XML 76 R11.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Cost-reduction actions
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Cost-reduction actions Cost-reduction actions
During 2019, the company recognized cost-reduction charges and other costs of $28.7 million, principally related to a reduction in employees. The charges related to work-force reductions were $22.1 million, principally related to severance costs, and were comprised of: (a) a charge of $4.6 million for 509 employees and $(1.5) million for changes in estimates in the U.S. and (b) a charge of $21.1 million for 255 employees and $(2.1) million for changes in estimates outside the U.S. In addition, the company recorded charges of $6.6 million comprised of $4.6 million for lease abandonment costs, $1.1 million for asset write-offs and $0.9 million for other expenses related to the cost-reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue – services, $10.8 million; cost of revenue - technology, $0.2 million; selling, general and administrative expenses, $15.5 million; and research and development expenses, $2.2 million.
During 2018, the company recognized cost-reduction charges and other costs of $19.7 million, principally related to a reduction in employees. The charges related to work-force reductions were $19.0 million, principally related to severance costs, and were comprised of: (a) a charge of $5.2 million for 264 employees and $0.1 million for changes in estimates in the U.S. and (b) a charge of $22.5 million for 325 employees and $(8.8) million for changes in estimates outside the U.S. In addition, the company recorded a charge of $0.7 million for changes in estimates related to idle leased facilities costs. The charges were recorded in the following statement of income classifications: cost of revenue – services, $18.1 million and selling, general and administrative expenses, $1.6 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.
Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:
 
 
Total
 
U.S.
 
International
Balance at January 1, 2017
 
$
35.2

 
$
1.8

 
$
33.4

Additional provisions
 
127.0

 
9.4

 
117.6

Payments
 
(47.3
)
 
(6.0
)
 
(41.3
)
Changes in estimates
 
(9.1
)
 
(1.3
)
 
(7.8
)
Translation adjustments
 
7.7

 
—

 
7.7

Balance at December 31, 2017
 
113.5

 
3.9

 
109.6

Additional provisions
 
27.7

 
5.2

 
22.5

Payments
 
(42.4
)
 
(3.1
)
 
(39.3
)
Changes in estimates
 
(8.7
)
 
0.1

 
(8.8
)
Translation adjustments
 
(3.9
)
 
—

 
(3.9
)
Balance at December 31, 2018
 
86.2

 
6.1

 
80.1

Additional provisions
 
25.7

 
4.6

 
21.1

Payments
 
(57.7
)
 
(4.0
)
 
(53.7
)
Changes in estimates
 
(3.6
)
 
(1.5
)
 
(2.1
)
Translation adjustments
 
(0.8
)
 
—

 
(0.8
)
Balance at December 31, 2019
 
$
49.8

 
$
5.2

 
$
44.6

 
 
 
 
 
 
 
Expected future payments on balance at December 31, 2019:
 
 
 
 
 
 
In 2020
 
$
47.5

 
$
4.8

 
$
42.7

Beyond 2020
 
2.3

 
0.4

 
1.9