QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page Number | |||||||||||
Information Concerning Forward-Looking Statements | |||||||||||
PART I - FINANCIAL INFORMATION | |||||||||||
Item 1. | Consolidated Financial Statements (Unaudited) | ||||||||||
Consolidated Statements of Income (Loss) | |||||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||
Consolidated Balance Sheets | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Consolidated Statements of Equity (Deficit) | |||||||||||
Notes to Consolidated Financial Statements | |||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||||||||||
Item 4. | Controls and Procedures | ||||||||||
PART II - OTHER INFORMATION | |||||||||||
Item 1. | Legal Proceedings | ||||||||||
Item 1A. | Risk Factors | ||||||||||
Item 2 | Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities | ||||||||||
Item 5 | Other Information | ||||||||||
Item 6. | Exhibits | ||||||||||
Exhibit Index | |||||||||||
Signatures |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | |||||||||||
Services | $ | $ | |||||||||
Technology | |||||||||||
Costs and expenses | |||||||||||
Cost of revenue | |||||||||||
Services | |||||||||||
Technology | |||||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Operating income | |||||||||||
Interest expense | |||||||||||
Other (expense), net | ( | ( | |||||||||
Loss before income taxes | ( | ( | |||||||||
Provision for income taxes | |||||||||||
Consolidated net loss | ( | ( | |||||||||
Net income attributable to noncontrolling interests | |||||||||||
Net loss attributable to Unisys Corporation | $ | ( | $ | ( | |||||||
Loss per share attributable to Unisys Corporation | |||||||||||
Basic | $ | ( | $ | ( | |||||||
Diluted | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Consolidated net loss | $ | ( | $ | ( | |||||||
Other comprehensive income | |||||||||||
Foreign currency translation | ( | ||||||||||
Postretirement adjustments, net of tax of $ | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive (loss) income | ( | ||||||||||
Less comprehensive income attributable to noncontrolling interests | |||||||||||
Comprehensive (loss) income attributable to Unisys Corporation | $ | ( | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Properties | |||||||||||
Less-accumulated depreciation and amortization | |||||||||||
Properties, net | |||||||||||
Outsourcing assets, net | |||||||||||
Marketable software, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Prepaid postretirement assets | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Restricted cash | |||||||||||
Assets held-for-sale | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Total liabilities and deficit | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Deferred revenue | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term postretirement liabilities | |||||||||||
Long-term deferred revenue | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingencies (see Note 14) | |||||||||||
Deficit: | |||||||||||
Common stock, shares issued: 2024; | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Treasury stock, shares at cost: 2024; | ( | ( | |||||||||
Paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Unisys Corporation stockholders' deficit | ( | ( | |||||||||
Noncontrolling interests | |||||||||||
Total deficit | ( | ( | |||||||||
Total liabilities and deficit | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Consolidated net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | ||||||||||||||
Foreign currency losses (gains) | ( | |||||||||||||
Non-cash interest expense | ||||||||||||||
Employee stock compensation | ||||||||||||||
Depreciation and amortization of properties | ||||||||||||||
Depreciation and amortization of outsourcing assets | ||||||||||||||
Amortization of marketable software | ||||||||||||||
Amortization of intangible assets | ||||||||||||||
Other non-cash operating activities | ( | |||||||||||||
Pension and postretirement contributions | ( | ( | ||||||||||||
Postretirement expense | ||||||||||||||
Deferred income taxes, net | ( | |||||||||||||
Changes in operating assets and liabilities, excluding the effect of acquisitions: | ||||||||||||||
Receivables, net and contract assets | ( | |||||||||||||
Inventories | ( | ( | ||||||||||||
Other assets | ( | ( | ||||||||||||
Accounts payable and current liabilities | ( | ( | ||||||||||||
Other liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities | ||||||||||||||
Proceeds from foreign exchange forward contracts | ||||||||||||||
Purchases of foreign exchange forward contracts | ( | ( | ||||||||||||
Investment in marketable software | ( | ( | ||||||||||||
Capital additions of properties | ( | ( | ||||||||||||
Capital additions of outsourcing assets | ( | ( | ||||||||||||
Other | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Payments of long-term debt | ( | ( | ||||||||||||
Other | ( | ( | ||||||||||||
Net cash used for financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | |||||||||||||
Decrease in cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | ||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
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, 2023 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Consolidated net (loss) income | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based activity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Postretirement plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
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, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Consolidated net (loss) income | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based activity | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement plans | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenue | $ | $ | |||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Other (expense), net | ( | ||||||||||
Total | $ | $ | ( |
Total | U.S. | International | ||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | |||||||||||||||||
Additional provisions | ||||||||||||||||||||
Payments | ( | ( | ( | |||||||||||||||||
Changes in estimates | ( | ( | ( | |||||||||||||||||
Translation adjustments | ( | ( | ||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | |||||||||||||||||
Expected future utilization on balance at March 31, 2024: | ||||||||||||||||||||
Short-term | $ | $ | $ | |||||||||||||||||
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||
Total | U.S. Plans | International Plans | Total | U.S. Plans | International Plans | |||||||||||||||||||||||||||||||||
Service cost(i) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Amortization of prior service benefit | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Recognized net actuarial loss | ||||||||||||||||||||||||||||||||||||||
Settlement losses(ii) (iii) | ||||||||||||||||||||||||||||||||||||||
Net periodic pension expense (income) | $ | $ | $ | $ | $ | $ | ( |
(i) Service cost is reported in selling, general and administrative expense. All other components of net periodic pension expense (income) are reported in other (expense), net in the consolidated statements of income (loss). | ||
(ii) In March 2024, the company purchased a group annuity contract, with plan assets, for approximately $ | ||
(iii) In March 2023, the company purchased a group annuity contract, with plan assets, for approximately $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Service cost(i) | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on assets | ( | ||||||||||
Recognized net actuarial gain | ( | ( | |||||||||
Amortization of prior service benefit | ( | ||||||||||
Net periodic postretirement benefit income | $ | ( | $ | ( |
(i) Service cost is reported in selling, general and administrative expense. All other components of net periodic postretirement benefit expense (income) are reported in other (expense), net in the consolidated statements of income (loss). |
Restricted Stock and RSU | Weighted- Average Grant-Date Fair Value | |||||||||||||
Outstanding at December 31, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited and expired | ( | |||||||||||||
Outstanding at March 31, 2024 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Weighted-average fair value of grant | $ | $ | |||||||||
Risk-free interest rate(i) | % | % | |||||||||
Expected volatility(ii) | % | % | |||||||||
Expected life of restricted stock units in years(iii) | |||||||||||
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. |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Postretirement expense(i) | $ | ( | $ | ( | |||||||
Foreign exchange (losses) gains(ii) | ( | ||||||||||
Other, net(iii) | ( | ||||||||||
Total other (expense), net | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic loss per common share computation: | |||||||||||
Net loss attributable to Unisys Corporation | $ | ( | $ | ( | |||||||
Weighted average shares | |||||||||||
Basic loss per common share | $ | ( | $ | ( | |||||||
Diluted loss per common share computation: | |||||||||||
Net loss attributable to Unisys Corporation | $ | ( | $ | ( | |||||||
Weighted average shares | |||||||||||
Plus incremental shares from assumed vesting of employee stock plans | |||||||||||
Adjusted weighted average shares | |||||||||||
Diluted loss per common share | $ | ( | $ | ( | |||||||
Anti-dilutive restricted stock units(i) | |||||||||||
(i) Amounts represent shares excluded from the computation of diluted loss per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
March 31, 2024 | December 31, 2023 | ||||||||||
Contract assets - current | $ | $ | |||||||||
Contract assets - long-term(i) | |||||||||||
Deferred revenue - current | ( | ( | |||||||||
Deferred revenue - long-term | ( | ( |
(i) Reported in other long-term assets on the company’s consolidated balance sheets. |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue recognized that was included in deferred revenue at the beginning of the period | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Deferred commissions - amortization expense(i) | $ | $ |
(i) Reported in selling, general and administrative expense in the company’s consolidated statements of income (loss). |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Costs to fulfill a contract - amortization expense | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
Balance Sheet Location | ||||||||||||||
Prepaid expenses and other current assets | $ | $ | ||||||||||||
Other accrued liabilities | ||||||||||||||
Total fair value | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Statement of Income Location | |||||||||||
Other (expense), net | $ | ( | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||
$ | $ | $ | $ |
Total | DWS | CA&I | ECS | Other | ||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Translation adjustments | ( | ( | ||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Technology (i) | $ | $ | $ | |||||||||||||||||
Customer relationships (ii) | ||||||||||||||||||||
Marketing (ii) | ||||||||||||||||||||
Total | $ | $ | $ |
Future Amortization Expense | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
$ | $ | |||||||||||||
Finance leases | ||||||||||||||
Other debt | ||||||||||||||
Total | ||||||||||||||
Less – current maturities | ||||||||||||||
Total long-term debt | $ | $ |
(i) See Note 11 for the fair value of the notes. |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Contractual interest coupon | $ | $ | |||||||||
Amortization of issuance costs | |||||||||||
Total | $ | $ |
Total | Translation Adjustments | Postretirement Plans | ||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||||||||
Current period other comprehensive income (loss) | ( | |||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Translation adjustments: | |||||||||||
Adjustment for substantial completion of liquidation of foreign subsidiaries(i) | $ | $ | ( | ||||||||
Postretirement plans(ii): | |||||||||||
Amortization of prior service benefit | ( | ( | |||||||||
Amortization of actuarial losses | |||||||||||
Settlement losses | |||||||||||
Total before tax | |||||||||||
Income tax | ( | ( | |||||||||
Total reclassifications for the period | $ | $ |
(i) Reported in other (expense), net in the consolidated statements of income (loss). | ||
(ii)These items are included in net periodic postretirement cost (see Note 4). |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash paid during the period for: | |||||||||||
Income taxes, net of refunds | $ | $ | |||||||||
Interest | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ | $ |
Total Segments | DWS | CA&I | ECS | |||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Gross profit | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Gross profit | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total segment revenue | $ | $ | |||||||||
Other revenue | |||||||||||
Total consolidated revenue | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total segment gross profit | $ | $ | |||||||||
Other gross profit | |||||||||||
Total gross profit | |||||||||||
Selling, general and administrative expense | ( | ( | |||||||||
Research and development expense | ( | ( | |||||||||
Interest expense | ( | ( | |||||||||
Other (expense), net | ( | ( | |||||||||
Total loss before income taxes | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
United States | $ | $ | |||||||||
United Kingdom | |||||||||||
Other foreign | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cost of revenue | $ | 1.0 | $ | 0.6 | ||||||||||
Selling, general and administrative | 3.8 | — | ||||||||||||
Research and development | 1.0 | 0.1 | ||||||||||||
Other (expense), net | 0.5 | (3.5) | ||||||||||||
Total | $ | 6.3 | $ | (2.8) |
Total Segments | DWS | CA&I | ECS | |||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Revenue | $ | 408.3 | $ | 132.3 | $ | 129.0 | $ | 147.0 | ||||||||||||||||||
Gross profit percent | 30.7 | % | 14.4 | % | 16.6 | % | 57.8 | % | ||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Revenue | $ | 445.2 | $ | 131.0 | $ | 126.0 | $ | 188.2 | ||||||||||||||||||
Gross profit percent | 35.4 | % | 11.9 | % | 13.0 | % | 66.7 | % |
Exhibit Number | Description | ||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following financial information from Unisys Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Statements of Income (Loss), (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Equity (Deficit), and (vi) Notes to Consolidated Financial Statements | ||||
104 | Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
UNISYS CORPORATION | ||||||||
Date: May 8, 2024 | By: | /s/ Debra McCann | ||||||
Debra McCann | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
By: | /s/ David Brown | |||||||
David Brown | ||||||||
Vice President, Chief Accounting Officer and Corporate Controller | ||||||||
(Principal Accounting Officer) |
/s/ Peter A. Altabef | ||||||||
Name: | Peter A. Altabef | |||||||
Title: | Chair and Chief Executive Officer | |||||||
/s/ Debra McCann | ||||||||
Name: | Debra McCann | |||||||
Title: | Executive Vice President and Chief Financial Officer |
/s/ Peter A. Altabef | |||||
Peter A. Altabef | |||||
Chair and Chief Executive Officer | |||||
/s/ Debra McCann | |||||
Debra McCann | |||||
Executive Vice President and Chief Financial Officer |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenue | $ 487.8 | $ 516.4 |
Costs and expenses | ||
Cost of revenue | 351.8 | 357.4 |
Selling, general and administrative | 112.2 | 102.9 |
Research and development | 6.1 | 6.2 |
Costs and expenses | 470.1 | 466.5 |
Operating income | 17.7 | 49.9 |
Interest expense | 7.9 | 7.6 |
Other (expense), net | (142.1) | (196.9) |
Loss before income taxes | (132.3) | (154.6) |
Provision for income taxes | 17.0 | 19.9 |
Consolidated net loss | (149.3) | (174.5) |
Net income attributable to noncontrolling interests | 0.2 | 0.9 |
Net loss attributable to Unisys Corporation | $ (149.5) | $ (175.4) |
Loss per share attributable to Unisys Corporation | ||
Basic (in dollars per share) | $ (2.18) | $ (2.58) |
Diluted (in dollars per share) | $ (2.18) | $ (2.58) |
Services | ||
Revenue | $ 416.8 | $ 403.9 |
Costs and expenses | ||
Cost of revenue | 314.9 | 316.1 |
Technology | ||
Revenue | 71.0 | 112.5 |
Costs and expenses | ||
Cost of revenue | $ 36.9 | $ 41.3 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Consolidated net loss | $ (149.3) | $ (174.5) |
Other comprehensive income | ||
Foreign currency translation | (15.4) | 24.4 |
Postretirement adjustments, net of tax of $2.8 in 2024 and $(3.0) in 2023 | 153.9 | 178.3 |
Total other comprehensive income | 138.5 | 202.7 |
Comprehensive (loss) income | (10.8) | 28.2 |
Less comprehensive income attributable to noncontrolling interests | 0.4 | 0.8 |
Comprehensive (loss) income attributable to Unisys Corporation | $ (11.2) | $ 27.4 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Postretirement adjustments tax | $ 2.8 | $ (3.0) |
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares shares in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Statement of Financial Position [Abstract] | ||
Common stock issued (in shares) | 75.1 | 74.0 |
Treasury stock, at cost (in shares) | 5.9 | 5.6 |
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Millions |
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 |
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Beginning balance at Dec. 31, 2022 | $ 21.8 | $ (14.7) | $ 0.7 | $ (1,515.0) | $ (156.0) | $ 4,731.6 | $ (3,076.0) | $ 36.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Consolidated net (loss) income | (174.5) | (175.4) | (175.4) | 0.9 | ||||
Stock-based activity | 4.0 | 4.0 | (0.3) | 4.3 | ||||
Translation adjustments | 24.4 | 23.3 | 23.3 | 1.1 | ||||
Postretirement plans | 178.3 | 179.5 | 179.5 | (1.2) | ||||
Ending balance at Mar. 31, 2023 | 54.0 | 16.7 | 0.7 | (1,690.4) | (156.3) | 4,735.9 | (2,873.2) | 37.3 |
Beginning balance at Dec. 31, 2023 | (138.4) | (151.8) | 0.7 | (1,945.7) | (156.4) | 4,749.9 | (2,800.3) | 13.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Consolidated net (loss) income | (149.3) | (149.5) | (149.5) | 0.2 | ||||
Stock-based activity | 4.4 | 4.4 | 0.1 | (1.6) | 5.9 | |||
Translation adjustments | (15.4) | (14.7) | (14.7) | (0.7) | ||||
Postretirement plans | 153.9 | 153.0 | 153.0 | 0.9 | ||||
Ending balance at Mar. 31, 2024 | $ (144.8) | $ (158.6) | $ 0.8 | $ (2,095.2) | $ (158.0) | $ 4,755.8 | $ (2,662.0) | $ 13.8 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the SEC). These rules and regulations permit some of the information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), to be condensed or omitted. In management’s opinion, the unaudited consolidated financial statements contain all adjustments that are of a normal recurring nature, necessary for a fair presentation of the results of operations and financial position of the company for the interim periods presented. These adjustments consist only of normal recurring accruals except as disclosed herein. Because of seasonal and other factors, results for interim periods are not necessarily indicative of the results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2023 and the notes thereto included in the company’s Annual Report on Form 10-K, filed with the SEC. Use of Estimates The preparation of financial statements in conformity with GAAP 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 estimated credit losses, contract assets, operating lease right-of-use assets, outsourcing assets, marketable software, goodwill, purchased intangibles and other long-lived assets, legal and environmental contingencies, assumptions used in the calculation 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 materially from these estimates. Changes in those estimates resulting from continuing changes in the economic environment such as rising interest rates, inflation, fluctuation in foreign exchange rates and conflicts and other events of geopolitical significance, will be reflected in the financial statements in future periods. The company’s accounting policies are set forth in detail in Note 1 of the Notes to Consolidated Financial Statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC. Such Annual Report also contains a discussion of the company’s critical accounting policies and estimates. The company believes that these critical accounting policies and estimates affect its more significant estimates and judgments used in the preparation of the company’s consolidated financial statements.
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Accounting Standards |
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Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements including disclosures about significant segment expenses on an annual and interim basis. This update is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires application on a retrospective basis. This ASU is not expected to have a material effect on the company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances disclosures relating to the rate reconciliation and requires income taxes paid disclosures disaggregated by jurisdiction among other amendments. This update is effective for annual periods beginning after December 15, 2024, with early adoption permitted and should be applied a prospective basis with a retrospective application permitted. This ASU is not expected to have a material effect on the company’s consolidated financial statements.
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Cost-Reduction Actions |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost-Reduction Actions | Cost-Reduction Actions The company from time to time initiates cost reduction actions designed to improve operating efficiency, reduce costs and align the company’s workforce and facility structures to its overall business plan. During the three months ended March 31, 2024, the company recognized net cost-reduction charges and other costs of $6.3 million. The net charges related to workforce reductions were $6.6 million, principally related to severance costs, and were comprised of: (a) a charge of $9.4 million and (b) a credit of $2.8 million for changes in estimates. The company recorded a net credit of $0.3 million comprised of a net credit of $0.8 million for changes in estimates related to other cost-reduction efforts and a charge of $0.5 million for net foreign currency losses related to exiting foreign countries. During the three months ended March 31, 2023, the company recognized net charges related to workforce reductions of $0.7 million. These net charges were principally related to severance costs, and were comprised of: (a) a charge of $2.6 million and (b) a credit of $1.9 million for changes in estimates. In addition, the company recorded a credit of $3.5 million for net foreign currency gains related to exiting foreign countries. The charges (credits) were recorded in the following statement of income (loss) classifications:
Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:
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Pension and Postretirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits | Pension and Postretirement Benefits Net periodic pension expense (income) is presented below:
In 2024, the company expects to make cash contributions of approximately $20 million primarily for its international defined benefit pension plans. In 2023, the company made cash contributions of $42.4 million to its worldwide defined benefit pension plans. During the three months ended March 31, 2024 and 2023, the company made cash contributions of $6.4 million and $14.5 million, respectively. At the end of each year, the company estimates its future cash contributions to its U.S. qualified defined benefit pension plans based on year-end pension data and assumptions. Any material deterioration in the value of the company’s U.S. qualified defined benefit pension plan assets, as well as changes in pension legislation, volatility in the capital markets, discount rate changes, asset return changes, or changes in economic or demographic trends, could require the company to make cash contributions to its U.S. defined benefit pension plans in different amounts and on a different schedule than previously contemplated. Net periodic postretirement benefit income is presented below:
The company expects to make cash contributions of $4.0 million to its postretirement benefit plan in 2024. In 2023, the company made cash contributions of $5.6 million to its postretirement benefit plan. For the three months ended March 31, 2024 and 2023, the company made cash contributions of $1.3 million and $1.9 million, respectively.
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Stock Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation | Stock Compensation 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. As of March 31, 2024, the company has granted restricted stock and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expense, and recognizes compensation cost only for those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures. During the three months ended March 31, 2024 and 2023, the company recorded $6.7 million and $4.7 million of share-based restricted stock and restricted stock unit compensation expense, respectively. Restricted stock and 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-related awards is recognized as expense ratably over the measurement period, regardless of the actual level of achievement, provided the service requirement is met. 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 and restricted stock unit (RSU) activity for the three months ended March 31, 2024 follows (shares in thousands):
The aggregate weighted-average grant-date fair value of restricted stock and restricted stock units granted during the three months ended March 31, 2024 and 2023 was $18.6 million and $13.8 million, respectively. The fair value of restricted stock and restricted stock units with time and performance conditions was 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 was estimated using a Monte Carlo simulation with the following weighted-average assumptions:
As of March 31, 2024, there was $29.9 million of total unrecognized compensation cost related to outstanding restricted stock and restricted stock units granted under the company’s plans. That cost is expected to be recognized over a weighted-average period of 2.0 years. The aggregate weighted-average grant-date fair value of restricted stock and restricted stock units vested during the three months ended March 31, 2024 and 2023 was $9.6 million and $6.6 million, respectively. Common stock issued upon the lapse of restrictions on restricted stock and restricted stock units are newly issued shares. In light of its tax position, the company is currently not recognizing any tax benefits from the issuance of stock upon lapse of restrictions on restricted stock and restricted stock units.
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Other (expense), net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (expense), net | Other (expense), net Other (expense), net is comprised of the following:
(i) Includes $132.3 million and $183.2 million of U.S pension settlement losses in the three months ended March 31, 2024 and 2023, respectively. See Note 4. (ii) Includes net foreign exchange losses of $0.5 million and net foreign currency gains of $3.5 million, respectively, in the three months ended March 31, 2024 and 2023, related to substantial completion of liquidation of foreign subsidiaries. (iii) Other, net in the three months ended March 31, 2024 includes a net gain of approximately $14.9 million related to a favorable judgment received in a Brazilian services tax matter. Additionally, other, net includes environmental costs related to previously disposed businesses.
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Income Taxes |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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. The company evaluates the realizability of its deferred tax assets by assessing its valuation allowance and by adjusting such amount, if necessary. The realization of the company’s net deferred tax assets as of March 31, 2024, is primarily dependent on the ability to generate sustained taxable income in various jurisdictions. Judgment is required to estimate forecasted future taxable income, which may be impacted by future business developments, actual results, strategic operational and tax initiatives, legislative, and other economic factors and developments. Any increase or decrease in the valuation allowance would result in additional or lower income tax expense in that period and could have a significant impact on that period’s earnings. A full valuation allowance is currently maintained for all U.S. and certain foreign deferred tax assets in excess of deferred tax liabilities. The company will record a tax provision or benefit for those international subsidiaries that do not have a full valuation allowance against their net 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 such valuation allowance, except with respect to withholding taxes not creditable against future taxable income. As a result, the company’s provision or benefit for taxes may vary significantly depending on the geographic distribution of income. A corporation’s ability to deduct its federal net operating loss (NOL) carryforwards and utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 of the U.S. Internal Revenue Code (Section 382) if it undergoes an “ownership change” as defined in Section 382 (generally where cumulative stock ownership changes among material shareholders exceed 50 percent during a rolling three-year period). Similar rules may apply under state tax laws. A future tax “ownership change” pursuant to Section 382 or future changes in tax laws that impose tax attribute utilization limitations may severely limit or effectively eliminate the company’s ability to utilize its NOL carryforwards and other tax attributes.
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Loss Per Share |
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Loss Per Share | Loss Per Share The following table shows how loss per share attributable to Unisys Corporation was computed (shares in thousands):
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Contract Assets and Deferred Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets and Deferred Revenue | Contract Assets and Deferred Revenue Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Deferred revenue represents contract liabilities. Net contract assets (liabilities) are as follows:
Significant changes in the above contract liability balances were as follows:
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, other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2024 and December 31, 2023, the company had $1.8 million and $3.7 million, respectively, of deferred commissions. Amortization expense related to deferred commissions was as follows:
Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (costs to fulfill a contract), principally initial customer setup, are capitalized and expensed over the initial contract life. These costs are included in outsourcing assets, net in the company’s consolidated balance sheets. The amount of such costs at March 31, 2024 and December 31, 2023, was $15.4 million and $19.2 million, respectively. These costs are amortized over the initial contract life and reported in cost of revenue. Amortization expense related to costs to fulfill a contract was as follows:
The remaining balance of outsourcing assets, net is comprised of fixed assets and software used in connection with outsourcing contracts. These costs are capitalized and depreciated over the shorter of the initial contract life or in accordance with the company’s fixed asset policy. Remaining Performance ObligationsRemaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes (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. At March 31, 2024, the company had approximately $0.8 billion of remaining performance obligations of which approximately 26% is estimated to be recognized as revenue by the end of 2024, 29% by the end of 2025, 20% by the end of 2026, 16% by the end of 2027 and 9% thereafter.
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Capitalized Contract Costs |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Contract Costs | Contract Assets and Deferred Revenue Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Deferred revenue represents contract liabilities. Net contract assets (liabilities) are as follows:
Significant changes in the above contract liability balances were as follows:
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, other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2024 and December 31, 2023, the company had $1.8 million and $3.7 million, respectively, of deferred commissions. Amortization expense related to deferred commissions was as follows:
Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (costs to fulfill a contract), principally initial customer setup, are capitalized and expensed over the initial contract life. These costs are included in outsourcing assets, net in the company’s consolidated balance sheets. The amount of such costs at March 31, 2024 and December 31, 2023, was $15.4 million and $19.2 million, respectively. These costs are amortized over the initial contract life and reported in cost of revenue. Amortization expense related to costs to fulfill a contract was as follows:
The remaining balance of outsourcing assets, net is comprised of fixed assets and software used in connection with outsourcing contracts. These costs are capitalized and depreciated over the shorter of the initial contract life or in accordance with the company’s fixed asset policy. Remaining Performance ObligationsRemaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes (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. At March 31, 2024, the company had approximately $0.8 billion of remaining performance obligations of which approximately 26% is estimated to be recognized as revenue by the end of 2024, 29% by the end of 2025, 20% by the end of 2026, 16% by the end of 2027 and 9% thereafter.
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Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements 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 March 31, 2024 and December 31, 2023, the notional amount of these contracts was $493.4 million and $488.4 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.
The following table summarizes the location and amount of gains (losses) recognized on foreign exchange forward contracts.
Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other liabilities. The carrying amounts of these financial assets and liabilities approximate fair value due to their short maturities. Such financial instruments are not included in the following table that provides information about the estimated fair values of other financial instruments that are not measured at fair value in the consolidated balance sheets as of March 31, 2024 and December 31, 2023.
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.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the carrying value of goodwill by reporting unit were as follows:
At March 31, 2024, the amount of goodwill allocated to reporting units with negative net assets within Other was $10.3 million. Intangible Assets, Net Intangible assets, net at March 31, 2024, consists of the following:
(i) Amortization expense is included within cost of revenue - technology in the consolidated statements of income (loss). (ii) Amortization expense is included within selling, general and administrative expense in the consolidated statements of income (loss). For the three months ended March 31, 2024 and 2023, amortization expense was $2.4 million and $2.5 million, respectively. The future amortization relating to acquired intangible assets at March 31, 2024, was estimated as follows:
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Debt |
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Debt | Debt Long-term debt is comprised of the following:
The company has outstanding $485.0 million aggregate principal amount of its 6.875% Senior Secured Notes due 2027 (the 2027 Notes). The 2027 Notes pay interest semiannually on May 1 and November 1 and will mature on November 1, 2027, unless earlier repurchased or redeemed. The 2027 Notes are fully and unconditionally guaranteed on a senior secured basis by Unisys Holding Corporation, Unisys NPL, Inc. and Unisys AP Investment Company I, each of which is a U.S. corporation that is directly or indirectly owned by the company (the subsidiary guarantors). The 2027 Notes and the related guarantees rank equally in right of payment with all of the existing and future senior debt of the company and its subsidiary guarantors and senior in right of payment to any future subordinated debt of the company and its subsidiary guarantors. The 2027 Notes and the related guarantees are structurally subordinated to all existing and future liabilities (including preferred stock, trade payables and pension liabilities) of the subsidiaries of the company that are not subsidiary guarantors. The 2027 Notes and the guarantees are secured by liens on substantially all assets of the company and the subsidiary guarantors, other than certain excluded assets (the collateral). The liens securing the 2027 Notes on certain ABL collateral are subordinated to the liens on ABL collateral in favor of the ABL secured parties and, in the future, the liens securing the 2027 Notes may be subordinated to liens on the collateral securing certain permitted first lien debt, subject to certain limitations and permitted liens. The company may, on any one or more occasions, redeem all or a part of the 2027 Notes at specified redemption premiums, declining to par for any redemptions on or after November 1, 2025. 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) issue certain preferred stock or similar equity securities; (v) make loans and investments; (vi) sell assets; (vii) create or incur liens; (viii) enter into transactions with affiliates; (ix) enter into agreements restricting its subsidiaries’ ability to pay dividends; and (x) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to several important limitations and exceptions. If the company experiences certain kinds of changes of control (as defined in the indenture), it will be required to offer to repurchase the 2027 Notes at 101% of the principal amount of the 2027 Notes, plus accrued and unpaid interest as of the repurchase date, if any. In addition, if the company sells assets, under certain circumstances it must apply the proceeds towards an offer to repurchase the 2027 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 occur, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding 2027 Notes to be due and payable immediately. Interest expense related to the 2027 Notes is comprised of the following:
Asset Based Lending (ABL) Credit Facility The company has a secured revolving credit facility (the Amended and Restated ABL Credit Facility), which matures on October 29, 2025 and provides for revolving loans and letters of credit up to an aggregate amount of $145.0 million (with a limit on letters of credit of $40.0 million), with an accordion feature provision allowing for the aggregate amount available under the credit facility to be increased up to $175.0 million upon the satisfaction of certain specified conditions. Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At March 31, 2024, the company had no borrowings and $7.0 million of letters of credit outstanding. Availability under the facility was $43.4 million net of letters of credit issued. The Amended and Restated ABL Credit Facility is subject to a springing maturity, under which the Amended and Restated ABL Credit Facility will immediately mature 91 days prior to any date on which contributions to pension funds in the United States in an amount in excess of $100.0 million are required to be paid unless the company is able to meet certain conditions, including that the company has the liquidity (as defined in the Amended and Restated ABL Credit Facility) to cash settle the amount of such pension payments, no default or event of default has occurred under the Amended and Restated ABL Credit Facility, the company’s liquidity is above $130.0 million and the company is in compliance with the then applicable fixed charge coverage ratio on a pro forma basis. The Amended and Restated ABL Credit Facility is guaranteed by the subsidiary guarantors 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 Amended and Restated ABL Credit Facility falls below the greater of 10% of the lenders’ commitments under the facility and $14.5 million. The Amended and Restated ABL Credit Facility contains customary representations and warranties, including, but not limited to, that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Amended and Restated ABL Credit Facility includes restrictions 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. These restrictions are subject to several important limitations and exceptions. 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, subject to relevant cure periods, as applicable. At March 31, 2024, the company has met all covenants and conditions under its various lending and funding agreements. For at least the next 12 months, the company expects to continue to meet these covenants and conditions.
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Litigation and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies The company is involved in a wide range of lawsuits, claims, investigations and proceedings, 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. Further, given the rapidly evolving external landscape of cybersecurity, privacy and data protection laws, regulations and threat actors, the company and its clients have been and will continue to be subject to actions or proceedings in various jurisdictions. These matters can involve a number of different parties, including competitors, clients, current or former employees, government and regulatory agencies, stockholders and representatives of the locations in which the company does business. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these 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. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. 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. These adjustments could have a material impact on our results of operations and financial position. The company intends to defend itself vigorously with respect to any legal matters. Based on its experience, the company also believes that the damage amounts claimed against it in the matters disclosed below are not a meaningful indicator of the company’s potential liability. Legal proceedings are inherently unpredictable and unfavorable resolutions could occur. Whether any losses, damages or remedies finally determined in any claim, suit, investigation or proceeding could reasonably have a material effect on the company’s business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses or damages; the structure and type of any such remedies; the significance of the impact any such losses, damages or remedies may have in the company’s consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Accordingly, it is possible that an adverse outcome from such matters 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 March 31, 2024, it has adequate provisions for any such matters. The following is a summary of the more significant legal proceedings involving the company. 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 March 31, 2024, 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 approximately $118 million. On November 11, 2022, a purported stockholder of the company filed a putative securities class action complaint in the United States District Court for the Eastern District of Pennsylvania against the company and certain of its current officers, alleging violations of the Securities Exchange Act of 1934, as amended (the Exchange Act). The plaintiff sought an award of compensatory damages, among other relief, and costs and attorneys’ and experts’ fees. On August 21, 2023, the class action complaint was amended to assert violations of the Exchange Act based on allegedly false or misleading statements related to the efficacy of the company’s disclosure controls and procedures, and internal control over financial reporting in certain of the company’s 2021 and 2022 filings with the SEC. On October 20, 2023, the company filed a motion to dismiss the amended complaint for plaintiff’s failure to state a claim on which relief may be granted. On February 1, 2024, the Court entered an order dismissing plaintiff’s amended complaint, permitting the plaintiff to file a second amended complaint on or before March 1, 2024, if the deficiencies found in the amended complaint by the court can be cured. Plaintiffs did not file an amended complaint, resulting in the dismissal of the case with prejudice. As previously disclosed, the company received voluntary requests for information and documents from the SEC relating to the company’s policies, procedures and disclosures in connection with cybersecurity incidents. The company is cooperating with the SEC’s investigation of certain of the company’s cybersecurity risk disclosures and cybersecurity-related internal controls, including with respect to the material weaknesses that the company identified and disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2022. The company is in discussions with the SEC staff regarding a potential non-scienter-based settlement of the alleged issues arising from the investigation but there can be no assurance that the company will be able to resolve the matter on terms acceptable to the company and the SEC. The company believes it has an adequate provision for this matter. 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. Nonetheless, the company is unable to predict the outcome from such matters and it is possible that an adverse result could be material to the company’s financial conditions, results of operations and cash flows. Environmental Matters As of March 31, 2024, the company has an estimated environmental liability for a site that its predecessor company previously operated of approximately $26 million, of which $11 million is reported in other accrued liabilities and $15 million in other long-term liabilities on the company’s consolidated balance sheet. The company has an agreement related to this site, which provides for a partial reimbursement of certain costs when all cleanup work has been approved and finalized. As of March 31, 2024, the company expects to recover approximately $32 million, which is included in other long-term assets on the company’s consolidated balance sheet. As the company continues to perform investigation activities and if events and circumstances change, the company may incur future additional costs, which could have a material impact on the company’s results of operations, financial condition and cash flows.
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Accumulated Other Comprehensive Loss |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is as follows:
Amounts reclassified out of accumulated other comprehensive loss are as follows:
|
Supplemental Cash Flow Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information
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.
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Segment Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The company’s reportable segments are as follows: •Digital Workplace Solutions (DWS), which provides modern and traditional workplace solutions; •Cloud, Applications & Infrastructure Solutions (CA&I), which provides digital platform, applications, and infrastructure solutions; and •Enterprise Computing Solutions (ECS), which provides solutions that harness secure, continuous high-intensity computing and enable digital services through software-defined operating environments. The accounting policies of each segment are the same as those followed by the company as a whole. The company evaluates segment performance based on gross profit exclusive of the service cost component of postretirement income or expense, cost reduction charges, amortization of purchased intangibles and unusual and nonrecurring items, which are included in other gross profit. A summary of the company’s operations by segment is presented below:
Presented below is a reconciliation of total segment revenue to total consolidated revenue:
Presented below is a reconciliation of total segment gross profit to consolidated loss before income taxes:
Other revenue and other gross profit are comprised of an aggregation of a number of immaterial business activities and cost reductions charges. These businesses principally provide for the management of processes and functions for clients in select industries, helping them improve performance and reduce costs. Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
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Remaining Performance Obligations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Performance Obligations | Contract Assets and Deferred Revenue Contract assets represent rights to consideration in exchange for goods or services transferred to a customer when that right is conditional on something other than the passage of time. Deferred revenue represents contract liabilities. Net contract assets (liabilities) are as follows:
Significant changes in the above contract liability balances were as follows:
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, other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2024 and December 31, 2023, the company had $1.8 million and $3.7 million, respectively, of deferred commissions. Amortization expense related to deferred commissions was as follows:
Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (costs to fulfill a contract), principally initial customer setup, are capitalized and expensed over the initial contract life. These costs are included in outsourcing assets, net in the company’s consolidated balance sheets. The amount of such costs at March 31, 2024 and December 31, 2023, was $15.4 million and $19.2 million, respectively. These costs are amortized over the initial contract life and reported in cost of revenue. Amortization expense related to costs to fulfill a contract was as follows:
The remaining balance of outsourcing assets, net is comprised of fixed assets and software used in connection with outsourcing contracts. These costs are capitalized and depreciated over the shorter of the initial contract life or in accordance with the company’s fixed asset policy. Remaining Performance ObligationsRemaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes (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. At March 31, 2024, the company had approximately $0.8 billion of remaining performance obligations of which approximately 26% is estimated to be recognized as revenue by the end of 2024, 29% by the end of 2025, 20% by the end of 2026, 16% by the end of 2027 and 9% thereafter.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss attributable to Unisys Corporation | $ (149.5) | $ (175.4) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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 estimated credit losses, contract assets, operating lease right-of-use assets, outsourcing assets, marketable software, goodwill, purchased intangibles and other long-lived assets, legal and environmental contingencies, assumptions used in the calculation 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 materially from these estimates. Changes in those estimates resulting from continuing changes in the economic environment such as rising interest rates, inflation, fluctuation in foreign exchange rates and conflicts and other events of geopolitical significance, will be reflected in the financial statements in future periods. The company’s accounting policies are set forth in detail in Note 1 of the Notes to Consolidated Financial Statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC. Such Annual Report also contains a discussion of the company’s critical accounting policies and estimates. The company believes that these critical accounting policies and estimates affect its more significant estimates and judgments used in the preparation of the company’s consolidated financial statements.
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Accounting Standards | Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements including disclosures about significant segment expenses on an annual and interim basis. This update is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires application on a retrospective basis. This ASU is not expected to have a material effect on the company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances disclosures relating to the rate reconciliation and requires income taxes paid disclosures disaggregated by jurisdiction among other amendments. This update is effective for annual periods beginning after December 15, 2024, with early adoption permitted and should be applied a prospective basis with a retrospective application permitted. This ASU is not expected to have a material effect on the company’s consolidated financial statements.
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Cost-Reduction Actions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Statement of Income Classifications for Charges (Credits) and Reconciliation of Liabilities and Expected Future Payments | The charges (credits) were recorded in the following statement of income (loss) classifications:
Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:
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Pension and Postretirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit (Income) Expense | Net periodic pension expense (income) is presented below:
Net periodic postretirement benefit income is presented below:
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Stock Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Unit Activity | A summary of restricted stock and restricted stock unit (RSU) activity for the three months ended March 31, 2024 follows (shares in thousands):
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Schedule of Assumptions Used | The fair value of awards with market conditions was estimated using a Monte Carlo simulation with the following weighted-average assumptions:
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Other (expense), net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other (Expense), Net | Other (expense), net is comprised of the following:
(i) Includes $132.3 million and $183.2 million of U.S pension settlement losses in the three months ended March 31, 2024 and 2023, respectively. See Note 4. (ii) Includes net foreign exchange losses of $0.5 million and net foreign currency gains of $3.5 million, respectively, in the three months ended March 31, 2024 and 2023, related to substantial completion of liquidation of foreign subsidiaries. (iii) Other, net in the three months ended March 31, 2024 includes a net gain of approximately $14.9 million related to a favorable judgment received in a Brazilian services tax matter. Additionally, other, net includes environmental costs related to previously disposed businesses.
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Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Earnings (Loss) Per Common Share Attributable to Unisys Corporation | The following table shows how loss per share attributable to Unisys Corporation was computed (shares in thousands):
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Contract Assets and Deferred Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Contract Assets (Liabilities) | Net contract assets (liabilities) are as follows:
Significant changes in the above contract liability balances were as follows:
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Capitalized Contract Costs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortization Expenses | Amortization expense related to deferred commissions was as follows:
Amortization expense related to costs to fulfill a contract was as follows:
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Financial Instruments and Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value by Balance Sheet Location | The following table summarizes the fair value of the company’s foreign exchange forward contracts.
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Schedule of Losses Recognized on Foreign Exchange Forward Contracts | The following table summarizes the location and amount of gains (losses) recognized on foreign exchange forward contracts.
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Schedule of Fair Values of Financial Instruments Not Measured at Fair Value in Consolidated Balance Sheets | Such financial instruments are not included in the following table that provides information about the estimated fair values of other financial instruments that are not measured at fair value in the consolidated balance sheets as of March 31, 2024 and December 31, 2023.
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value of Goodwill by Reporting Unit | Changes in the carrying value of goodwill by reporting unit were as follows:
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Schedule of Intangible Assets, Net | Intangible assets, net at March 31, 2024, consists of the following:
(i) Amortization expense is included within cost of revenue - technology in the consolidated statements of income (loss). (ii) Amortization expense is included within selling, general and administrative expense in the consolidated statements of income (loss).
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Schedule of Future Amortization of Intangible Assets | The future amortization relating to acquired intangible assets at March 31, 2024, was estimated as follows:
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Debt (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Long-term Debt | Long-term debt is comprised of the following:
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Schedule of Interest Expense | Interest expense related to the 2027 Notes is comprised of the following:
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Accumulated Other Comprehensive Loss (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is as follows:
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Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss | Amounts reclassified out of accumulated other comprehensive loss are as follows:
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Supplemental Cash Flow Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information |
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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.
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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.
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operations by Business Segment | A summary of the company’s operations by segment is presented below:
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Schedule of Reconciliation of Revenue from Segments to Consolidated | Presented below is a reconciliation of total segment revenue to total consolidated revenue:
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Schedule of Reconciliation of Segment Gross Profit to Consolidated Income (Loss) From Continuing Operations Before Income Taxes | Presented below is a reconciliation of total segment gross profit to consolidated loss before income taxes:
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Schedule of Revenue by Geographic Segment | Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
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Cost-Reduction Actions - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | $ 6.3 | $ (2.8) |
Charges (credits) related to work-force reductions | 6.6 | 0.7 |
Work-force Reductions | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 9.4 | |
Charges (credits) related to work-force reductions | 9.4 | 2.6 |
Changes in estimates | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges (credits) related to work-force reductions | (2.8) | (1.9) |
Other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Other charges (credits) related to the cost-reduction effort | (0.3) | |
Professional fees | ||
Restructuring Cost and Reserve [Line Items] | ||
Other charges (credits) related to the cost-reduction effort | (0.8) | |
Foreign currency translation | ||
Restructuring Cost and Reserve [Line Items] | ||
Other charges (credits) related to the cost-reduction effort | $ 0.5 | $ (3.5) |
Cost-Reduction Actions - Statement of Income Classifications (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | $ 6.3 | $ (2.8) |
Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 1.0 | 0.6 |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 3.8 | 0.0 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 1.0 | 0.1 |
Other (expense), net | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | $ 0.5 | $ (3.5) |
Cost-Reduction Actions - Liabilities and Expected Future Payments Related to Work-Force Reduction Actions (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Reserve [Roll Forward] | ||
Additional provisions | $ 6.3 | $ (2.8) |
Work-force Reductions | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 9.4 | |
Additional provisions | 9.4 | |
Payments | (1.9) | |
Changes in estimates | (2.8) | |
Translation adjustments | (0.2) | |
Balance at end of period | 13.9 | |
Short-term | 13.9 | |
Work-force Reductions | U.S. | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 2.5 | |
Additional provisions | 2.9 | |
Payments | (0.4) | |
Changes in estimates | (0.2) | |
Translation adjustments | 0.0 | |
Balance at end of period | 4.8 | |
Short-term | 4.8 | |
Work-force Reductions | International | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 6.9 | |
Additional provisions | 6.5 | |
Payments | (1.5) | |
Changes in estimates | (2.6) | |
Translation adjustments | (0.2) | |
Balance at end of period | 9.1 | |
Short-term | $ 9.1 |
Pension and Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Pension Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company for current fiscal year | $ 20.0 | ||
Cash contributions, pension plans | 6.4 | $ 14.5 | $ 42.4 |
Postretirement Benefit Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company for current fiscal year | 4.0 | ||
Cash contributions, postretirement benefits | $ 1.3 | $ 1.9 | $ 5.6 |
Stock Compensation - Summary of Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Weighted- Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 8.17 | $ 7.32 |
Restricted Stock and Restricted Stock Units (RSUs) | ||
Restricted Stock and RSU | ||
Outstanding at beginning of period (in shares) | 4,758 | |
Granted (in shares) | 2,709 | |
Vested (in shares) | (1,120) | |
Forfeited and expired (in shares) | (32) | |
Outstanding at end of period (in shares) | 6,315 | |
Weighted- Average Grant-Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 9.27 | |
Granted (in dollars per share) | 6.50 | |
Vested (in dollars per share) | 8.53 | |
Forfeited and expired (in dollars per share) | 8.10 | |
Outstanding at end of period (in dollars per share) | $ 7.23 |
Stock Compensation - Weighted Average Assumptions (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average fair value of grant (in dollars per share) | $ 8.17 | $ 7.32 |
Risk-free interest rate | 4.46% | 4.51% |
Expected volatility | 76.28% | 63.63% |
Expected life of restricted stock units in years | 2 years 10 months 6 days | 2 years 10 months 2 days |
Expected dividend yield | 0.00% | 0.00% |
Other (expense), net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Intercompany Foreign Currency Balance [Line Items] | ||
Postretirement expense | $ (146.2) | $ (192.9) |
Foreign exchange gains (losses) | (14.9) | 3.7 |
Other, net | 19.0 | (7.7) |
Total other (expense), net | (142.1) | (196.9) |
Foreign exchange gains (losses) | (14.9) | 3.7 |
Net gain related to favorable judgement | 14.9 | |
Liquidation of Foreign Subsidiaries | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Foreign exchange gains (losses) | (0.5) | 3.5 |
Foreign exchange gains (losses) | (0.5) | 3.5 |
Pension Plans | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Settlement losses to defined benefit pension plans | $ 132.3 | $ 183.2 |
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Basic loss per common share computation: | ||
Net loss attributable to Unisys Corporation | $ (149.5) | $ (175.4) |
Weighted average shares (in shares) | 68,704 | 67,943 |
Basic loss per common share (in dollars per share) | $ (2.18) | $ (2.58) |
Diluted loss per common share computation: | ||
Net loss attributable to Unisys Corporation | $ (149.5) | $ (175.4) |
Weighted average shares (in shares) | 68,704 | 67,943 |
Plus incremental shares from assumed vesting of employee stock plans (in shares) | 0 | 0 |
Adjusted weighted average shares (in shares) | 68,704 | 67,943 |
Diluted loss per common share (in dollars per share) | $ (2.18) | $ (2.58) |
Stock options and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive restricted stock units (in shares) | 2,267 | 391 |
Contract Assets and Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | |||
Contract assets - current | $ 18.3 | $ 11.7 | |
Contract assets - long-term | 7.8 | 8.6 | |
Deferred revenue - current | (190.9) | (198.6) | |
Deferred revenue - long-term | (105.0) | $ (104.4) | |
Revenue recognized that was included in deferred revenue at the beginning of the period | $ 78.9 | $ 65.1 |
Capitalized Contract Costs (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Capitalized Contract Cost [Line Items] | |||
Deferred commissions and costs to fulfill a contract - amortization expense | $ 1.3 | $ 2.2 | |
Costs to fulfill contract | 15.4 | $ 19.2 | |
Deferred Commissions | |||
Capitalized Contract Cost [Line Items] | |||
Deferred commissions | 1.8 | $ 3.7 | |
Deferred commissions and costs to fulfill a contract - amortization expense | $ 0.1 | $ 0.4 |
Financial Instruments and Fair Value Measurements - Additional Information (Details) - Foreign Exchange Forward Contract - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Derivative [Line Items] | ||
Maturity period limit of foreign currency exchange instruments (in months) | 3 months | |
Notional amount of foreign exchange forward contracts not designated as hedging instruments | $ 493.4 | $ 488.4 |
Financial Instruments and Fair Value Measurements - Fair Value of Foreign Exchange Forward Contracts by Balance Sheet Location (Details) - Foreign Exchange Forward Contract - Level 2 - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | $ 0.1 | $ 9.0 |
Other accrued liabilities | 4.2 | 0.1 |
Total fair value | $ (4.1) | $ 8.9 |
Financial Instruments and Fair Value Measurements - Gains and Losses Recognized on Foreign Exchange Forward Contracts (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other (expense), net | Foreign Exchange Forward Contract | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Other (expense), net | $ (11.7) | $ 5.2 |
Financial Instruments and Fair Value Measurements - Fair Values of Financial Instruments Not Measured at Fair Value in Consolidated Balance Sheets (Details) - 6.875% senior secured notes due November 1, 2027 - Senior Notes - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate (in percent) | 6.875% | |
Long-term debt, gross | $ 480.7 | $ 480.4 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | $ 434.0 | $ 437.5 |
Goodwill and Intangible Assets - Carrying Value of Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 287.4 |
Translation adjustments | (0.1) |
Ending balance | 287.3 |
DWS | |
Goodwill [Roll Forward] | |
Beginning balance | 140.8 |
Translation adjustments | (0.1) |
Ending balance | 140.7 |
CA&I | |
Goodwill [Roll Forward] | |
Beginning balance | 38.0 |
Translation adjustments | 0.0 |
Ending balance | 38.0 |
ECS | |
Goodwill [Roll Forward] | |
Beginning balance | 98.3 |
Translation adjustments | 0.0 |
Ending balance | 98.3 |
Other | |
Goodwill [Roll Forward] | |
Beginning balance | 10.3 |
Translation adjustments | 0.0 |
Ending balance | $ 10.3 |
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Goodwill [Line Items] | |||
Goodwill | $ 287.3 | $ 287.4 | |
Amortization expense | 2.4 | $ 2.5 | |
Other | |||
Goodwill [Line Items] | |||
Goodwill | $ 10.3 | $ 10.3 |
Goodwill and Intangible Assets - Intangible Assets, Net (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill [Line Items] | |
Gross Carrying Amount | $ 65.5 |
Accumulated Amortization | 25.2 |
Total | 40.3 |
Technology | |
Goodwill [Line Items] | |
Gross Carrying Amount | 10.0 |
Accumulated Amortization | 8.8 |
Total | 1.2 |
Customer relationships | |
Goodwill [Line Items] | |
Gross Carrying Amount | 54.2 |
Accumulated Amortization | 15.7 |
Total | 38.5 |
Marketing | |
Goodwill [Line Items] | |
Gross Carrying Amount | 1.3 |
Accumulated Amortization | 0.7 |
Total | $ 0.6 |
Goodwill and Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 4.8 |
2025 | 4.3 |
2026 | 4.0 |
2027 | 4.0 |
2028 | 4.0 |
Thereafter | 19.2 |
Total | $ 40.3 |
Debt - Schedule of Components of Long-term Debt (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Finance leases | $ 100,000 | $ 300,000 |
Other debt | 17,600,000 | 23,500,000 |
Total | 498,400,000 | 504,200,000 |
Less – current maturities | 10,000,000.0 | 13,000,000.0 |
Total long-term debt | $ 488,400,000 | 491,200,000 |
Senior Notes | Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate (in percent) | 6.875% | |
Face value | $ 485,000,000.0 | 485,000,000.0 |
Unamortized discount and fees | 4,300,000 | 4,600,000 |
Long-term debt, gross | $ 480,700,000 | $ 480,400,000 |
Debt - Schedule of Interest Expense (Details) - Senior Notes - 2027 Notes - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Contractual interest coupon | $ 8.3 | $ 8.3 |
Amortization of issuance costs | 0.3 | 0.3 |
Total | $ 8.6 | $ 8.6 |
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 13.9 | $ 20.7 |
Interest | $ 0.6 | $ 1.0 |
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 382.8 | $ 387.7 | ||
Restricted cash | 7.7 | 9.0 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 390.5 | $ 396.7 | $ 400.5 | $ 402.7 |
Segment Information - Summary of Operations by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting Information [Line Items] | ||
Gross profit | $ 136.0 | $ 159.0 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 408.3 | 445.2 |
Gross profit | 125.4 | 157.5 |
Operating Segments | DWS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 132.3 | 131.0 |
Gross profit | 19.0 | 15.6 |
Operating Segments | CA&I | ||
Segment Reporting Information [Line Items] | ||
Revenue | 129.0 | 126.0 |
Gross profit | 21.4 | 16.4 |
Operating Segments | ECS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 147.0 | 188.2 |
Gross profit | $ 85.0 | $ 125.5 |
Segment Information - Reconciliation of Segment Revenue to Consolidated (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 487.8 | $ 516.4 |
Total segment revenue | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 408.3 | 445.2 |
Other revenue | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 79.5 | $ 71.2 |
Segment Information - Reconciliation of Segment Gross Profit to Consolidated Income (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Gross profit | $ 136.0 | $ 159.0 |
Selling, general and administrative expense | (112.2) | (102.9) |
Research and development expense | (6.1) | (6.2) |
Interest expense | (7.9) | (7.6) |
Other (expense), net | (142.1) | (196.9) |
Loss before income taxes | (132.3) | (154.6) |
Total segment gross profit | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Gross profit | 125.4 | 157.5 |
Other gross profit | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Gross profit | 10.6 | 1.5 |
Interest expense | (7.9) | (7.6) |
Other (expense), net | $ (142.1) | $ (196.9) |
Segment Information - Revenue, Properties and Outsourcing Assets by Geographic Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 487.8 | $ 516.4 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 212.3 | 201.0 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 67.0 | 121.9 |
Other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 208.5 | $ 193.5 |
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