Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-8729 |
Entity Registrant Name | UNISYS CORP |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 38-0387840 |
Entity Address, Address Line One | 801 Lakeview Drive, Suite 100 |
Entity Address, City or Town | Blue Bell |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19422 |
City Area Code | 215 |
Local Phone Number | 986-4011 |
Title of 12(b) Security | Common Stock, par value $.01 |
Trading Symbol | UIS |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 62,970,006 |
Entity Central Index Key | 0000746838 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | ||
Revenue | $ 515.4 | $ 554.5 |
Cost of revenue: | ||
Cost of revenue | 402.3 | 429.4 |
Selling, general and administrative | 86.8 | 90.9 |
Research and development | 6.2 | 9 |
Costs and expenses | 495.3 | 529.3 |
Operating income | 20.1 | 25.2 |
Interest expense | 13.9 | 15.5 |
Other income (expense), net | (48.1) | (30.4) |
Loss from continuing operations before income taxes | (41.9) | (20.7) |
Provision for income taxes | 10.8 | 9.4 |
Consolidated net loss from continuing operations | (52.7) | (30.1) |
Net income attributable to noncontrolling interests | 0.5 | 2.6 |
Net loss from continuing operations attributable to Unisys Corporation | (53.2) | (32.7) |
Income from discontinued operations, net of tax | 1,068.5 | 13.3 |
Net income (loss) attributable to Unisys Corporation | $ 1,015.3 | $ (19.4) |
Basic | ||
Continuing operations (in dollars per share) | $ (0.85) | $ (0.64) |
Discontinued operations (in dollars per share) | 17.06 | 0.26 |
Total (in dollars per share) | 16.21 | (0.38) |
Diluted | ||
Continuing operations (in dollars per share) | (0.85) | (0.64) |
Discontinued operations (in dollars per share) | 17.06 | 0.26 |
Total (in dollars per share) | $ 16.21 | $ (0.38) |
Services | ||
Revenue | ||
Revenue | $ 425.9 | $ 474 |
Cost of revenue: | ||
Cost of revenue | 375.7 | 396.8 |
Operating income | (14) | (1.4) |
Technology | ||
Revenue | ||
Revenue | 89.5 | 80.5 |
Cost of revenue: | ||
Cost of revenue | 26.6 | 32.6 |
Operating income | $ 42.2 | $ 28.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net loss from continuing operations | $ (52.7) | $ (30.1) |
Income from discontinued operations, net of tax | 1,068.5 | 13.3 |
Total | 1,015.8 | (16.8) |
Other comprehensive income: | ||
Foreign currency translation | (87.6) | (34.2) |
Postretirement adjustments, net of tax of $13.9 in 2020 and $(1.1) in 2019 | 91.2 | 68.5 |
Total other comprehensive income | 3.6 | 34.3 |
Comprehensive income | 1,019.4 | 17.5 |
Less comprehensive income (loss) attributable to noncontrolling interests | (1.8) | 0.5 |
Comprehensive income attributable to Unisys Corporation | $ 1,021.2 | $ 17 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Postretirement adjustments, tax | $ 13.9 | $ (1.1) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 789.6 | $ 538.8 |
Restricted cash | 487.3 | 0 |
Accounts receivable, net | 421.3 | 417.7 |
Contract assets | 40.9 | 38.4 |
Inventories: | ||
Parts and finished equipment | 3.9 | 10.8 |
Work in process and materials | 6.5 | 5.6 |
Prepaid expenses and other current assets | 133.8 | 100.7 |
Current assets of discontinued operations | 0 | 109.3 |
Total current assets | 1,883.3 | 1,221.3 |
Properties | 759.4 | 784 |
Less-Accumulated depreciation and amortization | 648 | 668 |
Properties, net | 111.4 | 116 |
Outsourcing assets, net | 184.1 | 202.1 |
Marketable software, net | 190.5 | 186.8 |
Operating lease right-of-use assets | 71.3 | 71.4 |
Prepaid postretirement assets | 132.8 | 136.2 |
Deferred income taxes | 107.7 | 114 |
Goodwill | 108.6 | 110.4 |
Restricted cash | 10.6 | 13 |
Other long-term assets | 171.3 | 198.9 |
Long-term assets of discontinued operations | 0 | 133.9 |
Total assets | 2,971.6 | 2,504 |
Current liabilities: | ||
Notes payable | 59.5 | 0 |
Current maturities of long-term debt | 530.1 | 13.5 |
Accounts payable | 201.1 | 204.3 |
Deferred revenue | 224.2 | 246.4 |
Other accrued liabilities | 296 | 316.7 |
Current liabilities of discontinued operations | 0 | 146.4 |
Total current liabilities | 1,310.9 | 927.3 |
Long-term debt | 47.1 | 565.9 |
Long-term postretirement liabilities | 1,593.9 | 1,960.2 |
Long-term deferred revenue | 134.9 | 147 |
Long-term operating lease liabilities | 53.5 | 56 |
Other long-term liabilities | 40.7 | 47.6 |
Long-term liabilities of discontinued operations | 0 | 28.3 |
Commitments and contingencies | 0 | 0 |
Deficit: | ||
Common stock, shares issued: 2020; 66.8, 2019; 65.9 | 0.7 | 0.7 |
Accumulated deficit | (695.9) | (1,711.2) |
Treasury stock, shares at cost: 2020; 3.8, 2019; 3.5 | (114.2) | (109.6) |
Paid-in capital | 4,647.4 | 4,643.3 |
Accumulated other comprehensive loss | (4,082.7) | (4,088.6) |
Total Unisys Corporation stockholders’ deficit | (244.7) | (1,265.4) |
Noncontrolling interests | 35.3 | 37.1 |
Total deficit | (209.4) | (1,228.3) |
Total liabilities and deficit | $ 2,971.6 | $ 2,504 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares shares in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 66.8 | 65.9 |
Treasury stock, shares (in shares) | 3.8 | 3.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Consolidated net loss from continuing operations | $ (52.7) | $ (30.1) |
Income from discontinued operations, net of tax | 1,068.5 | 13.3 |
Adjustments to reconcile consolidated net income (loss) to net cash used for operating activities: | ||
Gain on sale of U. S. Federal business | (1,059.5) | 0 |
Foreign currency translation losses | 15.8 | 4.8 |
Non-cash interest expense | 1.5 | 2.7 |
Employee stock compensation | 5.1 | 4.7 |
Depreciation and amortization of properties | 8.2 | 9.2 |
Depreciation and amortization of outsourcing assets | 16 | 15.8 |
Amortization of marketable software | 13.6 | 9.5 |
Other non-cash operating activities | 0.2 | (0.6) |
Loss on disposal of capital assets | 0.8 | 1.2 |
Postretirement contributions | (327.7) | (23.1) |
Postretirement expense | 23.5 | 23.5 |
Decrease in deferred income taxes, net | (5.6) | (3.1) |
Changes in operating assets and liabilities: | ||
Receivables, net | (18.6) | 5.5 |
Inventories | 5.6 | 2.6 |
Accounts payable and other accrued liabilities | (58) | (121) |
Other liabilities | (0.4) | 14.8 |
Other assets | (14.2) | (0.1) |
Net cash used for operating activities | (377.9) | (70.4) |
Cash flows from investing activities | ||
Net proceeds from sale of U.S. Federal business | 1,164.7 | 0 |
Proceeds from investments | 828.8 | 893.9 |
Purchases of investments | (870.5) | (887.2) |
Investment in marketable software | (17.3) | (18) |
Capital additions of properties | (5.6) | (10.7) |
Capital additions of outsourcing assets | (4.8) | (29.4) |
Net proceeds from sale of properties | 0 | (0.1) |
Other | (1.5) | (0.4) |
Net cash provided by (used for) investing activities | 1,093.8 | (51.9) |
Cash flows from financing activities | ||
Net proceeds from short-term borrowings | 59.5 | 0 |
Proceeds from issuance of long-term debt | 2.1 | 27.7 |
Payments of long-term debt | (6.1) | (8.7) |
Other | (4.7) | (4.4) |
Net cash provided by financing activities | 50.8 | 14.6 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (31) | 0.4 |
Increase (decrease) in cash, cash equivalents and restricted cash | 735.7 | (107.3) |
Cash, cash equivalents and restricted cash, beginning of period | 551.8 | 624.1 |
Cash, cash equivalents and restricted cash, end of period | $ 1,287.5 | $ 516.8 |
Consolidated Statements of Defi
Consolidated Statements of Deficit (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ (1,228.3) | $ (1,299.6) |
Consolidated net income (loss) | 1,015.8 | (16.8) |
Stock-based activity | (0.5) | (0.4) |
Translation adjustments | (87.6) | (34.2) |
Postretirement plans | 91.2 | 68.5 |
Ending balance | (209.4) | (1,282.5) |
Total Unisys Corporation | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,265.4) | (1,343.5) |
Consolidated net income (loss) | 1,015.3 | (19.4) |
Stock-based activity | (0.5) | (0.4) |
Translation adjustments | (81.6) | (32.8) |
Postretirement plans | 87.5 | 69.2 |
Ending balance | (244.7) | (1,326.9) |
Common Stock Par Value | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 0.7 | 0.5 |
Stock-based activity | 0.1 | |
Ending balance | 0.7 | 0.6 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,711.2) | (1,694) |
Consolidated net income (loss) | 1,015.3 | (19.4) |
Ending balance | (695.9) | (1,713.4) |
Treasury Stock At Cost | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (109.6) | (105) |
Stock-based activity | (4.6) | (4.4) |
Ending balance | (114.2) | (109.4) |
Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 4,643.3 | 4,539.8 |
Stock-based activity | 4.1 | 3.9 |
Ending balance | 4,647.4 | 4,543.7 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (4,088.6) | (4,084.8) |
Translation adjustments | (81.6) | (32.8) |
Postretirement plans | 87.5 | 69.2 |
Ending balance | (4,082.7) | (4,048.4) |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 37.1 | 43.9 |
Consolidated net income (loss) | 0.5 | 2.6 |
Translation adjustments | (6) | (1.4) |
Postretirement plans | 3.7 | (0.7) |
Ending balance | $ 35.3 | $ 44.4 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and footnotes of Unisys Corporation have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of management, the financial information furnished herein reflects all adjustments necessary for a fair presentation of the results of operations, comprehensive income, financial position, cash flows and deficit for the interim periods specified. 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. 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 accounts receivable, contract assets, inventories, operating lease right-of-use assets, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, 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 will be reflected in the financial statements in future periods. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of March 31, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to the valuation of accounts receivable, contract assets, outsourcing assets, marketable software, goodwill and other long-lived assets, and retirement and other post-employment benefits. While there was not a material impact to our consolidated financial statements as of and for the quarter ended March 31, 2020, resulting from our assessments, our future assessment of our current expectations at that time of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting 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, 2019 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On March 13, 2020, the company completed the sale of its U.S. Federal business to Science Applications International Corporation for a cash purchase price of $1.2 billion . The company’s financial statements have been retroactively reclassified to report the U.S. Federal business as discontinued operations. As a result, all items relating to the business within the consolidated statements of income (loss) have been reported as income from discontinued operations, net of tax, and all items relating to the business within the consolidated balance sheets have been reported as either assets or liabilities of discontinued operations. Depreciation, amortization, capital expenditures, and significant noncash operating and investing activities related to the U.S. Federal business were immaterial. The results of the U.S. Federal business discontinued operations for the three months ended March 31, 2020 and 2019 were as follows (in millions of dollars): 2020* 2019 Revenue $ 149.5 $ 141.3 Income: Operations 9.0 17.7 Gain on sale 1,061.7 — 1,070.7 17.7 Income tax provision 2.2 4.4 Income from discontinued operations, net of tax $ 1,068.5 $ 13.3 * Includes results of operations through the March 13, 2020 closing date. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards | Accounting Standards Effective January 1, 2020, the company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) : Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The company adopted the new guidance on a prospective basis and the adoption did not have a material impact on its consolidated results of operations and financial position. Effective January 1, 2020, the company adopted ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, contract assets, loans and other financial instruments. The adoption did not have a material impact on the company’s consolidated results of operations and financial position. Effective January 1, 2020, the company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Cost-Reduction Actions
Cost-Reduction Actions | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Cost-Reduction Actions | Cost-Reduction Actions During the three months ended March 31, 2020, the company recognized cost-reduction charges and other costs of $27.5 million . The charges related to work-force reductions were $8.5 million , principally related to severance costs, and were comprised of: (a) a charge of $2.3 million for 67 employees for the U.S. and (b) a charge of $7.4 million for 223 employees and $(1.2) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.0 million for net foreign currency losses related to exiting foreign countries. The charges were recorded in the following statement of income classifications: cost of revenue - services, $5.9 million ; selling, general and administrative expenses, $2.5 million ; research and development expenses, $0.1 million ; and other income (expense), net, $19.0 million . During the three months ended March 31, 2019 , the company recognized cost-reduction charges and other costs of $2.6 million . Charges were comprised of $3.5 million for lease abandonment and asset write-offs and $(0.9) million for changes in estimates principally related to work-force reductions. The charges were recorded in the following statement of income classifications: cost of revenue - services, $(3.7) million ; selling, general and administrative expenses, $5.0 million ; and research and development expenses, $1.3 million . Liabilities and expected future payments related to the company’s work-force reduction actions are as follows: Total U.S. International Balance at December 31, 2019 $ 49.8 $ 5.2 $ 44.6 Additional provisions 9.7 2.3 7.4 Payments (8.6 ) (0.5 ) (8.1 ) Changes in estimates (1.2 ) — (1.2 ) Translation adjustments (1.2 ) — (1.2 ) Balance at March 31, 2020 $ 48.5 $ 7.0 $ 41.5 Expected future utilization on balance at March 31, 2020: 2020 remaining nine months $ 41.4 $ 6.8 $ 34.6 Beyond 2020 $ 7.1 $ 0.2 $ 6.9 |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits Net periodic pension expense for the three months ended March 31, 2020 and 2019 is presented below: Three Months Ended Three Months Ended Total U.S. Plans International Plans Total U.S. Plans International Plans Service cost (i) $ 0.7 $ — $ 0.7 $ 0.7 $ — $ 0.7 Interest cost 53.8 40.4 13.4 66.7 49.2 17.5 Expected return on plan assets (75.1 ) (52.3 ) (22.8 ) (81.2 ) (54.5 ) (26.7 ) Amortization of prior service benefit (1.2 ) (0.6 ) (0.6 ) (1.2 ) (0.6 ) (0.6 ) Recognized net actuarial loss 44.3 33.5 10.8 37.6 28.9 8.7 Net periodic pension expense (benefit) $ 22.5 $ 21.0 $ 1.5 $ 22.6 $ 23.0 $ (0.4 ) (i) Service cost is reported in selling, general and administrative expense. All other components of net periodic pension expense are reported in other income (expense), net in the consolidated statements of income. In 2020 , the company expects to make cash contributions of approximately $640 million to its worldwide defined benefit pension plans, which are comprised of $600 million for the company’s U.S. qualified defined benefit pension plans and $40 million primarily for the company’s international defined benefit pension plans. In 2019 , the company made cash contributions of $103.9 million to its worldwide defined benefit pension plans. For the three months ended March 31, 2020 and 2019 , the company made cash contributions of $325.6 million and $21.2 million , respectively. Net periodic postretirement benefit expense for the three months ended March 31, 2020 and 2019 is presented below: Three Months Ended 2020 2019 Service cost (i) $ 0.1 $ 0.1 Interest cost 1.1 1.2 Expected return on assets (0.1 ) (0.1 ) Recognized net actuarial loss 0.3 0.1 Amortization of prior service benefit (0.4 ) (0.4 ) Net periodic postretirement benefit expense $ 1.0 $ 0.9 (i) Service cost is reported in selling, general and administrative expense. All other components of net periodic postretirement benefit expense are reported in other income (expense), net in the consolidated statements of income. The company expects to make cash contributions of approximately $7.0 million to its postretirement benefit plans in 2020 compared to $5.5 million in 2019 . For the three months ended March 31, 2020 and 2019 , the company made cash contributions of $2.1 million and $1.9 million , respectively. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 , the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative 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, 2020 and 2019 , the company recorded $5.1 million and $4.7 million of share-based restricted stock unit compensation expense, respectively. 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 unit activity for the three months ended March 31, 2020 follows (shares in thousands): Restricted Stock Units Weighted- Average Grant-Date Fair Value Outstanding at December 31, 2019 2,040 $ 14.17 Granted 709 22.48 Vested (858 ) 13.75 Forfeited and expired (52 ) 13.79 Outstanding at March 31, 2020 1,839 17.56 The aggregate weighted-average grant-date fair value of restricted stock units granted during the three months ended March 31, 2020 and 2019 was $16.4 million and $16.5 million , respectively. The fair value of 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: Three Months Ended 2020 2019 Weighted-average fair value of grant $ 28.33 $ 16.58 Risk-free interest rate (i) 1.35 % 2.49 % Expected volatility (ii) 51.81 % 47.91 % Expected life of restricted stock units in years (iii) 2.86 2.87 Expected dividend yield — % — % (i) Represents the continuously compounded semi-annual zero-coupon U.S. treasury rate commensurate with the remaining performance period (ii) Based on historical volatility for the company that is commensurate with the length of the performance period (iii) Represents the remaining life of the longest performance period As of March 31, 2020 , there was $22.3 million of total unrecognized compensation cost related to outstanding restricted stock units granted under the company’s plans. That cost is expected to be recognized over a weighted-average period of 2.5 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the three months ended March 31, 2020 and 2019 was $11.8 million and $14.2 million , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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 the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the company’s historical profitability, forecast of future taxable income and available tax-planning strategies that could be implemented to realize the net deferred tax assets. The company uses tax-planning strategies to realize or renew net deferred tax assets to avoid the potential loss of future tax benefits. 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 NOL carryforwards and utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 of the 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, may severely limit or effectively eliminate the company’s ability to utilize its NOL carryforwards and other tax attributes. To reduce the risk of a potential adverse effect on the company’s ability to utilize its NOL carryforwards, the company has implemented a tax asset protection plan intended to prevent an “ownership change” from occurring. However, no assurance can be given that such an “ownership change” will not occur, in which case the company’s ability to utilize its NOL carryforwards and other tax attributes could be severely limited or effectively eliminated. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table shows how earnings per share attributable to Unisys Corporation was computed for the three months ended March 31, 2020 and 2019 (shares in thousands): Three Months Ended 2020 2019 Basic earnings (loss) per common share computation: Net loss from continuing operations attributable to Unisys Corporation $ (53.2 ) $ (32.7 ) Income from discontinued operations, net of tax 1,068.5 13.3 Net income (loss) attributable to Unisys Corporation $ 1,015.3 $ (19.4 ) Weighted average shares 62,650 51,418 Basic earnings (loss) per share attributable to Unisys Corporation Continuing operations $ (0.85 ) $ (0.64 ) Discontinued operations 17.06 0.26 Total $ 16.21 $ (0.38 ) Diluted earnings (loss) per common share computation: Net loss from continuing operations attributable to Unisys Corporation $ (53.2 ) $ (32.7 ) Add interest expense on convertible senior notes, net of tax of zero — — Net loss from continuing operations attributable to Unisys Corporation for diluted earnings per share (53.2 ) (32.7 ) Income from discontinued operations, net of tax 1,068.5 13.3 Net loss attributable to Unisys Corporation for diluted earnings per share $ 1,015.3 $ (19.4 ) Weighted average shares 62,650 51,418 Plus incremental shares from assumed conversions: Employee stock plans — — Convertible senior notes — — Adjusted weighted average shares 62,650 51,418 Diluted earnings (loss) per share attributable to Unisys Corporation Continuing operations $ (0.85 ) $ (0.64 ) Discontinued operations 17.06 0.26 Total $ 16.21 $ (0.38 ) Anti-dilutive weighted-average stock options and restricted stock units (i) 875 1,401 Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes (i) 8,625 21,868 (i) Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities 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. Contract liabilities represent deferred revenue. Net contract assets (liabilities) as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Contract assets - current $ 40.9 $ 38.4 Contract assets - long-term (i) 21.0 21.6 Deferred revenue - current (224.2 ) (246.4 ) Deferred revenue - long-term (134.9 ) (147.0 ) (i) Reported in other long-term assets on the company’s consolidated balance sheets Significant changes during the three months ended March 31, 2020 and 2019 in the above contract asset and liability balances were as follows: Three Months Ended 2020 2019 Revenue recognized that was included in deferred revenue at the beginning of the period $ 81.0 $ 98.0 The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2020 and December 31, 2019 , the company had $9.6 million and $9.1 million , respectively, of deferred commissions. Amortization expense related to deferred commissions for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Deferred commissions - amortization expense (i) $ 0.7 $ 0.8 (i) Reported in selling, general and administrative expense in the company’s consolidated statements of income 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, 2020 and December 31, 2019 was $71.5 million and $75.8 million , respectively. These costs are amortized over the initial contract life and reported in Services cost of revenue. During the three months ended March 31, 2020 and 2019 , amortization expense related to costs to fulfill a contract was as follows: Three Months Ended 2020 2019 Costs to fulfill a contract - amortization expense $ 6.4 $ 6.2 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 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, 2020 , the company had approximately $0.9 billion of remaining performance obligations of which approximately 34% is estimated to be recognized as revenue by the end of 2020 and an additional 26% |
Capitalized Contract Costs
Capitalized Contract Costs | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Capitalized Contract Costs | Contract Assets and Contract Liabilities 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. Contract liabilities represent deferred revenue. Net contract assets (liabilities) as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Contract assets - current $ 40.9 $ 38.4 Contract assets - long-term (i) 21.0 21.6 Deferred revenue - current (224.2 ) (246.4 ) Deferred revenue - long-term (134.9 ) (147.0 ) (i) Reported in other long-term assets on the company’s consolidated balance sheets Significant changes during the three months ended March 31, 2020 and 2019 in the above contract asset and liability balances were as follows: Three Months Ended 2020 2019 Revenue recognized that was included in deferred revenue at the beginning of the period $ 81.0 $ 98.0 The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2020 and December 31, 2019 , the company had $9.6 million and $9.1 million , respectively, of deferred commissions. Amortization expense related to deferred commissions for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Deferred commissions - amortization expense (i) $ 0.7 $ 0.8 (i) Reported in selling, general and administrative expense in the company’s consolidated statements of income 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, 2020 and December 31, 2019 was $71.5 million and $75.8 million , respectively. These costs are amortized over the initial contract life and reported in Services cost of revenue. During the three months ended March 31, 2020 and 2019 , amortization expense related to costs to fulfill a contract was as follows: Three Months Ended 2020 2019 Costs to fulfill a contract - amortization expense $ 6.4 $ 6.2 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 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, 2020 , the company had approximately $0.9 billion of remaining performance obligations of which approximately 34% is estimated to be recognized as revenue by the end of 2020 and an additional 26% |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 , the notional amount of these contracts was $373.1 million and $437.0 million , respectively. The fair value of these forward contracts is based on quoted prices for similar but not identical financial instruments; as such, the inputs are considered Level 2 inputs. The following table summarizes the fair value of the company’s foreign exchange forward contracts as of March 31, 2020 and December 31, 2019 . March 31, 2020 December 31, 2019 Balance Sheet Location Prepaid expenses and other current assets $ 16.4 $ 2.1 Other accrued liabilities 1.2 0.1 Total fair value $ 15.2 $ 2.0 The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts for the three months ended March 31, 2020 and 2019 . Three Months Ended 2020 2019 Statement of Income Location Other income (expense), net $ (28.5 ) $ 0.1 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, 2020 and December 31, 2019 . March 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt: 10.75% senior secured notes $ 435.1 $ 464.0 $ 434.5 $ 474.2 5.50% convertible senior notes due 2021 $ 80.9 $ 115.8 $ 80.0 $ 115.8 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. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill At March 31, 2020 , the amount of goodwill allocated to reporting units with negative net assets was as follows: Business Process Outsourcing Services, $10.3 million . Changes in the carrying amount of goodwill by segment for the three months ended March 31, 2020 were as follows: Total Services Technology Balance at December 31, 2019 $ 110.4 $ 10.3 $ 100.1 Translation adjustments (1.8 ) — (1.8 ) Balance at March 31, 2020 $ 108.6 $ 10.3 $ 98.3 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, which excludes borrowings under the company’s credit agreement, is comprised of the following: March 31, 2020 December 31, 2019 10.75% senior secured notes ($440.0 million face value less unamortized discount and fees of $4.9 million and $5.5 million at March 31, 2020 and December 31, 2019, respectively) $ 435.1 $ 434.5 5.50% convertible senior notes due March 1, 2021 (Face value of $84.2 million less unamortized discount and fees of $3.3 million and $4.2 million at March 31, 2020 and December 31, 2019, respectively) 80.9 80.0 Finance leases 4.7 5.3 Other debt 56.5 59.6 Total 577.2 579.4 Less – current maturities 530.1 13.5 Total long-term debt $ 47.1 $ 565.9 See Note 11 for the fair value of the notes. Senior Secured Notes On March 13, 2020, the company issued a notice of full redemption to redeem all $440.0 million in aggregate principal amount of its outstanding 10.750% Senior Secured Notes due 2022 (the Notes) on April 15, 2020 for a redemption price equal to 105.375% of the aggregate principal amount of the Notes to be redeemed plus accrued, but unpaid interest, to, but not including, the redemption date. On March 19, 2020, the company irrevocably deposited or caused to be deposited with the trustee as trust funds in trust solely for the benefit of holders of the Notes $487.3 million , which is an amount sufficient to fully pay the redemption price. The $487.3 million is reported as restricted cash in current assets on the company’s March 31, 2020 balance sheet and is made up of the following: $440.0 million principal amount due, $23.65 million call premium and $23.65 million of accrued interest through April 14, 2020. In the second quarter of 2020, the company will record a loss on debt extinguishment of $28.5 million consisting of the premium of $23.65 million and write off of $4.8 million of unamortized discount and fees related to the issuance of the Notes. Interest expense related to the Notes for the three month periods ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Contractual interest coupon $ 11.8 $ 11.8 Amortization of debt issuance costs 0.6 0.6 Total $ 12.4 $ 12.4 Convertible Senior Notes In 2016, the company issued $213.5 million aggregate principal amount of Convertible Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes, which are senior unsecured obligations, bear interest at a coupon rate of 5.50% (or 9.5% effective interest rate) per year until maturity, payable semiannually in arrears on March 1 and September 1 of each year. The 2021 Notes are not redeemable by the company prior to maturity. The 2021 Notes are convertible by the holders into shares of the company’s common stock if certain conditions set forth in the indenture governing the 2021 Notes have been satisfied. The conversion rate for the 2021 Notes is 102.4249 shares of the company’s common stock per $ 1,000 principal amount of the 2021 Notes (or a total amount at issuance date of 21,867,716 shares), which is equivalent to an initial conversion price of approximately $9.76 per share of the company’s common stock. Upon any conversion, the company will settle its conversion obligation in cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. On the maturity date, the company will be required to repay in cash the principal amount, plus accrued and unpaid interest, of any 2021 Notes that remain outstanding on that date. In connection with the issuance of the 2021 Notes, the company also paid $27.3 million to enter into privately negotiated capped call transactions with the initial purchasers and/or affiliates of the initial purchasers. The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the company’s common stock that will initially underlie the 2021 Notes. The capped call transactions will effectively raise the conversion premium on the 2021 Notes from approximately 22.5% to approximately 60% , which raises the initial conversion price from approximately $9.76 per share of common stock to approximately $12.75 per share of common stock. The capped call transactions are expected to reduce potential dilution to the company’s common stock and/or offset potential cash payments the company is required to make in excess of the principal amount upon any conversion of the 2021 Notes. On August 2, 2019, the company entered into separate, privately negotiated exchange agreements pursuant to which it (i) issued an aggregate of 10,593,930 shares of its common stock, and (ii) paid cash in an aggregate amount of $59.4 million , such cash amount included $3.1 million of accrued and unpaid interest on the exchanged 2021 Notes up to, but excluding, the settlement date, in exchange for $129.3 million in aggregate principal amount of its outstanding 2021 Notes. The transactions closed on August 6, 2019. Upon closing, $84.2 million aggregate principal amount of 2021 Notes remained outstanding. In connection with the transactions, the company unwound a pro rata portion of the capped call transactions described above and received proceeds of $7.2 million . Following the 2021 Notes exchange, the capped call transactions remaining cover approximately 8.6 million shares of the company’s common stock. As a result of the exchange, the company recognized a charge of $20.2 million , or $0.35 per diluted share, in other income (expense), net in the three months ended September 30, 2019. Interest expense related to the 2021 Notes for the three month periods ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Contractual interest coupon $ 1.2 $ 2.9 Amortization of debt discount 0.8 1.7 Amortization of debt issuance costs 0.1 0.3 Total $ 2.1 $ 4.9 Revolving Credit Facility The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit up to an aggregate amount of $145.0 million (with a limit on letters of credit of $30.0 million ). The Credit Agreement includes an accordion feature allowing for an increase in the amount of the facility up to $150.0 million . Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At March 31, 2020 , the company had $59.0 million of borrowings, reported in notes payable, and $5.7 million of letters of credit outstanding, and availability under the facility was $20.1 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity on the date that is 91 days prior to the maturity date of the 2021 Notes unless, on such date, certain conditions are met. The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility. The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15.0 million . The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million . Other On March 27, 2019, the company entered into a $27.7 million Installment Payment Agreement (IPA) with a syndicate of financial institutions to finance the acquisition of certain software licenses necessary for the provision of services to a client. Interest accrues at an annual rate of 7.0% and the company is required to make monthly principal and interest payments on each agreement in arrears. At March 31, 2020, $6.1 million was reported in current maturities of long-term debt. On September 5, 2019, the company entered into a vendor agreement in the amount of $19.3 million to finance the acquisition of certain software licenses used to provide services to its clients and for its own internal use. Interest accrues at an annual rate of 5.47% and the company is required to make annual principal and interest payments in advance with the last payment due on March 1, 2024. At March 31, 2020, $3.5 million was reported in current maturities of long-term debt. |
Litigation and Contingencies
Litigation and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies There are various lawsuits, claims, investigations and proceedings that have been brought or asserted against the company, which arise in the ordinary course of business, including actions with respect to commercial and government contracts, labor and employment, employee benefits, environmental matters, intellectual property and non-income tax matters. The company records a provision for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Any provisions are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information and events pertinent to a particular matter. The company believes that it has valid defenses with respect to legal matters pending against it. Based on its experience, the company also believes that the damage amounts claimed in the lawsuits disclosed below are not a meaningful indicator of the company’s potential liability. Litigation is inherently unpredictable, however, and it is possible that the company’s results of operations or cash flow could be materially affected in any particular period by the resolution of one or more of the legal matters pending against it. In April 2007, the Ministry of Justice of Belgium sued Unisys Belgium SA-NV, a Unisys subsidiary (Unisys Belgium), in the Court of First Instance of Brussels. The Belgian government had engaged the company to design and develop software for a computerized system to be used to manage the Belgian court system. The Belgian State terminated the contract and in its lawsuit has alleged that the termination was justified because Unisys Belgium failed to deliver satisfactory software in a timely manner. It claims damages of approximately €28 million . Unisys Belgium filed its defense and counterclaim in April 2008, in the amount of approximately €18.5 million . The company believes it has valid defenses to the claims and contends that the Belgian State’s termination of the contract was unjustified. The company’s Brazilian operations, along with those of many other companies doing business in Brazil, are involved in various litigation matters, including numerous governmental assessments related to indirect and other taxes, as well as disputes associated with former employees and contract labor. The tax-related matters pertain to value-added taxes, customs, duties, sales and other non-income-related tax exposures. The labor-related matters include claims related to compensation. The company believes that appropriate accruals have been established for such matters based on information currently available. At March 31, 2020 , excluding those matters that have been assessed by management as being remote as to the likelihood of ultimately resulting in a loss, the amount related to unreserved tax-related matters, inclusive of any related interest, is estimated to be up to approximately $81 million . On June 26, 2014, the State of Louisiana filed a Petition for Damages against, among other defendants, the company and Molina Information Systems, LLC, in the Parish of East Baton Rouge, 19th Judicial District. The State alleged that between 1989 and 2012 the defendants, each acting successively as the State’s Medicaid fiscal intermediary, utilized an incorrect reimbursement formula for the payment of pharmaceutical claims causing the State to pay excessive amounts for prescription drugs. The State contends it has incurred damages of approximately $50 million for the period July 1, 1989 through September 4, 2012, plus interest. The company believes that it has valid defenses to Louisiana’s claims and is asserting them in the pending litigation. With respect to the specific legal proceedings and claims described above, except as otherwise noted, either (i) the amount or range of possible losses in excess of amounts accrued, if any, is not reasonably estimable or (ii) the company believes that the amount or range of possible losses in excess of amounts accrued that are estimable would not be material. Litigation is inherently unpredictable and unfavorable resolutions could occur. Accordingly, it is possible that an adverse outcome from such matters could exceed the amounts accrued in an amount that could be material to the company’s financial condition, results of operations and cash flows in any particular reporting period. Notwithstanding that the ultimate results of the lawsuits, claims, investigations and proceedings that have been brought or asserted against the company are not currently determinable, the company believes that at March 31, 2020 , it has adequate provisions for any such matters. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) as of December 31, 2019 and March 31, 2020 is as follows: Total Translation Adjustments Postretirement Plans Balance at December 31, 2019 $ (4,088.6 ) $ (872.9 ) $ (3,215.7 ) Other comprehensive income (loss) before reclassifications (16.2 ) (62.6 ) 46.4 Amounts reclassified from accumulated other comprehensive income 22.1 (19.0 ) 41.1 Current period other comprehensive income 5.9 (81.6 ) 87.5 Balance at March 31, 2020 $ (4,082.7 ) $ (954.5 ) $ (3,128.2 ) Amounts reclassified out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Translation Adjustments: Adjustment for substantial completion of liquidation of foreign subsidiaries (i) $ (19.0 ) $ — Postretirement Plans (ii) : Amortization of prior service cost (1.5 ) (1.5 ) Amortization of actuarial losses 43.9 37.4 Total before tax 23.4 35.9 Income tax benefit (1.3 ) (1.0 ) Total reclassifications for the period $ 22.1 $ 34.9 (i) Reported in other income (expense), net in the consolidated statements of income. (ii) These items are included in net periodic postretirement cost (see Note 5). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended 2020 2019 Cash paid during the period for: Income taxes, net of refunds $ 16.7 $ 18.4 Interest $ 3.7 $ 6.0 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. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 789.6 $ 538.8 Restricted cash - short-term 487.3 — Restricted cash - long-term 10.6 13.0 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,287.5 $ 551.8 Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash, short-term, represents amounts deposited with the trustee of the company’s $440.0 Notes called for redemption. See Note 13, Debt. Restricted cash, long-term, includes cash the company is contractually obligated to maintain |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segments are as follows: • Cloud & infrastructure services. This represents revenue from helping clients apply cloud and as-a-service delivery models to capitalize on business opportunities, make their end users more productive and manage and secure their IT infrastructure and operations more economically. • Application services. This represents revenue from helping clients transform their business processes by developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications. • Business process outsourcing (BPO) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs. • Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients improve security and flexibility, reduce costs and improve the efficiency of their data-center environments. The accounting policies of each business segment are the same as those followed by the company as a whole. Intersegment sales and transfers are priced as if the sales or transfers were to third parties. Accordingly, the Technology segment records intersegment revenue and manufacturing profit on hardware and software shipments to customers under Services contracts. The Services segment, in turn, records customer revenue and marketing profits on such shipments of company hardware and software to customers. The Services segment also includes the sale of hardware and software products sourced from third parties that are sold to customers through the company’s Services channels. In the company’s consolidated statements of income, the manufacturing costs of products sourced from the Technology segment and sold to Services customers are reported in cost of revenue for Services. Also included in the Technology segment’s sales and operating profit are sales of hardware and software sold to the Services segment for internal use in Services engagements. The amount of such profit included in operating income of the Technology segment for the three months ended March 31, 2020 and 2019 was zero and $0.2 million , respectively. The sales and profit on these transactions are eliminated in Corporate. The company evaluates business segment performance based on operating income exclusive of the service cost component of postretirement income or expense, restructuring charges and unusual and nonrecurring items, which are included in Corporate. All other corporate and centrally incurred costs are allocated to the business segments based principally on revenue, employees, square footage or usage. A summary of the company’s operations by business segment for the three month periods ended March 31, 2020 and 2019 is presented below: Total Corporate Services Technology Three Months Ended March 31, 2020 Customer revenue $ 515.4 $ — $ 425.9 $ 89.5 Intersegment — (2.5 ) — 2.5 Total revenue $ 515.4 $ (2.5 ) $ 425.9 $ 92.0 Operating income (loss) $ 20.1 $ (8.1 ) $ (14.0 ) $ 42.2 Three Months Ended March 31, 2019 Customer revenue $ 554.5 $ — $ 474.0 $ 80.5 Intersegment — (2.4 ) — 2.4 Total revenue $ 554.5 $ (2.4 ) $ 474.0 $ 82.9 Operating income (loss) $ 25.2 $ (1.7 ) $ (1.4 ) $ 28.3 Presented below is a reconciliation of total business segment operating income to consolidated loss from continuing operations before income taxes: Three Months Ended 2020 2019 Total segment operating income $ 28.2 $ 26.9 Interest expense (13.9 ) (15.5 ) Other income (expense), net (48.1 ) (30.4 ) Cost-reduction charges (8.5 ) (2.6 ) Corporate and eliminations 0.4 0.9 Total loss from continuing operations before income taxes $ (41.9 ) $ (20.7 ) Customer revenue by classes of similar products or services, by segment, is presented below: Three Months Ended 2020 2019 Services Cloud & infrastructure services $ 295.2 $ 321.7 Application services 85.1 90.5 Business process outsourcing services 45.6 61.8 425.9 474.0 Technology 89.5 80.5 Total $ 515.4 $ 554.5 Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below: Three Months Ended 2020 2019 United States $ 215.6 $ 191.4 United Kingdom 64.5 95.3 Other foreign 235.3 267.8 Total $ 515.4 $ 554.5 |
Remaining Performance Obligatio
Remaining Performance Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | Contract Assets and Contract Liabilities 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. Contract liabilities represent deferred revenue. Net contract assets (liabilities) as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Contract assets - current $ 40.9 $ 38.4 Contract assets - long-term (i) 21.0 21.6 Deferred revenue - current (224.2 ) (246.4 ) Deferred revenue - long-term (134.9 ) (147.0 ) (i) Reported in other long-term assets on the company’s consolidated balance sheets Significant changes during the three months ended March 31, 2020 and 2019 in the above contract asset and liability balances were as follows: Three Months Ended 2020 2019 Revenue recognized that was included in deferred revenue at the beginning of the period $ 81.0 $ 98.0 The company’s incremental direct costs of obtaining a contract consist of sales commissions which are deferred and amortized ratably over the initial contract life. These costs are classified as current or noncurrent based on the timing of when the company expects to recognize the expense. The current and noncurrent portions of deferred commissions are included in prepaid expenses and other current assets and in other long-term assets, respectively, in the company’s consolidated balance sheets. At March 31, 2020 and December 31, 2019 , the company had $9.6 million and $9.1 million , respectively, of deferred commissions. Amortization expense related to deferred commissions for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Deferred commissions - amortization expense (i) $ 0.7 $ 0.8 (i) Reported in selling, general and administrative expense in the company’s consolidated statements of income 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, 2020 and December 31, 2019 was $71.5 million and $75.8 million , respectively. These costs are amortized over the initial contract life and reported in Services cost of revenue. During the three months ended March 31, 2020 and 2019 , amortization expense related to costs to fulfill a contract was as follows: Three Months Ended 2020 2019 Costs to fulfill a contract - amortization expense $ 6.4 $ 6.2 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 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, 2020 , the company had approximately $0.9 billion of remaining performance obligations of which approximately 34% is estimated to be recognized as revenue by the end of 2020 and an additional 26% |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 15, 2020, the company redeemed all of its outstanding $440 million 10.75% Senior Secured Notes due 2022 and recorded a loss on extinguishment of $28.5 million (see Note 13-Debt). |
Accounting Standards (Policies)
Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting pronouncements | Effective January 1, 2020, the company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) : Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The company adopted the new guidance on a prospective basis and the adoption did not have a material impact on its consolidated results of operations and financial position. Effective January 1, 2020, the company adopted ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, contract assets, loans and other financial instruments. The adoption did not have a material impact on the company’s consolidated results of operations and financial position. Effective January 1, 2020, the company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of U.S. Federal Business Discontinued Operations | The results of the U.S. Federal business discontinued operations for the three months ended March 31, 2020 and 2019 were as follows (in millions of dollars): 2020* 2019 Revenue $ 149.5 $ 141.3 Income: Operations 9.0 17.7 Gain on sale 1,061.7 — 1,070.7 17.7 Income tax provision 2.2 4.4 Income from discontinued operations, net of tax $ 1,068.5 $ 13.3 * Includes results of operations through the March 13, 2020 closing date. |
Cost-Reduction Actions (Tables)
Cost-Reduction Actions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Liabilities and Expected Future Payments Related to Work-Force Reduction Actions | Liabilities and expected future payments related to the company’s work-force reduction actions are as follows: Total U.S. International Balance at December 31, 2019 $ 49.8 $ 5.2 $ 44.6 Additional provisions 9.7 2.3 7.4 Payments (8.6 ) (0.5 ) (8.1 ) Changes in estimates (1.2 ) — (1.2 ) Translation adjustments (1.2 ) — (1.2 ) Balance at March 31, 2020 $ 48.5 $ 7.0 $ 41.5 Expected future utilization on balance at March 31, 2020: 2020 remaining nine months $ 41.4 $ 6.8 $ 34.6 Beyond 2020 $ 7.1 $ 0.2 $ 6.9 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Expense | Net periodic pension expense for the three months ended March 31, 2020 and 2019 is presented below: Three Months Ended Three Months Ended Total U.S. Plans International Plans Total U.S. Plans International Plans Service cost (i) $ 0.7 $ — $ 0.7 $ 0.7 $ — $ 0.7 Interest cost 53.8 40.4 13.4 66.7 49.2 17.5 Expected return on plan assets (75.1 ) (52.3 ) (22.8 ) (81.2 ) (54.5 ) (26.7 ) Amortization of prior service benefit (1.2 ) (0.6 ) (0.6 ) (1.2 ) (0.6 ) (0.6 ) Recognized net actuarial loss 44.3 33.5 10.8 37.6 28.9 8.7 Net periodic pension expense (benefit) $ 22.5 $ 21.0 $ 1.5 $ 22.6 $ 23.0 $ (0.4 ) (i) Service cost is reported in selling, general and administrative expense. All other components of net periodic pension expense are reported in other income (expense), net in the consolidated statements of income. |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Expense | Net periodic postretirement benefit expense for the three months ended March 31, 2020 and 2019 is presented below: Three Months Ended 2020 2019 Service cost (i) $ 0.1 $ 0.1 Interest cost 1.1 1.2 Expected return on assets (0.1 ) (0.1 ) Recognized net actuarial loss 0.3 0.1 Amortization of prior service benefit (0.4 ) (0.4 ) Net periodic postretirement benefit expense $ 1.0 $ 0.9 (i) Service cost is reported in selling, general and administrative expense. All other components of net periodic postretirement benefit expense are reported in other income (expense), net in the consolidated statements of income. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the three months ended March 31, 2020 follows (shares in thousands): Restricted Stock Units Weighted- Average Grant-Date Fair Value Outstanding at December 31, 2019 2,040 $ 14.17 Granted 709 22.48 Vested (858 ) 13.75 Forfeited and expired (52 ) 13.79 Outstanding at March 31, 2020 1,839 17.56 |
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: Three Months Ended 2020 2019 Weighted-average fair value of grant $ 28.33 $ 16.58 Risk-free interest rate (i) 1.35 % 2.49 % Expected volatility (ii) 51.81 % 47.91 % Expected life of restricted stock units in years (iii) 2.86 2.87 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share Attributable to Unisys Corporation | The following table shows how earnings per share attributable to Unisys Corporation was computed for the three months ended March 31, 2020 and 2019 (shares in thousands): Three Months Ended 2020 2019 Basic earnings (loss) per common share computation: Net loss from continuing operations attributable to Unisys Corporation $ (53.2 ) $ (32.7 ) Income from discontinued operations, net of tax 1,068.5 13.3 Net income (loss) attributable to Unisys Corporation $ 1,015.3 $ (19.4 ) Weighted average shares 62,650 51,418 Basic earnings (loss) per share attributable to Unisys Corporation Continuing operations $ (0.85 ) $ (0.64 ) Discontinued operations 17.06 0.26 Total $ 16.21 $ (0.38 ) Diluted earnings (loss) per common share computation: Net loss from continuing operations attributable to Unisys Corporation $ (53.2 ) $ (32.7 ) Add interest expense on convertible senior notes, net of tax of zero — — Net loss from continuing operations attributable to Unisys Corporation for diluted earnings per share (53.2 ) (32.7 ) Income from discontinued operations, net of tax 1,068.5 13.3 Net loss attributable to Unisys Corporation for diluted earnings per share $ 1,015.3 $ (19.4 ) Weighted average shares 62,650 51,418 Plus incremental shares from assumed conversions: Employee stock plans — — Convertible senior notes — — Adjusted weighted average shares 62,650 51,418 Diluted earnings (loss) per share attributable to Unisys Corporation Continuing operations $ (0.85 ) $ (0.64 ) Discontinued operations 17.06 0.26 Total $ 16.21 $ (0.38 ) Anti-dilutive weighted-average stock options and restricted stock units (i) 875 1,401 Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes (i) 8,625 21,868 (i) Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented. |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Contract Assets (Liabilities) | Net contract assets (liabilities) as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Contract assets - current $ 40.9 $ 38.4 Contract assets - long-term (i) 21.0 21.6 Deferred revenue - current (224.2 ) (246.4 ) Deferred revenue - long-term (134.9 ) (147.0 ) (i) Reported in other long-term assets on the company’s consolidated balance sheets Significant changes during the three months ended March 31, 2020 and 2019 in the above contract asset and liability balances were as follows: Three Months Ended 2020 2019 Revenue recognized that was included in deferred revenue at the beginning of the period $ 81.0 $ 98.0 |
Capitalized Contract Costs (Tab
Capitalized Contract Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Amortization Expenses | During the three months ended March 31, 2020 and 2019 , amortization expense related to costs to fulfill a contract was as follows: Three Months Ended 2020 2019 Costs to fulfill a contract - amortization expense $ 6.4 $ 6.2 Amortization expense related to deferred commissions for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Deferred commissions - amortization expense (i) $ 0.7 $ 0.8 (i) Reported in selling, general and administrative expense in the company’s consolidated statements of income |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value by Balance Sheet Location | The following table summarizes the fair value of the company’s foreign exchange forward contracts as of March 31, 2020 and December 31, 2019 . March 31, 2020 December 31, 2019 Balance Sheet Location Prepaid expenses and other current assets $ 16.4 $ 2.1 Other accrued liabilities 1.2 0.1 Total fair value $ 15.2 $ 2.0 |
Gains and Losses Recognized on Foreign Exchange Forward Contracts | The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts for the three months ended March 31, 2020 and 2019 . Three Months Ended 2020 2019 Statement of Income Location Other income (expense), net $ (28.5 ) $ 0.1 |
Fair Values of Financial Instruments Not Measured at Fair Value in Consolidated Balance Sheets | 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, 2020 and December 31, 2019 . March 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt: 10.75% senior secured notes $ 435.1 $ 464.0 $ 434.5 $ 474.2 5.50% convertible senior notes due 2021 $ 80.9 $ 115.8 $ 80.0 $ 115.8 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment for the three months ended March 31, 2020 were as follows: Total Services Technology Balance at December 31, 2019 $ 110.4 $ 10.3 $ 100.1 Translation adjustments (1.8 ) — (1.8 ) Balance at March 31, 2020 $ 108.6 $ 10.3 $ 98.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-term Debt | Long-term debt, which excludes borrowings under the company’s credit agreement, is comprised of the following: March 31, 2020 December 31, 2019 10.75% senior secured notes ($440.0 million face value less unamortized discount and fees of $4.9 million and $5.5 million at March 31, 2020 and December 31, 2019, respectively) $ 435.1 $ 434.5 5.50% convertible senior notes due March 1, 2021 (Face value of $84.2 million less unamortized discount and fees of $3.3 million and $4.2 million at March 31, 2020 and December 31, 2019, respectively) 80.9 80.0 Finance leases 4.7 5.3 Other debt 56.5 59.6 Total 577.2 579.4 Less – current maturities 530.1 13.5 Total long-term debt $ 47.1 $ 565.9 See Note 11 for the fair value of the notes. |
Schedule of Interest Expense | Interest expense related to the 2021 Notes for the three month periods ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Contractual interest coupon $ 1.2 $ 2.9 Amortization of debt discount 0.8 1.7 Amortization of debt issuance costs 0.1 0.3 Total $ 2.1 $ 4.9 Interest expense related to the Notes for the three month periods ended March 31, 2020 and 2019 was as follows: Three Months Ended 2020 2019 Contractual interest coupon $ 11.8 $ 11.8 Amortization of debt issuance costs 0.6 0.6 Total $ 12.4 $ 12.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) as of December 31, 2019 and March 31, 2020 is as follows: Total Translation Adjustments Postretirement Plans Balance at December 31, 2019 $ (4,088.6 ) $ (872.9 ) $ (3,215.7 ) Other comprehensive income (loss) before reclassifications (16.2 ) (62.6 ) 46.4 Amounts reclassified from accumulated other comprehensive income 22.1 (19.0 ) 41.1 Current period other comprehensive income 5.9 (81.6 ) 87.5 Balance at March 31, 2020 $ (4,082.7 ) $ (954.5 ) $ (3,128.2 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income | Amounts reclassified out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended 2020 2019 Translation Adjustments: Adjustment for substantial completion of liquidation of foreign subsidiaries (i) $ (19.0 ) $ — Postretirement Plans (ii) : Amortization of prior service cost (1.5 ) (1.5 ) Amortization of actuarial losses 43.9 37.4 Total before tax 23.4 35.9 Income tax benefit (1.3 ) (1.0 ) Total reclassifications for the period $ 22.1 $ 34.9 (i) Reported in other income (expense), net in the consolidated statements of income. (ii) These items are included in net periodic postretirement cost (see Note 5). |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Three Months Ended 2020 2019 Cash paid during the period for: Income taxes, net of refunds $ 16.7 $ 18.4 Interest $ 3.7 $ 6.0 |
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. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 789.6 $ 538.8 Restricted cash - short-term 487.3 — Restricted cash - long-term 10.6 13.0 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,287.5 $ 551.8 |
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. March 31, 2020 December 31, 2019 Cash and cash equivalents $ 789.6 $ 538.8 Restricted cash - short-term 487.3 — Restricted cash - long-term 10.6 13.0 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 1,287.5 $ 551.8 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Operations by Business Segment | A summary of the company’s operations by business segment for the three month periods ended March 31, 2020 and 2019 is presented below: Total Corporate Services Technology Three Months Ended March 31, 2020 Customer revenue $ 515.4 $ — $ 425.9 $ 89.5 Intersegment — (2.5 ) — 2.5 Total revenue $ 515.4 $ (2.5 ) $ 425.9 $ 92.0 Operating income (loss) $ 20.1 $ (8.1 ) $ (14.0 ) $ 42.2 Three Months Ended March 31, 2019 Customer revenue $ 554.5 $ — $ 474.0 $ 80.5 Intersegment — (2.4 ) — 2.4 Total revenue $ 554.5 $ (2.4 ) $ 474.0 $ 82.9 Operating income (loss) $ 25.2 $ (1.7 ) $ (1.4 ) $ 28.3 |
Reconciliation of Segment Operating Income to Consolidated Loss From Continuing Operations Before Income Taxes | Presented below is a reconciliation of total business segment operating income to consolidated loss from continuing operations before income taxes: Three Months Ended 2020 2019 Total segment operating income $ 28.2 $ 26.9 Interest expense (13.9 ) (15.5 ) Other income (expense), net (48.1 ) (30.4 ) Cost-reduction charges (8.5 ) (2.6 ) Corporate and eliminations 0.4 0.9 Total loss from continuing operations before income taxes $ (41.9 ) $ (20.7 ) |
Customer Revenue by Classes of Similar Products or Services | Customer revenue by classes of similar products or services, by segment, is presented below: Three Months Ended 2020 2019 Services Cloud & infrastructure services $ 295.2 $ 321.7 Application services 85.1 90.5 Business process outsourcing services 45.6 61.8 425.9 474.0 Technology 89.5 80.5 Total $ 515.4 $ 554.5 |
Revenue by Geographic Segment | Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below: Three Months Ended 2020 2019 United States $ 215.6 $ 191.4 United Kingdom 64.5 95.3 Other foreign 235.3 267.8 Total $ 515.4 $ 554.5 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Mar. 13, 2020 | Mar. 13, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash purchase price | $ 1,164.7 | $ 0 | ||
Income: | ||||
Income from discontinued operations, net of tax | $ 1,068.5 | 13.3 | ||
U.S. Federal Business | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash purchase price | $ 1,200 | |||
Revenue | $ 149.5 | 141.3 | ||
Income: | ||||
Operations | 9 | 17.7 | ||
Gain on sale | 1,061.7 | 0 | ||
Income from discontinued operations | 1,070.7 | 17.7 | ||
Income tax provision | 2.2 | 4.4 | ||
Income from discontinued operations, net of tax | $ 1,068.5 | $ 13.3 |
Cost-Reduction Actions - Additi
Cost-Reduction Actions - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)employee | Mar. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | $ 27.5 | $ 2.6 |
Charges related to work-force reductions | 8.5 | (0.9) |
Cost of revenue | Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 5.9 | (3.7) |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 2.5 | 5 |
Research and development expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 0.1 | 1.3 |
Other income (expense), net | ||
Restructuring Cost and Reserve [Line Items] | ||
Cost-reduction charges and other costs | 19 | |
Net foreign currency losses | ||
Restructuring Cost and Reserve [Line Items] | ||
Other expenses related to the cost-reduction effort | 19 | |
Lease abandonment costs and asset write-offs | ||
Restructuring Cost and Reserve [Line Items] | ||
Other expenses related to the cost-reduction effort | $ 3.5 | |
U.S. | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges related to work-force reductions | $ 2.3 | |
Number of employees | employee | 67 | |
Non-U.S. | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges related to work-force reductions | $ 7.4 | |
Number of employees | employee | 223 | |
Non-U.S. | Changes in estimates | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges related to work-force reductions | $ (1.2) |
Cost-Reduction Actions - Liabil
Cost-Reduction Actions - Liabilities and Expected Future Payments Related to Work-Force Reduction Actions (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Additional provisions | $ 27.5 | $ 2.6 | |
Work-force Reductions | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 49.8 | ||
Additional provisions | 9.7 | ||
Payments | (8.6) | ||
Changes in estimates | (1.2) | ||
Translation adjustments | (1.2) | ||
Balance at end of period | 48.5 | ||
2020 remaining nine months | 41.4 | ||
Beyond 2020 | 41.4 | ||
Work-force Reductions | Forecast | |||
Restructuring Reserve [Roll Forward] | |||
2020 remaining nine months | $ 7.1 | ||
Beyond 2020 | 7.1 | ||
Work-force Reductions | U.S. | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 5.2 | ||
Additional provisions | 2.3 | ||
Payments | (0.5) | ||
Changes in estimates | 0 | ||
Translation adjustments | 0 | ||
Balance at end of period | 7 | ||
2020 remaining nine months | 6.8 | ||
Beyond 2020 | 6.8 | ||
Work-force Reductions | U.S. | Forecast | |||
Restructuring Reserve [Roll Forward] | |||
2020 remaining nine months | 0.2 | ||
Beyond 2020 | 0.2 | ||
Work-force Reductions | International | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | 44.6 | ||
Additional provisions | 7.4 | ||
Payments | (8.1) | ||
Changes in estimates | (1.2) | ||
Translation adjustments | (1.2) | ||
Balance at end of period | 41.5 | ||
2020 remaining nine months | 34.6 | ||
Beyond 2020 | $ 34.6 | ||
Work-force Reductions | International | Forecast | |||
Restructuring Reserve [Roll Forward] | |||
2020 remaining nine months | 6.9 | ||
Beyond 2020 | $ 6.9 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits - Components of Net Periodic Benefit Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.7 | $ 0.7 |
Interest cost | 53.8 | 66.7 |
Expected return on plan assets | (75.1) | (81.2) |
Amortization of prior service benefit | (1.2) | (1.2) |
Recognized net actuarial loss | 44.3 | 37.6 |
Net periodic pension expense (benefit)/postretirement benefit expense | 22.5 | 22.6 |
Pension Plans | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 40.4 | 49.2 |
Expected return on plan assets | (52.3) | (54.5) |
Amortization of prior service benefit | (0.6) | (0.6) |
Recognized net actuarial loss | 33.5 | 28.9 |
Net periodic pension expense (benefit)/postretirement benefit expense | 21 | 23 |
Pension Plans | International Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.7 | 0.7 |
Interest cost | 13.4 | 17.5 |
Expected return on plan assets | (22.8) | (26.7) |
Amortization of prior service benefit | (0.6) | (0.6) |
Recognized net actuarial loss | 10.8 | 8.7 |
Net periodic pension expense (benefit)/postretirement benefit expense | 1.5 | (0.4) |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 1.1 | 1.2 |
Expected return on plan assets | (0.1) | (0.1) |
Amortization of prior service benefit | (0.4) | (0.4) |
Recognized net actuarial loss | 0.3 | 0.1 |
Net periodic pension expense (benefit)/postretirement benefit expense | $ 1 | $ 0.9 |
Pension and Postretirement Be_4
Pension and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash contributions, pension plans | $ 325.6 | $ 21.2 | $ 103.9 |
Cash contributions, postretirement benefits | 327.7 | 23.1 | |
Pension Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company | 640 | ||
Pension Plans | U.S. Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company | 600 | ||
Pension Plans | International Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company | 40 | ||
Postretirement Benefit Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company | 7 | 5.5 | |
Cash contributions, postretirement benefits | $ 2.1 | $ 1.9 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 5.1 | $ 4.7 |
Aggregate weighted-average grant-date fair value of units granted | 16.4 | 16.5 |
Total unrecognized compensation cost | $ 22.3 | |
Unrecognized compensation cost, weighted-average recognition period | 2 years 6 months | |
Aggregate weighted-average grant-date fair value of units vested | $ 11.8 | $ 14.2 |
Performance-Based Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals (in shares) | 0 | |
Performance-Based Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals (in shares) | 2 |
Stock Compensation - Summary of
Stock Compensation - Summary of Restricted Stock Unit Activity (Detail) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted- Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 28.33 | $ 16.58 |
Restricted Stock Units | ||
Restricted Stock Units | ||
Outstanding at beginning of period (in shares) | 2,040 | |
Granted (in shares) | 709 | |
Vested (in shares) | (858) | |
Forfeited and expired (in shares) | (52) | |
Outstanding at end of period (in shares) | 1,839 | |
Weighted- Average Grant-Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 14.17 | |
Granted (in dollars per share) | 22.48 | |
Vested (in dollars per share) | 13.75 | |
Forfeited and expired (in dollars per share) | 13.79 | |
Outstanding at end of period (in dollars per share) | $ 17.56 |
Stock Compensation Stock Compen
Stock Compensation Stock Compensation - Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted-average fair value of grant (in dollars per share) | $ 28.33 | $ 16.58 |
Risk-free interest rate | 1.35% | 2.49% |
Expected volatility | 51.81% | 47.91% |
Expected life of restricted stock units in years | 2 years 10 months 9 days | 2 years 10 months 13 days |
Expected dividend yield | 0.00% | 0.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Common Share Attributable to Unisys Corporation (Detail) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic earnings (loss) per common share computation: | ||
Net loss from continuing operations attributable to Unisys Corporation | $ (53,200,000) | $ (32,700,000) |
Income from discontinued operations, net of tax | 1,068,500,000 | 13,300,000 |
Net income (loss) attributable to Unisys Corporation | $ 1,015,300,000 | $ (19,400,000) |
Weighted average shares (in shares) | 62,650 | 51,418 |
Basic earnings (loss) per share attributable to Unisys Corporation | ||
Continuing operations (in dollars per share) | $ (0.85) | $ (0.64) |
Discontinued operations (in dollars per share) | 17.06 | 0.26 |
Total (in dollars per share) | $ 16.21 | $ (0.38) |
Diluted earnings (loss) per common share computation: | ||
Net loss from continuing operations attributable to Unisys Corporation | $ (53,200,000) | $ (32,700,000) |
Add interest expense on convertible senior notes, net of tax of zero | 0 | 0 |
Interest expense on convertible senior notes, tax | 0 | 0 |
Net loss from continuing operations attributable to Unisys Corporation for diluted earnings per share | (53,200,000) | (32,700,000) |
Income from discontinued operations, net of tax | 1,068,500,000 | 13,300,000 |
Net loss attributable to Unisys Corporation for diluted earnings per share | $ 1,015,300,000 | $ (19,400,000) |
Weighted average shares (in shares) | 62,650 | 51,418 |
Plus incremental shares from assumed conversions: | ||
Employee stock plans (in shares) | 0 | 0 |
Convertible senior notes (in shares) | 0 | 0 |
Adjusted weighted average shares (in shares) | 62,650 | 51,418 |
Diluted earnings (loss) per share attributable to Unisys Corporation | ||
Continuing operations (in dollars per share) | $ (0.85) | $ (0.64) |
Discontinued operations (in dollars per share) | 17.06 | 0.26 |
Total (in dollars per share) | $ 16.21 | $ (0.38) |
Stock options and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive weighted average securities (in shares) | 875 | 1,401 |
Common shares issuable upon conversion of the 5.50% convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive weighted average securities (in shares) | 8,625 | 21,868 |
Convertible senior notes interest rate | 5.50% |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets - current | $ 40.9 | $ 38.4 | |
Contract assets - long-term | 21 | 21.6 | |
Deferred revenue - current | (224.2) | (246.4) | |
Deferred revenue - long-term | (134.9) | $ (147) | |
Revenue recognized that was included in deferred revenue at the beginning of the period | $ 81 | $ 98 |
Capitalized Contract Costs (Det
Capitalized Contract Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Costs to fulfill a contract - amortization expense | $ 6.4 | $ 6.2 | |
Costs to fulfill contract, net | 71.5 | $ 75.8 | |
Deferred Commissions | |||
Capitalized Contract Cost [Line Items] | |||
Deferred commissions | 9.6 | $ 9.1 | |
Costs to fulfill a contract - amortization expense | $ 0.7 | $ 0.8 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - Foreign Exchange Forward Contract - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurements [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 | $ 373.1 | $ 437 |
Financial Instruments and Fai_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, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total fair value | $ 15.2 | $ 2 |
Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | 16.4 | 2.1 |
Other accrued liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other accrued liabilities | $ 1.2 | $ 0.1 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Gains and Losses Recognized on Foreign Exchange Forward Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other income (expense), net | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Gains (losses) on foreign exchange forward contracts | $ (28.5) | $ 0.1 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Fair Values of Financial Instruments Not Measured at Fair Value in Consolidated Balance Sheets (Details) - Senior Notes - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 06, 2019 | Dec. 31, 2016 |
10.75% senior secured notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying amount of long-term debt | $ 435.1 | $ 434.5 | ||
Interest rate | 10.75% | |||
5.50% convertible senior notes due 2021 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying amount of long-term debt | $ 80.9 | 80 | $ 84.2 | |
Interest rate | 5.50% | 5.50% | ||
Fair Value | 10.75% senior secured notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of long-term debt | $ 464 | 474.2 | ||
Fair Value | 5.50% convertible senior notes due 2021 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of long-term debt | $ 115.8 | $ 115.8 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||
Goodwill | $ 108.6 | $ 110.4 |
Services | ||
Goodwill [Line Items] | ||
Goodwill | 10.3 | $ 10.3 |
Business process outsourcing services | Services | ||
Goodwill [Line Items] | ||
Goodwill | $ 10.3 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 110.4 |
Translation adjustments | (1.8) |
Ending balance | 108.6 |
Services | |
Goodwill [Roll Forward] | |
Beginning balance | 10.3 |
Translation adjustments | 0 |
Ending balance | 10.3 |
Technology | |
Goodwill [Roll Forward] | |
Beginning balance | 100.1 |
Translation adjustments | (1.8) |
Ending balance | $ 98.3 |
Debt - Schedule of Components o
Debt - Schedule of Components of Long-term Debt (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Aug. 06, 2019 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Finance leases | $ 4,700,000 | $ 5,300,000 | ||
Other debt | 56,500,000 | 59,600,000 | ||
Total | 577,200,000 | 579,400,000 | ||
Less – current maturities | 530,100,000 | 13,500,000 | ||
Total long-term debt | $ 47,100,000 | 565,900,000 | ||
5.50% convertible senior notes due March 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ 1,000 | |||
Senior Notes | 10.75% senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10.75% | |||
Face value | $ 440,000,000 | 440,000,000 | ||
Unamortized discount and fees | 4,900,000 | 5,500,000 | ||
Senior notes | $ 435,100,000 | 434,500,000 | ||
Senior Notes | 5.50% convertible senior notes due March 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | 5.50% | ||
Face value | $ 84,200,000 | 84,200,000 | $ 213,500,000 | |
Unamortized discount and fees | 3,300,000 | 4,200,000 | ||
Senior notes | $ 80,900,000 | $ 80,000,000 | $ 84,200,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 15, 2020 | Aug. 06, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | Aug. 05, 2019 | Mar. 19, 2020 | Dec. 31, 2019 | Sep. 05, 2019 | Aug. 07, 2019 | Mar. 27, 2019 |
Debt Instrument [Line Items] | ||||||||||||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | $ 487,300,000 | $ 0 | ||||||||||
The Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 10.75% | |||||||||||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | $ 487,300,000 | $ 487,300,000 | ||||||||||
Aggregate principal amount | 440,000,000 | 440,000,000 | ||||||||||
Aggregate principal amount of convertible debt outstanding | 435,100,000 | 434,500,000 | ||||||||||
The Notes | Senior Notes | Principal Amount Due | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | 440,000,000 | |||||||||||
The Notes | Senior Notes | Call Premium | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | 23,650,000 | |||||||||||
The Notes | Senior Notes | Accrued Interest | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | $ 23,650,000 | |||||||||||
The Notes | Senior Notes | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount redeemed in full redemption | $ 440,000,000 | |||||||||||
Interest rate | 10.75% | |||||||||||
Redemption price, percent of principal amount of notes redeemed | 105.375% | |||||||||||
Loss on debt extinguishment | $ 28,500,000 | |||||||||||
The Notes | Senior Notes | Subsequent Event | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 28,500,000 | |||||||||||
Premium | 23,650,000 | |||||||||||
Write off of unamortized discount and fees related to issuance of the Notes | $ 4,800,000 | |||||||||||
2021 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 1,000 | |||||||||||
2021 Notes | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.50% | 5.50% | ||||||||||
Aggregate principal amount | $ 84,200,000 | $ 213,500,000 | 84,200,000 | |||||||||
Effective interest rate | 9.50% | |||||||||||
Debt conversion rate (in shares) | 102.4249 | |||||||||||
Total number of convertible shares (in shares) | 21,867,716 | |||||||||||
Payments for capped call transactions | $ 27,300,000 | |||||||||||
Conversion premium percentage | 60.00% | 22.50% | ||||||||||
Conversion price (in dollars per share) | $ 12.75 | $ 9.76 | ||||||||||
Aggregate shares of common stock issued pursuant to exchange agreements (in shares) | 10,593,930 | |||||||||||
Cash paid in exchange for outstanding convertible debt | $ 59,400,000 | |||||||||||
Accrued and unpaid interest | $ 3,100,000 | |||||||||||
Aggregate principal amount of outstanding convertible debt included in debt conversion | 129,300,000 | |||||||||||
Aggregate principal amount of convertible debt outstanding | 84,200,000 | $ 80,900,000 | $ 80,000,000 | |||||||||
Proceeds from capped call transactions | $ 7,200,000 | |||||||||||
Number of shares of common stock covered by remaining capped call transactions (in shares) | 8,600,000 | |||||||||||
Charge recognized as a result of exchange | $ 20,200,000 | |||||||||||
Charge recognized as a result of exchange, per diluted share (in dollars per share) | $ 0.35 | |||||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 145,000,000 | |||||||||||
Accordion feature increase limit | 150,000,000 | |||||||||||
Borrowings outstanding | 59,000,000 | |||||||||||
Available borrowings | $ 20,100,000 | |||||||||||
Springing maturity date, period prior to maturity date of convertible debt | 91 days | |||||||||||
Credit Agreement | Letter of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 30,000,000 | |||||||||||
Letters of credit outstanding | $ 5,700,000 | |||||||||||
Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Requirement to maintain minimum fixed charge coverage ratio, availability threshold, percent of lenders' commitments under facility | 10.00% | |||||||||||
Requirement to maintain minimum fixed charge coverage ratio, availability threshold | $ 15,000,000 | |||||||||||
Amount of aggregate default under other debt that would trigger event of default | $ 50,000,000 | |||||||||||
Installment Payment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.00% | |||||||||||
Aggregate principal amount | $ 27,700,000 | |||||||||||
Amount reported in current maturities of long-term debt | $ 6,100,000 | |||||||||||
Software Licenses Financing Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 5.47% | |||||||||||
Aggregate principal amount | $ 19,300,000 | |||||||||||
Amount reported in current maturities of long-term debt | $ 3,500,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - Senior Notes - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
The Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest coupon | $ 11.8 | $ 11.8 |
Amortization of debt issuance costs | 0.6 | 0.6 |
Total | 12.4 | 12.4 |
2021 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest coupon | 1.2 | 2.9 |
Amortization of debt discount | 0.8 | 1.7 |
Amortization of debt issuance costs | 0.1 | 0.3 |
Total | $ 2.1 | $ 4.9 |
Litigation and Contingencies -
Litigation and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Jun. 26, 2014USD ($) | Apr. 30, 2007EUR (€) | Mar. 31, 2020USD ($) | Apr. 30, 2008EUR (€) |
Loss Contingencies [Line Items] | ||||
Amount related to unreserved tax-related matters, inclusive of interest (up to) | $ | $ 81 | |||
Ministry of Justice of Belgium | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | € | € 28 | |||
Counterclaim against termination of contract | € | € 18.5 | |||
Pharmaceutical Claims | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | $ | $ 50 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (1,228.3) | $ (1,299.6) |
Other comprehensive income (loss) before reclassifications | (16.2) | |
Amounts reclassified from accumulated other comprehensive income | 22.1 | 34.9 |
Current period other comprehensive income | 5.9 | |
Ending balance | (209.4) | (1,282.5) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4,088.6) | (4,084.8) |
Ending balance | (4,082.7) | $ (4,048.4) |
Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (872.9) | |
Other comprehensive income (loss) before reclassifications | (62.6) | |
Amounts reclassified from accumulated other comprehensive income | (19) | |
Current period other comprehensive income | (81.6) | |
Ending balance | (954.5) | |
Postretirement Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (3,215.7) | |
Other comprehensive income (loss) before reclassifications | 46.4 | |
Amounts reclassified from accumulated other comprehensive income | 41.1 | |
Current period other comprehensive income | 87.5 | |
Ending balance | $ (3,128.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other income (expense), net | $ (48.1) | $ (30.4) |
Total reclassifications for the period | 22.1 | 34.9 |
Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total reclassifications for the period | (19) | |
Postretirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of postretirement plan items, before tax | 23.4 | 35.9 |
Income tax benefit | (1.3) | (1) |
Total reclassifications for the period | 41.1 | |
Amortization of prior service cost | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of postretirement plan items, before tax | (1.5) | (1.5) |
Amortization of actuarial losses | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of postretirement plan items, before tax | 43.9 | 37.4 |
Adjustment for substantial completion of liquidation of foreign subsidiaries | Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other income (expense), net | $ (19) | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid during the period for: | ||
Income taxes, net of refunds | $ 16.7 | $ 18.4 |
Interest | $ 3.7 | $ 6 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 789.6 | $ 538.8 | ||
Restricted cash - short-term | 487.3 | 0 | ||
Restricted cash - long-term | 10.6 | 13 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 1,287.5 | $ 551.8 | $ 516.8 | $ 624.1 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 19, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | $ 487.3 | $ 0 | |
Senior Notes | The Notes | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | 487.3 | $ 487.3 | |
Principal Amount Due | Senior Notes | The Notes | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amount deposited with trustee, sufficient to fully pay redemption price, reported in restricted cash in current assets on balance sheet | $ 440 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of business segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Profit included in operating income | $ 20,100,000 | $ 25,200,000 |
Technology | ||
Segment Reporting Information [Line Items] | ||
Profit included in operating income | 42,200,000 | 28,300,000 |
Technology | Other Technology | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Profit included in operating income | $ 0 | $ 200,000 |
Segment Information - Summary o
Segment Information - Summary of Operations by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 515.4 | $ 554.5 |
Operating income (loss) | 20.1 | 25.2 |
Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 425.9 | 474 |
Operating income (loss) | (14) | (1.4) |
Technology | ||
Segment Reporting Information [Line Items] | ||
Revenue | 89.5 | 80.5 |
Operating income (loss) | 42.2 | 28.3 |
Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenue | (2.5) | (2.4) |
Intersegment | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Intersegment | Technology | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2.5 | 2.4 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 28.2 | 26.9 |
Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 425.9 | 474 |
Operating Segments | Technology | ||
Segment Reporting Information [Line Items] | ||
Revenue | 92 | 82.9 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | (2.5) | (2.4) |
Operating income (loss) | $ (8.1) | $ (1.7) |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Income to Consolidated Loss From Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ 20.1 | $ 25.2 |
Interest expense | (13.9) | (15.5) |
Other income (expense), net | (48.1) | (30.4) |
Cost-reduction charges | (27.5) | (2.6) |
Total loss from continuing operations before income taxes | (41.9) | (20.7) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | 28.2 | 26.9 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Cost-reduction charges | (8.5) | (2.6) |
Corporate and eliminations | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ 0.4 | $ 0.9 |
Segment Information - Customer
Segment Information - Customer Revenue by Classes of Similar Products or Services (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 515.4 | $ 554.5 |
Services | ||
Revenue from External Customer [Line Items] | ||
Revenues | 425.9 | 474 |
Technology | ||
Revenue from External Customer [Line Items] | ||
Revenues | 89.5 | 80.5 |
Cloud & infrastructure services | Services | ||
Revenue from External Customer [Line Items] | ||
Revenues | 295.2 | 321.7 |
Application services | Services | ||
Revenue from External Customer [Line Items] | ||
Revenues | 85.1 | 90.5 |
Business process outsourcing services | Services | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 45.6 | $ 61.8 |
Segment Information - Revenue,
Segment Information - Revenue, Properties and Outsourcing Assets by Geographic Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 515.4 | $ 554.5 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 215.6 | 191.4 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 64.5 | 95.3 |
Other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 235.3 | $ 267.8 |
Remaining Performance Obligat_2
Remaining Performance Obligations (Details) $ in Billions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 0.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent to be recognized as revenue | 34.00% |
Period over which remaining performance obligations are expected to be recognized as revenue | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent to be recognized as revenue | 26.00% |
Period over which remaining performance obligations are expected to be recognized as revenue | 1 year |
Subsequent Event (Details)
Subsequent Event (Details) - 10.75% senior secured notes - Senior Notes - USD ($) | Apr. 15, 2020 | Mar. 31, 2020 |
Subsequent Event [Line Items] | ||
Interest rate | 10.75% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount redeemed in full redemption | $ 440,000,000 | |
Interest rate | 10.75% | |
Loss on debt extinguishment | $ 28,500,000 |