savings Plan effective January 1, 2017 (incorporated by reference to Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016)
10.26	Summary of supplemental benefits provided to elected officers of Unisys Corporation (incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014)
10.27	Letter Agreement, dated December 12, 2014, between Unisys Corporation and Peter Altabef (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 16, 2014)

73

10.28	Employment Agreement, dated December 12, 2014, between Unisys Corporation and Peter Altabef (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on December 16, 2014)
10.29	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, as agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 17, 2017)
10.30	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, as agent (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on April 17, 2017)
10.31	Credit Agreement dated as of October 5, 2017 by and among Unisys Corporation, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 6, 2017)
10.32	Amendment No. 1 dated as of June 15, 2018 to Credit Agreement dated as of October 5, 2017 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018)
10.33	Security Agreement dated as of October 5, 2017 by Unisys Corporation, Unisys Holding Corporation, Unisys NPL, Inc., and Unisys AP Investment Company I in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on October 6, 2017)
10.34	Intercreditor Agreement dated as of October 5, 2017 by and among JPMorgan Chase Bank, N.A., as Administrative Agent, Wells Fargo Bank, National Association, as Collateral Trustee, and Unisys Corporation, Unisys Holding Corporation, Unisys NPL, Inc., and Unisys AP Investment Company I (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on October 6, 2017)
21	Subsidiaries of the Company
23	Consent of KPMG LLP
24	Power of Attorney
31.1	Certification of Peter A. Altabef required by Rule 13a-14(a) or Rule 15d-14(a)
31.2	Certification of Inder M. Singh required by Rule 13a-14(a) or Rule 15d-14(a)
32.1	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
32.2	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

ITEM 16. FORM 10-K SUMMARY

None.

74

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	UNISYS CORPORATION
	By:	/s/    Peter A. Altabef
		Peter A. Altabef
		Chairman, President and Chief Executive Officer
Date: March 4, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 4, 2019.

	/s/    Peter A. Altabef	*Denise K. Fletcher
	Peter A. Altabef	Denise K. Fletcher
	Chairman, President and Chief Executive Officer	Director
	(principal executive officer)
	/s/    Inder M. Singh	*Philippe Germond
	Inder M. Singh	Philippe Germond
	Senior Vice President and Chief Financial Officer	Director
	(principal financial officer)
	/s/    Michael M. Thomson	*Lisa A. Hook
	Michael M. Thomson	Lisa A. Hook
	Vice President and Corporate Controller	Director
	(principal accounting officer)
	*Jared L. Cohon	*Deborah Lee James
	Jared L. Cohon	Deborah Lee James
	Director	Director
	*Nathaniel A. Davis	*Paul E. Martin
	Nathaniel A. Davis	Paul E. Martin
	Director	Director
	*Matthew J. Desch	*Regina M. Paolillo
	Matthew J. Desch	Regina M. Paolillo
	Director	Director
		*Lee D. Roberts
		Lee D. Roberts
		Director
*By:	/s/    Peter A. Altabef
	Peter A. Altabef
	Attorney-in-fact

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UNISYS CORPORATION

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(Millions)

Description	Balance at Beginning of Period		Additions Charged to Costs and Expenses			Deductions (i)			Balance at End of Period
Allowance for doubtful accounts (deducted from accounts receivable):
Year Ended December 31, 2016	$	21.1	$	2.2		$	(0.5	)	$	22.8
Year Ended December 31, 2017	$	22.8	$	3.1		$	(3.9	)	$	22.0
Year Ended December 31, 2018	$	22.0	$	(5.1	)	$	(3.2	)	$	13.7

⁽ⁱ⁾Includes write-off of bad debts less recoveries, reclassifications from other current liabilities and foreign currency translation adjustments.

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EX-10.12

UNISYS CORPORATION

2016 Long-Term Incentive and Equity Compensation Plan

Restricted Stock Unit Agreement

In order for the Award provided hereunder to become effective, this Agreement must be

accepted electronically by Grantee within sixty (60) days of receipt. In the event that this Agreement is not accepted electronically by Grantee within this time period, Grantee shall be deemed to have rejected the

Award.

1. Subject to all provisions hereof and to all of the terms and conditions of the Unisys Corporation 2016 Long- Term Incentive and Equity Compensation Plan (the “Plan”), incorporated by this reference herein, Unisys Corporation, a Delaware corporation (the “Company”), hereby grants to the grantee named below (“Grantee”) an award (the “Award”) of restricted stock units in accordance with Section 8 of the Plan. Each restricted stock unit (hereinafter referred to as a “Restricted Stock Unit” or “Unit”) represents an obligation of the Company to pay to Grantee up to a maximum of two shares of the Common Stock, par value $0.01 per share, of the Company (the “Stock”) on (i) the applicable vesting date or (ii) such earlier date as payment may be due under this agreement (together with Appendix A, and any applicable country-specific terms and provisions set forth in the addendum and the attachments to the addendum (collectively, the “Addendum”), the “Agreement”), for each Unit that vests on such

date, provided that the conditions precedent to such payment have been satisfied and provided that no termination of employment or service has occurred prior to the respective vesting date (unless otherwise provided in the Plan or this

Agreement).

Grantee:	FULL NAME
Total Number of Stock Units Awarded:1	NUMBER OF UNITS
Date of Grant:	[insert date]
Vesting Schedule:	The Vesting Schedule is set forth in Appendix A to this Agreement.

Capitalized terms used and not defined herein shall have the respective meanings assigned to such terms in the Plan.

The terms of the Award are as follows:

2. Every notice relating to this Agreement shall be in writing and shall be effective when received or with date of posting if by registered mail with return receipt requested, postage prepaid. All notices to the Company shall be addressed to the Company as indicated in Section 25 of the Plan. Notices to Grantee shall be addressed and delivered as provided in Section 25 of the Plan. Either party, by notice to the other, may designate a different address to which notices shall be sent. Any notice by the Company to Grantee at his or her last designated address shall be effective to bind Grantee and any other person who acquires rights or a claim thereto under this Agreement.

3. Grantee’s right to any payment under this Award may not be assigned, transferred (other than by will or the laws of descent and distribution), pledged or sold.

^{________________________________________________} 

¹ All of the Restricted Stock Units subject to this Agreement are Performance-Based Units.

1

4. Except as otherwise provided under the terms of the Plan or this Agreement, all Restricted Stock Units awarded under this Agreement that have not vested will be forfeited and all rights of Grantee with respect to such Units will terminate without any payment by the Company upon termination of employment or service by Grantee or by the Company or, if Grantee is not employed by the Company, Grantee’s employer (the “Employer”) prior to the applicable vesting date for such Units, as set forth in Appendix A (the “Vesting Date”).

For purposes of this Award, termination of employment or service (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Grantee is employed or providing services to the Company, the Employer or any other subsidiary or the terms of Grantee’s employment or service contract, if any) is deemed to occur effective as of the date that Grantee is no longer actively employed or providing services to the Company, the Employer or any other subsidiary and will not be extended by any notice period (e.g., Grantee’s period of employment or service with the Company, the Employer or any other subsidiary would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Grantee is employed or providing services to the Company, the Employer or any other subsidiary or the terms of Grantee’s employment or service contract, if any). The Company shall have the sole discretion to determine when Grantee is no longer actively employed or providing services to the Company, the Employer or any other subsidiary for purposes of the Award (including whether Grantee may still be considered to be providing such services while on a leave of absence).

5. In the event of Grantee’s termination of employment or service within two years following the date of a Change in Control either (i) involuntarily by the Company or the Employer, as applicable, other than for Cause, or (ii) for Good Reason, any portion of the Award that is unvested and outstanding as of the date of Grantee’s termination of employment or service will become vested in accordance with the rules under Section 15(b) of the Plan. Notwithstanding the foregoing, if the Committee determines in its sole discretion that the Units are nonqualified deferred compensation under Section 409A of the Code, then, if Grantee is a “specified employee” within the meaning of Section 409A of the Code, Grantee’s entitlement to vesting with respect to the Award shall be as provided in this paragraph 5, but the delivery of the shares of Stock subject to Grantee’s Units shall be made on the first business day of the seventh month following Grantee’s termination of employment or service. For purposes of this paragraph 5, if the Committee determines in its sole discretion that the Units are nonqualified deferred compensation under Section 409A of the Code, termination of employment or service shall be limited to those circumstances that constitute a “separation from service” within the meaning of Section 409A of the Code. This paragraph 5 will not be applicable to the Award if the Change in Control results from Grantee’s beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of Stock or Voting Securities.

6. Each payment that may become due hereunder shall be made only in shares of Stock, unless otherwise provided in this Agreement. Except as otherwise provided in paragraph 5, such shares will be issued to Grantee as soon as practicable after the relevant Vesting Date but in any event within the period ending two and one-half months following the earlier of the end of the taxable year of the Company or the taxable year of Grantee which, in each

case, includes the Vesting Date.

7. Any dispute or disagreement arising under or as a result of this Agreement, shall be determined by the Committee (or, as to the provisions contained in paragraph 8 hereof, by the Company), or its designee, in its sole discretion and any such determination and interpretation or other action taken by said Committee (or, as to the provisions contained in paragraph 8 hereof, by the Company), or its designee, pursuant to the provisions of the Plan shall be binding and conclusive for all purposes whatsoever.

8. The greatest assets of Unisys*are its employees, technology and customers. In recognition of the increased risk of unfairly losing any of these assets to its competitors, Unisys has adopted the following policy. By accepting this Award, Grantee agrees that:

^{________________________________________________} 

* For purposes of this paragraph 8, the term "Unisys" shall include the Company and all of its subsidiaries.

2

8.1 During employment and for twelve months after leaving Unisys, Grantee will not: (a) directly or indirectly solicit or attempt to influence any employee of Unisys to terminate his or her employment with Unisys, except as directed by Unisys; (b) directly or indirectly solicit or divert to any competing business any customer or prospective customer to which Grantee was assigned at any time during the eighteen months prior to leaving Unisys; or (c) perform services for any Unisys customer or prospective customer, of the type Grantee provided while employed by Unisys for any Unisys customer or prospective customer for which Grantee worked at any time during the eighteen months prior to leaving Unisys.

8.2 Grantee previously signed the Unisys Employee Proprietary Information, Invention and Non-Competition Agreement in which he or she agreed not to disclose, transfer, retain or copy any confidential or proprietary information during or after the term of Grantee’s employment, and Grantee acknowledges his or her continuing obligations under that agreement. Grantee shall be bound by the terms of the Employee Proprietary Information, Invention and Non-Competition Agreement and the restrictions set out in this paragraph 8 of this Agreement vis-à-vis the Company or the Employer, as applicable, and all restrictions and limitations set out in these agreements are in addition to and not in substitution of any other restrictive covenants (similar or otherwise) that Grantee might be bound by vis-à-vis the Company or the Employer, as applicable, by virtue of his or her contract of employment or other agreements executed between Grantee and the Company or the Employer, as applicable, which restrictive covenants shall remain in full force and continue to apply, notwithstanding any provisions to the contrary in this Agreement and/or the Employee Proprietary Information, Invention and Non-Competition Agreement. Grantee is hereby notified that, pursuant to Title 18 USC § 1833(b) of the United States Code, he or she may not be held criminally or civilly liable under any federal or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; and/or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, Grantee is notified that he or she may disclose a trade secret to his or her attorney and use the trade secret information in a lawsuit alleging retaliation based on the reporting of a suspected violation of law, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

8.3 Grantee agrees that Unisys shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, in the event of a breach of any of the covenants contained in this paragraph 8.

8.4 Grantee agrees that Unisys may assign the right to enforce the non-solicitation and non-competition obligations of Grantee described in paragraph 8.1 to its successors and assigns without any further consent from Grantee.

8.5 The provisions contained in this paragraph 8 shall survive after Grantee’s termination of employment or service and may not be modified or amended except by a writing executed by Grantee and the Chairman of the Board of the Company.

9. In accepting the Award, Grantee acknowledges, understands and agrees that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Board at any time, to the extent permitted by the Plan; (ii) the grant of the Award is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units, or benefits in lieu of restricted stock units even if restricted stock units have been granted in the past; (iii) all decisions with respect to future awards of restricted stock units, if any, will be at the sole discretion of the Committee or its designee; (iv) the grant of the Award and Grantee’s participation in the Plan shall not create a right to employment with the Company, and shall not interfere with the ability of the Employer to terminate Grantee’s employment or service relationship (if any) at any time; (v) Grantee’s participation in the Plan is voluntary; (vi) the Award and the

^{________________________________________________} 

3

shares of Stock acquired under the Plan, and the income from and value of same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company, the Employer or any other subsidiary, and are outside the scope of Grantee’s employment or service contract, if any; (vii) the Award and the shares of Stock acquired under the Plan, and the income from and value of same, are not intended to replace any pension rights or compensation; (viii) the Award and the shares of Stock acquired under the Plan, and the income from and value of same, are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, holiday pay, bonuses, long-service awards, pension, retirement or welfare benefits or similar mandatory payments; (ix) unless otherwise agreed with the Company, the Award and the shares of Stock subject to the Award, and the income from and value of same, are not granted as consideration for, or in connection with, the service Grantee may provide as a director of any subsidiary; (x) the future value of the underlying shares of Stock is unknown, indeterminable, and cannot be predicted with certainty; (xi) if Grantee accepts the Award and obtains shares of Stock, the value of those shares of Stock acquired upon vesting may increase or decrease in value; (xii) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from Grantee’s termination of employment or service (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Grantee is employed or providing services to the Company, the Employer or any other subsidiary or the terms of Grantee’s employment or service contract, if any) (xiii) the Award and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability involving the Company and unless otherwise provided in the Plan or by the Company in its sole discretion, the Award and the benefits evidenced by this Agreement do not create any entitlement to have the Award or any such benefits transferred to, or assumed by, another company or be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; (xiv) if Grantee is employed or providing services outside the United States of America, neither the Company, the Employer nor any other subsidiary shall be liable for any foreign exchange rate fluctuation between Grantee’s local currency and the United States Dollar that may affect the value of the Award or of any amounts due to Grantee pursuant to the settlement of the Award or the subsequent sale of any shares of Stock acquired upon settlement; and (xv) in the event the Company is required to prepare an accounting restatement, the Award, the shares of Stock subject to the Award and proceeds from a sale of such shares may be subject to forfeiture or recoupment, to the extent required from time to time by applicable law or by a policy adopted by the Company, but provided such forfeiture or recoupment is permitted under applicable law.

10. Grantee acknowledges that neither the Company nor the Employer (or any other subsidiary) is providing any tax, legal or financial advice, nor is the Company or the Employer (or any other subsidiary) making any recommendations regarding Grantee’s participation in the Plan or Grantee’s acquisition or sale of the underlying shares of Stock. Grantee should consult with his or her own personal tax, legal and financial advisors regarding Grantee’s participation in the Plan before taking any action related to the Plan.

11. Regardless of any action the Company or the Employer takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Grantee’s participation in the Plan and legally applicable to him or her (“Tax-Related Items”), Grantee acknowledges that the ultimate liability for all Tax-Related Items is and remains Grantee’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Employer. Grantee further acknowledges that the Company and/or the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Award, the issuance of shares of Stock upon settlement of the Award, the subsequent sale of the shares of Stock acquired pursuant to such issuance and the receipt of any dividends or other distributions; and (b) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the Award to reduce or eliminate Grantee’s liability for Tax-Related Items or achieve any particular tax result. Further, if Grantee is subject to tax in more than one jurisdiction, Grantee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

4

Prior to any relevant taxable or tax withholding event, as applicable, Grantee will pay or make adequate

arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, Grantee authorizes the Company and/or the Employer, or their respective agents, at their sole discretion, to satisfy their withholding obligations with regard to all Tax-Related Items by means of one or a combination of the following: (1) withholding from Grantee’s wages or other cash compensation paid to Grantee by the Company and/or the Employer; (2) withholding from proceeds of the sale of shares of Stock acquired upon vesting or settlement of the Award either through a voluntary sale or through a mandatory sale arranged by the Company (on Grantee’s behalf pursuant to this authorization without further consent); or (3) withholding in shares of Stock to be issued upon vesting or settlement of the Award. Notwithstanding the foregoing, if Grantee is a Section 16 officer of the Company under the Exchange Act, then the Company will withhold by means of mandatory withholding of shares in Stock to be issued upon vesting or settlement of the Award, unless the use of such withholding method is problematic under applicable tax or securities law or has materially adverse accounting consequences, in which case the Company shall use one of the other methods described above under (1) and (2) to satisfy the Company’s and/or Employer's withholding obligation.

Depending on the withholding method, the Company and/or the Employer may withhold or account for Tax- Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates in Grantee’s jurisdiction, including maximum applicable rates, in which case Grantee may receive a refund of any over-withheld amount in cash and will have no entitlement to the Stock equivalent. If Grantee does not receive a refund of any over-withheld amount, Grantee may seek a refund from the local tax authorities. If the obligation for Tax-Related Items is satisfied by withholding in shares of Stock, for tax purposes Grantee is deemed to have been issued the full number of shares of Stock subject to the Award, notwithstanding that a number of the shares of Stock is held back solely for the purpose of paying the Tax-Related Items.

Finally, within ninety (90) days of any tax liability arising, Grantee shall pay to the Company and/or the Employer any amount of Tax-Related Items that the Company and/or the Employer may be required to withhold or account for as a result of Grantee’s participation in the Plan or Grantee’s receipt of shares of Stock that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Stock or proceeds of the sale of shares of Stock in settlement of the vested Award if Grantee fails to comply with his or her obligations in connection with the Tax-Related Items.

12. Grantee is hereby notified of the collection, use and transfer, in electronic or other form, of Grantee’s personal data (and that of persons closely associated with Grantee) as described in this Agreement, any other Award grant materials and the Company’s Privacy Notice. Such personal data may be collected, used and transferred by and among, as applicable, the Company, the Employer, any other subsidiary and any third parties assisting (presently or in the future) with the implementation, administration and management of the Plan, such as Fidelity Stock Plan Services, LLC (“Fidelity”) or its successor for the exclusive purpose of implementing, administering and managing Grantee’s participation in the Plan. Where required under applicable law, personal data also may be disclosed to certain securities or other regulatory authorities where the Company’s shares are listed or traded or regulatory filings are made. Grantee further understands that the collection, use and transfer of his or her personal data (or that of persons closely associated with Grantee) is mandatory for compliance with applicable law and necessary for the performance of the Plan and that Grantee’s denial to provide such personal data would make it impossible for the Company to perform its contractual obligations and may affect Grantee’s ability to participate in the Plan.

13. If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or

5

impaired thereby and the invalid, illegal or unenforceable provision shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Agreement to be construed so as to foster the intent of this Agreement and the Plan.

14. Grantee acknowledges that he or she is proficient in the English language and understand the provisions of this Agreement and the Plan. If Grantee has received this Agreement or any other document related to the Award and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

15. Subject to paragraph 2 above, the Company may, in its sole discretion, decide to deliver or receive any documents related to Grantee’s current and future participation in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

16. This Agreement is intended to comply with the short-term deferral rule set forth in regulations under Section 409A of the Code to avoid application of Section 409A of the Code to the Award; however, to the extent it is subsequently determined that the Award is deemed to be non-qualified deferred compensation subject to Section 409A of the Code, the Agreement is intended to comply in form and operation with Section 409A of the Code, and any ambiguities herein will be interpreted to so comply. The Committee reserves the right, to the extent the Committee deems necessary or advisable in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that the Award is exempt from, or complies with, Section 409A of the Code, provided, however, that the Company makes no representation that this Agreement will be exempt from, or comply with, Section 409A of the Code and shall have no liability to Grantee or any other party if a payment under this Agreement that is intended to be exempt from, or compliant with, Section 409A of the Code is not so exempt or compliant or for any action taken by the Company with respect thereto.

17. The Award shall be subject to any special terms and provisions as set forth in the Addendum for Grantee’s country, if any. Moreover, if Grantee relocates to another country during the life of the Award, the special terms and conditions for such country will apply to Grantee to the extent the Company determines in its sole discretion that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.

18. This Agreement shall be governed by and construed under and in accordance with the laws of the State of Pennsylvania in the United States of America, without giving effect to the conflict of laws provisions thereof, as provided in the Plan.

For purposes of any dispute, action or other proceeding that arises under or relates to this Award or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Pennsylvania in the United States of America, and agree that such litigation shall be conducted only in the courts of Montgomery County in the Commonwealth of Pennsylvania in the United States of America, or the federal courts of the United States of America for the Eastern District of Pennsylvania, where this Award is made and/or to be performed, and no other courts.

19. The Company reserves the right to impose other requirements on Grantee’s participation in the Plan, on the Award and/or on any shares of Stock acquired under the Plan, to the extent the Company determines in its sole discretion that it is necessary or advisable (including, but not limited to, legal or administrative reasons), and to require Grantee to sign and/or accept electronically, at the sole discretion of the Company, any additional agreements or undertakings that may be necessary to accomplish the foregoing as determined by the Company in its sole discretion.

6

20. Notwithstanding any other provision of the Plan or this Agreement to the contrary, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the shares of Stock, the Company shall not be required to deliver any shares of Stock issuable upon settlement of the Award prior to the completion of any registration or qualification of the shares of Stock under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its sole discretion, deem necessary or advisable. Grantee understands that the Company is under no obligation to register or qualify the shares of Stock with the SEC or any local, state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the shares of Stock. Further Grantee agrees that the Committee or its designee shall have unilateral authority to amend the Plan and the Agreement without Grantee’s consent to the extent necessary to comply with securities or other laws applicable to issuance of shares of Stock.

21. Grantee acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by Grantee or any other grantee.

22. Grantee acknowledges that he or she may be subject to insider trading restrictions and/or market abuse laws based on the exchange on which the shares of Stock are listed in applicable jurisdictions, including the United States, the United Kingdom, Grantee’s country, Fidelity’s country or any other stock plan service provider’s country, which may affect Grantee’s ability to directly or indirectly, for his or her self or a third party, accept, acquire, sell, attempt to sell or otherwise dispose of shares of Stock, rights to shares of Stock (e.g., Awards) or rights linked to the value of shares of Stock during such times as Grantee is considered to have “inside information” regarding the Company (as defined by the laws or regulations in applicable jurisdictions). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders Grantee placed before Grantee possessed inside information. Furthermore, Grantee could be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them otherwise to buy or sell securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Grantee acknowledges that it is Grantee’s responsibility to comply with any applicable restrictions, and Grantee should consult with Grantee’s own personal legal and financial advisors on this matter before taking any action related to the Plan.

23. Grantee acknowledges that, depending on Grantee’s country, Grantee may be subject to certain foreign asset and/or account reporting requirements which may affect his or her ability to acquire or hold shares of Stock under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of shares of Stock) in a brokerage or bank account outside Grantee’s country. Grantee may be required to report such accounts, assets or transactions to the tax or other authorities in his or her country. Grantee acknowledges that it is his or her responsibility to be compliant with such regulations, and Grantee should speak to his or her personal advisor on this matter.

24. To the extent applicable, all references to Grantee shall include Grantee’s beneficiary in the case of Grantee’s death during or after Grantee’s termination of employment or service.

UNISYS CORPORATION

/s/ Peter A. Altabef

Peter A. Altabef

President and Chief Executive Officer

7

ONLINE ACCEPTANCE ACKNOWLEDGMENT:

I hereby acceptmy Restricted Stock Unit Award (“Award”) granted to me in accordance with and subject to the terms of this agreement (together with Appendix A and any applicable country-specific terms and provisions set forth in the addendum and any attachments to the addendum (collectively, the “Addendum”), the “Agreement”) and the terms and restrictions of the Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan. I acknowledge that I have read and understand the terms of this Agreement, and that I am familiar with and understand the terms of the Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan, and that I agree to be bound thereby and by the actions of the Compensation Committee and of the Board of Directors of Unisys Corporation with respect thereto. I acknowledge that this Agreement and other Award materials were delivered or made available to me electronically and I hereby consent to the delivery of my Award materials, and any future materials relating to my Award, in such form. I also acknowledge that I am accepting my Award electronically and that such acceptance has the same force and effect as if I had signed and returned to Unisys Corporation a hard copy of the Agreement noting that I had accepted the Award. I acknowledge that I have been encouraged to discuss this matter with my financial, legal and tax advisors and that this acceptance is made knowingly.

OR

ONLINE REJECTION ACKNOWLEDGMENT:

I hereby rejectmy Restricted Stock Unit Award (“Award”) granted to me in accordance with and subject to the terms of this agreement (together with Appendix A and any applicable country-specific terms and provisions set forth in the addendum and any attachments to the addendum (collectively, the “Addendum”), the “Agreement”) and the terms and restrictions of the Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan. I acknowledge that I have read and understand the terms of this Agreement, and that I am familiar with and understand the terms of the Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan. I acknowledge that this Agreement and other Award materials were delivered or made available to me electronically and I hereby consent to the delivery of my Award materials, and any future materials relating to my Award, in such form. I also acknowledge that I am rejecting my Award electronically and that such rejection has the same force and effect as if I had signed and returned to Unisys Corporation a hard copy of the Agreement noting that I had rejected the Award. I acknowledge that I have been encouraged to discuss this matter with my financial, legal and tax advisors and that this rejection is made knowingly. I further acknowledge that by rejecting the Award, I will not be entitled to any payment or benefit in lieu of the Award.

8

APPENDIX A

UNISYS CORPORATION

The Unisys Corporation 2016 Long-Term Incentive and Equity Compensation Plan

Restricted Stock Unit Agreement

Certain capitalized terms used but not defined in this Appendix A have the meanings set forth in the Plan and/or Grantee’s relevant Restricted Stock Unit Agreement (together with Appendix A and any applicable country-specific terms and provisions set forth in the addendum and any attachments to the addendum (the “Addendum”), the “Agreement”).

All of the Restricted Stock Units granted under the Agreement are Performance-Based Restricted Stock Units (PB- RSUs).

2018 PB-RSUs Metric and Performance Determination

• The PB-RSUs vesting metric will be relative Total Shareholder Return (rTSR) compared to the Russell 2000 using a 30 day closing average to determine beginning and ending stock prices

• An rTSR modifier will be set as equal to 100% plus/minus 2 times the difference between Unisys TSR and the Russell 2000 over the performance period

• Payout will be capped at 200% of earned PB-RSUs

• Payout will be capped at 100% of earned PB-RSUs if Unisys TSR (or TSR CAGR) is negative during the performance period

• There will be no payout if Unisys TSR for a performance period is -50% or less

2018 PB-RSUs Vesting Schedule

Performance Basis	Award	Vesting and Settlement Dates1
2018	1/3 of the target number of units	Earned based on 2018 rTSR with vesting on the first anniversary of grant
2018-2019	1/3 of the target number of units	Earned based on 2018-2019 rTSR with vesting on the second anniversary of grant
2018-2020	1/3 of the target number of units	Earned based on 2018-2020 rTSR with vesting on the third anniversary of grant

¹Vesting based on rTSR on the anniversary of grant or the date the Committee has certified achievement of goals, if later.

9

EX-21

Exhibit 21

SUBSIDIARIES OF THE REGISTRANT

Unisys Corporation, the registrant, a Delaware company, has no parent. The registrant has the following subsidiaries:

Name of Company	State or Other Jurisdiction Under the Laws of Which Organized
Intelligent Processing Solutions Limited	United Kingdom

Pursuant to Item 601(b)(21)(ii) of Regulation S-K, subsidiaries of the Company have been omitted which, considered in the aggregate as a single subsidiary, would not have constituted a significant subsidiary (as defined in Rule 1-02(w) of Regulation S-X) as of December 31, 2018.

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

The board of directors

Unisys Corporation:

We consent to the incorporation by reference in the registration statement (No. 333-40012, 333-114718, 333-145429, 333-156569, 333-171004, 333-171005, 333-192040, and 333-211020) on Form S-8 and in the registration statement (No. 333-225576) on Form S-3 and in the registration statement (No. 333-74745) on Form S-4 of Unisys Corporation of our reports dated March 4, 2019, with respect to the consolidated balance sheets of Unisys Corporation as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, cash flows and deficit for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement schedule (collectively, the consolidated financial statements), and the effectiveness of internal control over financial reporting as of December 31, 2018, which reports appear in the December 31, 2018 annual report on Form 10-K of Unisys Corporation.

Our report on the consolidated financial statements refers to changes in accounting principle for revenue recognition and for pensions due to the adoption of new accounting standards.

/s/ KPMG LLP

Philadelphia, Pennsylvania

March 4, 2019

EX-24

Exhibit 24

POWER OF ATTORNEY

Unisys Corporation

Annual Report on Form 10-K

for the year ended December 31, 2018

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below does hereby make, constitute and appoint PETER A. ALTABEF, INDER M. SINGH and GERALD P. KENNEY, and each one of them severally, his true and lawful attorneys-in-fact and agents, for such person and in such person’s name, place and stead, to sign the Unisys Corporation Annual Report on Form 10-K for the year ended December 31, 2018, and any and all amendments thereto and to file such Annual Report on Form 10-K and any and all amendments thereto with the Securities and Exchange Commission, and does hereby grant unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite or necessary to be done in and about the premises, as fully to all intents and purposes as said person might or could do in person, hereby ratifying and confirming all that such attorney-in-fact and agents and each of them may lawfully do or cause to be done by virtue hereof.

Dated: February 26, 2019

/s/ Peter A. Altabef	/s/ Lisa A. Hook
Peter A. Altabef	Lisa A. Hook
Chairman, President and Chief Executive Officer	Director
/s/ Jared L. Cohon	/s/ Deborah Lee James
Jared L. Cohon	Deborah Lee James
Director	Director
/s/ Nathaniel A. Davis	/s/ Paul E. Martin
Nathaniel A. Davis	Paul E. Martin
Director	Director
/s/ Matthew J. Desch	/s/ Regina M. Paolillo
Matthew J. Desch	Regina M. Paolillo
Director	Director
/s/ Denise K. Fletcher	/s/ Lee D. Roberts
Denise K. Fletcher	Lee D. Roberts
Director	Director
/s/ Philippe Germond
Philippe Germond
Director

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Peter A. Altabef, certify that:

1. I have reviewed this annual report on Form 10-K of Unisys Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 4, 2019

	/s/ Peter A. Altabef
Name:	Peter A. Altabef
Title:	Chairman, President and
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Inder M. Singh, certify that:

1. I have reviewed this annual report on Form 10-K of Unisys Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 4, 2019

	/s/ Inder M. Singh
Name:	Inder M. Singh
Title:	Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PERIODIC REPORT

I, Peter A. Altabef, President and Chief Executive Officer of Unisys Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Annual Report on Form 10-K of the Company for the year ended December 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 4, 2019

/s/ Peter A. Altabef

Peter A. Altabef

Chairman, President and

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF PERIODIC REPORT

I, Inder M. Singh, Senior Vice President and Chief Financial Officer of Unisys Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Annual Report on Form 10-K of the Company for the year ended December 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: March 4, 2019

/s/ Inder M. Singh

Inder M. Singh

Senior Vice President and

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Jan. 31, 2019	Jun. 29, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	UIS
Entity Registrant Name	UNISYS CORP
Entity Central Index Key	0000746838
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,034,601
Entity Public Float			$ 647.8

XML

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Revenue
Revenue	$ 2,825.0	$ 2,741.8		$ 2,820.7
Cost of revenue:
Cost of revenue	2,138.7	2,194.1	[1]	2,203.3	[1]
Selling, general and administrative expenses	370.3	411.9	[1]	441.2	[1]
Research and development expenses	31.9	38.7	[1]	47.0	[1]
Costs and expenses	2,540.9	2,644.7	[1]	2,691.5	[1]
Operating income	284.1	97.1	[1]	129.2	[1]
Interest expense	64.0	52.8		27.4
Other income (expense), net	(76.9)	(116.4)	[1]	(81.3)	[1]
Income (loss) before income taxes	143.2	(72.1)		20.5
Provision (benefit) for income taxes	64.3	(5.5)		57.2
Consolidated net income (loss)	78.9	(66.6)		(36.7)
Net income (loss) attributable to noncontrolling interests	3.4	(1.3)		11.0
Net income (loss) attributable to Unisys Corporation common shareholders	$ 75.5	$ (65.3)		$ (47.7)
Earnings (loss) per common share attributable to Unisys Corporation
Basic (in dollars per share)	$ 1.48	$ (1.30)		$ (0.95)
Diluted (in dollars per share)	$ 1.30	$ (1.30)		$ (0.95)
Services
Revenue
Revenue	$ 2,386.3	$ 2,328.2		$ 2,406.3
Cost of revenue:
Cost of revenue	2,010.5	2,033.8	[1]	2,035.2	[1]
Operating income	67.6	64.8		46.9
Technology
Revenue
Revenue	438.7	413.6		414.4
Cost of revenue:
Cost of revenue	128.2	160.3	[1]	168.1	[1]
Operating income	$ 237.8	$ 170.6		$ 161.5

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)	$ 78.9	$ (66.6)	$ (36.7)
Other comprehensive income
Foreign currency translation	(81.8)	117.8	(108.4)
Postretirement adjustments, net of tax of $7.1 in 2018, $18.3 in 2017 and $(13.3) in 2016	33.8	265.1	(137.6)
Total other comprehensive income (loss)	(48.0)	382.9	(246.0)
Comprehensive income (loss)	30.9	316.3	(282.7)
Comprehensive income (loss) attributable to noncontrolling interests	15.7	44.6	(27.5)
Comprehensive income (loss) attributable to Unisys Corporation	$ 15.2	$ 271.7	$ (255.2)

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Postretirement adjustments, tax	$ 7.1	$ 18.3	$ (13.3)

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 605.0	$ 733.9
Accounts receivable, net	509.2	503.3
Contract assets	29.7	0.0
Inventories:
Parts and finished equipment	14.0	13.6
Work in process and materials	13.3	12.5
Prepaid expenses and other current assets	130.2	126.2
Total current assets	1,301.4	1,389.5
Properties	800.2	898.8
Less – Accumulated depreciation and amortization	678.9	756.3
Properties, net	121.3	142.5
Outsourcing assets, net	216.4	202.3
Marketable software, net	162.1	138.3
Prepaid postretirement assets	147.6	148.3
Deferred income taxes	109.3	119.9
Goodwill	177.8	180.8
Restricted cash	19.1	30.2
Other long-term assets	202.6	190.6
Total assets	2,457.6	2,542.4
Current liabilities:
Current maturities of long-term debt	10.0	10.8
Accounts payable	268.9	241.8
Deferred revenue	294.4	327.5
Other accrued liabilities	350.0	391.5
Total current liabilities	923.3	971.6
Long-term debt	642.8	633.9
Long-term postretirement liabilities	1,956.5	2,004.4
Long-term deferred revenue	157.2	159.0
Other long-term liabilities	77.4	100.0
Commitments and contingencies
Deficit:
Common stock, par value $.01 per share (150.0 million shares authorized; 54.2 million shares and 53.4 million shares issued)	0.5	0.5
Accumulated deficit	(1,694.0)	(1,963.1)
Treasury stock, at cost	(105.0)	(102.7)
Paid-in capital	4,539.8	4,526.4
Accumulated other comprehensive loss	(4,084.8)	(3,815.8)
Total Unisys stockholders’ deficit	(1,343.5)	(1,354.7)
Noncontrolling interests	43.9	28.2
Total deficit	(1,299.6)	(1,326.5)
Total liabilities and deficit	$ 2,457.6	$ 2,542.4

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	54,200,000	53,400,000

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Cash flows from operating activities
Consolidated net income (loss)	$ 78.9	$ (66.6)		$ (36.7)
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:
Foreign currency transaction losses	7.4	21.7		0.4
Non-cash interest expense	10.5	9.5		7.0
Loss on debt extinguishment	0.0	1.5		4.0
Employee stock compensation	13.2	11.2		9.5
Depreciation and amortization of properties	40.4	39.7		38.9
Depreciation and amortization of outsourcing assets	66.8	53.7		51.9
Amortization of marketable software	56.9	63.1		64.8
Other non-cash operating activities	(4.8)	3.2		1.9
Loss on disposal of capital assets	0.8	5.0		6.2
Gain on sale of properties	(7.3)	0.0		0.0
Postretirement contributions	(138.7)	(150.6)	[1]	(146.1)	[1]
Postretirement expense	84.1	98.1	[1]	89.4	[1]
Decrease in deferred income taxes, net	8.2	3.4		2.7
Changes in operating assets and liabilities:
Receivables, net	(50.5)	5.9		87.3
Inventories	(5.5)	4.1		15.3
Other assets	(23.9)	(27.5)		16.5
Accounts payable and other accrued liabilities	(62.2)	48.6		7.5
Other liabilities	(0.4)	42.4	[1]	(2.3)	[1]
Net cash provided by operating activities	73.9	166.4		218.2
Cash flows from investing activities
Proceeds from investments	3,708.0	4,717.2		4,455.9
Purchases of investments	(3,722.0)	(4,692.4)		(4,490.0)
Capital additions of properties	(35.6)	(25.8)		(32.5)
Capital additions of outsourcing assets	(73.0)	(86.3)		(51.3)
Investment in marketable software	(80.7)	(64.4)		(63.3)
Net proceeds from sale of properties	19.2	0.0		0.0
Other	(0.9)	(0.8)		(0.9)
Net cash used for investing activities	(185.0)	(152.5)		(182.1)
Cash flows from financing activities
Payments of long-term debt	(2.3)	(107.5)		(129.8)
Financing fees	(0.2)	(1.1)		0.0
Proceeds from issuance of long-term debt	0.0	452.9		213.5
Issuance costs relating to long-term debt	0.0	(12.1)		(7.3)
Net payments from short-term borrowings	0.0	0.0		(65.8)
Payments for capped call transactions	0.0	0.0		(27.3)
Other	(2.3)	(2.3)		(0.4)
Net cash (used for) provided by financing activities	(4.8)	329.9		(17.1)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(24.1)	19.2		(14.7)
(Decrease) increase in cash, cash equivalents and restricted cash	(140.0)	363.0		4.3
Cash, cash equivalents and restricted cash, beginning of year	764.1	401.1		396.8
Cash, cash equivalents and restricted cash, end of year	$ 624.1	$ 764.1		$ 401.1

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

XML

Consolidated Statements of Deficit - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018	Jan. 01, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ (1,326.5)	$ (1,647.4)	$ (1,378.6)
Reclassification pursuant to ASU No. 2018-02	0.0
Consolidated net income (loss)	78.9	(66.6)	(36.7)
Stock-based compensation	11.1	9.0	8.8
Discount on debt issuance			33.6
Capped call on debt issuance			(27.3)
Expenses of convertible notes			(1.2)
Translation adjustments	(81.8)	117.8	(108.4)
Postretirement plans	33.8	265.1	(137.6)
Ending Balance	(1,299.6)	(1,326.5)	(1,647.4)
ASU No. 2016-16
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment					$ (4.4)
ASU No. 2014-09
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				$ (21.4)
ASU No. 2017-05
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				6.3
Total Unisys Corporation
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(1,354.7)	(1,631.0)	(1,389.7)
Reclassification pursuant to ASU No. 2018-02	0.0
Consolidated net income (loss)	75.5	(65.3)	(47.7)
Stock-based compensation	11.1	9.0	8.8
Discount on debt issuance			33.6
Capped call on debt issuance			(27.3)
Expenses of convertible notes			(1.2)
Translation adjustments	(79.7)	110.1	(93.3)
Postretirement plans	19.4	226.9	(114.2)
Ending Balance	(1,343.5)	(1,354.7)	(1,631.0)
Total Unisys Corporation | ASU No. 2016-16
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment					(4.4)
Total Unisys Corporation | ASU No. 2014-09
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				(21.4)
Total Unisys Corporation | ASU No. 2017-05
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				6.3
Common Stock Par Value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	0.5	0.5	0.5
Ending Balance	0.5	0.5	0.5
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(1,963.1)	(1,893.4)	(1,845.7)
Reclassification pursuant to ASU No. 2018-02	208.7
Consolidated net income (loss)	75.5	(65.3)	(47.7)
Ending Balance	(1,694.0)	(1,963.1)	(1,893.4)
Accumulated Deficit | ASU No. 2016-16
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment					$ (4.4)
Accumulated Deficit | ASU No. 2014-09
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				(21.4)
Accumulated Deficit | ASU No. 2017-05
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment				$ 6.3
Treasury Stock At Cost
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(102.7)	(100.5)	(100.1)
Stock-based compensation	(2.3)	(2.2)	(0.4)
Ending Balance	(105.0)	(102.7)	(100.5)
Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	4,526.4	4,515.2	4,500.9
Stock-based compensation	13.4	11.2	9.2
Discount on debt issuance			33.6
Capped call on debt issuance			(27.3)
Expenses of convertible notes			(1.2)
Ending Balance	4,539.8	4,526.4	4,515.2
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(3,815.8)	(4,152.8)	(3,945.3)
Reclassification pursuant to ASU No. 2018-02	(208.7)
Translation adjustments	(79.7)	110.1	(93.3)
Postretirement plans	19.4	226.9	(114.2)
Ending Balance	(4,084.8)	(3,815.8)	(4,152.8)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	28.2	(16.4)	11.1
Consolidated net income (loss)	3.4	(1.3)	11.0
Translation adjustments	(2.1)	7.7	(15.1)
Postretirement plans	14.4	38.2	(23.4)
Ending Balance	$ 43.9	$ 28.2	$ (16.4)

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Summary of significant accounting policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of significant accounting policies

Summary of significant accounting policies

Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries.

Use of estimates 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 measurement of progress toward completion 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.

Cash and Cash equivalents Cash and cash equivalents consist of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty.

Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily 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 and other cash that is restricted from withdrawal.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows.

As of December 31,	2018		2017
Cash and cash equivalents	$	605.0	$	733.9
Restricted cash	19.1		30.2
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	624.1	$	764.1

Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method.

Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method. The estimated lives used, in years, are as follows: buildings, 20 – 50; machinery and office equipment, 4 – 7; rental equipment, 4; and internal-use software, 3 – 10.

Advertising costs All advertising costs are expensed as incurred. The amount charged to expense during 2018, 2017 and 2016 was $2.8 million, $1.6 million and $2.7 million, respectively.

Shipping and handling Costs related to shipping and handling are included in cost of revenue.

Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date.

The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified.

The company estimates the fair value of each reporting unit using a combination of the income approach and market approach.

The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit.

The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit.

If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, the company gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long-term growth prospects, among other factors.

In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization).

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods.

Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods and services to a customer. The company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the company satisfies a performance obligation.

Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction and collected by the company from a customer (e.g., sales, use and value-added taxes). Revenue includes payments for shipping and handling activities.

At contract inception, the company assesses the goods and services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: (1) a good or service (or a bundle of goods or services) that is distinct or (2) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. The company recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer.

The company must apply its judgment to determine the timing of the satisfaction of performance obligations as well as the transaction price and the amounts allocated to performance obligations including estimating variable consideration, adjusting the consideration for the effects of the time value of money and assessing whether an estimate of variable consideration is constrained.

Revenue from hardware sales is recognized upon the transfer of control to a customer, which is defined as an entity’s ability to direct the use of and obtain substantially all of the remaining benefits of an asset.

Revenue from software licenses is recognized at the inception of either the initial license term or the inception of an extension or renewal to the license term.

Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term.

Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred.

Revenue and profit under systems integration contracts are recognized over time as the company transfers control of goods or services. The company measures its progress toward satisfaction of its performance obligations using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for using the cost-to-cost method, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident.

Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract.

The company also enters into multiple-element arrangements, which may include any combination of hardware, software or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple performance obligations, with control over hardware and software transferred in one reporting period and the software support and hardware maintenance services performed across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long-term multiple-year basis and periodically sell hardware and license software products to the client. The services are provided on a continuous basis across multiple reporting periods and control over the hardware and software products occurs in one reporting period. To the extent that a performance obligation in a multiple-deliverable arrangement is subject to specific guidance, that performance obligation is accounted for in accordance with such specific guidance. An example of such an arrangement may include leased assets which are subject to specific leasing accounting guidance.

In multiple-element arrangements, the company allocates the total transaction price to be earned under the arrangement among the various performance obligations in proportion to their standalone selling prices (relative standalone selling price basis). The standalone selling price for a performance obligation is the price at which the company would sell a promised good or service separately to a customer.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of the company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The primary methods used to estimate standalone selling price are as follows: (1) the expected cost plus margin approach, under which the company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service and (2) the percent discount off of list price approach.

In the Services segment, substantially all of the company’s performance obligations are satisfied over time as work progresses and therefore substantially all of the revenue in this segment is recognized over time. The company generally receives payment for these contracts over time as the performance obligations are satisfied.

In the Technology segment, substantially all of the company’s goods and services are transferred to customers at a single point in time. Revenue on these contracts is recognized when control over the product is transferred to the customer or a software license term begins. The company generally receives payment for these contracts upon signature or within 30 to 60 days.

At December 31, 2018, the company had approximately $1.2 billion of remaining performance obligations of which approximately 40% is estimated to be recognized as revenue by the end of 2019. The company does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less and (2) contracts for which the company recognizes revenue at the amount to which it has the right to invoice for services performed.

The company discloses disaggregation of its customer revenue by geographic areas and by classes of similar products and services, by segment (see note 17).

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, contract assets and deferred revenue (contract liabilities).

The disclosure of contract assets is a new requirement due to the adoption of Topic 606. At December 31, 2017, contract assets were included in accounts receivable, net on the company’s consolidated balance sheet. At December 31, 2018, $22.2 million of long-term contract assets were included in other long-term assets on the company’s consolidated balance sheet.

At December 31, 2018, deposit liabilities of $21.2 million were principally included in current deferred revenue. These deposit liabilities represent upfront consideration received from customers for services such as post-contract support and maintenance that allow the customer to terminate the contract at any time for convenience.

Significant changes during 2018 in the above contract asset and liability balances were as follows: revenue of $307.1 million was recognized that was included in deferred revenue at December 31, 2017.

The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At December 31, 2018 and December 31, 2017, the company had $12.1 million and $11.0 million, respectively, of deferred commissions. For the year ended December 31, 2018, $6.9 million of amortization expense related to deferred commissions was recorded in selling, general and administrative expense in the company’s consolidated statement of income.

Costs to fulfill a contract, which are incurred upon initiation of certain services contracts and are related to initial customer setup, are included in outsourcing assets, net in the company’s consolidated balance sheet. The amount of such cost at December 31, 2018 and December 31, 2017 was $79.5 million and $76.0 million, respectively. These costs are amortized over the initial contract life and reported in Services cost of sales. During 2018, $21.7 million was amortized. Recoverability of these costs are subject to various business risks. Quarterly, the company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. If impaired, these assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual cash flows could differ from these estimates.

Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company releases the income tax effects of deferred tax balances that have a valuation allowance from accumulated other comprehensive income once the reason the tax effects were established ceases to exist (e.g. postretirement plan is liquidated). The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income.

The company treats the global intangible low-taxed income tax, or GILTI, as a period cost when included in U.S. taxable income, and the base erosion and anti-abuse tax, or BEAT, as a period cost when incurred.

Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally 3 years following product release. The company continually reassesses the estimated revenue-producing lives of the products and will revise the lives as necessary. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue.

Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above.

Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above.

Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates.

Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net.

For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net.

Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. Compensation expense for performance-based restricted stock unit awards is recognized as expense ratably for each installment from the date of the 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. Compensation expense for market-based awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. The fair value of restricted stock units with time and performance conditions is determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions is estimated using a Monte Carlo simulation. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses.

Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income.

At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency.

Fair value measurements Fair value is defined 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. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 12), derivatives (see note 9) and to its postretirement plan assets (see note 14).

Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services.

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Recent accounting pronouncements and accounting changes

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Recent accounting pronouncements and accounting changes

Recent accounting pronouncements and accounting changes

Accounting Pronouncements Adopted

Effective January 1, 2018, the company adopted ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost issued by the Financial Accounting Standards Board (“FASB”) which 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. The other components of net periodic benefit cost are presented separately from the line items that include service cost and outside the subtotal of operating income. ASU No. 2017-07 allows a practical expedient that permits an entity to use amounts disclosed in its pension and other postretirement benefit plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The new guidance has been applied on a retrospective basis, using the practical expedient, whereby prior-period financial statements have been adjusted to reflect the adoption of the new guidance, as required by the FASB. For the years ended December 31, 2017 and 2016, $92.5 million and $81.6 million, respectively, of net periodic benefit cost other than service cost, was reclassified from cost of revenue, selling, general and administrative expenses and research and development expenses to other income (expense), net in the company’s consolidated results of operations (see note 14).

Effective January 1, 2018, the company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) issued by the FASB which establishes 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. Topic 606 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. Topic 606 requires the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the prior rules would allow and requires the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the prior rules would allow. Topic 606 also requires significantly expanded disclosure requirements. The company has adopted the standard using the modified retrospective method and applied the standard to all contracts that were not completed as of January 1, 2018. The cumulative effect of the adoption was recognized as an increase in the company’s accumulated deficit of $21.4 million on January 1, 2018.

The following table summarizes the effects of adopting ASU No. 2014-09 on the company’s consolidated financial statements as of and for the year ended December 31, 2018.

	As Reported			Adjustments			Balances Without Adoption of Topic 606
For the year ended December 31, 2018
Statement of Income
Revenue
Services	$	2,386.3		$	(6.2	)	$	2,380.1
Technology	438.7			(139.9		)	298.8
Costs and expenses
Cost of revenue
Services	2,010.5			(3.0		)	2,007.5
Technology	128.2			(5.8		)	122.4
Selling, general and administrative expenses	370.3			0.9			371.2
Operating income	284.1			(138.2		)	145.9
Income before income taxes	143.2			(138.2		)	5.0
Provision for income taxes	64.3			(18.6		)	45.7
Consolidated net income	78.9			(119.6		)	(40.7		)
Net income attributable to Unisys Corporation	75.5			(119.6		)	(44.1		)
As of December 31, 2018
Balance Sheet
Assets
Accounts receivable, net current	$	509.2		$	10.9		$	520.1
Contract assets	29.7			(29.7		)	—
Inventories	27.3			10.6			37.9
Prepaid expenses and other current assets	130.2			1.5			131.7
Deferred income taxes - long-term	109.3			1.7			111.0
Other long-term assets	202.6			(27.8		)	174.8
Total assets	2,457.6			(32.8		)	2,424.8
Liabilities
Deferred revenue - current	294.4			70.3			364.7
Other accrued liabilities - current	350.0			(20.7		)	329.3
Long-term deferred revenue	157.2			10.4			167.6
Other long-term liabilities	77.4			5.5			82.9
Equity
Accumulated deficit	(1,694.0		)	(98.3		)	(1,792.3		)
Total liabilities and deficit	2,457.6			(32.8		)	2,424.8

Included in the Technology revenue adjustments for the year ended December 31, 2018 in the above table is $53.0 million of revenue from software license extensions and renewals which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Upon adoption of the new revenue recognition rules (Topic 606) on January 1, 2018, and since the company adopted Topic 606 under the modified retrospective method whereby prior periods were not restated, the company was required to include this $53.0 million in the cumulative effect adjustment to retained earnings on January 1, 2018. Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million is January 1, 2018. The company has excluded revenue and related profit for these software licenses to reflect the balances without the adoption of Topic 606 in the above table. This is a one-time adjustment and it will not reoccur in future periods. There are additional adjustments being made in the above table, but they do not represent previously recorded revenue. Those additional adjustments represent other differences between Topic 605 and Topic 606, principally extended payment term software licenses and short-term software licenses both of which are recorded at the inception of the license term under Topic 606, but were required to be recognized ratably over the software license term under Topic 605. An additional adjustment is that under Topic 605, a company was not able to recognize software license revenue until the last software license is delivered due to the lack of vendor specific objective evidence, whereas under Topic 606, a company is required to use the standalone selling price for all performance obligations. This resulted in software license revenue being recognized sooner under Topic 606 compared with Topic 605.

In 2018, the company adopted ASU No. 2017-05 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) issued by the FASB which clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The company adopted the standard using the modified retrospective method. The cumulative effect of the adoption was recognized as a decrease in the company’s accumulated deficit of $6.3 million.

Effective July 1, 2018, the company adopted ASU No. 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income by applying the changes in the period of adoption. The new guidance permits companies to reclassify stranded tax effects in accumulated other comprehensive income (“AOCI”) caused by the U.S. Tax Cuts and Jobs Act of 2017 (“TCJA”) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances and related valuation allowances were remeasured to the lower enacted U.S. corporate tax rate. In accordance with its accounting policy, the company releases the income tax effects of deferred tax balances that have a valuation allowance from AOCI once the reason the tax effects were established cease to exist (e.g. postretirement plan is liquidated). The new guidance allows for the reclassification of stranded tax effects as a result of the change in tax rates from the TCJA to be recorded upon adoption of the guidance rather than at cessation date. On July 1, 2018, $208.7 million related to postretirement plans was reclassified from AOCI to retained earnings.

In September 2018, the company adopted SEC Release No. 33-10532, Disclosure Update and Simplification which amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the rule expands the disclosure requirements on changes in stockholders’ equity for interim periods. Under this rule, a reconciliation of changes in stockholders' equity is required for each period for which an income statement is presented. The company applied the new disclosure requirements retrospectively to all periods presented. There was no overall impact on the company’s consolidated financial statements.

Effective for the annual reporting period ended December 31, 2018, the company adopted ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans which adds, removes and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. The company applied the changes on a retrospective basis for all periods presented. There was no overall impact on the company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This update is effective for fiscal years ending after December 15, 2019, with earlier adoption permitted. The new guidance can be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which 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 ASU No. 2016-02 Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU requires 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 also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provides an alternative transition method permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption rather than restating comparative periods in transition as originally prescribed by Topic 842. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the company is January 1, 2019. The company will adopt the new guidance utilizing the alternative transition method. The company reviewed lease contracts, implemented new lease accounting software, established new processes and internal controls and evaluated the impact of certain accounting policy elections. The adoption is expected to have a material impact on the consolidated financial position, and is not expected to have a material impact on the consolidated results of operations and cash flows.

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Cost-reduction actions

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Cost-reduction actions

Cost-reduction actions

2018 Cost-reduction Plan

In the fourth quarter of 2018, the company committed to a reduction of 589 employees. This resulted in charges, principally related to severance costs, of $27.7 million, which were comprised of: (a) a charge of $5.2 million for 264 employees in the U.S. and (b) a charge of $22.5 million for 325 employees outside the U.S. The charges were recorded in the following statement of income classifications: cost of revenue – services, $25.4 million and selling, general and administrative expenses, $2.3 million.

2015 Cost-reduction Plan

There were no additional cost-reduction charges recorded during 2018; however, a benefit of $8.0 million was recorded in the current year for changes in estimates. The benefit was recorded in the following statement of income classifications: cost of revenue – services, $7.3 million and selling, general and administrative expenses, $0.7 million.

During 2017, the company recognized cost-reduction charges and other costs of $146.8 million, principally related to a reduction in employees. The charges related to work-force reductions were $117.9 million, principally related to severance costs, and were comprised of: (a) a charge of $9.4 million for 542 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $109.4 million for 2,274 employees, $8.2 million for additional benefits provided in 2017 and $(7.8) million for changes in estimates outside the U.S. In addition, the company recorded charges of $28.9 million comprised of $4.7 million for idle leased facilities costs, $5.4 million for contract amendment and termination costs, $5.2 million for professional fees and other expenses related to the cost-reduction effort, $1.8 million for net asset sales and write-offs and $11.8 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, $99.6 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $33.6 million; research and development expenses, $1.4 million; and other income (expense), net, $11.8 million.

During 2016, the company recognized cost-reduction charges and other costs of $82.1 million, principally related to a reduction in employees. The charges related to work-force reductions were $62.6 million, principally related to severance costs, and were comprised of: (a) a charge of $8.3 million for 351 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $58.6 million for 1,048 employees and $(3.0) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.5 million comprised of $1.4 million for idle leased facilities costs, $4.1 million for contract amendment and termination costs, $13.3 million for professional fees and other expenses related to the cost-reduction effort and $0.7 million for net asset sales and write-offs. The charges were recorded in the following statement of income classifications: cost of revenue - services, $42.4 million; selling, general and administrative expenses, $38.0 million; and research and development expenses, $1.7 million.

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

				Work-Force Reductions						Idle Leased
	Total			U.S.			International			Facilities Costs
Balance at January 1, 2016	$	33.0		$	4.2		$	28.8		$	—
Additional provisions	68.3			8.3			58.6			1.4
Payments	(59.3		)	(9.4		)	(49.9		)	—
Changes in estimates	(4.3		)	(1.3		)	(3.0		)	—
Translation adjustments	(1.1		)	—			(1.1		)	—
Balance at December 31, 2016	36.6			1.8			33.4			1.4
Additional provisions	131.2			9.4			117.6			4.2
Payments	(49.3		)	(6.0		)	(41.3		)	(2.0		)
Changes in estimates	(8.6		)	(1.3		)	(7.8		)	0.5
Translation adjustments	7.9			—			7.7			0.2
Balance at December 31, 2017	117.8			3.9			109.6			4.3
Additional provisions	27.7			5.2			22.5			—
Payments	(44.4		)	(3.1		)	(39.3		)	(2.0		)
Changes in estimates	(8.0		)	0.1			(8.8		)	0.7
Translation adjustments	(4.0		)	—			(3.9		)	(0.1		)
Balance at December 31, 2018	$	89.1		$	6.1		$	80.1		$	2.9
Expected future payments on balance at December 31, 2018:
In 2019	$	75.8		$	5.6		$	68.8		$	1.4
Beyond 2019	13.3			0.5			11.3			1.5

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Rental expense and commitments

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Rental expense and commitments

Rental expense and commitments

Rental expense and income from subleases for the three years ended December 31, 2018 were as follows:

Year ended December 31,	2018		2017		2016
Rental expense, less income from subleases	$	67.4	$	71.7	$	77.4
Income from subleases	$	3.1	$	4.4	$	7.8

Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2018, substantially all of which relate to real properties, were as follows:

Year
2019	$	48.5
2020	42.1
2021	30.0
2022	20.8
2023	14.3
Thereafter	24.4
Total	$	180.1

Such rental commitments have been reduced by minimum sublease rentals of $2.7 million, due in the future under noncancelable subleases.

At December 31, 2018, the company had outstanding standby letters of credit and surety bonds totaling approximately $272 million related to performance and payment guarantees. On the basis of experience with these arrangements, the company believes that any obligations that may arise will not be material. In addition, at December 31, 2018, the company had deposits and collateral of approximately $15 million in other long-term assets, principally related to tax contingencies in Brazil.

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Foreign currency

12 Months Ended

Dec. 31, 2018

Foreign Currency [Abstract]

Foreign currency

Foreign currency

Effective July 1, 2018, the company’s Argentinian subsidiary began to apply highly inflationary accounting due to cumulative inflation of approximately 100 percent or more over the last 3-year period. For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net. The impact of applying highly inflationary accounting in the third quarter of 2018 was immaterial. At December 31, 2018, the company’s operations in Argentina had net monetary assets denominated in local currency of approximately $5.1 million.

During the years ended December 31, 2018, 2017 and 2016, the company recognized foreign exchange gains (losses) in “Other income (expense), net” in its consolidated statements of income of $(5.9) million, $(9.9) million and $2.3 million, respectively. The year ended December 31, 2017 also includes $11.8 million of net foreign currency losses related to exiting foreign countries in connection with the company’s restructuring plan.

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Income taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2018.

Year ended December 31,	2018			2017			2016
Income (loss) before income taxes
United States	$	(53.6	)	$	(152.7	)	$	(88.3	)
Foreign	196.8			80.6			108.8
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5
Provision for income taxes
Current
United States	$	4.7		$	(42.8	)	$	6.7
Foreign	51.4			33.9			47.7
Total	56.1			(8.9		)	54.4
Deferred
Foreign	8.2			3.4			2.8
Total provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

Following is a reconciliation of the provision (benefit) for income taxes at the United States statutory tax rate to the provision for income taxes as reported:

Year ended December 31,	2018			2017			2016
United States statutory income tax provision (benefit)	$	30.1		$	(25.2	)	$	7.2
Income and losses for which no provision or benefit has been recognized	22.2			70.3			65.5
Foreign rate differential and other foreign tax expense	9.5			(11.3		)	(21.1		)
Income tax withholdings	19.3			16.8			22.8
Permanent items	(5.0		)	(3.0		)	(4.7		)
Enacted rate changes	(2.3		)	(0.4		)	3.5
Change in uncertain tax positions	(1.2		)	2.3			0.4
Change in valuation allowances due to changes in judgment	(5.9		)	(4.6		)	(16.4		)
Income tax credits, U.S.	(2.4		)	(50.4		)	—
Provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

The Tax Cuts & Jobs Act (“TCJA”) reduced the U.S. federal income tax rate from 35% to 21% effective January 1, 2018, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets.

Included in 2017 was a benefit of $50.4 million principally related to the TCJA’s elimination of the corporate Alternative Minimum Tax (“AMT”) and refund of all remaining AMT credits.

The 2018 and 2016 provisions for income taxes included $(2.2) million and $3.5 million due to reductions in the Netherlands and U.K. income tax rates, respectively. The Netherlands rate reduction was enacted in the fourth quarter of 2018 and reduced the rate from 25% to 20.5% effective January 1, 2021. The U.K. rate reduction was enacted in the third quarter of 2016 and reduced the rate from 18% to 17% effective April 1, 2020.

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows:

As of December 31,	2018			2017
Deferred tax assets
Tax loss carryforwards	$	860.0		$	837.6
Postretirement benefits	440.3			437.7
Foreign tax credit carryforwards	221.6			127.0
Other tax credit carryforwards	29.8			29.1
Deferred revenue	37.1			40.9
Employee benefits and compensation	31.1			35.2
Purchased capitalized software	22.9			22.2
Depreciation	20.1			24.5
Warranty, bad debts and other reserves	4.8			5.3
Capitalized costs	5.1			3.1
Other	30.4			39.3
	1,703.2			1,601.9
Valuation allowance	(1,547.5		)	(1,441.1		)
Total deferred tax assets	$	155.7		$	160.8
Deferred tax liabilities
Capitalized research and development	$	36.1		$	24.3
Other	30.2			25.8
Total deferred tax liabilities	$	66.3		$	50.1
Net deferred tax assets	$	89.4		$	110.7

2017 includes a remeasurement of U.S. deferred tax balances as the TCJA reduced the U.S. federal income tax rate from 35% to 21% effective January 1, 2018, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets.

At December 31, 2018, the company has tax effected tax loss carryforwards as follows:

As of December 31,	2018
U.S. Federal	$	349.6
State and local	257.5
Foreign	252.9
Total tax loss carryforwards	$	860.0

These carryforwards will expire as follows:

Year
2019	$	7.7
2020	25.9
2021	14.1
2022	15.1
2023	14.3
Thereafter	782.9
Total	$	860.0

The company also has available tax credit carryforwards, which will expire as follows:

Year
2019	$	11.8
2020	24.5
2021	41.9
2022	38.1
2023	27.0
Thereafter	108.1
Total	$	251.4

Failure to achieve forecasted taxable income might affect the ultimate realization of the company’s net deferred tax assets. Factors that may affect the company’s ability to achieve sufficient forecasted taxable income include, but are not limited to, the following: increased competition, a decline in sales or margins, loss of market share, the impact of the economic environment, delays in product availability and technological obsolescence.

Under U.S. tax law effective through December 31, 2017, undistributed earnings of foreign subsidiaries were generally taxable upon repatriation to the U.S shareholder. Under the TCJA, effective January 1, 2018, distributions from foreign subsidiaries to U.S. shareholders are generally exempt from taxation.

With this change in U.S. taxation of earnings of foreign subsidiaries under the TCJA, future distributions of earnings from foreign subsidiaries will generally be exempt from U.S. taxation. Consequently, the deferred income tax liability on undistributed earnings is generally limited to any foreign withholding or other foreign taxes that will be imposed on such distributions. As the company currently intends to indefinitely reinvest the earnings of certain foreign subsidiaries, no provision has been made for income taxes that may become payable upon distribution of the earnings of such subsidiaries. The unrecognized deferred income tax liability at December 31, 2018 approximated $25.3 million.

As of January 1, 2018 the U.S. taxable income will include GILTI, which essentially includes net foreign subsidiaries’ earnings above a routine 10% return on their aggregate specified tangible assets. At December 31, 2017, the company made an accounting policy election to treat the GILTI as a period cost when included in U.S. taxable income.

Cash paid for income taxes, net of refunds, for the three years ended December 31, 2018, was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for income taxes, net of refunds	$	39.1	$	34.3	$	46.4

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Year ended December 31,	2018			2017			2016
Balance at January 1	$	27.9		$	35.8		$	27.7
Additions based on tax positions related to the current year	2.6			4.2			2.7
Changes for tax positions of prior years	(6.1		)	(11.2		)	12.0
Reductions as a result of a lapse of applicable statute of limitations	(2.4		)	(2.7		)	(2.8		)
Settlements	(1.5		)	(0.2		)	(0.1		)
Changes due to foreign currency	(1.6		)	2.0			(3.7		)
Balance at December 31	$	18.9		$	27.9		$	35.8

The company recognizes penalties and interest accrued related to income tax liabilities in the provision for income taxes in its consolidated statements of income. At December 31, 2018 and 2017, the company had an accrual of $2.6 million and $2.3 million, respectively, for the payment of penalties and interest.

At December 31, 2018, all of the company’s liability for unrecognized tax benefits, if recognized, would affect the company’s effective tax rate. Within the next 12 months, the company believes that it is reasonably possible that the amount of unrecognized tax benefits may significantly change; however, various events could cause this belief to change in the future.

The company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Several U.S. state and foreign income tax audits are in process. The company is under an audit in India, for which years prior to 2007 are closed. For the most significant jurisdictions outside the U.S., the audit periods through 2013 are closed for Brazil, and the audit periods through 2014 are closed for the United Kingdom. All of the various ongoing income tax audits throughout the world are not expected to have a material impact on the company’s financial position.

Internal Revenue Code Sections 382 and 383 provide annual limitations with respect to the ability of a corporation to utilize its net operating loss (as well as certain built-in losses) and tax credit carryforwards, respectively (“Tax Attributes”), against future U.S. taxable income, if the corporation experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. The company regularly monitors ownership changes (as calculated for purposes of Section 382). The company has determined that, for purposes of the rules of Section 382 described above, an ownership change occurred in February 2011. Any future transaction or transactions and the timing of such transaction or transactions could trigger additional ownership changes under Section 382.

As a result of the February 2011 ownership change, utilization for certain of the company’s Tax Attributes, U.S. net operating losses and tax credits, is subject to an overall annual limitation of $70.6 million. The cumulative limitation as of December 31, 2018 is approximately $454.9 million. This limitation will be applied first to any recognized built in losses, then to any net operating losses, and then to any other Tax Attributes. Any unused limitation may be carried over to later years. Based on presently available information and the existence of tax planning strategies, the company does not expect to incur a U.S. cash tax liability in the near term. The company maintains a full valuation allowance against the realization of all U.S. deferred tax assets as well as certain foreign deferred tax assets in excess of deferred tax liabilities.

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Earnings per common share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings per common share

Earnings per common share

The following table shows how earnings (loss) per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2018 (shares in thousands).

Year ended December 31,	2018		2017			2016
Basic earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Basic earnings (loss) per common share	$	1.48	$	(1.30	)	$	(0.95	)
Diluted earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Add interest expense on convertible senior notes, net of tax of zero	19.6		—			—
Net income (loss) attributable to Unisys Corporation for diluted earnings per share	$	95.1	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Plus incremental shares from assumed conversions:
Employee stock plans	541		—			—
Convertible senior notes	21,868		—			—
Adjusted weighted average shares	73,355		50,409			50,060
Diluted earnings (loss) per common share	$	1.30	$	(1.30	)	$	(0.95	)
Anti-dilutive weighted-average stock options and restricted stock units(i)	1,226		2,206			3,553
Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes(i)	—		21,868			17,230

⁽ⁱ⁾Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

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Accounts receivable

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Accounts receivable

Accounts receivable

Accounts receivable consist principally of trade accounts receivable from customers and are generally unsecured and due within 30 to 90 days. Credit losses relating to these receivables consistently have been within management’s expectations. Expected credit losses are recorded as an allowance for doubtful accounts in the consolidated balance sheets. Estimates of expected credit losses are based primarily on the aging of the accounts receivable balances. The company records a specific reserve for individual accounts when it becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The collection policies and procedures of the company vary by credit class and prior payment history of customers.

Revenue recognized in excess of billings on services contracts, or unbilled accounts receivable, was $94.4 million and $109.4 million at December 31, 2018 and 2017, respectively.

As of December 31, 2018, receivables under sales-type leases before the allowance for unearned income were collectible as follows:

Year
2019	$	36.2
2020	15.2
2021	10.7
2022	10.1
2023	10.2
Thereafter	8.6
Total	$	91.0

Unearned income, which is deducted from accounts receivable, was $8.4 million and $12.5 million at December 31, 2018 and 2017, respectively. The allowance for doubtful accounts, which is reported as a deduction from accounts receivable, was $13.7 million and $22.0 million at December 31, 2018 and 2017, respectively. The provision for doubtful accounts, which is reported in selling, general and administrative expenses in the consolidated statements of income, was (income) expense of $(5.1) million, $3.1 million and $2.2 million, in 2018, 2017 and 2016, respectively.

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Financial instruments and concentration of credit risks

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Financial instruments and concentration of credit risks

Financial instruments and concentration of credit risks

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 December 31, 2018 and 2017, the notional amount of these contracts was $384.7 million and $514.0 million, respectively. 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.

The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2018 and 2017.

As of December 31,	2018		2017
Balance Sheet Location
Prepaid expenses and other current assets	$	3.4	$	4.9
Other accrued liabilities	0.3		1.6
Total fair value	$	3.1	$	3.3

The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts

for the three years ended December 31, 2018.

Year Ended December 31,	2018			2017		2016
Statement of Income Location
Other income (expense), net	$	(14.2	)	$	27.5	$	(29.1	)

Financial instruments also include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits which may be withdrawn at any time at the discretion of the company without penalty. At December 31, 2018 and 2017, the company’s cash equivalents principally have maturities of less than one month or can be withdrawn at any time at the discretion of the company without penalty. Due to the short maturities of these instruments, they are carried on the consolidated balance sheets at cost plus accrued interest, which approximates market value. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2018 and 2017, the company had no significant concentrations of credit risk with any one customer. At December 31, 2018 and 2017, the company had $85.8 million and $75.8 million, respectively, of receivables due from various U.S. federal governmental agencies. At December 31, 2018 and 2017, the carrying amount of cash and cash equivalents approximated fair value.

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Properties

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Properties

Properties

Properties comprise the following:

As of December 31,	2018		2017
Land	$	2.3	$	2.8
Buildings	63.5		91.3
Machinery and office equipment	530.0		601.7
Internal-use software	164.7		157.4
Rental equipment	39.7		45.6
Total properties	$	800.2	$	898.8

In the second quarter of 2018, the company sold a building and land located in the United Kingdom. The company received net

proceeds of $19.2 million and recorded a pretax gain of $7.3 million which was recorded in selling, general and administrative

expenses in the consolidated statements of income.

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Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

During the fourth quarter of 2018, the company performed its annual impairment test of goodwill for all of our reporting units. The fair values of each of the reporting units exceeded their carrying values; therefore, no goodwill impairment was required.

At December 31, 2018, the amount of goodwill allocated to reporting units with negative net assets was as follows: Business Process Outsourcing Services, $10.4.

Changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows:

	Total			Services			Technology
Balance at December 31, 2016	$	178.6		$	69.9		$	108.7
Translation adjustments	2.2			2.2			—
Balance at December 31, 2017	180.8			72.1			108.7
Translation adjustments	(3.0		)	(3.0		)	—
Balance at December 31, 2018	$	177.8		$	69.1		$	108.7

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Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt is comprised of the following:

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $8.0 million and $10.4 million at December 31, 2018 and 2017, respectively)	$	432.0	$	429.6
5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $19.3 million and $27.2 million at December 31, 2018 and 2017, respectively)	194.2		186.3
Capital leases	5.8		7.5
Other debt	20.8		21.3
Total	652.8		644.7
Less – current maturities	10.0		10.8
Total long-term debt	$	642.8	$	633.9

Long-term debt is carried at amortized cost and its estimated fair value is based on market prices classified as Level 2 in the fair value hierarchy. Presented below are the estimated fair values of long-term debt as of December 31, 2018 and 2017.

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022	$	486.8	$	492.8
5.50% convertible senior notes due March 1, 2021	298.5		237.9

Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows:

Year	Total		Long-Term Debt		Capital Leases
2019	$	10.0	$	8.4	$	1.6
2020	2.5		0.9		1.6
2021	197.5		195.9		1.6
2022	434.8		433.8		1.0
2023	1.8		1.8		—
Thereafter	6.2		6.2		—
Total	$	652.8	$	647.0	$	5.8

Cash paid for interest and capitalized interest expense during the three years ended December 31, 2018 was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for interest	$	59.5	$	39.9	$	22.1
Capitalized interest expense	$	6.0	$	4.2	$	3.0

Senior Secured Notes

In 2017, the company issued $440.0 million aggregate principal amount of 10.75% Senior Secured Notes due 2022 (the “2022 Notes”). The 2022 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 2022 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 2022 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 2022 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 2022 Notes pay interest semiannually on April 15 and October 15 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 2022 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 2022 Notes at any time, at a price equal to 100% of the principal amount of the 2022 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 2022 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 2022 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 2022 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 2022 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 2022 Notes at 101% of the principal amount of the 2022 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 the 2022 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 2022 Notes to be due and payable immediately.

Interest expense related to the 2022 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	47.3	$	33.2	$	—
Amortization of debt issuance costs	2.4		1.7		—
Total	$	49.7	$	34.9	$	—

Convertible Senior Notes

In 2016, the company issued $213.5 million aggregate principal amount of Convertible Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes, which are senior unsecured obligations, bear interest at a coupon rate of 5.50% (or 9.5% effective interest rate) per year until maturity, payable semiannually in arrears on March 1 and September 1 of each year. The 2021 Notes are not redeemable prior to maturity and are convertible into shares of the company’s common stock. The conversion rate for the 2021 Notes is 102.4249 shares of the company’s common stock per $1,000 principal amount of the 2021 Notes (or a total amount of 21,867,716 shares), which is equivalent to an initial conversion price of approximately $9.76 per share of the company’s common stock. Upon any conversion, the company will settle its conversion obligation in cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election.

In connection with the issuance of the 2021 Notes, the company also paid $27.3 million to enter into privately negotiated capped call transactions with the initial purchasers and/or affiliates of the initial purchasers. The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the company’s common stock that will initially underlie the 2021 Notes. The capped call transactions will effectively raise the conversion premium on the 2021 Notes from approximately 22.5% to approximately 60%, which raises the initial conversion price from approximately $9.76 per share of common stock to approximately $12.75 per share of common stock. The capped call transactions are expected to reduce potential dilution to the company’s common stock and/or offset potential cash payments the company is required to make in excess of the principal amount upon any conversion of the 2021 Notes.

Interest expense related to the 2021 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	11.8	$	11.8	$	9.2
Amortization of debt discount	6.6		6.0		4.3
Amortization of debt issuance costs	1.2		1.2		1.0
Total	$	19.6	$	19.0	$	14.5

Revolving Credit Facility

The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit. During the second quarter of 2018, the maximum amount available under the facility was increased from $125.0 million to$145.0 million (with a limit on letters of credit of $30.0 million). The accordion feature contained in the Credit Agreement that permitted this increase allows for an increase in the amount of the facility up to $150.0 million. Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At December 31, 2018, the company had no borrowings and $6.5 million of letters of credit outstanding, and availability under the facility was $138.5 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity (i) on the date that is 91 days prior to the maturity date of the 2021 Notes unless, on such date, certain conditions are met; or (ii) on the date that is 60 days prior to the maturity date of the 2022 Notes unless, by such date, such secured notes have not been redeemed or refinanced.

The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility.

The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15.0 million.

The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million.

At December 31, 2018, the company has met all covenants and conditions under its various lending agreements. The company expects to continue to meet these covenants and conditions.

The company’s principal sources of liquidity are cash on hand, cash from operations and its revolving credit facility, discussed above. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks.

The company’s anticipated future cash expenditures include anticipated contributions to its defined benefit pension plans. The company believes that it has adequate sources of liquidity to meet its expected 2019 cash requirements.

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Other accrued liabilities

12 Months Ended

Dec. 31, 2018

Other Liabilities Disclosure [Abstract]

Other accrued liabilities

Other accrued liabilities

Other accrued liabilities (current) are comprised of the following:

As of December 31,	2018		2017
Payrolls and commissions	$	108.1	$	120.2
Cost-reduction	75.8		87.7
Accrued vacations	41.2		42.8
Income taxes	32.3		26.0
Taxes other than income taxes	31.2		29.1
Postretirement	14.8		18.5
Accrued interest	13.8		13.8
Other	32.8		53.4
Total other accrued liabilities	$	350.0	$	391.5

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Employee plans

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Employee plans

Employee plans

Stock plans 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 December 31, 2018, 2.4 million shares of unissued common stock of the company were available for granting under these plans.

As of December 31, 2018, the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expenses, and recognizes the compensation cost for only those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures.

During the years ended December 31, 2018, 2017 and 2016, the company recognized $13.2 million, $11.2 million and $9.5 million of share-based compensation expense, which is comprised of $13.1 million, $10.1 million and $7.5 million of restricted stock unit expense and $0.1 million, $1.1 million and $2.0 million of stock option expense, respectively.

There were no grants of stock option awards for the years ended December 31, 2018 and 2017. In 2016, the company granted 11 thousand stock option awards. The weighted-average fair value of the grant, which was estimated using the Black-Scholes option pricing model was $4.53. As of December 31, 2018, 1.1 million stock option awards with a weighted-average exercise price of $27.90 are outstanding.

Restricted stock unit awards may contain time-based units, performance-based units, total shareholder return market-based units, or a combination of these units. Each performance-based and market-based unit will vest into zero to two shares depending on the degree to which the performance or market conditions are met. Compensation expense for performance-based 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. Compensation expense for market-based awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. Time-based restricted stock unit grants for the company’s directors vest upon award and compensation expense for such awards is recognized upon grant.

A summary of restricted stock unit activity for the year ended December 31, 2018 follows (shares in thousands):

	Restricted Stock Units		Weighted-Average Grant-Date Fair Value
Outstanding at December 31, 2017	1,688		$	13.39
Granted	1,449		12.53
Vested	(778	)	13.43
Forfeited and expired	(208	)	12.53
Outstanding at December 31, 2018	2,151		12.90

The aggregate weighted-average grant-date fair value of restricted stock units granted during the years ended December 31, 2018, 2017 and 2016 was $17.9 million, $14.4 million and $12.9 million, respectively. The fair value of restricted stock units with time and performance conditions is determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions is estimated using a Monte Carlo simulation with the following weighted-average assumptions.

Year Ended December 31,	2018
Weighted-average fair value of grant	$	15.20
Risk-free interest rate(i)	2.26		%
Expected volatility(ii)	52.97		%
Expected life of restricted stock unts in years(iii)	2.88
Expected dividend yield	—

(i)	Represents the continuously compounded semi-annual zero-coupon U.S. treasury rate commensurate with the remaining performance period
(ii)	Based on historical volatility for the company that is commensurate with the length of the performance period
(iii)	Represents the remaining life of the longest performance period

As of December 31, 2018, there was $12.2 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 1.9 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the years ended December 31, 2018, 2017 and 2016 was $10.4 million, $7.4 million and $3.5 million, respectively.

Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units are newly issued shares. During 2018 and 2017, the company did not recognize any tax benefits from the exercise of stock options or upon issuance of stock upon lapse of restrictions on restricted stock units because of its tax position. Any such tax benefits resulting from tax deductions in excess of the compensation costs recognized are classified as operating cash flows.

Defined contribution and compensation plans U.S. employees are eligible to participate in an employee savings plan. Under this plan, employees may contribute a percentage of their pay for investment in various investment alternatives. The company matches 50 percent of the first 6 percent of eligible pay contributed by participants to the plan on a before-tax basis (subject to IRS limits). The company funds the match with cash. The charge to income related to the company match for the years ended December 31, 2018, 2017 and 2016, was $11.1 million, $10.8 million and $10.7 million, respectively.

The company has defined contribution plans in certain locations outside the United States. The charge to income related to these plans was $21.3 million, $18.5 million and $19.0 million, for the years ended December 31, 2018, 2017 and 2016, respectively.

The company has non-qualified compensation plans, which allow certain highly compensated employees and directors to defer the receipt of a portion of their salary, bonus and fees. Participants can earn a return on their deferred balance that is based on hypothetical investments in various investment vehicles. Changes in the market value of these investments are reflected as an adjustment to the liability with an offset to expense. As of December 31, 2018 and 2017, the liability to the participants of these plans was $11.6 million and $13.4 million, respectively. These amounts reflect the accumulated participant deferrals and earnings thereon as of that date. The company makes no contributions to the deferred compensation plans and remains contingently liable to the participants.

Retirement benefits For the company’s more significant defined benefit pension plans, including the U.S., U.K. and the Netherlands, accrual of future benefits under the plans has ceased.

During 2018, cash lump-sum payments were paid to certain plan participants in two of the company’s international defined benefit pension plans which resulted in a non-cash pension settlement charge of $6.4 million for the year ended December 31, 2018.

Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2018 and 2017 follows:

	U.S. Plans						International Plans
As of December 31,	2018			2017			2018			2017
Change in projected benefit obligation
Benefit obligation at beginning of year	$	5,001.6		$	4,972.0		$	3,189.7		$	3,076.2
Service cost	—			—			3.2			5.1
Interest cost	186.6			211.3			67.3			72.8
Plan participants’ contributions	—			—			1.5			1.9
Plan amendment	—			—			20.6			(52.5		)
Plan curtailment	—			—			—			(2.2		)
Plan settlement	—			—			(16.4		)	—
Actuarial loss (gain)	(270.7		)	177.0			(169.5		)	(93.8		)
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation adjustments	—			—			(158.2		)	299.3
Benefit obligation at end of year	$	4,558.0		$	5,001.6		$	2,829.5		$	3,189.7
Change in plan assets
Fair value of plan assets at beginning of year	$	3,578.4		$	3,452.1		$	2,833.9		$	2,429.7
Actual return on plan assets	(193.3		)	424.0			(75.4		)	172.3
Employer contribution	87.2			61.0			42.5			77.4
Plan participants’ contributions	—			—			1.5			1.9
Plan settlement	—			—			(16.4		)	—
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation and other adjustments	—			—			(138.0		)	269.7
Fair value of plan assets at end of year	$	3,112.8		$	3,578.4		$	2,539.4		$	2,833.9
Funded status at end of year	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	—		$	—		$	146.4		$	147.4
Other accrued liabilities	(6.7		)	(6.8		)	(0.1		)	(0.2		)
Long-term postretirement liabilities	(1,438.5		)	(1,416.4		)	(436.4		)	(503.0		)
Total funded status	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Accumulated other comprehensive loss, net of tax
Net loss	$	2,718.6		$	2,960.6		$	988.0		$	1,067.8
Prior service credit	$	(37.3	)	$	(39.8	)	$	(46.8	)	$	(69.8	)
Accumulated benefit obligation	$	4,558.0		$	5,001.6		$	2,828.2		$	3,188.0

Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Accumulated benefit obligation	$	6,433.6	$	7,151.7
Fair value of plan assets	$	4,553.2	$	5,227.0

Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Projected benefit obligation	$	6,434.9	$	7,153.4
Fair value of plan assets	$	4,553.2	$	5,227.0

Net periodic pension cost (income) for 2018, 2017 and 2016 includes the following components:

	U.S. Plans									International Plans
Year ended December 31,	2018			2017			2016			2018			2017			2016
Service cost(i)	$	—		$	—		$	—		$	3.2		$	5.1		$	7.4
Interest cost	186.6			211.3			231.3			67.3			72.8			87.8
Expected return on plan assets	(230.6		)	(235.2		)	(253.1		)	(114.4		)	(127.5		)	(139.5		)
Amortization of prior service credit	(2.5		)	(2.5		)	(2.5		)	(3.7		)	(2.4		)	(3.0		)
Recognized net actuarial loss	125.1			126.4			116.0			42.3			49.8			40.3
Curtailment gain	—			—			—			—			(5.4		)	(2.0		)
Settlement loss	—			—			—			6.4			—			—
Net periodic pension cost (income)	$	78.6		$	100.0		$	91.7		$	1.1		$	(7.6	)	$	(9.0	)

⁽ⁱ⁾ Service cost is reported in cost of revenue - services and selling, general and administrative expenses. All other components of net periodic pension cost are reported in other income (expense), net in the consolidated statements of income.

Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows:

	U.S. Plans						International Plans
Year ended December 31,	2018		2017		2016		2018		2017		2016
Discount rate	3.87	%	4.38	%	4.56	%	2.24	%	2.34	%	3.30	%
Expected long-term rate of return on assets	6.80	%	6.80	%	6.80	%	4.38	%	5.30	%	5.99	%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	4.50	%	3.87	%	4.38	%	2.55	%	2.24	%	2.34	%

The company’s investment policy targets and ranges for each asset category are as follows:

	U.S.			International
Asset Category	Target		Range	Target		Range
Equity securities	42	%	36-48%	22	%	16-28%
Debt securities	38	%	35-41%	62	%	55-68%
Real estate	0	%	0%	1	%	0-3%
Cash	0	%	0-5%	1	%	0-5%
Other	20	%	10-30%	14	%	7-21%

The company periodically reviews its asset allocation, taking into consideration plan liabilities, local regulatory requirements, plan payment streams and then-current capital market assumptions. The actual asset allocation for each plan is monitored at least quarterly, relative to the established policy targets and ranges. If the actual asset allocation is close to or out of any of the ranges, a review is conducted. Rebalancing will occur toward the target allocation, with due consideration given to the liquidity of the investments and transaction costs.

The objectives of the company’s investment strategies are as follows: (a) to provide a total return that, over the long term, increases the ratio of plan assets to liabilities by maximizing investment return on assets, at a level of risk deemed appropriate, (b) to maximize return on assets by investing primarily in equity securities in the U.S. and for international plans by investing in appropriate asset classes, subject to the constraints of each plan design and local regulations, (c) to diversify investments within asset classes to reduce the impact of losses in single investments, and (d) for the U.S. plan to invest in compliance with the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended and any subsequent applicable regulations and laws, and for international plans to invest in a prudent manner in compliance with local applicable regulations and laws.

The company sets the expected long-term rate of return based on the expected long-term return of the various asset categories in which it invests. The company considered the current expectations for future returns and the actual historical returns of each asset class. Also, since the company’s investment policy is to actively manage certain asset classes where the potential exists to outperform the broader market, the expected returns for those asset classes were adjusted to reflect the expected additional returns.

In 2019, the company expects to make cash contributions of $105.6 million to its worldwide defined benefit pension plans, which are comprised of $38.4 million primarily for international defined benefit pension plans and $67.2 million for the company’s U.S. qualified defined benefit pension plans.

As of December 31, 2018, the following benefit payments are expected to be paid from the defined benefit pension plans:

Year ending December 31,	U.S.		International
2019	$	362.2	$	97.8
2020	359.4		101.2
2021	357.1		104.2
2022	354.4		112.2
2023	350.9		118.2
2024 - 2028	1,652.1		627.4

Other postretirement benefits A reconciliation of the benefit obligation, fair value of the plan assets and the funded status of the postretirement benefit plans at December 31, 2018 and 2017, follows:

As of December 31,	2018			2017
Change in accumulated benefit obligation
Benefit obligation at beginning of year	$	103.2		$	120.1
Service cost	0.6			0.5
Interest cost	4.8			5.6
Plan participants’ contributions	3.1			3.5
Amendments	—			(7.4		)
Actuarial gain	(4.2		)	(4.3		)
Federal drug subsidy	0.2			0.3
Benefits paid	(11.5		)	(15.7		)
Foreign currency translation and other adjustments	—			0.6
Benefit obligation at end of year	$	96.2		$	103.2
Change in plan assets
Fair value of plan assets at beginning of year	$	7.6		$	7.9
Actual return on plan assets	(0.4		)	(0.3		)
Employer contributions	9.0			12.2
Plan participants’ contributions	3.1			3.5
Benefits paid	(11.5		)	(15.7		)
Fair value of plan assets at end of year	$	7.8		$	7.6
Funded status at end of year	$	(88.4	)	$	(95.6	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	1.2		$	0.9
Other accrued liabilities	(8.0		)	(11.5		)
Long-term postretirement liabilities	(81.6		)	(85.0		)
Total funded status	$	(88.4	)	$	(95.6	)
Accumulated other comprehensive loss, net of tax
Net loss	$	10.5		$	14.9
Prior service credit	(8.2		)	(9.8		)

Net periodic postretirement benefit cost for 2018, 2017 and 2016, follows:

Year ended December 31,	2018			2017			2016
Service cost(i)	$	0.6		$	0.5		$	0.4
Interest cost	4.8			5.6			6.2
Expected return on assets	(0.4		)	(0.5		)	(0.4		)
Amortization of prior service cost	(1.6		)	(0.7		)	—
Recognized net actuarial loss	1.0			0.8			0.5
Net periodic benefit cost	$	4.4		$	5.7		$	6.7

⁽ⁱ⁾ Service cost is reported in selling, general and administrative expenses. All other components of net periodic benefit cost are reported in other income (expense), net in the consolidated statements of income.

Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.30	%	5.53	%	5.61	%
Expected return on plan assets	5.50	%	5.50	%	5.50	%

Weighted-average assumptions used to determine benefit obligation at December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.67	%	5.30	%	5.53	%

The company reviews its asset allocation periodically, taking into consideration plan liabilities, plan payment streams and then-current capital market assumptions. The company sets the long-term expected return on asset assumption, based principally on the long-term expected return on debt securities. These return assumptions are based on a combination of current market conditions, capital market expectations of third-party investment advisors and actual historical returns of the asset classes. In 2019, the company expects to contribute approximately $8 million to its postretirement benefit plans.

Assumed health care cost trend rates at December 31,	2018		2017
Health care cost trend rate assumed for next year	6.8	%	6.6	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.8	%
Year that the rate reaches the ultimate trend rate	2023		2023

As of December 31, 2018, the following benefits are expected to be paid from the company’s postretirement plans:

Year ending December 31,	Expected Payments
2019	$	9.1
2020	9.6
2021	9.1
2022	8.5
2023	7.9
2024 – 2028	30.9

The following provides a description of the valuation methodologies and the levels of inputs used to measure fair value, and the general classification of investments in the company’s U.S. and international defined benefit pension plans, and the company’s other postretirement benefit plan.

Level 1 – These investments include cash, common stocks, real estate investment trusts, exchange traded funds, futures and options and U.S. government securities. These investments are valued using quoted prices in an active market. Payables, receivables and cumulative futures contracts variation margin received from brokers are also included as Level 1 investments and are valued at face value.

Level 2 – These investments include the following:

Pooled Funds – These investments are comprised of money market funds and fixed income securities. The money market funds are valued using the readily determinable fair value (“RDFV”) provided by trustees of the funds. The fixed income securities are valued based on quoted prices for identical or similar investments in markets that may not be active.

Commingled Funds – These investments are comprised of debt, equity and other securities and are valued using the RDFV provided by trustees of the funds. The fair value per share for these funds are published and are the basis for current transactions.

Other Fixed Income – These investments are comprised of corporate and government fixed income investments and asset and mortgage-backed securities for which there are quoted prices for identical or similar investments in markets that may not be active.

Derivatives – These investments include forward exchange contracts and options, which are traded on an active market, but not on an exchange; therefore, the inputs may not be readily observable. These investments also include fixed income futures and other derivative instruments.

Level 3 – These investments include the following:

Insurance Contracts – These investments are insurance contracts which are carried at book value, are not publicly traded and are reported at a fair value determined by the insurance provider.

Certain investments are valued using net asset value (“NAV”) as a practical expedient. These investments may not be redeemable on a daily basis and may have redemption notice periods of up to 90 days. These investments include the following:

Commingled Funds – These investments are comprised of debt, equity and other securities.

Private Real Estate and Private Equity - These investments represent interests in limited partnerships which invest in privately-held companies or privately-held real estate or other real assets. Net asset values are developed and reported by the general partners that manage the partnerships. These valuations are based on property appraisals, utilization of market transactions that provide valuation information for comparable companies, discounted cash flows, and other methods. These valuations are reported quarterly and adjusted as necessary at year end based on cash flows within the most recent period.

The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2018.

	U.S. Plans										International Plans
As of December 31, 2018	Fair Value			Level 1			Level 2		Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	911.7		$	909.0		$	2.7	$	—	$	—		$	—		$	—	$	—
Commingled Funds	494.8						494.8				165.6						165.6
Debt Securities
U.S. Govt. Securities	498.5			498.5
Other Fixed Income	374.6						374.6				145.5			0.2			145.3
Insurance Contracts											123.7								123.7
Commingled Funds	196.6						196.6				321.4						321.4
Real Estate
Real Estate Investment Trusts	17.0			17.0							1.3			—			1.3
Commingled Funds	156.7						156.7
Other
Derivatives(i)	35.8			33.6			2.2				2.4						2.4
Commingled Funds											317.0						317.0
Pooled Funds	143.7						143.7				123.6						123.6
Cumulative futures contracts variation margin received from brokers	(29.3		)	(29.3		)
Cash	3.7			3.7							29.6			29.6
Receivables	20.5			20.5							2.0			2.0
Payables	(1.4		)	(1.4		)					(2.3		)	(2.3		)
Total plan assets in fair value hierarchy	$	2,822.9		$	1,451.6		$	1,371.3	$	—	$	1,229.8		$	29.5		$	1,076.6	$	123.7
Plan assets measured using NAV as a practical expedient(ii):
Commingled Funds
Equity	$	—									$	454.9
Debt	—										814.0
Other	110.2										23.9
Private Real Estate	179.1										16.8
Private Equity	0.6										—
Total pension plan assets	$	3,112.8									$	2,539.4
Other postretirement plans
Insurance Contracts	$	7.8							$	7.8

⁽ⁱ⁾ Level 1 derivatives represent unrealized appreciation or depreciation on open futures contracts. The value of open futures contracts includes derivatives and the cumulative futures contracts variation margin received from brokers.

⁽ⁱⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2017.

	U.S. Plans											International Plans
As of December 31, 2017	Fair Value			Level 1			Level 2			Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	1,465.1		$	1,461.9		$	3.2		$	—	$	—		$	—		$	—	$	—
Commingled Funds	584.4						584.4					84.0						84.0
Debt Securities
U.S. Govt. Securities	139.8			139.8
Other Fixed Income	830.6						830.6					254.1			2.6			251.5
Insurance Contracts												135.8								135.8
Commingled Funds												267.5						267.5
Real Estate
Real Estate Investment Trusts	113.5			113.5								1.4			0.4			1.0
Other
Derivatives	2.6			13.1			(10.5		)			1.2						1.2
Commingled Funds												357.1						357.1
Pooled Funds	228.0						228.0					29.2						29.2
Cash	34.8			34.8								25.1			25.1
Receivables	58.1			58.1								19.9			19.9
Payables	(116.7		)	(116.7		)						(1.5		)	(1.5		)
Total plan assets in fair value hierarchy	$	3,340.2		$	1,704.5		$	1,635.7		$	—	$	1,173.8		$	46.5		$	991.5	$	135.8
Plan assets measured using NAV as a practical expedient(i):
Commingled Funds
Equity	$	—										$	780.7
Debt	19.8											837.7
Other	105.1											25.2
Private Real Estate	112.4											16.5
Private Equity	0.9											—
Total pension plan assets	$	3,578.4										$	2,833.9
Other postretirement plans
Insurance Contracts	$	7.6								$	7.6

⁽ⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2018.

	January 1, 2018		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2018			December 31, 2018
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.6	$	(0.4	)	$	0.6	$	—		$	—		$	7.8
International pension plans
Insurance Contracts	$	135.8	$	—		$	3.5	$	(11.7	)	$	(3.9	)	$	123.7

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2017.

	January 1, 2017		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017		December 31, 2017
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.9	$	(0.2	)	$	0.2	$	(0.3	)	$	—	$	7.6
International pension plans
Insurance Contracts	$	116.2	$	—		$	10.8	$	(11.4	)	$	20.2	$	135.8

The following table presents additional information about plan assets valued using the net asset value as a practical expedient within the fair value hierarchy table.

	2018						2017
	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range
U.S. plans
Commingled Funds
Debt	$	—	$	—			$	19.8	$	—	Daily	5 days
Other	110.2		—		Monthly	5 days	105.1		—		Monthly	5 days
Private Real Estate(i)	179.1		—		Quarterly	60-90 days	112.4		—		Quarterly	Up to 90 days
Private Equity(ii)	0.6		—				0.9		—
Total	$	289.9	$	—			$	238.2	$	—
International pension plans
Commingled Funds
Equity	$	454.9	$	—	Weekly	Up to 2 days	$	780.7	$	—	Weekly, Monthly	Up to 30 days
Debt	814.0		—		Daily, Weekly, Biweekly, Bimonthly	Up to 30 days	837.7		—		Weekly, Biweekly, Bimonthly, Monthly	Up to 30 days
Other	23.9		—		Monthly	Up to 30 days	25.2		—		Monthly	Up to 30 days
Private Real Estate	16.8		—		Monthly	Up to 90 days	16.5		—		Monthly	Up to 90 days
Total	$	1,309.6	$	—			$	1,660.1	$	—

⁽ⁱ⁾ Includes investments in private real estate funds and limited partnerships. The funds invest in U.S. real estate and allow redemptions quarterly, though queues, restrictions and gates may extend the period. The limited partnerships include investments in primarily U.S. real estate, and can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next year.

⁽ⁱⁱ⁾ Includes investments in limited partnerships, which invest primarily in U.S. buyouts and venture capital. The investments can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years.

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Litigation and contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Litigation and contingencies

Litigation 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 flows 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 €28.0 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. The company believes that appropriate accruals have been established for such matters based on information currently available. At December 31, 2018, 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 $101.0 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 $68.0 million for the period January 2002 through July 2011 and sought data to identify the claims at issue for the remaining time period. On August 14, 2018, the Louisiana Court of Appeal for the First Circuit dismissed the case. On September 27, 2018, the Court denied the State’s motion for a rehearing. On October 26, 2018, the State applied for a writ of review to the Louisiana Supreme Court, which was granted on January 18, 2019. The Louisiana Supreme Court will calendar the case for further briefing.

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 December 31, 2018, it has adequate provisions for any such matters.

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Stockholders' equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' equity

Stockholders’ equity

The company has 150 million authorized shares of common stock, par value $.01 per share, and 40 million shares of authorized preferred stock, par value $1 per share, issuable in series.

At December 31, 2018, 34.4 million shares of unissued common stock of the company were reserved for stock-based incentive plans and the company’s convertible senior notes.

Accumulated other comprehensive income (loss) as of December 31, 2018, 2017 and 2016, is as follows:

	Total			Translation Adjustments			Postretirement Plans
Balance at December 31, 2015	$	(3,945.3	)	$	(833.8	)	$	(3,111.5	)
Other comprehensive income before reclassifications	(64.9		)	(93.3		)	28.4
Amounts reclassified from accumulated other comprehensive income	(142.6		)	—			(142.6		)
Current period other comprehensive income	(207.5		)	(93.3		)	(114.2		)
Balance at December 31, 2016	(4,152.8		)	(927.1		)	(3,225.7		)
Other comprehensive income before reclassifications	506.8			121.9			384.9
Amounts reclassified from accumulated other comprehensive income	(169.8		)	(11.8		)	(158.0		)
Current period other comprehensive income	337.0			110.1			226.9
Balance at December 31, 2017	(3,815.8		)	(817.0		)	(2,998.8		)
Reclassification pursuant to ASU No. 2018-02	(208.7		)	—			(208.7		)
Other comprehensive income before reclassifications	96.7			(79.7		)	176.4
Amounts reclassified from accumulated other comprehensive income	(157.0		)	—			(157.0		)
Current period other comprehensive income	(269.0		)	(79.7		)	(189.3		)
Balance at December 31, 2018	$	(4,084.8	)	$	(896.7	)	$	(3,188.1	)

Amounts reclassified out of accumulated other comprehensive income for the three years ended December 31, 2018 are as follows:

Year ended December 31,	2018			2017			2016
Translation Adjustments:
Adjustment for substantial completion of liquidation of foreign subsidiaries(i)	$	—		$	(11.8	)	$	—
Postretirement Plans:
Amortization of prior service cost(ii)	7.1			5.6			5.6
Amortization of actuarial losses(ii)	(165.9		)	(174.1		)	(155.2		)
Curtailment gain(ii)	—			5.4			2.0
Settlement loss(ii)	(3.9		)	—			—
Total before tax	(162.7		)	(174.9		)	(147.6		)
Income tax benefit	5.7			5.1			5.0
Total reclassifications for the period	$	(157.0	)	$	(169.8	)	$	(142.6	)

⁽ⁱ⁾ Reported in other income (expense), net in the consolidated statements of income

⁽ⁱⁱ⁾ Included in net periodic postretirement cost (see Note 14)

The following table summarizes the changes in shares of common stock and treasury stock during the three years ended December 31, 2018:

	Common Stock	Treasury Stock
Balance at December 31, 2015	52.6	2.7
Stock-based compensation	0.2	—
Balance at December 31, 2016	52.8	2.7
Stock-based compensation	0.6	0.2
Balance at December 31, 2017	53.4	2.9
Stock-based compensation	0.8	0.2
Balance at December 31, 2018	54.2	3.1

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Segment information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment information

Segment information

As described in Note 2, effective January 1, 2018, the company adopted the requirements of Topic 606 which resulted in an adjustment to Technology revenue and profit of $53.0 million in the first quarter of 2018. The adjustment represents revenue from software license extensions and renewals, which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million, is January 1, 2018.

Effective January 1, 2018, the company changed the grouping of certain of its classes of services. As a result, prior-periods’ customer revenue by classes of similar services have been reclassified to conform to the current-year period.

The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segment are as follows:

• Cloud and 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 developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications.

• Business process outsourcing (“BPO”) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs.

• Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients improve security, reduce costs and flexibility and improve the efficiency of their data-center environments.

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 software and hardware shipments to customers under Services contracts. The Services segment, in turn, recognizes customer revenue and marketing profits on such shipments of company software and hardware to customers. The Services segment also includes the sale of software and hardware 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 software and hardware 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 years ended December 31, 2018, 2017 and 2016 was $4.2 million, $6.3 million and $0.7 million, respectively. The profit on these transactions is eliminated in Corporate.

The company evaluates business segment performance based on operating income exclusive of postretirement 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. No single customer accounts for more than 10% of revenue. Revenue from various agencies of the U.S. Government, which is reported in both business segments, was approximately $574 million, $571 million and $564 million in 2018, 2017 and 2016, respectively.

Corporate assets are principally cash and cash equivalents, prepaid postretirement assets and deferred income taxes. The expense or income related to corporate assets is allocated to the business segments.

Customer revenue by classes of similar products or services, by segment, is presented below:

Year ended December 31,	2018		2017			2016
Services
Cloud & infrastructure services	$	1,363.4	$	1,334.3	*	$	1,356.4	*
Application services	772.4		791.0		*	855.5		*
BPO services	250.5		202.9			194.4
Total Services	2,386.3		2,328.2			2,406.3
Technology	438.7		413.6			414.4
Total customer revenue	$	2,825.0	$	2,741.8		$	2,820.7

*Amounts were changed to conform to the current-year presentation.

Presented below is a reconciliation of segment operating income to consolidated income (loss) before income taxes:

Year ended December 31,	2018			2017			2016
Total segment operating income	$	305.4		$	235.4		$	208.4
Interest expense	(64.0		)	(52.8		)	(27.4		)
Other income (expense), net	(76.9		)	(116.4		)*	(81.3		)*
Cost reduction charges(i)	(19.7		)	(135.0		)	(82.1		)
Corporate and eliminations	(1.6		)	(3.3		)*	2.9		*
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5

*Amounts were changed to conform to the current-year presentation. See Note 2

⁽ⁱ⁾ Year ended December 31, 2017 excludes $11.8 million for net foreign currency losses related to exiting foreign countries which are reported in other income (expense), net in the consolidated statements of income.

Presented below is a reconciliation of total business segment assets to consolidated assets:

As of December 31,	2018		2017		2016
Total segment assets	$	1,436.6	$	1,364.5	$	1,339.0
Cash and cash equivalents	605.0		733.9		370.6
Deferred income taxes	109.3		119.9		146.1
Prepaid postretirement assets	147.6		148.3		33.3
Other corporate assets	159.1		175.8		132.6
Total assets	$	2,457.6	$	2,542.4	$	2,021.6

A summary of the company’s operations by business segment for 2018, 2017 and 2016 is presented below:

	Total			Corporate			Services		Technology
2018
Customer revenue	$	2,825.0		$	—		$	2,386.3	$	438.7
Intersegment	—			(24.7		)	—		24.7
Total revenue	$	2,825.0		$	(24.7	)	$	2,386.3	$	463.4
Operating income (loss)	$	284.1		$	(21.3	)	$	67.6	$	237.8
Depreciation and amortization	164.1			—			97.2		66.9
Total assets	2,457.6			1,021.0			1,013.1		423.5
Capital expenditures	189.3			8.0			92.9		88.4
2017
Customer revenue	$	2,741.8		$	—		$	2,328.2	$	413.6
Intersegment	—			(25.9		)	—		25.9
Total revenue	$	2,741.8		$	(25.9	)	$	2,328.2	$	439.5
Operating income (loss)	$	97.1	*	$	(138.3	)*	$	64.8	$	170.6
Depreciation and amortization	156.5			—			84.6		71.9
Total assets	2,542.4			1,177.9			985.9		378.6
Capital expenditures	176.5			4.3			102.7		69.5
2016
Customer revenue	$	2,820.7		$	—		$	2,406.3	$	414.4
Intersegment	—			(22.6		)	—		22.6
Total revenue	$	2,820.7		$	(22.6	)	$	2,406.3	$	437.0
Operating income (loss)	$	129.2	*	$	(79.2	)*	$	46.9	$	161.5
Depreciation and amortization	155.6			—			81.8		73.8
Total assets	2,021.6			682.6			963.3		375.7
Capital expenditures	147.1			3.0			74.8		69.3

*Amounts were changed to conform to the current-year presentation. See Note 2

Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below:

Year ended December 31,	2018		2017		2016
Revenue
United States	$	1,240.0	$	1,257.0	$	1,309.3
United Kingdom	360.7		315.8		348.0
Other foreign	1,224.3		1,169.0		1,163.4
Total Revenue	$	2,825.0	$	2,741.8	$	2,820.7
Properties, net
United States	$	85.3	$	85.8	$	91.4
United Kingdom	5.3		16.7		15.1
Other foreign	30.7		40.0		38.8
Total Properties, net	$	121.3	$	142.5	$	145.3
Outsourcing assets, net
United States	$	97.6	$	81.1	$	105.1
United Kingdom	86.5		89.9		39.0
Australia	21.7		18.1		11.5
Other foreign	10.6		13.2		16.9
Total Outsourcing assets, net	$	216.4	$	202.3	$	172.5

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Quarterly financial information (unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial information (unaudited)

Quarterly financial information (unaudited)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
2018
Revenue	$	708.4		$	667.4		$	688.3		$	760.9		$	2,825.0
Gross profit	201.2			152.9			153.8			178.4			686.3
Income before income taxes	62.6			20.3			22.2			38.1			143.2
Net income attributable to Unisys Corporation common shareholders	40.6			3.8			6.1			25.0			75.5
Earnings per common share attributable to Unisys Corporation
Basic	0.80			0.07			0.12			0.49			1.48
Diluted	0.62			0.07			0.12			0.41			1.30
2017
Revenue	$	664.5		$	666.2		$	666.3		$	744.8		$	2,741.8
Gross profit	138.6		*	118.7		*	103.6		*	186.8		*	547.7		*
Income (loss) before income taxes	(16.8		)	(42.3		)	(40.4		)	27.4			(72.1		)
Net income (loss) attributable to Unisys Corporation common shareholders	(32.7		)	(42.0		)	(41.1		)	50.5			(65.3		)
Earnings (loss) per common share attributable to Unisys Corporation
Basic	(0.65		)	(0.83		)	(0.81		)	1.00			(1.30		)
Diluted	(0.65		)	(0.83		)	(0.81		)	0.76			(1.30		)

*Amounts were changed to conform to the current-year presentation. See Note 2

In the first, second, third and fourth quarters of 2018, the company recorded pretax cost-reduction and other charges (benefits) of $(2.9) million, $0.7 million, $(0.9) million and $22.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

In the first, second, third and fourth quarters of 2017, the company recorded pretax cost-reduction and other charges of $25.4 million, $27.5 million, $46.1 million and $47.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(Millions)

Description	Balance at Beginning of Period		Additions Charged to Costs and Expenses			Deductions (i)			Balance at End of Period
Allowance for doubtful accounts (deducted from accounts receivable):
Year Ended December 31, 2016	$	21.1	$	2.2		$	(0.5	)	$	22.8
Year Ended December 31, 2017	$	22.8	$	3.1		$	(3.9	)	$	22.0
Year Ended December 31, 2018	$	22.0	$	(5.1	)	$	(3.2	)	$	13.7

⁽ⁱ⁾Includes write-off of bad debts less recoveries, reclassifications from other current liabilities and foreign currency translation adjustments.

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Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Principles of consolidation

Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries.

Use of estimates

Use of estimates 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 measurement of progress toward completion 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.

Cash and Cash equivalents

Cash and Cash equivalents Cash and cash equivalents consist of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty.

Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily 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 and other cash that is restricted from withdrawal.

Inventories

Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method.

Properties

Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method.

Advertising costs

Advertising costs All advertising costs are expensed as incurred.

Shipping and handling and Revenue recognition

Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods and services to a customer. The company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the company satisfies a performance obligation.

Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction and collected by the company from a customer (e.g., sales, use and value-added taxes). Revenue includes payments for shipping and handling activities.

At contract inception, the company assesses the goods and services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: (1) a good or service (or a bundle of goods or services) that is distinct or (2) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. The company recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer.

The company must apply its judgment to determine the timing of the satisfaction of performance obligations as well as the transaction price and the amounts allocated to performance obligations including estimating variable consideration, adjusting the consideration for the effects of the time value of money and assessing whether an estimate of variable consideration is constrained.

Revenue from hardware sales is recognized upon the transfer of control to a customer, which is defined as an entity’s ability to direct the use of and obtain substantially all of the remaining benefits of an asset.

Revenue from software licenses is recognized at the inception of either the initial license term or the inception of an extension or renewal to the license term.

Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term.

Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred.

Revenue and profit under systems integration contracts are recognized over time as the company transfers control of goods or services. The company measures its progress toward satisfaction of its performance obligations using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for using the cost-to-cost method, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident.

Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract.

The company also enters into multiple-element arrangements, which may include any combination of hardware, software or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple performance obligations, with control over hardware and software transferred in one reporting period and the software support and hardware maintenance services performed across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long-term multiple-year basis and periodically sell hardware and license software products to the client. The services are provided on a continuous basis across multiple reporting periods and control over the hardware and software products occurs in one reporting period. To the extent that a performance obligation in a multiple-deliverable arrangement is subject to specific guidance, that performance obligation is accounted for in accordance with such specific guidance. An example of such an arrangement may include leased assets which are subject to specific leasing accounting guidance.

In multiple-element arrangements, the company allocates the total transaction price to be earned under the arrangement among the various performance obligations in proportion to their standalone selling prices (relative standalone selling price basis). The standalone selling price for a performance obligation is the price at which the company would sell a promised good or service separately to a customer.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of the company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, the company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The primary methods used to estimate standalone selling price are as follows: (1) the expected cost plus margin approach, under which the company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service and (2) the percent discount off of list price approach.

In the Services segment, substantially all of the company’s performance obligations are satisfied over time as work progresses and therefore substantially all of the revenue in this segment is recognized over time. The company generally receives payment for these contracts over time as the performance obligations are satisfied.

In the Technology segment, substantially all of the company’s goods and services are transferred to customers at a single point in time. Revenue on these contracts is recognized when control over the product is transferred to the customer or a software license term begins. The company generally receives payment for these contracts upon signature or within 30 to 60 days.

At December 31, 2018, the company had approximately $1.2 billion of remaining performance obligations of which approximately 40% is estimated to be recognized as revenue by the end of 2019. The company does not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less and (2) contracts for which the company recognizes revenue at the amount to which it has the right to invoice for services performed.

The company discloses disaggregation of its customer revenue by geographic areas and by classes of similar products and services, by segment (see note 17).

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, contract assets and deferred revenue (contract liabilities).

The disclosure of contract assets is a new requirement due to the adoption of Topic 606. At December 31, 2017, contract assets were included in accounts receivable, net on the company’s consolidated balance sheet. At December 31, 2018, $22.2 million of long-term contract assets were included in other long-term assets on the company’s consolidated balance sheet.

At December 31, 2018, deposit liabilities of $21.2 million were principally included in current deferred revenue. These deposit liabilities represent upfront consideration received from customers for services such as post-contract support and maintenance that allow the customer to terminate the contract at any time for convenience.

Significant changes during 2018 in the above contract asset and liability balances were as follows: revenue of $307.1 million was recognized that was included in deferred revenue at December 31, 2017.

The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At December 31, 2018 and December 31, 2017, the company had $12.1 million and $11.0 million, respectively, of deferred commissions. For the year ended December 31, 2018, $6.9 million of amortization expense related to deferred commissions was recorded in selling, general and administrative expense in the company’s consolidated statement of income.

Costs to fulfill a contract, which are incurred upon initiation of certain services contracts and are related to initial customer setup, are included in outsourcing assets, net in the company’s consolidated balance sheet. The amount of such cost at December 31, 2018 and December 31, 2017 was $79.5 million and $76.0 million, respectively. These costs are amortized over the initial contract life and reported in Services cost of sales. During 2018, $21.7 million was amortized. Recoverability of these costs are subject to various business risks. Quarterly, the company compares the carrying value of these assets with the undiscounted future cash flows expected to be generated by them to determine if there is impairment. If impaired, these assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual cash flows could differ from these estimates.

Shipping and handling Costs related to shipping and handling are included in cost of revenue.

Goodwill

Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date.

The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified.

The company estimates the fair value of each reporting unit using a combination of the income approach and market approach.

The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit.

The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit.

If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, the company gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long-term growth prospects, among other factors.

In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization).

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods.

Income taxes

Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company releases the income tax effects of deferred tax balances that have a valuation allowance from accumulated other comprehensive income once the reason the tax effects were established ceases to exist (e.g. postretirement plan is liquidated). The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income.

The company treats the global intangible low-taxed income tax, or GILTI, as a period cost when included in U.S. taxable income, and the base erosion and anti-abuse tax, or BEAT, as a period cost when incurred.

Marketable software

Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally 3 years following product release. The company continually reassesses the estimated revenue-producing lives of the products and will revise the lives as necessary. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue.

Internal-use software

Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above.

Outsourcing assets

Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above.

Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates.

Translation of foreign currency

Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net.

For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net.

Stock-based compensation plans

Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. Compensation expense for performance-based restricted stock unit awards is recognized as expense ratably for each installment from the date of the 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. Compensation expense for market-based awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. The fair value of restricted stock units with time and performance conditions is determined based on the trading price of the company’s common shares on the date of grant. The fair value of awards with market conditions is estimated using a Monte Carlo simulation. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses.

Retirement benefits

Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income.

At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency.

Fair value measurements

Fair value measurements Fair value is defined 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. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 12), derivatives (see note 9) and to its postretirement plan assets (see note 14).

Noncontrolling interest

Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services.

Recent accounting pronouncements and accounting changes

Accounting Pronouncements Adopted

Effective January 1, 2018, the company adopted ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost issued by the Financial Accounting Standards Board (“FASB”) which 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. The other components of net periodic benefit cost are presented separately from the line items that include service cost and outside the subtotal of operating income. ASU No. 2017-07 allows a practical expedient that permits an entity to use amounts disclosed in its pension and other postretirement benefit plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The new guidance has been applied on a retrospective basis, using the practical expedient, whereby prior-period financial statements have been adjusted to reflect the adoption of the new guidance, as required by the FASB. For the years ended December 31, 2017 and 2016, $92.5 million and $81.6 million, respectively, of net periodic benefit cost other than service cost, was reclassified from cost of revenue, selling, general and administrative expenses and research and development expenses to other income (expense), net in the company’s consolidated results of operations (see note 14).

Effective January 1, 2018, the company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) issued by the FASB which establishes 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. Topic 606 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. Topic 606 requires the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the prior rules would allow and requires the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the prior rules would allow. Topic 606 also requires significantly expanded disclosure requirements. The company has adopted the standard using the modified retrospective method and applied the standard to all contracts that were not completed as of January 1, 2018. The cumulative effect of the adoption was recognized as an increase in the company’s accumulated deficit of $21.4 million on January 1, 2018.

The following table summarizes the effects of adopting ASU No. 2014-09 on the company’s consolidated financial statements as of and for the year ended December 31, 2018.

	As Reported			Adjustments			Balances Without Adoption of Topic 606
For the year ended December 31, 2018
Statement of Income
Revenue
Services	$	2,386.3		$	(6.2	)	$	2,380.1
Technology	438.7			(139.9		)	298.8
Costs and expenses
Cost of revenue
Services	2,010.5			(3.0		)	2,007.5
Technology	128.2			(5.8		)	122.4
Selling, general and administrative expenses	370.3			0.9			371.2
Operating income	284.1			(138.2		)	145.9
Income before income taxes	143.2			(138.2		)	5.0
Provision for income taxes	64.3			(18.6		)	45.7
Consolidated net income	78.9			(119.6		)	(40.7		)
Net income attributable to Unisys Corporation	75.5			(119.6		)	(44.1		)
As of December 31, 2018
Balance Sheet
Assets
Accounts receivable, net current	$	509.2		$	10.9		$	520.1
Contract assets	29.7			(29.7		)	—
Inventories	27.3			10.6			37.9
Prepaid expenses and other current assets	130.2			1.5			131.7
Deferred income taxes - long-term	109.3			1.7			111.0
Other long-term assets	202.6			(27.8		)	174.8
Total assets	2,457.6			(32.8		)	2,424.8
Liabilities
Deferred revenue - current	294.4			70.3			364.7
Other accrued liabilities - current	350.0			(20.7		)	329.3
Long-term deferred revenue	157.2			10.4			167.6
Other long-term liabilities	77.4			5.5			82.9
Equity
Accumulated deficit	(1,694.0		)	(98.3		)	(1,792.3		)
Total liabilities and deficit	2,457.6			(32.8		)	2,424.8

Included in the Technology revenue adjustments for the year ended December 31, 2018 in the above table is $53.0 million of revenue from software license extensions and renewals which were contracted for in the fourth quarter of 2017 and properly recorded as revenue at that time under the revenue recognition rules then in effect (Topic 605). Upon adoption of the new revenue recognition rules (Topic 606) on January 1, 2018, and since the company adopted Topic 606 under the modified retrospective method whereby prior periods were not restated, the company was required to include this $53.0 million in the cumulative effect adjustment to retained earnings on January 1, 2018. Topic 606 requires revenue related to software license renewals or extensions to be recorded when the new license term begins, which in the case of the $53.0 million is January 1, 2018. The company has excluded revenue and related profit for these software licenses to reflect the balances without the adoption of Topic 606 in the above table. This is a one-time adjustment and it will not reoccur in future periods. There are additional adjustments being made in the above table, but they do not represent previously recorded revenue. Those additional adjustments represent other differences between Topic 605 and Topic 606, principally extended payment term software licenses and short-term software licenses both of which are recorded at the inception of the license term under Topic 606, but were required to be recognized ratably over the software license term under Topic 605. An additional adjustment is that under Topic 605, a company was not able to recognize software license revenue until the last software license is delivered due to the lack of vendor specific objective evidence, whereas under Topic 606, a company is required to use the standalone selling price for all performance obligations. This resulted in software license revenue being recognized sooner under Topic 606 compared with Topic 605.

In 2018, the company adopted ASU No. 2017-05 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) issued by the FASB which clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The company adopted the standard using the modified retrospective method. The cumulative effect of the adoption was recognized as a decrease in the company’s accumulated deficit of $6.3 million.

Effective July 1, 2018, the company adopted ASU No. 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income by applying the changes in the period of adoption. The new guidance permits companies to reclassify stranded tax effects in accumulated other comprehensive income (“AOCI”) caused by the U.S. Tax Cuts and Jobs Act of 2017 (“TCJA”) to retained earnings. Upon enactment of the TCJA, the U.S. corporate tax rate was reduced from 35% to 21% and the Company's U.S. deferred tax balances and related valuation allowances were remeasured to the lower enacted U.S. corporate tax rate. In accordance with its accounting policy, the company releases the income tax effects of deferred tax balances that have a valuation allowance from AOCI once the reason the tax effects were established cease to exist (e.g. postretirement plan is liquidated). The new guidance allows for the reclassification of stranded tax effects as a result of the change in tax rates from the TCJA to be recorded upon adoption of the guidance rather than at cessation date. On July 1, 2018, $208.7 million related to postretirement plans was reclassified from AOCI to retained earnings.

In September 2018, the company adopted SEC Release No. 33-10532, Disclosure Update and Simplification which amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the rule expands the disclosure requirements on changes in stockholders’ equity for interim periods. Under this rule, a reconciliation of changes in stockholders' equity is required for each period for which an income statement is presented. The company applied the new disclosure requirements retrospectively to all periods presented. There was no overall impact on the company’s consolidated financial statements.

Effective for the annual reporting period ended December 31, 2018, the company adopted ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans which adds, removes and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. The company applied the changes on a retrospective basis for all periods presented. There was no overall impact on the company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This update is effective for fiscal years ending after December 15, 2019, with earlier adoption permitted. The new guidance can be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which 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 ASU No. 2016-02 Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU requires 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 also requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provides an alternative transition method permitting the recognition of a cumulative-effect adjustment to retained earnings on the date of adoption rather than restating comparative periods in transition as originally prescribed by Topic 842. The standard is effective for annual reporting periods beginning after December 15, 2018, which for the company is January 1, 2019. The company will adopt the new guidance utilizing the alternative transition method. The company reviewed lease contracts, implemented new lease accounting software, established new processes and internal controls and evaluated the impact of certain accounting policy elections. The adoption is expected to have a material impact on the consolidated financial position, and is not expected to have a material impact on the consolidated results of operations and cash flows.

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Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [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 to the total of the amounts shown in the consolidated statements of cash flows.

As of December 31,	2018		2017
Cash and cash equivalents	$	605.0	$	733.9
Restricted cash	19.1		30.2
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	624.1	$	764.1

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 to the total of the amounts shown in the consolidated statements of cash flows.

As of December 31,	2018		2017
Cash and cash equivalents	$	605.0	$	733.9
Restricted cash	19.1		30.2
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	624.1	$	764.1

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Recent accounting pronouncements and accounting changes (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table summarizes the effects of adopting ASU No. 2014-09 on the company’s consolidated financial statements as of and for the year ended December 31, 2018.

	As Reported			Adjustments			Balances Without Adoption of Topic 606
For the year ended December 31, 2018
Statement of Income
Revenue
Services	$	2,386.3		$	(6.2	)	$	2,380.1
Technology	438.7			(139.9		)	298.8
Costs and expenses
Cost of revenue
Services	2,010.5			(3.0		)	2,007.5
Technology	128.2			(5.8		)	122.4
Selling, general and administrative expenses	370.3			0.9			371.2
Operating income	284.1			(138.2		)	145.9
Income before income taxes	143.2			(138.2		)	5.0
Provision for income taxes	64.3			(18.6		)	45.7
Consolidated net income	78.9			(119.6		)	(40.7		)
Net income attributable to Unisys Corporation	75.5			(119.6		)	(44.1		)
As of December 31, 2018
Balance Sheet
Assets
Accounts receivable, net current	$	509.2		$	10.9		$	520.1
Contract assets	29.7			(29.7		)	—
Inventories	27.3			10.6			37.9
Prepaid expenses and other current assets	130.2			1.5			131.7
Deferred income taxes - long-term	109.3			1.7			111.0
Other long-term assets	202.6			(27.8		)	174.8
Total assets	2,457.6			(32.8		)	2,424.8
Liabilities
Deferred revenue - current	294.4			70.3			364.7
Other accrued liabilities - current	350.0			(20.7		)	329.3
Long-term deferred revenue	157.2			10.4			167.6
Other long-term liabilities	77.4			5.5			82.9
Equity
Accumulated deficit	(1,694.0		)	(98.3		)	(1,792.3		)
Total liabilities and deficit	2,457.6			(32.8		)	2,424.8

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Cost-reduction actions (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Reconciliation of Liabilities and Expected Future Payments

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

				Work-Force Reductions						Idle Leased
	Total			U.S.			International			Facilities Costs
Balance at January 1, 2016	$	33.0		$	4.2		$	28.8		$	—
Additional provisions	68.3			8.3			58.6			1.4
Payments	(59.3		)	(9.4		)	(49.9		)	—
Changes in estimates	(4.3		)	(1.3		)	(3.0		)	—
Translation adjustments	(1.1		)	—			(1.1		)	—
Balance at December 31, 2016	36.6			1.8			33.4			1.4
Additional provisions	131.2			9.4			117.6			4.2
Payments	(49.3		)	(6.0		)	(41.3		)	(2.0		)
Changes in estimates	(8.6		)	(1.3		)	(7.8		)	0.5
Translation adjustments	7.9			—			7.7			0.2
Balance at December 31, 2017	117.8			3.9			109.6			4.3
Additional provisions	27.7			5.2			22.5			—
Payments	(44.4		)	(3.1		)	(39.3		)	(2.0		)
Changes in estimates	(8.0		)	0.1			(8.8		)	0.7
Translation adjustments	(4.0		)	—			(3.9		)	(0.1		)
Balance at December 31, 2018	$	89.1		$	6.1		$	80.1		$	2.9
Expected future payments on balance at December 31, 2018:
In 2019	$	75.8		$	5.6		$	68.8		$	1.4
Beyond 2019	13.3			0.5			11.3			1.5

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Rental expense and commitments (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Rental Expense and Income from Subleases

Rental expense and income from subleases for the three years ended December 31, 2018 were as follows:

Year ended December 31,	2018		2017		2016
Rental expense, less income from subleases	$	67.4	$	71.7	$	77.4
Income from subleases	$	3.1	$	4.4	$	7.8

Schedule of Minimum Net Rental Commitments Under Noncancelable Operating Leases

Minimum net rental commitments under noncancelable operating leases, including idle leases, outstanding at December 31, 2018, substantially all of which relate to real properties, were as follows:

Year
2019	$	48.5
2020	42.1
2021	30.0
2022	20.8
2023	14.3
Thereafter	24.4
Total	$	180.1

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Income taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Total Income (Loss) Before Income Taxes and Provision for Income Taxes

Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2018.

Year ended December 31,	2018			2017			2016
Income (loss) before income taxes
United States	$	(53.6	)	$	(152.7	)	$	(88.3	)
Foreign	196.8			80.6			108.8
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5
Provision for income taxes
Current
United States	$	4.7		$	(42.8	)	$	6.7
Foreign	51.4			33.9			47.7
Total	56.1			(8.9		)	54.4
Deferred
Foreign	8.2			3.4			2.8
Total provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

Reconciliation of the Provision for Income Taxes

Following is a reconciliation of the provision (benefit) for income taxes at the United States statutory tax rate to the provision for income taxes as reported:

Year ended December 31,	2018			2017			2016
United States statutory income tax provision (benefit)	$	30.1		$	(25.2	)	$	7.2
Income and losses for which no provision or benefit has been recognized	22.2			70.3			65.5
Foreign rate differential and other foreign tax expense	9.5			(11.3		)	(21.1		)
Income tax withholdings	19.3			16.8			22.8
Permanent items	(5.0		)	(3.0		)	(4.7		)
Enacted rate changes	(2.3		)	(0.4		)	3.5
Change in uncertain tax positions	(1.2		)	2.3			0.4
Change in valuation allowances due to changes in judgment	(5.9		)	(4.6		)	(16.4		)
Income tax credits, U.S.	(2.4		)	(50.4		)	—
Provision (benefit) for income taxes	$	64.3		$	(5.5	)	$	57.2

Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2018 and 2017 were as follows:

As of December 31,	2018			2017
Deferred tax assets
Tax loss carryforwards	$	860.0		$	837.6
Postretirement benefits	440.3			437.7
Foreign tax credit carryforwards	221.6			127.0
Other tax credit carryforwards	29.8			29.1
Deferred revenue	37.1			40.9
Employee benefits and compensation	31.1			35.2
Purchased capitalized software	22.9			22.2
Depreciation	20.1			24.5
Warranty, bad debts and other reserves	4.8			5.3
Capitalized costs	5.1			3.1
Other	30.4			39.3
	1,703.2			1,601.9
Valuation allowance	(1,547.5		)	(1,441.1		)
Total deferred tax assets	$	155.7		$	160.8
Deferred tax liabilities
Capitalized research and development	$	36.1		$	24.3
Other	30.2			25.8
Total deferred tax liabilities	$	66.3		$	50.1
Net deferred tax assets	$	89.4		$	110.7

Schedule of Tax Effected Tax Loss Carryforwards

At December 31, 2018, the company has tax effected tax loss carryforwards as follows:

As of December 31,	2018
U.S. Federal	$	349.6
State and local	257.5
Foreign	252.9
Total tax loss carryforwards	$	860.0

These carryforwards will expire as follows:

Year
2019	$	7.7
2020	25.9
2021	14.1
2022	15.1
2023	14.3
Thereafter	782.9
Total	$	860.0

Schedule of Tax Credit Carryforwards

The company also has available tax credit carryforwards, which will expire as follows:

Year
2019	$	11.8
2020	24.5
2021	41.9
2022	38.1
2023	27.0
Thereafter	108.1
Total	$	251.4

Schedule of Cash Paid for Income Taxes, Net of Refunds

Cash paid for income taxes, net of refunds, for the three years ended December 31, 2018, was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for income taxes, net of refunds	$	39.1	$	34.3	$	46.4

Reconciliation of Changes in Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Year ended December 31,	2018			2017			2016
Balance at January 1	$	27.9		$	35.8		$	27.7
Additions based on tax positions related to the current year	2.6			4.2			2.7
Changes for tax positions of prior years	(6.1		)	(11.2		)	12.0
Reductions as a result of a lapse of applicable statute of limitations	(2.4		)	(2.7		)	(2.8		)
Settlements	(1.5		)	(0.2		)	(0.1		)
Changes due to foreign currency	(1.6		)	2.0			(3.7		)
Balance at December 31	$	18.9		$	27.9		$	35.8

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Earnings per common share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Computation of Earnings (Loss) Per Common Share Attributable to Unisys Corporation

The following table shows how earnings (loss) per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2018 (shares in thousands).

Year ended December 31,	2018		2017			2016
Basic earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Basic earnings (loss) per common share	$	1.48	$	(1.30	)	$	(0.95	)
Diluted earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$	75.5	$	(65.3	)	$	(47.7	)
Add interest expense on convertible senior notes, net of tax of zero	19.6		—			—
Net income (loss) attributable to Unisys Corporation for diluted earnings per share	$	95.1	$	(65.3	)	$	(47.7	)
Weighted average shares	50,946		50,409			50,060
Plus incremental shares from assumed conversions:
Employee stock plans	541		—			—
Convertible senior notes	21,868		—			—
Adjusted weighted average shares	73,355		50,409			50,060
Diluted earnings (loss) per common share	$	1.30	$	(1.30	)	$	(0.95	)
Anti-dilutive weighted-average stock options and restricted stock units(i)	1,226		2,206			3,553
Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes(i)	—		21,868			17,230

⁽ⁱ⁾Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

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Accounts receivable (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Schedule of Receivables Under Sales-Type Lease

As of December 31, 2018, receivables under sales-type leases before the allowance for unearned income were collectible as follows:

Year
2019	$	36.2
2020	15.2
2021	10.7
2022	10.1
2023	10.2
Thereafter	8.6
Total	$	91.0

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Financial instruments and concentration of credit risks (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Foreign Exchange Forward Contracts by Balance Sheet Location

The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2018 and 2017.

As of December 31,	2018		2017
Balance Sheet Location
Prepaid expenses and other current assets	$	3.4	$	4.9
Other accrued liabilities	0.3		1.6
Total fair value	$	3.1	$	3.3

Gains and Losses Recognized on Foreign Exchange Forward Contracts

The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts

for the three years ended December 31, 2018.

Year Ended December 31,	2018			2017		2016
Statement of Income Location
Other income (expense), net	$	(14.2	)	$	27.5	$	(29.1	)

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Properties (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Components of Properties

Properties comprise the following:

As of December 31,	2018		2017
Land	$	2.3	$	2.8
Buildings	63.5		91.3
Machinery and office equipment	530.0		601.7
Internal-use software	164.7		157.4
Rental equipment	39.7		45.6
Total properties	$	800.2	$	898.8

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill by Segment

Changes in the carrying amount of goodwill by segment for the years ended December 31, 2018 and 2017 were as follows:

	Total			Services			Technology
Balance at December 31, 2016	$	178.6		$	69.9		$	108.7
Translation adjustments	2.2			2.2			—
Balance at December 31, 2017	180.8			72.1			108.7
Translation adjustments	(3.0		)	(3.0		)	—
Balance at December 31, 2018	$	177.8		$	69.1		$	108.7

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Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Components of Long-Term Debt

Long-term debt is comprised of the following:

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $8.0 million and $10.4 million at December 31, 2018 and 2017, respectively)	$	432.0	$	429.6
5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $19.3 million and $27.2 million at December 31, 2018 and 2017, respectively)	194.2		186.3
Capital leases	5.8		7.5
Other debt	20.8		21.3
Total	652.8		644.7
Less – current maturities	10.0		10.8
Total long-term debt	$	642.8	$	633.9

Estimated Fair Values of Long-term Debt

Presented below are the estimated fair values of long-term debt as of December 31, 2018 and 2017.

As of December 31,	2018		2017
10.75% senior secured notes due April 15, 2022	$	486.8	$	492.8
5.50% convertible senior notes due March 1, 2021	298.5		237.9

Schedule of Maturities of Long-term Debt, Including Capital Leases

Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows:

Year	Total		Long-Term Debt		Capital Leases
2019	$	10.0	$	8.4	$	1.6
2020	2.5		0.9		1.6
2021	197.5		195.9		1.6
2022	434.8		433.8		1.0
2023	1.8		1.8		—
Thereafter	6.2		6.2		—
Total	$	652.8	$	647.0	$	5.8

Schedule of Cash Paid for Interest, Capitalized Interest, and Interest Expense

Cash paid for interest and capitalized interest expense during the three years ended December 31, 2018 was as follows:

Year ended December 31,	2018		2017		2016
Cash paid for interest	$	59.5	$	39.9	$	22.1
Capitalized interest expense	$	6.0	$	4.2	$	3.0

Interest expense related to the 2021 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	11.8	$	11.8	$	9.2
Amortization of debt discount	6.6		6.0		4.3
Amortization of debt issuance costs	1.2		1.2		1.0
Total	$	19.6	$	19.0	$	14.5

Interest expense related to the 2022 Notes is comprised of the following:

Year ended December 31,	2018		2017		2016
Contractual interest coupon	$	47.3	$	33.2	$	—
Amortization of debt issuance costs	2.4		1.7		—
Total	$	49.7	$	34.9	$	—

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Other accrued liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Other Liabilities Disclosure [Abstract]

Other Accrued Liabilities (Current)

Other accrued liabilities (current) are comprised of the following:

As of December 31,	2018		2017
Payrolls and commissions	$	108.1	$	120.2
Cost-reduction	75.8		87.7
Accrued vacations	41.2		42.8
Income taxes	32.3		26.0
Taxes other than income taxes	31.2		29.1
Postretirement	14.8		18.5
Accrued interest	13.8		13.8
Other	32.8		53.4
Total other accrued liabilities	$	350.0	$	391.5

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Employee plans (Tables)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plan Disclosure [Line Items]

Summary of Restricted Stock Unit Activity

A summary of restricted stock unit activity for the year ended December 31, 2018 follows (shares in thousands):

	Restricted Stock Units		Weighted-Average Grant-Date Fair Value
Outstanding at December 31, 2017	1,688		$	13.39
Granted	1,449		12.53
Vested	(778	)	13.43
Forfeited and expired	(208	)	12.53
Outstanding at December 31, 2018	2,151		12.90

Schedule of Weighted-Average Assumptions

The fair value of awards with market conditions is estimated using a Monte Carlo simulation with the following weighted-average assumptions.

Year Ended December 31,	2018
Weighted-average fair value of grant	$	15.20
Risk-free interest rate(i)	2.26		%
Expected volatility(ii)	52.97		%
Expected life of restricted stock unts in years(iii)	2.88
Expected dividend yield	—

(i)	Represents the continuously compounded semi-annual zero-coupon U.S. treasury rate commensurate with the remaining performance period
(ii)	Based on historical volatility for the company that is commensurate with the length of the performance period
(iii)	Represents the remaining life of the longest performance period

Schedule of Accumulated Benefit Obligation in Excess of Plan Assets

Information for defined benefit retirement plans with an accumulated benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Accumulated benefit obligation	$	6,433.6	$	7,151.7
Fair value of plan assets	$	4,553.2	$	5,227.0

Schedule of Projected Benefit Obligation in Excess of Plan Assets

Information for defined benefit retirement plans with a projected benefit obligation in excess of plan assets at December 31, 2018 and 2017 follows:

As of December 31,	2018		2017
Projected benefit obligation	$	6,434.9	$	7,153.4
Fair value of plan assets	$	4,553.2	$	5,227.0

Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates at December 31,	2018		2017
Health care cost trend rate assumed for next year	6.8	%	6.6	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.8	%
Year that the rate reaches the ultimate trend rate	2023		2023

Schedule of Plans' Assets (Liabilities) at Fair Value

The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2018.

	U.S. Plans										International Plans
As of December 31, 2018	Fair Value			Level 1			Level 2		Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	911.7		$	909.0		$	2.7	$	—	$	—		$	—		$	—	$	—
Commingled Funds	494.8						494.8				165.6						165.6
Debt Securities
U.S. Govt. Securities	498.5			498.5
Other Fixed Income	374.6						374.6				145.5			0.2			145.3
Insurance Contracts											123.7								123.7
Commingled Funds	196.6						196.6				321.4						321.4
Real Estate
Real Estate Investment Trusts	17.0			17.0							1.3			—			1.3
Commingled Funds	156.7						156.7
Other
Derivatives(i)	35.8			33.6			2.2				2.4						2.4
Commingled Funds											317.0						317.0
Pooled Funds	143.7						143.7				123.6						123.6
Cumulative futures contracts variation margin received from brokers	(29.3		)	(29.3		)
Cash	3.7			3.7							29.6			29.6
Receivables	20.5			20.5							2.0			2.0
Payables	(1.4		)	(1.4		)					(2.3		)	(2.3		)
Total plan assets in fair value hierarchy	$	2,822.9		$	1,451.6		$	1,371.3	$	—	$	1,229.8		$	29.5		$	1,076.6	$	123.7
Plan assets measured using NAV as a practical expedient(ii):
Commingled Funds
Equity	$	—									$	454.9
Debt	—										814.0
Other	110.2										23.9
Private Real Estate	179.1										16.8
Private Equity	0.6										—
Total pension plan assets	$	3,112.8									$	2,539.4
Other postretirement plans
Insurance Contracts	$	7.8							$	7.8

⁽ⁱ⁾ Level 1 derivatives represent unrealized appreciation or depreciation on open futures contracts. The value of open futures contracts includes derivatives and the cumulative futures contracts variation margin received from brokers.

⁽ⁱⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

The following table sets forth by level, within the fair value hierarchy, the plans’ assets (liabilities) at fair value at December 31, 2017.

	U.S. Plans											International Plans
As of December 31, 2017	Fair Value			Level 1			Level 2			Level 3		Fair Value			Level 1			Level 2		Level 3
Pension plans
Equity Securities
Common Stocks	$	1,465.1		$	1,461.9		$	3.2		$	—	$	—		$	—		$	—	$	—
Commingled Funds	584.4						584.4					84.0						84.0
Debt Securities
U.S. Govt. Securities	139.8			139.8
Other Fixed Income	830.6						830.6					254.1			2.6			251.5
Insurance Contracts												135.8								135.8
Commingled Funds												267.5						267.5
Real Estate
Real Estate Investment Trusts	113.5			113.5								1.4			0.4			1.0
Other
Derivatives	2.6			13.1			(10.5		)			1.2						1.2
Commingled Funds												357.1						357.1
Pooled Funds	228.0						228.0					29.2						29.2
Cash	34.8			34.8								25.1			25.1
Receivables	58.1			58.1								19.9			19.9
Payables	(116.7		)	(116.7		)						(1.5		)	(1.5		)
Total plan assets in fair value hierarchy	$	3,340.2		$	1,704.5		$	1,635.7		$	—	$	1,173.8		$	46.5		$	991.5	$	135.8
Plan assets measured using NAV as a practical expedient(i):
Commingled Funds
Equity	$	—										$	780.7
Debt	19.8											837.7
Other	105.1											25.2
Private Real Estate	112.4											16.5
Private Equity	0.9											—
Total pension plan assets	$	3,578.4										$	2,833.9
Other postretirement plans
Insurance Contracts	$	7.6								$	7.6

⁽ⁱ⁾ Investments measured at fair value using NAV as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table for these investments are included to permit reconciliation of the fair value hierarchy to the total plan assets.

Summary of Changes in the Fair Value of the Plans' Level 3 Assets

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2018.

	January 1, 2018		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2018			December 31, 2018
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.6	$	(0.4	)	$	0.6	$	—		$	—		$	7.8
International pension plans
Insurance Contracts	$	135.8	$	—		$	3.5	$	(11.7	)	$	(3.9	)	$	123.7

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2017.

	January 1, 2017		Realized gains (losses)			Purchases or acquisitions		Sales or dispositions			Currency and unrealized gains (losses) relating to instruments still held at December 31, 2017		December 31, 2017
U.S. plans
Other postretirement plans
Insurance Contracts	$	7.9	$	(0.2	)	$	0.2	$	(0.3	)	$	—	$	7.6
International pension plans
Insurance Contracts	$	116.2	$	—		$	10.8	$	(11.4	)	$	20.2	$	135.8

Schedule of Additional Information About Plan Assets Valued Using Net Asset Value

The following table presents additional information about plan assets valued using the net asset value as a practical expedient within the fair value hierarchy table.

	2018						2017
	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range	Fair Value		Unfunded Commit-ments		Redemption Frequency	Redemption Notice Period Range
U.S. plans
Commingled Funds
Debt	$	—	$	—			$	19.8	$	—	Daily	5 days
Other	110.2		—		Monthly	5 days	105.1		—		Monthly	5 days
Private Real Estate(i)	179.1		—		Quarterly	60-90 days	112.4		—		Quarterly	Up to 90 days
Private Equity(ii)	0.6		—				0.9		—
Total	$	289.9	$	—			$	238.2	$	—
International pension plans
Commingled Funds
Equity	$	454.9	$	—	Weekly	Up to 2 days	$	780.7	$	—	Weekly, Monthly	Up to 30 days
Debt	814.0		—		Daily, Weekly, Biweekly, Bimonthly	Up to 30 days	837.7		—		Weekly, Biweekly, Bimonthly, Monthly	Up to 30 days
Other	23.9		—		Monthly	Up to 30 days	25.2		—		Monthly	Up to 30 days
Private Real Estate	16.8		—		Monthly	Up to 90 days	16.5		—		Monthly	Up to 90 days
Total	$	1,309.6	$	—			$	1,660.1	$	—

⁽ⁱ⁾ Includes investments in private real estate funds and limited partnerships. The funds invest in U.S. real estate and allow redemptions quarterly, though queues, restrictions and gates may extend the period. The limited partnerships include investments in primarily U.S. real estate, and can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next year.

⁽ⁱⁱ⁾ Includes investments in limited partnerships, which invest primarily in U.S. buyouts and venture capital. The investments can never be redeemed. The partnerships are all currently being wound up, and are expected to make all distributions over the next three years.

Pension Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 were as follows:

	U.S. Plans						International Plans
Year ended December 31,	2018		2017		2016		2018		2017		2016
Discount rate	3.87	%	4.38	%	4.56	%	2.24	%	2.34	%	3.30	%
Expected long-term rate of return on assets	6.80	%	6.80	%	6.80	%	4.38	%	5.30	%	5.99	%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	4.50	%	3.87	%	4.38	%	2.55	%	2.24	%	2.34	%

Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet

Retirement plans’ funded status and amounts recognized in the company’s consolidated balance sheets at December 31, 2018 and 2017 follows:

	U.S. Plans						International Plans
As of December 31,	2018			2017			2018			2017
Change in projected benefit obligation
Benefit obligation at beginning of year	$	5,001.6		$	4,972.0		$	3,189.7		$	3,076.2
Service cost	—			—			3.2			5.1
Interest cost	186.6			211.3			67.3			72.8
Plan participants’ contributions	—			—			1.5			1.9
Plan amendment	—			—			20.6			(52.5		)
Plan curtailment	—			—			—			(2.2		)
Plan settlement	—			—			(16.4		)	—
Actuarial loss (gain)	(270.7		)	177.0			(169.5		)	(93.8		)
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation adjustments	—			—			(158.2		)	299.3
Benefit obligation at end of year	$	4,558.0		$	5,001.6		$	2,829.5		$	3,189.7
Change in plan assets
Fair value of plan assets at beginning of year	$	3,578.4		$	3,452.1		$	2,833.9		$	2,429.7
Actual return on plan assets	(193.3		)	424.0			(75.4		)	172.3
Employer contribution	87.2			61.0			42.5			77.4
Plan participants’ contributions	—			—			1.5			1.9
Plan settlement	—			—			(16.4		)	—
Benefits paid	(359.5		)	(358.7		)	(108.7		)	(117.1		)
Foreign currency translation and other adjustments	—			—			(138.0		)	269.7
Fair value of plan assets at end of year	$	3,112.8		$	3,578.4		$	2,539.4		$	2,833.9
Funded status at end of year	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	—		$	—		$	146.4		$	147.4
Other accrued liabilities	(6.7		)	(6.8		)	(0.1		)	(0.2		)
Long-term postretirement liabilities	(1,438.5		)	(1,416.4		)	(436.4		)	(503.0		)
Total funded status	$	(1,445.2	)	$	(1,423.2	)	$	(290.1	)	$	(355.8	)
Accumulated other comprehensive loss, net of tax
Net loss	$	2,718.6		$	2,960.6		$	988.0		$	1,067.8
Prior service credit	$	(37.3	)	$	(39.8	)	$	(46.8	)	$	(69.8	)
Accumulated benefit obligation	$	4,558.0		$	5,001.6		$	2,828.2		$	3,188.0

Components of Net Periodic Cost (Income)

Net periodic pension cost (income) for 2018, 2017 and 2016 includes the following components:

	U.S. Plans									International Plans
Year ended December 31,	2018			2017			2016			2018			2017			2016
Service cost(i)	$	—		$	—		$	—		$	3.2		$	5.1		$	7.4
Interest cost	186.6			211.3			231.3			67.3			72.8			87.8
Expected return on plan assets	(230.6		)	(235.2		)	(253.1		)	(114.4		)	(127.5		)	(139.5		)
Amortization of prior service credit	(2.5		)	(2.5		)	(2.5		)	(3.7		)	(2.4		)	(3.0		)
Recognized net actuarial loss	125.1			126.4			116.0			42.3			49.8			40.3
Curtailment gain	—			—			—			—			(5.4		)	(2.0		)
Settlement loss	—			—			—			6.4			—			—
Net periodic pension cost (income)	$	78.6		$	100.0		$	91.7		$	1.1		$	(7.6	)	$	(9.0	)

⁽ⁱ⁾ Service cost is reported in cost of revenue - services and selling, general and administrative expenses. All other components of net periodic pension cost are reported in other income (expense), net in the consolidated statements of income.

Company's Investment Policy Targets and Ranges for Each Asset Category

The company’s investment policy targets and ranges for each asset category are as follows:

	U.S.			International
Asset Category	Target		Range	Target		Range
Equity securities	42	%	36-48%	22	%	16-28%
Debt securities	38	%	35-41%	62	%	55-68%
Real estate	0	%	0%	1	%	0-3%
Cash	0	%	0-5%	1	%	0-5%
Other	20	%	10-30%	14	%	7-21%

Expected Future Benefit Payments

As of December 31, 2018, the following benefit payments are expected to be paid from the defined benefit pension plans:

Year ending December 31,	U.S.		International
2019	$	362.2	$	97.8
2020	359.4		101.2
2021	357.1		104.2
2022	354.4		112.2
2023	350.9		118.2
2024 - 2028	1,652.1		627.4

Other Postretirement Benefit Plans

Defined Benefit Plan Disclosure [Line Items]

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine net periodic postretirement benefit cost for the years ended December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.30	%	5.53	%	5.61	%
Expected return on plan assets	5.50	%	5.50	%	5.50	%

Weighted-average assumptions used to determine benefit obligation at December 31 were as follows:

Year ended December 31,	2018		2017		2016
Discount rate	5.67	%	5.30	%	5.53	%

Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet

A reconciliation of the benefit obligation, fair value of the plan assets and the funded status of the postretirement benefit plans at December 31, 2018 and 2017, follows:

As of December 31,	2018			2017
Change in accumulated benefit obligation
Benefit obligation at beginning of year	$	103.2		$	120.1
Service cost	0.6			0.5
Interest cost	4.8			5.6
Plan participants’ contributions	3.1			3.5
Amendments	—			(7.4		)
Actuarial gain	(4.2		)	(4.3		)
Federal drug subsidy	0.2			0.3
Benefits paid	(11.5		)	(15.7		)
Foreign currency translation and other adjustments	—			0.6
Benefit obligation at end of year	$	96.2		$	103.2
Change in plan assets
Fair value of plan assets at beginning of year	$	7.6		$	7.9
Actual return on plan assets	(0.4		)	(0.3		)
Employer contributions	9.0			12.2
Plan participants’ contributions	3.1			3.5
Benefits paid	(11.5		)	(15.7		)
Fair value of plan assets at end of year	$	7.8		$	7.6
Funded status at end of year	$	(88.4	)	$	(95.6	)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$	1.2		$	0.9
Other accrued liabilities	(8.0		)	(11.5		)
Long-term postretirement liabilities	(81.6		)	(85.0		)
Total funded status	$	(88.4	)	$	(95.6	)
Accumulated other comprehensive loss, net of tax
Net loss	$	10.5		$	14.9
Prior service credit	(8.2		)	(9.8		)

Components of Net Periodic Cost (Income)

Net periodic postretirement benefit cost for 2018, 2017 and 2016, follows:

Year ended December 31,	2018			2017			2016
Service cost(i)	$	0.6		$	0.5		$	0.4
Interest cost	4.8			5.6			6.2
Expected return on assets	(0.4		)	(0.5		)	(0.4		)
Amortization of prior service cost	(1.6		)	(0.7		)	—
Recognized net actuarial loss	1.0			0.8			0.5
Net periodic benefit cost	$	4.4		$	5.7		$	6.7

⁽ⁱ⁾ Service cost is reported in selling, general and administrative expenses. All other components of net periodic benefit cost are reported in other income (expense), net in the consolidated statements of income.

Expected Future Benefit Payments

As of December 31, 2018, the following benefits are expected to be paid from the company’s postretirement plans:

Year ending December 31,	Expected Payments
2019	$	9.1
2020	9.6
2021	9.1
2022	8.5
2023	7.9
2024 – 2028	30.9

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Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) as of December 31, 2018, 2017 and 2016, is as follows:

	Total			Translation Adjustments			Postretirement Plans
Balance at December 31, 2015	$	(3,945.3	)	$	(833.8	)	$	(3,111.5	)
Other comprehensive income before reclassifications	(64.9		)	(93.3		)	28.4
Amounts reclassified from accumulated other comprehensive income	(142.6		)	—			(142.6		)
Current period other comprehensive income	(207.5		)	(93.3		)	(114.2		)
Balance at December 31, 2016	(4,152.8		)	(927.1		)	(3,225.7		)
Other comprehensive income before reclassifications	506.8			121.9			384.9
Amounts reclassified from accumulated other comprehensive income	(169.8		)	(11.8		)	(158.0		)
Current period other comprehensive income	337.0			110.1			226.9
Balance at December 31, 2017	(3,815.8		)	(817.0		)	(2,998.8		)
Reclassification pursuant to ASU No. 2018-02	(208.7		)	—			(208.7		)
Other comprehensive income before reclassifications	96.7			(79.7		)	176.4
Amounts reclassified from accumulated other comprehensive income	(157.0		)	—			(157.0		)
Current period other comprehensive income	(269.0		)	(79.7		)	(189.3		)
Balance at December 31, 2018	$	(4,084.8	)	$	(896.7	)	$	(3,188.1	)

Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)

Amounts reclassified out of accumulated other comprehensive income for the three years ended December 31, 2018 are as follows:

Year ended December 31,	2018			2017			2016
Translation Adjustments:
Adjustment for substantial completion of liquidation of foreign subsidiaries(i)	$	—		$	(11.8	)	$	—
Postretirement Plans:
Amortization of prior service cost(ii)	7.1			5.6			5.6
Amortization of actuarial losses(ii)	(165.9		)	(174.1		)	(155.2		)
Curtailment gain(ii)	—			5.4			2.0
Settlement loss(ii)	(3.9		)	—			—
Total before tax	(162.7		)	(174.9		)	(147.6		)
Income tax benefit	5.7			5.1			5.0
Total reclassifications for the period	$	(157.0	)	$	(169.8	)	$	(142.6	)

⁽ⁱ⁾ Reported in other income (expense), net in the consolidated statements of income

⁽ⁱⁱ⁾ Included in net periodic postretirement cost (see Note 14)

Changes in Common Stock and Treasury Stock

The following table summarizes the changes in shares of common stock and treasury stock during the three years ended December 31, 2018:

	Common Stock	Treasury Stock
Balance at December 31, 2015	52.6	2.7
Stock-based compensation	0.2	—
Balance at December 31, 2016	52.8	2.7
Stock-based compensation	0.6	0.2
Balance at December 31, 2017	53.4	2.9
Stock-based compensation	0.8	0.2
Balance at December 31, 2018	54.2	3.1

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Segment information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Customer Revenue by Classes of Similar Products or Services

Customer revenue by classes of similar products or services, by segment, is presented below:

Year ended December 31,	2018		2017			2016
Services
Cloud & infrastructure services	$	1,363.4	$	1,334.3	*	$	1,356.4	*
Application services	772.4		791.0		*	855.5		*
BPO services	250.5		202.9			194.4
Total Services	2,386.3		2,328.2			2,406.3
Technology	438.7		413.6			414.4
Total customer revenue	$	2,825.0	$	2,741.8		$	2,820.7

*Amounts were changed to conform to the current-year presentation.

Reconciliation of Segment Operating Income to Consolidated Income (Loss) Before Income Taxes

Presented below is a reconciliation of segment operating income to consolidated income (loss) before income taxes:

Year ended December 31,	2018			2017			2016
Total segment operating income	$	305.4		$	235.4		$	208.4
Interest expense	(64.0		)	(52.8		)	(27.4		)
Other income (expense), net	(76.9		)	(116.4		)*	(81.3		)*
Cost reduction charges(i)	(19.7		)	(135.0		)	(82.1		)
Corporate and eliminations	(1.6		)	(3.3		)*	2.9		*
Total income (loss) before income taxes	$	143.2		$	(72.1	)	$	20.5

*Amounts were changed to conform to the current-year presentation. See Note 2

⁽ⁱ⁾ Year ended December 31, 2017 excludes $11.8 million for net foreign currency losses related to exiting foreign countries which are reported in other income (expense), net in the consolidated statements of income.

Reconciliation of Total Business Segment Assets to Consolidated Assets

Presented below is a reconciliation of total business segment assets to consolidated assets:

As of December 31,	2018		2017		2016
Total segment assets	$	1,436.6	$	1,364.5	$	1,339.0
Cash and cash equivalents	605.0		733.9		370.6
Deferred income taxes	109.3		119.9		146.1
Prepaid postretirement assets	147.6		148.3		33.3
Other corporate assets	159.1		175.8		132.6
Total assets	$	2,457.6	$	2,542.4	$	2,021.6

Summary of Operations by Business Segment

A summary of the company’s operations by business segment for 2018, 2017 and 2016 is presented below:

	Total			Corporate			Services		Technology
2018
Customer revenue	$	2,825.0		$	—		$	2,386.3	$	438.7
Intersegment	—			(24.7		)	—		24.7
Total revenue	$	2,825.0		$	(24.7	)	$	2,386.3	$	463.4
Operating income (loss)	$	284.1		$	(21.3	)	$	67.6	$	237.8
Depreciation and amortization	164.1			—			97.2		66.9
Total assets	2,457.6			1,021.0			1,013.1		423.5
Capital expenditures	189.3			8.0			92.9		88.4
2017
Customer revenue	$	2,741.8		$	—		$	2,328.2	$	413.6
Intersegment	—			(25.9		)	—		25.9
Total revenue	$	2,741.8		$	(25.9	)	$	2,328.2	$	439.5
Operating income (loss)	$	97.1	*	$	(138.3	)*	$	64.8	$	170.6
Depreciation and amortization	156.5			—			84.6		71.9
Total assets	2,542.4			1,177.9			985.9		378.6
Capital expenditures	176.5			4.3			102.7		69.5
2016
Customer revenue	$	2,820.7		$	—		$	2,406.3	$	414.4
Intersegment	—			(22.6		)	—		22.6
Total revenue	$	2,820.7		$	(22.6	)	$	2,406.3	$	437.0
Operating income (loss)	$	129.2	*	$	(79.2	)*	$	46.9	$	161.5
Depreciation and amortization	155.6			—			81.8		73.8
Total assets	2,021.6			682.6			963.3		375.7
Capital expenditures	147.1			3.0			74.8		69.3

*Amounts were changed to conform to the current-year presentation. See Note 2

Revenue by Geographic Segment

Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below:

Year ended December 31,	2018		2017		2016
Revenue
United States	$	1,240.0	$	1,257.0	$	1,309.3
United Kingdom	360.7		315.8		348.0
Other foreign	1,224.3		1,169.0		1,163.4
Total Revenue	$	2,825.0	$	2,741.8	$	2,820.7
Properties, net
United States	$	85.3	$	85.8	$	91.4
United Kingdom	5.3		16.7		15.1
Other foreign	30.7		40.0		38.8
Total Properties, net	$	121.3	$	142.5	$	145.3
Outsourcing assets, net
United States	$	97.6	$	81.1	$	105.1
United Kingdom	86.5		89.9		39.0
Australia	21.7		18.1		11.5
Other foreign	10.6		13.2		16.9
Total Outsourcing assets, net	$	216.4	$	202.3	$	172.5

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Quarterly financial information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
2018
Revenue	$	708.4		$	667.4		$	688.3		$	760.9		$	2,825.0
Gross profit	201.2			152.9			153.8			178.4			686.3
Income before income taxes	62.6			20.3			22.2			38.1			143.2
Net income attributable to Unisys Corporation common shareholders	40.6			3.8			6.1			25.0			75.5
Earnings per common share attributable to Unisys Corporation
Basic	0.80			0.07			0.12			0.49			1.48
Diluted	0.62			0.07			0.12			0.41			1.30
2017
Revenue	$	664.5		$	666.2		$	666.3		$	744.8		$	2,741.8
Gross profit	138.6		*	118.7		*	103.6		*	186.8		*	547.7		*
Income (loss) before income taxes	(16.8		)	(42.3		)	(40.4		)	27.4			(72.1		)
Net income (loss) attributable to Unisys Corporation common shareholders	(32.7		)	(42.0		)	(41.1		)	50.5			(65.3		)
Earnings (loss) per common share attributable to Unisys Corporation
Basic	(0.65		)	(0.83		)	(0.81		)	1.00			(1.30		)
Diluted	(0.65		)	(0.83		)	(0.81		)	0.76			(1.30		)

*Amounts were changed to conform to the current-year presentation. See Note 2

In the first, second, third and fourth quarters of 2018, the company recorded pretax cost-reduction and other charges (benefits) of $(2.9) million, $0.7 million, $(0.9) million and $22.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

In the first, second, third and fourth quarters of 2017, the company recorded pretax cost-reduction and other charges of $25.4 million, $27.5 million, $46.1 million and $47.8 million, respectively. See Note 3, “Cost reduction actions,” of the Notes to Consolidated Financial Statements.

The individual quarterly per-share amounts may not total to the per-share amount for the full year because of accounting rules governing the computation of earnings per share.

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Summary of significant accounting policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash and cash equivalents	$ 605.0	$ 733.9	$ 370.6
Restricted cash	19.1	30.2
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$ 624.1	$ 764.1	$ 401.1	$ 396.8

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Summary of significant accounting policies - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) institution	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Property, Plant and Equipment [Line Items]
Advertising costs incurred	$ 2.8	$ 1.6	$ 2.7
Remaining performance obligations	1,200.0
Long-term contract assets	22.2
Deposit liabilities	21.2
Revenue recognized, previously included in deferred revenue	307.1
Amortization of costs to fulfill contracts	21.7
Costs to fulfill contract, net	$ 79.5	76.0
Estimated revenue-producing lives of computer software products from the date of release	3 years
Period of recognition in changes in fair value of plan assets	4 years
Intelligent Processing Solutions Ltd.
Property, Plant and Equipment [Line Items]
Percentage of ownership interest	51.00%
Number of financial institutions that own remaining interests for which iPSL performs services | institution	3
Sales Commissions
Property, Plant and Equipment [Line Items]
Deferred commissions	$ 12.1	$ 11.0
Amortization of costs to fulfill contracts	$ 6.9
Minimum | Technology
Property, Plant and Equipment [Line Items]
Period over which payment is generally received for contracts	30 days
Maximum | Technology
Property, Plant and Equipment [Line Items]
Period over which payment is generally received for contracts	60 days
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent to be recognized as revenue	40.00%
Period over which remaining performance obligations are expected to be recognized as revenue	1 year
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	50 years
Machinery and office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	4 years
Machinery and office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Rental equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives	4 years
Internal-use software | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Internal-use software | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years

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Recent accounting pronouncements and accounting changes (Detail) - USD ($) $ in Millions			3 Months Ended								12 Months Ended
	Jul. 01, 2018	Jan. 01, 2018	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Revenue
Revenue			$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8		$ 2,820.7
Cost of revenue:
Cost of revenue											2,138.7	2,194.1	[1]	2,203.3	[1]
Selling, general and administrative expenses											370.3	411.9	[1]	441.2	[1]
Operating income											284.1	97.1	[1]	129.2	[1]
Income before income taxes			38.1	22.2	20.3	62.6	27.4	(40.4)	(42.3)	(16.8)	143.2	(72.1)		20.5
Provision for income taxes											64.3	(5.5)		57.2
Consolidated net income (loss)											78.9	(66.6)		(36.7)
Net income attributable to Unisys Corporation			25.0	$ 6.1	$ 3.8	40.6	50.5	$ (41.1)	$ (42.0)	$ (32.7)	75.5	(65.3)		(47.7)
Assets
Accounts receivable, net current			509.2				503.3				509.2	503.3
Contract assets			29.7				0.0				29.7	0.0
Inventories			27.3								27.3
Prepaid expenses and other current assets			130.2				126.2				130.2	126.2
Deferred income taxes - long-term			109.3				119.9				109.3	119.9		146.1
Other long-term assets			202.6				190.6				202.6	190.6
Total assets			2,457.6				2,542.4				2,457.6	2,542.4		2,021.6
Liabilities
Deferred revenue - current			294.4				327.5				294.4	327.5
Other accrued liabilities - current			350.0				391.5				350.0	391.5
Long-term deferred revenue			157.2				159.0				157.2	159.0
Other long-term liabilities			77.4				100.0				77.4	100.0
Equity
Accumulated deficit			(1,694.0)				(1,963.1)				(1,694.0)	(1,963.1)
Total liabilities and deficit			2,457.6				2,542.4				2,457.6	2,542.4
Reclassification pursuant to ASU No. 2018-02											0.0
AOCI
Equity
Reclassification pursuant to ASU No. 2018-02	$ (208.7)										(208.7)
Accumulated Deficit
Cost of revenue:
Consolidated net income (loss)											75.5	(65.3)		(47.7)
Equity
Reclassification pursuant to ASU No. 2018-02	$ 208.7										208.7
Services
Revenue
Revenue											2,386.3	2,328.2		2,406.3
Cost of revenue:
Cost of revenue											2,010.5	2,033.8	[1]	2,035.2	[1]
Operating income											67.6	64.8		46.9
Assets
Total assets			1,013.1				985.9				1,013.1	985.9		963.3
Technology
Revenue
Revenue											438.7	413.6		414.4
Cost of revenue:
Cost of revenue											128.2	160.3	[1]	168.1	[1]
Operating income											237.8	170.6		161.5
Assets
Total assets			423.5				$ 378.6				423.5	378.6		375.7
Technology | Software License Extensions and Renewals
Revenue
Revenue		$ 53.0				$ 53.0
Balances Without Adoption of Topic 606
Cost of revenue:
Selling, general and administrative expenses											371.2
Operating income											145.9
Income before income taxes											5.0
Provision for income taxes											45.7
Consolidated net income (loss)											(40.7)
Net income attributable to Unisys Corporation											(44.1)
Assets
Accounts receivable, net current			520.1								520.1
Contract assets			0.0								0.0
Inventories			37.9								37.9
Prepaid expenses and other current assets			131.7								131.7
Deferred income taxes - long-term			111.0								111.0
Other long-term assets			174.8								174.8
Total assets			2,424.8								2,424.8
Liabilities
Deferred revenue - current			364.7								364.7
Other accrued liabilities - current			329.3								329.3
Long-term deferred revenue			167.6								167.6
Other long-term liabilities			82.9								82.9
Equity
Accumulated deficit			(1,792.3)								(1,792.3)
Total liabilities and deficit			2,424.8								2,424.8
Balances Without Adoption of Topic 606 | Services
Revenue
Revenue											2,380.1
Cost of revenue:
Cost of revenue											2,007.5
Balances Without Adoption of Topic 606 | Technology
Revenue
Revenue											298.8
Cost of revenue:
Cost of revenue											122.4
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net periodic benefit cost, other than service cost												$ 92.5		$ 81.6
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment		(21.4)
Accounting Standards Update 2014-09 | Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment		(21.4)
Accounting Standards Update 2014-09 | Adjustments
Cost of revenue:
Selling, general and administrative expenses											0.9
Operating income											(138.2)
Income before income taxes											(138.2)
Provision for income taxes											(18.6)
Consolidated net income (loss)											(119.6)
Net income attributable to Unisys Corporation											(119.6)
Assets
Accounts receivable, net current			10.9								10.9
Contract assets			(29.7)								(29.7)
Inventories			10.6								10.6
Prepaid expenses and other current assets			1.5								1.5
Deferred income taxes - long-term			1.7								1.7
Other long-term assets			(27.8)								(27.8)
Total assets			(32.8)								(32.8)
Liabilities
Deferred revenue - current			70.3								70.3
Other accrued liabilities - current			(20.7)								(20.7)
Long-term deferred revenue			10.4								10.4
Other long-term liabilities			5.5								5.5
Equity
Accumulated deficit			(98.3)								(98.3)
Total liabilities and deficit			$ (32.8)								(32.8)
Accounting Standards Update 2014-09 | Adjustments | Services
Revenue
Revenue											(6.2)
Cost of revenue:
Cost of revenue											(3.0)
Accounting Standards Update 2014-09 | Adjustments | Technology
Revenue
Revenue											(139.9)
Cost of revenue:
Cost of revenue											$ (5.8)
Accounting Standards Update 2017-05
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment		6.3
Accounting Standards Update 2017-05 | Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment		$ 6.3

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

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Cost-reduction actions - Additional Information (Detail)	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($) employee	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) employee	Dec. 31, 2016 USD ($) employee
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs	$ 22,800,000	$ (900,000)	$ 700,000	$ (2,900,000)	$ 47,800,000	$ 46,100,000	$ 27,500,000	$ 25,400,000
Idle leased facilities
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs									$ 0	$ 4,200,000	$ 1,400,000
Expense (benefit) for changes in estimates									700,000	500,000	0
Net foreign currency translation adjustment | Other income (expense), net
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										(11,800,000)
2018 Cost-reduction Plan
Restructuring Cost and Reserve [Line Items]
Number of employees | employee	589
Charges related to work-force reductions	$ 27,700,000
2018 Cost-reduction Plan | Cost of revenue | Services
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs	25,400,000
2018 Cost-reduction Plan | Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs	$ 2,300,000
2018 Cost-reduction Plan | U.S.
Restructuring Cost and Reserve [Line Items]
Number of employees | employee	264
Charges related to work-force reductions	$ 5,200,000
2018 Cost-reduction Plan | Non-U.S.
Restructuring Cost and Reserve [Line Items]
Number of employees | employee	325
Charges related to work-force reductions	$ 22,500,000
2015 Cost-reduction Plan
Restructuring Cost and Reserve [Line Items]
Charges related to work-force reductions										117,900,000	62,600,000
Cost-reduction charges and other costs									0	146,800,000	82,100,000
Expense (benefit) for changes in estimates									(8,000,000)
Other expenses related to the cost-reduction effort										28,900,000	19,500,000
2015 Cost-reduction Plan | Cost of revenue | Services
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										99,600,000	42,400,000
Expense (benefit) for changes in estimates									7,300,000
2015 Cost-reduction Plan | Cost of revenue | Technology
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										400,000
2015 Cost-reduction Plan | Selling, general and administrative expenses
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										33,600,000	38,000,000
Expense (benefit) for changes in estimates									$ 700,000
2015 Cost-reduction Plan | Research and development expenses
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										1,400,000	1,700,000
2015 Cost-reduction Plan | Other income (expense), net
Restructuring Cost and Reserve [Line Items]
Cost-reduction charges and other costs										11,800,000
2015 Cost-reduction Plan | Idle leased facilities
Restructuring Cost and Reserve [Line Items]
Other expenses related to the cost-reduction effort										4,700,000	1,400,000
2015 Cost-reduction Plan | Contract amendment and termination
Restructuring Cost and Reserve [Line Items]
Other expenses related to the cost-reduction effort										5,400,000	4,100,000
2015 Cost-reduction Plan | Professional fees and other expenses related to the cost-reduction effort
Restructuring Cost and Reserve [Line Items]
Other expenses related to the cost-reduction effort										5,200,000	13,300,000
2015 Cost-reduction Plan | Net asset sales and write-offs
Restructuring Cost and Reserve [Line Items]
Other expenses related to the cost-reduction effort										1,800,000	$ 700,000
2015 Cost-reduction Plan | Net foreign currency translation adjustment
Restructuring Cost and Reserve [Line Items]
Other expenses related to the cost-reduction effort										$ 11,800,000
2015 Cost-reduction Plan | U.S.
Restructuring Cost and Reserve [Line Items]
Number of employees | employee										542	351
Charges related to work-force reductions										$ 9,400,000	$ 8,300,000
2015 Cost-reduction Plan | U.S. | Changes in estimates
Restructuring Cost and Reserve [Line Items]
Charges related to work-force reductions										$ (1,300,000)	$ (1,300,000)
2015 Cost-reduction Plan | Non-U.S.
Restructuring Cost and Reserve [Line Items]
Number of employees | employee										2,274	1,048
Charges related to work-force reductions										$ 109,400,000	$ 58,600,000
2015 Cost-reduction Plan | Non-U.S. | Changes in estimates
Restructuring Cost and Reserve [Line Items]
Charges related to work-force reductions										(7,800,000)	$ (3,000,000)
2015 Cost-reduction Plan | Non-U.S. | Additional benefits provided in 2017
Restructuring Cost and Reserve [Line Items]
Charges related to work-force reductions										$ 8,200,000

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Cost-reduction actions - Reconciliation of Liabilities and Expected Future Payments (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Reserve [Roll Forward]
Additional provisions	$ 22.8	$ (0.9)	$ 0.7	$ (2.9)	$ 47.8	$ 46.1	$ 27.5	$ 25.4
Total
Restructuring Reserve [Roll Forward]
Balance at beginning of period				117.8				36.6	$ 89.1	$ 117.8	$ 36.6	$ 33.0
Additional provisions										27.7	131.2	68.3
Payments										(44.4)	(49.3)	(59.3)
Changes in estimates										(8.0)	(8.6)	(4.3)
Translation adjustments										(4.0)	7.9	(1.1)
Balance at end of period	89.1				117.8					89.1	117.8	36.6
In 2019										44.4	49.3	59.3
Total | Scenario, Forecast
Restructuring Reserve [Roll Forward]
Payments									(75.8)
In 2019									75.8
Beyond 2019									13.3
Work-Force Reductions | U.S.
Restructuring Reserve [Roll Forward]
Balance at beginning of period				3.9				1.8	6.1	3.9	1.8	4.2
Additional provisions										5.2	9.4	8.3
Payments										(3.1)	(6.0)	(9.4)
Changes in estimates										0.1	(1.3)	(1.3)
Translation adjustments										0.0	0.0	0.0
Balance at end of period	6.1				3.9					6.1	3.9	1.8
In 2019										3.1	6.0	9.4
Work-Force Reductions | U.S. | Scenario, Forecast
Restructuring Reserve [Roll Forward]
Payments									(5.6)
In 2019									5.6
Beyond 2019									0.5
Work-Force Reductions | International
Restructuring Reserve [Roll Forward]
Balance at beginning of period				109.6				33.4	80.1	109.6	33.4	28.8
Additional provisions										22.5	117.6	58.6
Payments										(39.3)	(41.3)	(49.9)
Changes in estimates										(8.8)	(7.8)	(3.0)
Translation adjustments										(3.9)	7.7	(1.1)
Balance at end of period	80.1				109.6					80.1	109.6	33.4
In 2019										39.3	41.3	49.9
Work-Force Reductions | International | Scenario, Forecast
Restructuring Reserve [Roll Forward]
Payments									(68.8)
In 2019									68.8
Beyond 2019									11.3
Idle Leased Facilities Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period				$ 4.3				$ 1.4	2.9	4.3	1.4	0.0
Additional provisions										0.0	4.2	1.4
Payments										(2.0)	(2.0)	0.0
Changes in estimates										0.7	0.5	0.0
Translation adjustments										(0.1)	0.2	0.0
Balance at end of period	$ 2.9				$ 4.3					2.9	4.3	1.4
In 2019										$ 2.0	$ 2.0	$ 0.0
Idle Leased Facilities Costs | Scenario, Forecast
Restructuring Reserve [Roll Forward]
Payments									(1.4)
In 2019									1.4
Beyond 2019									$ 1.5

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Rental expense and commitments - Schedule of Rental Expense and Income from Subleases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rental expense, less income from subleases	$ 67.4	$ 71.7	$ 77.4
Income from subleases	$ 3.1	$ 4.4	$ 7.8

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Rental expense and commitments - Schedule of Minimum Net Rental Commitments Under Noncancelable Operating Leases (Details) $ in Millions	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 48.5
2020	42.1
2021	30.0
2022	20.8
2023	14.3
Thereafter	24.4
Total	$ 180.1

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Rental expense and commitments - Additional Information (Detail) $ in Millions	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Future minimum sublease rentals	$ 2.7
Standby letters of credit and surety bonds outstanding	272.0
Deposits and collateralized assets	$ 15.0

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Foreign currency - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intercompany Foreign Currency Balance [Line Items]
Gain (loss) recognized on foreign exchange	$ (5.9)	$ (9.9)	$ 2.3
Exiting Foreign Countries
Intercompany Foreign Currency Balance [Line Items]
Gain (loss) recognized on foreign exchange		$ (11.8)
Argentina
Intercompany Foreign Currency Balance [Line Items]
Net monetary assets denominated in local currency	$ 5.1

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Income taxes - Total Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income (loss) before income taxes
United States									$ (53.6)	$ (152.7)	$ (88.3)
Foreign									196.8	80.6	108.8
Income (loss) before income taxes	$ 38.1	$ 22.2	$ 20.3	$ 62.6	$ 27.4	$ (40.4)	$ (42.3)	$ (16.8)	143.2	(72.1)	20.5
Current
United States									4.7	(42.8)	6.7
Foreign									51.4	33.9	47.7
Total									56.1	(8.9)	54.4
Deferred
Foreign									8.2	3.4	2.8
Provision (benefit) for income taxes									$ 64.3	$ (5.5)	$ 57.2

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Income taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
United States statutory income tax provision (benefit)	$ 30.1	$ (25.2)	$ 7.2
Income and losses for which no provision or benefit has been recognized	22.2	70.3	65.5
Foreign rate differential and other foreign tax expense	9.5	(11.3)	(21.1)
Income tax withholdings	19.3	16.8	22.8
Permanent items	(5.0)	(3.0)	(4.7)
Enacted rate changes	(2.3)	(0.4)	3.5
Change in uncertain tax positions	(1.2)	2.3	0.4
Change in valuation allowances due to changes in judgment	(5.9)	(4.6)	(16.4)
Income tax credits, U.S.	(2.4)	(50.4)	0.0
Provision (benefit) for income taxes	$ 64.3	$ (5.5)	$ 57.2

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Income taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Credit Carryforward [Line Items]
Income tax benefit, principally related to Tax Cuts and Jobs Act		$ 50,400,000
Rate change in the company's income tax provision	$ (2,300,000)	(400,000)	$ 3,500,000
Net financial statement impact due to valuation allowance recorded against all U.S. deferred tax assets		0
Provision for income taxes that may become payable upon distribution of earnings of certain foreign subsidiaries	0
Unrecognized deferred income tax liability	25,300,000
Penalties and interest accrued related to income tax liabilities	2,600,000	$ 2,300,000
Utilization of tax attributes, annual limitation	70,600,000
Utilization of tax attributes, cumulative limitation	$ 454,900,000
Minimum
Tax Credit Carryforward [Line Items]
Expected change in ownership percentage	50.00%
Netherlands
Tax Credit Carryforward [Line Items]
Rate change in the company's income tax provision			(2,200,000)
UK
Tax Credit Carryforward [Line Items]
Rate change in the company's income tax provision			$ 3,500,000

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Income taxes - Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Tax loss carryforwards	$ 860.0	$ 837.6
Postretirement benefits	440.3	437.7
Foreign tax credit carryforwards	221.6	127.0
Other tax credit carryforwards	29.8	29.1
Deferred revenue	37.1	40.9
Employee benefits and compensation	31.1	35.2
Purchased capitalized software	22.9	22.2
Depreciation	20.1	24.5
Warranty, bad debts and other reserves	4.8	5.3
Capitalized costs	5.1	3.1
Other	30.4	39.3
Total deferred tax assets, gross	1,703.2	1,601.9
Valuation allowance	(1,547.5)	(1,441.1)
Total deferred tax assets	155.7	160.8
Deferred tax liabilities
Capitalized research and development	36.1	24.3
Other	30.2	25.8
Total deferred tax liabilities	66.3	50.1
Net deferred tax assets	$ 89.4	$ 110.7

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Income taxes - Tax Loss Carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U.S. Federal	$ 349.6
State and local	257.5
Foreign	252.9
Total tax loss carryforwards	860.0	$ 837.6
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	860.0
2019
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	7.7
2020
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	25.9
2021
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	14.1
2022
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	15.1
2023
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	14.3
Thereafter
Operating Loss Carryforwards [Line Items]
Tax loss carryforwards, set to expire	$ 782.9

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Income taxes - Tax Credit Carryforwards (Details) $ in Millions	Dec. 31, 2018 USD ($)
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	$ 251.4
2019
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	11.8
2020
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	24.5
2021
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	41.9
2022
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	38.1
2023
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	27.0
Thereafter
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, set to expire	$ 108.1

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Income taxes - Cash Paid for Income Taxes, Net of Refunds (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Cash paid for income taxes, net of refunds	$ 39.1	$ 34.3	$ 46.4

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Income taxes - Reconciliation of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1	$ 27.9	$ 35.8	$ 27.7
Additions based on tax positions related to the current year	2.6	4.2	2.7
Changes for tax positions of prior years	(6.1)	(11.2)	12.0
Reductions as a result of a lapse of applicable statute of limitations	(2.4)	(2.7)	(2.8)
Settlements	(1.5)	(0.2)	(0.1)
Changes due to foreign currency	(1.6)	2.0	(3.7)
Balance at December 31	$ 18.9	$ 27.9	$ 35.8

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Earnings per common share - Computation of Earnings Per Common Share Attributable to Unisys Corporation (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basic earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$ 25,000,000	$ 6,100,000	$ 3,800,000	$ 40,600,000	$ 50,500,000	$ (41,100,000)	$ (42,000,000)	$ (32,700,000)	$ 75,500,000	$ (65,300,000)	$ (47,700,000)
Weighted average shares (in shares)									50,946	50,409	50,060
Basic earnings (loss) per common share (in dollars per share)	$ 0.49	$ 0.12	$ 0.07	$ 0.80	$ 1.00	$ (0.81)	$ (0.83)	$ (0.65)	$ 1.48	$ (1.30)	$ (0.95)
Diluted earnings (loss) per common share computation:
Net income (loss) attributable to Unisys Corporation common shareholders	$ 25,000,000	$ 6,100,000	$ 3,800,000	$ 40,600,000	$ 50,500,000	$ (41,100,000)	$ (42,000,000)	$ (32,700,000)	$ 75,500,000	$ (65,300,000)	$ (47,700,000)
Add interest expense on convertible senior notes, net of tax of zero									19,600,000	0	0
Interest expense on convertible senior notes, tax									0	0	0
Net income (loss) attributable to Unisys Corporation for diluted earnings per share									$ 95,100,000	$ (65,300,000)	$ (47,700,000)
Weighted average shares (in shares)									50,946	50,409	50,060
Plus incremental shares from assumed conversions:
Employee stock plans (in shares)									541	0	0
Convertible senior notes (in shares)									21,868	0	0
Adjusted weighted average shares (in shares)									73,355	50,409	50,060
Diluted earnings (loss) per common share (in dollars per share)	$ 0.41	$ 0.12	$ 0.07	$ 0.62	$ 0.76	$ (0.81)	$ (0.83)	$ (0.65)	$ 1.30	$ (1.30)	$ (0.95)
Stock options and restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive weighted-average securities (in shares)									1,226	2,206	3,553
Common shares issuable upon conversion of the 5.50% convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive weighted-average securities (in shares)									0	21,868	17,230
Convertible senior notes interest rate	5.50%								5.50%

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Accounts receivable - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Revenue recognized in excess of billings on services contracts or unbilled accounts receivable	$ 94.4	$ 109.4
Unearned income deducted from accounts receivable	8.4	12.5
Allowance for doubtful accounts	13.7	22.0
Provision for doubtful accounts reported in selling, general and administrative expenses, (income) expense	$ (5.1)	$ 3.1	$ 2.2

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Accounts receivable - Schedule of Receivables Under Sales-Type Lease (Details) $ in Millions	Dec. 31, 2018 USD ($)
Receivables [Abstract]
2019	$ 36.2
2020	15.2
2021	10.7
2022	10.1
2023	10.2
Thereafter	8.6
Total	$ 91.0

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Financial instruments and concentration of credit risks - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements Disclosure [Line Items]
Maturity period limit of foreign currency exchange instruments (in months)	3 months
Receivables due from U.S. federal governmental agencies	$ 85.8	$ 75.8
Foreign Exchange Forward Contract
Fair Value Measurements Disclosure [Line Items]
Notional amount of foreign exchange forward contracts not designated as hedging instruments	$ 384.7	$ 514.0

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Financial instruments and concentration of credit risks - Fair Value of Foreign Exchange Forward Contracts by Balance Sheet Location (Details) - Foreign Exchange Forward Contract - Level 2 - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total fair value	$ 3.1	$ 3.3
Prepaid expenses and other current assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	3.4	4.9
Other accrued liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ 0.3	$ 1.6

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Financial instruments and concentration of credit risks - Gains and Losses Recognized on Foreign Exchange Forward Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other income (expense), net
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]
Amount of gain (loss) recognized	$ (14.2)	$ 27.5	$ (29.1)

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Properties - Components of Properties (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total properties		$ 800.2	$ 898.8
Net proceeds received		19.2	0.0	$ 0.0
Pretax gain		7.3	0.0	$ 0.0
Land
Property, Plant and Equipment [Line Items]
Total properties		2.3	2.8
Buildings
Property, Plant and Equipment [Line Items]
Total properties		63.5	91.3
Machinery and office equipment
Property, Plant and Equipment [Line Items]
Total properties		530.0	601.7
Internal-use software
Property, Plant and Equipment [Line Items]
Total properties		164.7	157.4
Rental equipment
Property, Plant and Equipment [Line Items]
Total properties		$ 39.7	$ 45.6
United Kingdom | Building and land
Property, Plant and Equipment [Line Items]
Net proceeds received	$ 19.2
Pretax gain	$ 7.3

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Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0
Goodwill [Line Items]
Goodwill	177,800,000	$ 180,800,000	$ 178,600,000
Services
Goodwill [Line Items]
Goodwill	69,100,000	$ 72,100,000	$ 69,900,000
BPO services | Services
Goodwill [Line Items]
Goodwill	$ 10,400,000

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Goodwill - Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Balance at beginning of year	$ 180.8	$ 178.6
Translation adjustments	(3.0)	2.2
Balance at end of year	177.8	180.8
Services
Goodwill [Roll Forward]
Balance at beginning of year	72.1	69.9
Translation adjustments	(3.0)	2.2
Balance at end of year	69.1	72.1
Technology
Goodwill [Roll Forward]
Balance at beginning of year	108.7	108.7
Translation adjustments	0.0	0.0
Balance at end of year	$ 108.7	$ 108.7

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Debt - Components of Long-term Debt (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt	$ 647,000,000
Other debt	20,800,000	$ 21,300,000
Total	652,800,000	644,700,000
Less – current maturities	10,000,000	10,800,000
Total long-term debt	$ 642,800,000	633,900,000
5.50% convertible senior notes due March 1, 2021
Debt Instrument [Line Items]
Face value			$ 1,000
Senior Notes | 10.75% senior secured notes due April 15, 2022
Debt Instrument [Line Items]
Interest rate	10.75%
Face value	$ 440,000,000.0	440,000,000.0
Unamortized discount and fees	8,000,000.0	10,400,000.0
Long-term debt	$ 432,000,000	429,600,000
Senior Notes | 5.50% convertible senior notes due March 1, 2021
Debt Instrument [Line Items]
Interest rate	5.50%		5.50%
Face value	$ 213,500,000.0	213,500,000.0	$ 213,500,000.0
Unamortized discount and fees	19,300,000.0	27,200,000.0
Long-term debt	194,200,000	186,300,000
Capital Lease Obligations
Debt Instrument [Line Items]
Capital leases	$ 5,800,000	$ 7,500,000

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Debt - Estimated Fair Values of Long-term Debt (Details) - Senior Notes - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
10.75% senior secured notes due April 15, 2022
Debt Instrument [Line Items]
Interest rate	10.75%
5.50% convertible senior notes due March 1, 2021
Debt Instrument [Line Items]
Interest rate	5.50%		5.50%
Estimated Fair Value | 10.75% senior secured notes due April 15, 2022
Debt Instrument [Line Items]
Long-term debt	$ 486.8	$ 492.8
Estimated Fair Value | 5.50% convertible senior notes due March 1, 2021
Debt Instrument [Line Items]
Long-term debt	$ 298.5	$ 237.9

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Debt - Schedule of Maturities of Long-term Debt, Including Capital Leases (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Total
2019	$ 10.0
2020	2.5
2021	197.5
2022	434.8
2023	1.8
Thereafter	6.2
Total	652.8	$ 644.7
Long-Term Debt
2019	8.4
2020	0.9
2021	195.9
2022	433.8
2023	1.8
Thereafter	6.2
Long-term debt	647.0
Capital Leases
2019	1.6
2020	1.6
2021	1.6
2022	1.0
2023	0.0
Thereafter	0.0
Capital Leases	$ 5.8

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Debt - Cash Paid for Interest and Capitalized Interest (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Cash paid for interest	$ 59.5	$ 39.9	$ 22.1
Capitalized interest expense	$ 6.0	$ 4.2	$ 3.0

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Debt - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) shares $ / shares	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)
Debt Instrument [Line Items]
Payments for capped call transactions	$ 0	$ 0	$ 27,300,000
Convertible Senior Notes due 2021
Debt Instrument [Line Items]
Aggregate principal amount			1,000
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 145,000,000	$ 125,000,000.0
Accordion feature increase limit	150,000,000
Borrowings outstanding	0
Availability under the facility, net of letters of credit issued	$ 138,500,000
Springing maturity, period prior to maturity date of convertible senior notes due 2021	91 days
Springing maturity, period prior to maturity date of secured notes due 2022	60 days
Credit Agreement | Letters of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 30,000,000.0
Letters of credit outstanding	$ 6,500,000
Senior Notes | Senior Secured Notes due 2022
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 | Convertible Senior Notes due 2021
Debt Instrument [Line Items]
Aggregate principal amount	$ 213,500,000.0	$ 213,500,000.0	$ 213,500,000.0
Interest rate	5.50%		5.50%
Effective interest rate			9.50%
Conversion rate (in shares) | shares			102.4249
Total amount of conversion (in shares) | shares			21,867,716
Conversion price (in usd per share) | $ / shares	$ 12.75		$ 9.76
Payments for capped call transactions			$ 27,300,000
Conversion premium	60.00%		22.50%
Line of Credit | Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Requirement to maintain fixed charge coverage ratio, availability threshold, percent of lender commitments under facility	10.00%
Requirement to maintain fixed charge coverage ratio, availability threshold	$ 15,000,000
Amount of aggregate default under other debt that would trigger event of default	$ 50,000,000

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Debt - Schedule of Interest Expense (Details) - Senior Notes - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Senior Secured Notes due 2022
Debt Instrument [Line Items]
Contractual interest coupon	$ 47.3	$ 33.2	$ 0.0
Amortization of debt discount	2.4	1.7	0.0
Total	49.7	34.9	0.0
Convertible Senior Notes due 2021
Debt Instrument [Line Items]
Contractual interest coupon	11.8	11.8	9.2
Amortization of debt discount	6.6	6.0	4.3
Amortization of debt issuance costs	1.2	1.2	1.0
Total	$ 19.6	$ 19.0	$ 14.5

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Other accrued liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Payrolls and commissions	$ 108.1	$ 120.2
Cost-reduction	75.8	87.7
Accrued vacations	41.2	42.8
Income taxes	32.3	26.0
Taxes other than income taxes	31.2	29.1
Postretirement	14.8	18.5
Accrued interest	13.8	13.8
Other	32.8	53.4
Total other accrued liabilities	$ 350.0	$ 391.5

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Employee plans - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) plan $ / shares shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of unissued common stock available for grant under the plans (in shares) | shares	2,400,000
Share-based compensation expense	$ 13.2	$ 11.2	$ 9.5
Grants of stock option awards (in shares) | shares	0	0	11,000
Weighted-average fair value of grant (in dollars per share) | $ / shares			$ 4.53
Stock option awards outstanding (in shares) | shares	1,100,000
Weighted-average exercise price of outstanding stock option awards (in dollars per share) | $ / shares	$ 27.90
Matching contribution by the company as percentage of participants' contribution	50.00%
Percentage of eligible pay contributed by participants that will be matched	6.00%
Cost recognized for contribution plans	$ 11.1	$ 10.8	$ 10.7
Deferred compensation liability	11.6	13.4
International Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost recognized for contribution plans	21.3	18.5	19.0
Pension Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated cash contributions by the company in next fiscal year	105.6
Pension Plans | U.S. Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash pension settlement charge	0.0	0.0	0.0
Estimated cash contributions by the company in next fiscal year	$ 67.2
Pension Plans | International Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of defined benefit plans with cash lump-sum payments paid to certain plan participants | plan	2
Non-cash pension settlement charge	$ 6.4	0.0	0.0
Estimated cash contributions by the company in next fiscal year	38.4
Other Postretirement Benefit Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated cash contributions by the company in next fiscal year	8.0
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	13.1	10.1	7.5
Aggregate weighted-average grant-date fair value of units granted	17.9	14.4	12.9
Total unrecognized compensation cost	$ 12.2
Unrecognized compensation cost, weighted-average recognition period	1 year 10 months 25 days
Aggregate weighted-average grant-date fair value of units vested	$ 10.4	7.4	3.5
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.1	$ 1.1	$ 2.0
Performance-Based Unit | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares which will vest after achievement of goals (in shares) | shares	0
Performance-Based Unit | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares which will vest after achievement of goals (in shares) | shares	2

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Employee plans - Summary of Restricted Stock Unit Activity (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Weighted-Average Grant-Date Fair Value
Granted (in dollars per share)	$ 15.20
Restricted Stock Units
Restricted Stock Units
Outstanding at beginning of period (in shares) | shares	1,688
Granted (in shares) | shares	1,449
Vested (in shares) | shares	(778)
Forfeited and expired (in shares) | shares	(208)
Outstanding at end of period (in shares) | shares	2,151
Weighted-Average Grant-Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 13.39
Granted (in dollars per share)	12.53
Vested (in dollars per share)	13.43
Forfeited and expired (in dollars per share)	12.53
Outstanding at end of period (in dollars per share)	$ 12.90

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Employee plans - Weighted Average Assumptions for Restricted Stock Units (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares
Retirement Benefits [Abstract]
Weighted-average fair value of grant (in dollars per share)	$ 15.20
Risk-free interest rate	2.26%
Expected volatility	52.97%
Expected life of restricted stock units in years	2 years 10 months 17 days
Expected dividend yield	0.00%

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Employee plans - Funded Status of the Plan and Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	$ 147.6	$ 148.3	$ 33.3
Other accrued liabilities	(14.8)	(18.5)
Long-term postretirement liabilities	(1,956.5)	(2,004.4)
Pension Plans | U.S. Plans
Change in projected benefit obligation
Benefit obligation at beginning of year	5,001.6	4,972.0
Service cost	0.0	0.0	0.0
Interest cost	186.6	211.3	231.3
Plan participants’ contributions	0.0	0.0
Plan amendment	0.0	0.0
Plan curtailment	0.0	0.0
Plan settlement	0.0	0.0
Actuarial loss (gain)	(270.7)	177.0
Benefits paid	(359.5)	(358.7)
Foreign currency translation adjustments	0.0	0.0
Benefit obligation at end of year	4,558.0	5,001.6	4,972.0
Change in plan assets
Fair value of plan assets at beginning of year	3,578.4	3,452.1
Actual return on plan assets	(193.3)	424.0
Employer contribution	87.2	61.0
Plan participants’ contributions	0.0	0.0
Plan settlement	0.0	0.0
Benefits paid	(359.5)	(358.7)
Foreign currency translation and other adjustments	0.0	0.0
Fair value of plan assets at end of year	3,112.8	3,578.4	3,452.1
Funded status at end of year	(1,445.2)	(1,423.2)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	0.0	0.0
Other accrued liabilities	(6.7)	(6.8)
Long-term postretirement liabilities	(1,438.5)	(1,416.4)
Total funded status	(1,445.2)	(1,423.2)
Accumulated other comprehensive loss, net of tax
Net loss	2,718.6	2,960.6
Prior service credit	(37.3)	(39.8)
Accumulated benefit obligation	4,558.0	5,001.6
Pension Plans | International Plans
Change in projected benefit obligation
Benefit obligation at beginning of year	3,189.7	3,076.2
Service cost	3.2	5.1	7.4
Interest cost	67.3	72.8	87.8
Plan participants’ contributions	1.5	1.9
Plan amendment	20.6	(52.5)
Plan curtailment	0.0	(2.2)
Plan settlement	(16.4)	0.0
Actuarial loss (gain)	(169.5)	(93.8)
Benefits paid	(108.7)	(117.1)
Foreign currency translation adjustments	(158.2)	299.3
Benefit obligation at end of year	2,829.5	3,189.7	3,076.2
Change in plan assets
Fair value of plan assets at beginning of year	2,833.9	2,429.7
Actual return on plan assets	(75.4)	172.3
Employer contribution	42.5	77.4
Plan participants’ contributions	1.5	1.9
Plan settlement	(16.4)	0.0
Benefits paid	(108.7)	(117.1)
Foreign currency translation and other adjustments	(138.0)	269.7
Fair value of plan assets at end of year	2,539.4	2,833.9	2,429.7
Funded status at end of year	(290.1)	(355.8)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	146.4	147.4
Other accrued liabilities	(0.1)	(0.2)
Long-term postretirement liabilities	(436.4)	(503.0)
Total funded status	(290.1)	(355.8)
Accumulated other comprehensive loss, net of tax
Net loss	988.0	1,067.8
Prior service credit	(46.8)	(69.8)
Accumulated benefit obligation	2,828.2	3,188.0
Other Postretirement Benefit Plans
Change in projected benefit obligation
Benefit obligation at beginning of year	103.2	120.1
Service cost	0.6	0.5	0.4
Interest cost	4.8	5.6	6.2
Plan participants’ contributions	3.1	3.5
Plan amendment	0.0	(7.4)
Actuarial loss (gain)	(4.2)	(4.3)
Federal drug subsidy	0.2	0.3
Benefits paid	(11.5)	(15.7)
Foreign currency translation adjustments	0.0	0.6
Benefit obligation at end of year	96.2	103.2	120.1
Change in plan assets
Fair value of plan assets at beginning of year	7.6	7.9
Actual return on plan assets	(0.4)	(0.3)
Employer contribution	9.0	12.2
Plan participants’ contributions	3.1	3.5
Benefits paid	(11.5)	(15.7)
Fair value of plan assets at end of year	7.8	7.6	$ 7.9
Funded status at end of year	(88.4)	(95.6)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid postretirement assets	1.2	0.9
Other accrued liabilities	(8.0)	(11.5)
Long-term postretirement liabilities	(81.6)	(85.0)
Total funded status	(88.4)	(95.6)
Accumulated other comprehensive loss, net of tax
Net loss	10.5	14.9
Prior service credit	$ (8.2)	$ (9.8)

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Employee plans - Schedule of Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Accumulated benefit obligation	$ 6,433.6	$ 7,151.7
Fair value of plan assets	4,553.2	5,227.0
Projected benefit obligation	6,434.9	7,153.4
Fair value of plan assets	$ 4,553.2	$ 5,227.0

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Employee plans - Components of Net Periodic Benefit Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plans | U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0.0	$ 0.0	$ 0.0
Interest cost	186.6	211.3	231.3
Expected return on plan assets	(230.6)	(235.2)	(253.1)
Amortization of prior service credit	(2.5)	(2.5)	(2.5)
Recognized net actuarial loss	125.1	126.4	116.0
Curtailment gain	0.0	0.0	0.0
Settlement loss	0.0	0.0	0.0
Net periodic pension cost (income)	78.6	100.0	91.7
Pension Plans | International Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	3.2	5.1	7.4
Interest cost	67.3	72.8	87.8
Expected return on plan assets	(114.4)	(127.5)	(139.5)
Amortization of prior service credit	(3.7)	(2.4)	(3.0)
Recognized net actuarial loss	42.3	49.8	40.3
Curtailment gain	0.0	(5.4)	(2.0)
Settlement loss	6.4	0.0	0.0
Net periodic pension cost (income)	1.1	(7.6)	(9.0)
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.6	0.5	0.4
Interest cost	4.8	5.6	6.2
Expected return on plan assets	(0.4)	(0.5)	(0.4)
Amortization of prior service credit	(1.6)	(0.7)	0.0
Recognized net actuarial loss	1.0	0.8	0.5
Net periodic pension cost (income)	$ 4.4	$ 5.7	$ 6.7

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Employee plans - Schedule of Weighted-Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plans | U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.87%	4.38%	4.56%
Expected long-term rate of return on assets	6.80%	6.80%	6.80%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	4.50%	3.87%	4.38%
Pension Plans | International Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.24%	2.34%	3.30%
Expected long-term rate of return on assets	4.38%	5.30%	5.99%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	2.55%	2.24%	2.34%
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	5.30%	5.53%	5.61%
Expected long-term rate of return on assets	5.50%	5.50%	5.50%
Weighted-average assumptions used to determine benefit obligations at December 31 were as follows:
Discount rate	5.67%	5.30%	5.53%

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Employee plans - Company's Investment Policy Targets and Ranges for Each Asset Category (Details) - Pension Plans	Dec. 31, 2018
U.S. Plans | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	42.00%
U.S. Plans | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	38.00%
U.S. Plans | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
U.S. Plans | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
U.S. Plans | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	20.00%
U.S. Plans | Minimum | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	36.00%
U.S. Plans | Minimum | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	35.00%
U.S. Plans | Minimum | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
U.S. Plans | Minimum | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
U.S. Plans | Minimum | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	10.00%
U.S. Plans | Maximum | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	48.00%
U.S. Plans | Maximum | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	41.00%
U.S. Plans | Maximum | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
U.S. Plans | Maximum | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	5.00%
U.S. Plans | Maximum | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	30.00%
International Plans | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	22.00%
International Plans | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	62.00%
International Plans | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	1.00%
International Plans | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	1.00%
International Plans | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	14.00%
International Plans | Minimum | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	16.00%
International Plans | Minimum | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	55.00%
International Plans | Minimum | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
International Plans | Minimum | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	0.00%
International Plans | Minimum | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	7.00%
International Plans | Maximum | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	28.00%
International Plans | Maximum | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	68.00%
International Plans | Maximum | Real estate
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	3.00%
International Plans | Maximum | Cash
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	5.00%
International Plans | Maximum | Other
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan target allocation percentage of assets	21.00%

XML

Employee plans - Expected Future Benefit Payments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Pension Plans | U.S. Plans
Expected Payments
Expected future benefit payments, 2019	$ 362.2
Expected future benefit payments, 2020	359.4
Expected future benefit payments, 2021	357.1
Expected future benefit payments, 2022	354.4
Expected future benefit payments, 2023	350.9
Expected future benefit payments, 2024 - 2028	1,652.1
Pension Plans | International Plans
Expected Payments
Expected future benefit payments, 2019	97.8
Expected future benefit payments, 2020	101.2
Expected future benefit payments, 2021	104.2
Expected future benefit payments, 2022	112.2
Expected future benefit payments, 2023	118.2
Expected future benefit payments, 2024 - 2028	627.4
Other Postretirement Benefit Plans
Expected Payments
Expected future benefit payments, 2019	9.1
Expected future benefit payments, 2020	9.6
Expected future benefit payments, 2021	9.1
Expected future benefit payments, 2022	8.5
Expected future benefit payments, 2023	7.9
Expected future benefit payments, 2024 - 2028	$ 30.9

XML

Employee plans - Assumed Health Care Cost Trend Rates (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Health care cost trend rate assumed for next year	6.80%	6.60%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.80%	4.80%
Year that the rate reaches the ultimate trend rate	2023	2023

XML

Employee plans - Schedule of Plan Assets at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Plans | U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 3,112.8	$ 3,578.4	$ 3,452.1
Pension Plans | U.S. Plans | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	911.7	1,465.1
Pension Plans | U.S. Plans | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	494.8	584.4
Pension Plans | U.S. Plans | U.S. Govt. Securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	498.5	139.8
Pension Plans | U.S. Plans | Other Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	374.6	830.6
Pension Plans | U.S. Plans | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	196.6
Pension Plans | U.S. Plans | Real Estate Investment Trusts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	17.0	113.5
Pension Plans | U.S. Plans | Real Estate Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	156.7
Pension Plans | U.S. Plans | Derivatives
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		2.6
Pension Plans | U.S. Plans | Derivatives, excluding cumulative futures contracts variation margin (received) paid (from) to brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	35.8
Pension Plans | U.S. Plans | Cumulative futures contracts variation margin received from brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(29.3)
Pension Plans | U.S. Plans | Pooled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	143.7	228.0
Pension Plans | U.S. Plans | Cash
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	3.7	34.8
Pension Plans | U.S. Plans | Receivables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	20.5	58.1
Pension Plans | U.S. Plans | Payables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(1.4)	(116.7)
Pension Plans | U.S. Plans | Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2,822.9	3,340.2
Pension Plans | U.S. Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,451.6	1,704.5
Pension Plans | U.S. Plans | Level 1 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	909.0	1,461.9
Pension Plans | U.S. Plans | Level 1 | U.S. Govt. Securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	498.5	139.8
Pension Plans | U.S. Plans | Level 1 | Real Estate Investment Trusts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	17.0	113.5
Pension Plans | U.S. Plans | Level 1 | Derivatives
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		13.1
Pension Plans | U.S. Plans | Level 1 | Derivatives, excluding cumulative futures contracts variation margin (received) paid (from) to brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	33.6
Pension Plans | U.S. Plans | Level 1 | Cumulative futures contracts variation margin received from brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(29.3)
Pension Plans | U.S. Plans | Level 1 | Cash
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	3.7	34.8
Pension Plans | U.S. Plans | Level 1 | Receivables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	20.5	58.1
Pension Plans | U.S. Plans | Level 1 | Payables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(1.4)	(116.7)
Pension Plans | U.S. Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,371.3	1,635.7
Pension Plans | U.S. Plans | Level 2 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.7	3.2
Pension Plans | U.S. Plans | Level 2 | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	494.8	584.4
Pension Plans | U.S. Plans | Level 2 | Other Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	374.6	830.6
Pension Plans | U.S. Plans | Level 2 | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	196.6
Pension Plans | U.S. Plans | Level 2 | Real Estate Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	156.7
Pension Plans | U.S. Plans | Level 2 | Derivatives
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		(10.5)
Pension Plans | U.S. Plans | Level 2 | Derivatives, excluding cumulative futures contracts variation margin (received) paid (from) to brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.2
Pension Plans | U.S. Plans | Level 2 | Pooled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	143.7	228.0
Pension Plans | U.S. Plans | Level 3
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | U.S. Plans | Level 3 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	289.9	238.2
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	19.8
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient | Other, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	110.2	105.1
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient | Private Real Estate
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	179.1	112.4
Pension Plans | U.S. Plans | Plan assets measured using NAV as a practical expedient | Private Equity
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.6	0.9
Pension Plans | International Plans
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2,539.4	2,833.9	2,429.7
Pension Plans | International Plans | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | International Plans | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	165.6	84.0
Pension Plans | International Plans | Other Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	145.5	254.1
Pension Plans | International Plans | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	123.7	135.8
Pension Plans | International Plans | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	321.4	267.5
Pension Plans | International Plans | Real Estate Investment Trusts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1.3	1.4
Pension Plans | International Plans | Derivatives
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		1.2
Pension Plans | International Plans | Derivatives, excluding cumulative futures contracts variation margin (received) paid (from) to brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.4
Pension Plans | International Plans | Other, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	317.0	357.1
Pension Plans | International Plans | Pooled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	123.6	29.2
Pension Plans | International Plans | Cash
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	29.6	25.1
Pension Plans | International Plans | Receivables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.0	19.9
Pension Plans | International Plans | Payables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(2.3)	(1.5)
Pension Plans | International Plans | Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,229.8	1,173.8
Pension Plans | International Plans | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	29.5	46.5
Pension Plans | International Plans | Level 1 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | International Plans | Level 1 | Other Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.2	2.6
Pension Plans | International Plans | Level 1 | Real Estate Investment Trusts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.4
Pension Plans | International Plans | Level 1 | Cash
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	29.6	25.1
Pension Plans | International Plans | Level 1 | Receivables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.0	19.9
Pension Plans | International Plans | Level 1 | Payables
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	(2.3)	(1.5)
Pension Plans | International Plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,076.6	991.5
Pension Plans | International Plans | Level 2 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | International Plans | Level 2 | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	165.6	84.0
Pension Plans | International Plans | Level 2 | Other Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	145.3	251.5
Pension Plans | International Plans | Level 2 | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	321.4	267.5
Pension Plans | International Plans | Level 2 | Real Estate Investment Trusts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1.3	1.0
Pension Plans | International Plans | Level 2 | Derivatives
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		1.2
Pension Plans | International Plans | Level 2 | Derivatives, excluding cumulative futures contracts variation margin (received) paid (from) to brokers
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	2.4
Pension Plans | International Plans | Level 2 | Other, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	317.0	357.1
Pension Plans | International Plans | Level 2 | Pooled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	123.6	29.2
Pension Plans | International Plans | Level 3
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	123.7	135.8
Pension Plans | International Plans | Level 3 | Common Stocks
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Pension Plans | International Plans | Level 3 | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	123.7	135.8	116.2
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	1,309.6	1,660.1
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient | Equity Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	454.9	780.7
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient | Debt Securities, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	814.0	837.7
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient | Other, Commingled Funds
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	23.9	25.2
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient | Private Real Estate
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	16.8	16.5
Pension Plans | International Plans | Plan assets measured using NAV as a practical expedient | Private Equity
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	0.0	0.0
Other Postretirement Plans
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	7.8	7.6	7.9
Other Postretirement Plans | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		7.6
Other Postretirement Plans | Level 3 | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets		7.6
Other Postretirement Plans | U.S. Plans | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	7.8
Other Postretirement Plans | U.S. Plans | Level 3 | Insurance Contracts
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	$ 7.8	$ 7.6	$ 7.9

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Employee plans - Summary of Changes in Level 3 Fair Value of Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Other Postretirement Plans
Change in plan assets
Fair value of plan assets at beginning of year	$ 7.6	$ 7.9
Fair value of plan assets at end of year	7.8	7.6
Other Postretirement Plans | Insurance Contracts
Change in plan assets
Fair value of plan assets at beginning of year	7.6
Fair value of plan assets at end of year		7.6
Other Postretirement Plans | Level 3 | Insurance Contracts
Change in plan assets
Fair value of plan assets at beginning of year	7.6
Fair value of plan assets at end of year		7.6
U.S. Plans | Other Postretirement Plans | Insurance Contracts
Change in plan assets
Fair value of plan assets at end of year	7.8
U.S. Plans | Other Postretirement Plans | Level 3 | Insurance Contracts
Change in plan assets
Fair value of plan assets at beginning of year	7.6	7.9
Realized gains (losses)	(0.4)	(0.2)
Purchases or acquisitions	0.6	0.2
Sales or dispositions	0.0	(0.3)
Currency and unrealized gains (losses) relating to instruments still held at December 31, 2018	0.0	0.0
Fair value of plan assets at end of year	7.8	7.6
U.S. Plans | Pension Plans
Change in plan assets
Fair value of plan assets at beginning of year	3,578.4	3,452.1
Fair value of plan assets at end of year	3,112.8	3,578.4
U.S. Plans | Pension Plans | Level 3
Change in plan assets
Fair value of plan assets at beginning of year	0.0
Fair value of plan assets at end of year	0.0	0.0
International Plans | Pension Plans
Change in plan assets
Fair value of plan assets at beginning of year	2,833.9	2,429.7
Fair value of plan assets at end of year	2,539.4	2,833.9
International Plans | Pension Plans | Insurance Contracts
Change in plan assets
Fair value of plan assets at beginning of year	135.8
Fair value of plan assets at end of year	123.7	135.8
International Plans | Pension Plans | Level 3
Change in plan assets
Fair value of plan assets at beginning of year	135.8
Fair value of plan assets at end of year	123.7	135.8
International Plans | Pension Plans | Level 3 | Insurance Contracts
Change in plan assets
Fair value of plan assets at beginning of year	135.8	116.2
Realized gains (losses)	0.0	0.0
Purchases or acquisitions	3.5	10.8
Sales or dispositions	(11.7)	(11.4)
Currency and unrealized gains (losses) relating to instruments still held at December 31, 2018	(3.9)	20.2
Fair value of plan assets at end of year	$ 123.7	$ 135.8

XML

Employee plans - Additional Information About Plan Assets Valued Using Net Asset Value (Details) - Pension Plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
U.S. Plans
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 3,112.8	$ 3,578.4	$ 3,452.1
Unfunded Commitments	0.0	0.0
U.S. Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	494.8	584.4
U.S. Plans | Debt Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	196.6
Unfunded Commitments	0.0	$ 0.0
Redemption Notice Period Range		5 days
U.S. Plans | Other, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	$ 0.0	$ 0.0
Redemption Notice Period Range	5 days	5 days
U.S. Plans | Private Real Estate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	$ 0.0	$ 0.0
Limited partnerships, period expected to make all distributions	1 year
U.S. Plans | Private Equity
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	$ 0.0	0.0
Limited partnerships, period expected to make all distributions	3 years
International Plans
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 2,539.4	2,833.9	$ 2,429.7
Unfunded Commitments	0.0	0.0
International Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	165.6	84.0
Unfunded Commitments	0.0	0.0
International Plans | Debt Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	321.4	267.5
Unfunded Commitments	0.0	0.0
International Plans | Other, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	317.0	357.1
Unfunded Commitments	0.0	0.0
International Plans | Private Real Estate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	0.0	0.0
Plan assets measured using NAV as a practical expedient | U.S. Plans
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	289.9	238.2
Plan assets measured using NAV as a practical expedient | U.S. Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	0.0	0.0
Plan assets measured using NAV as a practical expedient | U.S. Plans | Debt Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	0.0	19.8
Plan assets measured using NAV as a practical expedient | U.S. Plans | Other, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	110.2	105.1
Plan assets measured using NAV as a practical expedient | U.S. Plans | Private Real Estate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	179.1	112.4
Plan assets measured using NAV as a practical expedient | U.S. Plans | Private Equity
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	0.6	0.9
Plan assets measured using NAV as a practical expedient | International Plans
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	1,309.6	1,660.1
Plan assets measured using NAV as a practical expedient | International Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	454.9	780.7
Plan assets measured using NAV as a practical expedient | International Plans | Debt Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	814.0	837.7
Plan assets measured using NAV as a practical expedient | International Plans | Other, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	23.9	25.2
Plan assets measured using NAV as a practical expedient | International Plans | Private Real Estate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	16.8	16.5
Plan assets measured using NAV as a practical expedient | International Plans | Private Equity
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 0.0	$ 0.0
Minimum | U.S. Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	60 days
Maximum | U.S. Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	90 days	90 days
Maximum | International Plans | Equity Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	2 days	30 days
Maximum | International Plans | Debt Securities, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	30 days	30 days
Maximum | International Plans | Other, Commingled Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	30 days	30 days
Maximum | International Plans | Private Real Estate
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period Range	90 days	90 days

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Litigation and contingencies - Additional Information (Detail) € in Millions, $ in Millions	1 Months Ended	115 Months Ended
	Apr. 30, 2007 EUR (€)	Jul. 31, 2011 USD ($)	Dec. 31, 2018 USD ($)	Apr. 30, 2008 EUR (€)
Loss Contingencies [Line Items]
Amount related to unreserved tax-related matters, inclusive of interest | $			$ 101.0
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 | $		$ 68.0

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Stockholders' equity - Additional Information (Details) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	40,000,000
Preferred stock, par value (in dollars per share)	$ 1
Unissued common stock reserved for stock-based incentive plans and convertible debt (in shares)	34,400,000

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Stockholders' equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		$ (1,326.5)	$ (1,647.4)	$ (1,378.6)
Reclassification pursuant to ASU No. 2018-02		0.0
Other comprehensive income before reclassifications		96.7	506.8	(64.9)
Amounts reclassified from accumulated other comprehensive income		(157.0)	(169.8)	(142.6)
Current period other comprehensive income		(269.0)	337.0	(207.5)
Ending Balance		(1,299.6)	(1,326.5)	(1,647.4)
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(3,815.8)	(4,152.8)	(3,945.3)
Reclassification pursuant to ASU No. 2018-02	$ (208.7)	(208.7)
Ending Balance		(4,084.8)	(3,815.8)	(4,152.8)
Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(817.0)	(927.1)	(833.8)
Reclassification pursuant to ASU No. 2018-02		0.0
Other comprehensive income before reclassifications		(79.7)	121.9	(93.3)
Amounts reclassified from accumulated other comprehensive income		0.0	(11.8)	0.0
Current period other comprehensive income		(79.7)	110.1	(93.3)
Ending Balance		(896.7)	(817.0)	(927.1)
Postretirement Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		(2,998.8)	(3,225.7)	(3,111.5)
Reclassification pursuant to ASU No. 2018-02		(208.7)
Other comprehensive income before reclassifications		176.4	384.9	28.4
Amounts reclassified from accumulated other comprehensive income		(157.0)	(158.0)	(142.6)
Current period other comprehensive income		(189.3)	226.9	(114.2)
Ending Balance		$ (3,188.1)	$ (2,998.8)	$ (3,225.7)

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Stockholders' equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other income (expense), net	$ (76.9)	$ (116.4)	[1]	$ (81.3)	[1]
Total reclassifications for the period	(157.0)	(169.8)		(142.6)
Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications for the period	0.0	(11.8)		0.0
Amortization of prior service cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of postretirement plan items, before tax	7.1	5.6		5.6
Amortization of actuarial losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of postretirement plan items, before tax	(165.9)	(174.1)		(155.2)
Curtailment gain
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of postretirement plan items, before tax	0.0	5.4		2.0
Settlement loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of postretirement plan items, before tax	(3.9)	0.0		0.0
Postretirement Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of postretirement plan items, before tax	(162.7)	(174.9)		(147.6)
Income tax benefit	5.7	5.1		5.0
Total reclassifications for the period	(157.0)	(158.0)		(142.6)
Adjustment for substantial completion of liquidation of foreign subsidiaries | Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other income (expense), net	$ 0.0	$ (11.8)		$ 0.0

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

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Stockholders' equity - Changes in Common Stock and Treasury Stock (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	53.4	52.8	52.6
Stock-based compensation (in shares)	0.8	0.6	0.2
Ending Balance (in shares)	54.2	53.4	52.8
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	2.9	2.7	2.7
Stock-based compensation (in shares)	0.2	0.2	0.0
Ending Balance (in shares)	3.1	2.9	2.7

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Segment Information - Additional Information (Detail) $ in Millions		3 Months Ended								12 Months Ended
	Jan. 01, 2018 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment customer	Dec. 31, 2017 USD ($)		Dec. 31, 2016 USD ($)
Segment Reporting Information [Line Items]
Revenue		$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8		$ 2,820.7
Number of business segments | segment										2
Operating profit (loss)										$ 284.1	97.1	[1]	129.2	[1]
Number of customers accounted for more than 10% of revenue | customer										0
Various Agencies Of U.S. Government
Segment Reporting Information [Line Items]
Revenue										$ 574.0	571.0		564.0
Other Technology | Segment Reconciling Items
Segment Reporting Information [Line Items]
Operating profit (loss)										4.2	6.3		0.7
Technology
Segment Reporting Information [Line Items]
Revenue										438.7	413.6		414.4
Operating profit (loss)										$ 237.8	$ 170.6		$ 161.5
Technology | Software License Extensions and Renewals
Segment Reporting Information [Line Items]
Revenue	$ 53.0				$ 53.0

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

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Segment information - Customer Revenue by Classes of Similar Products or Services (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue from External Customer [Line Items]
Revenue	$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8	$ 2,820.7
Services
Revenue from External Customer [Line Items]
Revenue									2,386.3	2,328.2	2,406.3
Technology
Revenue from External Customer [Line Items]
Revenue									438.7	413.6	414.4
Cloud & infrastructure services | Services
Revenue from External Customer [Line Items]
Revenue									1,363.4	1,334.3	1,356.4
Application services | Services
Revenue from External Customer [Line Items]
Revenue									772.4	791.0	855.5
BPO services | Services
Revenue from External Customer [Line Items]
Revenue									$ 250.5	$ 202.9	$ 194.4

XML

Segment information - Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)									$ 284.1	$ 97.1	[1]	$ 129.2	[1]
Interest expense									(64.0)	(52.8)		(27.4)
Other income (expense), net									(76.9)	(116.4)	[1]	(81.3)	[1]
Cost reduction charges	$ (22.8)	$ 0.9	$ (0.7)	$ 2.9	$ (47.8)	$ (46.1)	$ (27.5)	$ (25.4)
Income (loss) before income taxes	$ 38.1	$ 22.2	$ 20.3	$ 62.6	$ 27.4	$ (40.4)	$ (42.3)	$ (16.8)	143.2	(72.1)		20.5
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)									305.4	235.4		208.4
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Cost reduction charges									(19.7)	(135.0)		(82.1)
Corporate and eliminations
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)									$ (1.6)	(3.3)		$ 2.9
Other income (expense), net | Net foreign currency translation adjustment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Cost reduction charges										$ 11.8

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

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Segment information - Reconciliation of Total Business Segment Assets to Consolidated Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 2,457.6	$ 2,542.4	$ 2,021.6
Cash and cash equivalents	605.0	733.9	370.6
Deferred income taxes	109.3	119.9	146.1
Prepaid postretirement assets	147.6	148.3	33.3
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,436.6	1,364.5	1,339.0
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,021.0	1,177.9	682.6
Other corporate assets	$ 159.1	$ 175.8	$ 132.6

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Segment information - Summary of Operations by Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8		$ 2,820.7
Operating income (loss)									284.1	97.1	[1]	129.2	[1]
Depreciation and amortization									164.1	156.5		155.6
Total assets	2,457.6				2,542.4				2,457.6	2,542.4		2,021.6
Capital expenditures									189.3	176.5		147.1
Intersegment
Segment Reporting Information [Line Items]
Revenue									(24.7)	(25.9)		(22.6)
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)									305.4	235.4		208.4
Total assets	1,436.6				1,364.5				1,436.6	1,364.5		1,339.0
Corporate
Segment Reporting Information [Line Items]
Revenue									(24.7)	(25.9)		(22.6)
Operating income (loss)									(21.3)	(138.3)		(79.2)
Total assets	1,021.0				1,177.9				1,021.0	1,177.9		682.6
Capital expenditures									8.0	4.3		3.0
Services
Segment Reporting Information [Line Items]
Revenue									2,386.3	2,328.2		2,406.3
Operating income (loss)									67.6	64.8		46.9
Depreciation and amortization									97.2	84.6		81.8
Total assets	1,013.1				985.9				1,013.1	985.9		963.3
Capital expenditures									92.9	102.7		74.8
Services | Intersegment
Segment Reporting Information [Line Items]
Revenue									0.0	0.0		0.0
Services | Operating Segments
Segment Reporting Information [Line Items]
Revenue									2,386.3	2,328.2		2,406.3
Technology
Segment Reporting Information [Line Items]
Revenue									438.7	413.6		414.4
Operating income (loss)									237.8	170.6		161.5
Depreciation and amortization									66.9	71.9		73.8
Total assets	$ 423.5				$ 378.6				423.5	378.6		375.7
Capital expenditures									88.4	69.5		69.3
Technology | Intersegment
Segment Reporting Information [Line Items]
Revenue									24.7	25.9		22.6
Technology | Operating Segments
Segment Reporting Information [Line Items]
Revenue									$ 463.4	$ 439.5		$ 437.0

[1] Amounts were changed to conform to the current-year presentation. See Note 2.

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Segment information - Revenue, Properties and Outsourcing Assets by Geographic Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8	$ 2,820.7
Properties, net	121.3				142.5				121.3	142.5	145.3
Outsourcing assets, net	216.4				202.3				216.4	202.3	172.5
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									1,240.0	1,257.0	1,309.3
Properties, net	85.3				85.8				85.3	85.8	91.4
Outsourcing assets, net	97.6				81.1				97.6	81.1	105.1
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									360.7	315.8	348.0
Properties, net	5.3				16.7				5.3	16.7	15.1
Outsourcing assets, net	86.5				89.9				86.5	89.9	39.0
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Outsourcing assets, net	21.7				18.1				21.7	18.1	11.5
Other foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									1,224.3	1,169.0	1,163.4
Properties, net	30.7				40.0				30.7	40.0	38.8
Outsourcing assets, net	$ 10.6				$ 13.2				$ 10.6	$ 13.2	$ 16.9

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Quarterly financial information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 760.9	$ 688.3	$ 667.4	$ 708.4	$ 744.8	$ 666.3	$ 666.2	$ 664.5	$ 2,825.0	$ 2,741.8	$ 2,820.7
Gross profit	178.4	153.8	152.9	201.2	186.8	103.6	118.7	138.6	686.3	547.7
Income (loss) before income taxes	38.1	22.2	20.3	62.6	27.4	(40.4)	(42.3)	(16.8)	143.2	(72.1)	20.5
Net income (loss) attributable to Unisys Corporation common shareholders	$ 25.0	$ 6.1	$ 3.8	$ 40.6	$ 50.5	$ (41.1)	$ (42.0)	$ (32.7)	$ 75.5	$ (65.3)	$ (47.7)
Earnings (loss) per common share attributable to Unisys Corporation
Basic (in dollars per share)	$ 0.49	$ 0.12	$ 0.07	$ 0.80	$ 1.00	$ (0.81)	$ (0.83)	$ (0.65)	$ 1.48	$ (1.30)	$ (0.95)
Diluted (in dollars per share)	$ 0.41	$ 0.12	$ 0.07	$ 0.62	$ 0.76	$ (0.81)	$ (0.83)	$ (0.65)	$ 1.30	$ (1.30)	$ (0.95)

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Quarterly financial information (unaudited) - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Restructuring charges (benefits)	$ 22.8	$ (0.9)	$ 0.7	$ (2.9)	$ 47.8	$ 46.1	$ 27.5	$ 25.4

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Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts (deducted from accounts receivable):
Balance at Beginning of Period	$ 22.0	$ 22.8	$ 21.1
Additions Charged to Costs and Expenses	(5.1)	3.1	2.2
Deductions	(3.2)	(3.9)	(0.5)
Balance at End of Period	$ 13.7	$ 22.0	$ 22.8