Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | UIS |
Entity Registrant Name | UNISYS CORP |
Entity Central Index Key | 746,838 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 49,933,715 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 293.1 | $ 494.3 |
Accounts and notes receivable, net | 551.5 | 619.3 |
Inventories: | ||
Parts and finished equipment | 26.3 | 22.2 |
Work in process and materials | 26.2 | 24.5 |
Deferred income taxes | 17.2 | 16.4 |
Prepaid expenses and other current assets | 128.1 | 140.6 |
Total | 1,042.4 | 1,317.3 |
Properties | 994.5 | 1,059.4 |
Less-Accumulated depreciation and amortization | 829.9 | 890.7 |
Properties, net | 164.6 | 168.7 |
Outsourcing assets, net | 182.3 | 150.9 |
Marketable software, net | 140.1 | 144.1 |
Prepaid postretirement assets | 45 | 19.9 |
Deferred income taxes | 143.7 | 154.6 |
Goodwill | 177.3 | 183.9 |
Other long-term assets | 202.5 | 209.3 |
Total | 2,097.9 | 2,348.7 |
Current liabilities | ||
Notes payable | 55 | |
Current maturities of long-term-debt | 11.2 | 1.8 |
Accounts payable | 221.5 | 262.5 |
Deferred revenue | 290.9 | 348.3 |
Other accrued liabilities | 339.1 | 385.1 |
Total | 917.7 | 997.7 |
Long-term debt | 244.1 | 222.2 |
Long-term postretirement liabilities | 2,185.6 | 2,369.9 |
Long-term deferred revenue | 119.5 | 119.5 |
Other long-term liabilities | $ 82.3 | $ 91.8 |
Commitments and contingencies | ||
Deficit | ||
Common stock, shares issued: 2015; 52.7, 2014; 52.4 | $ 0.5 | $ 0.5 |
Accumulated deficit | (1,846.8) | (1,735.8) |
Treasury stock, shares at cost: 2015; 2.7, 2014; 2.7 | (100) | (99.6) |
Paid-in capital | 4,499.5 | 4,488.3 |
Accumulated other comprehensive loss | (4,023.4) | (4,113.4) |
Total Unisys stockholders' deficit | (1,470.2) | (1,460) |
Noncontrolling interests | 18.9 | 7.6 |
Total deficit | (1,451.3) | (1,452.4) |
Total | $ 2,097.9 | $ 2,348.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, shares issued | 52.7 | 52.4 |
Treasury stock, shares | 2.7 | 2.7 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Revenue | ||||||
Services | $ 656 | $ 711.9 | [1] | $ 1,956.5 | $ 2,097 | [1] |
Technology | 83.2 | 170.6 | [1] | 268.7 | 353.6 | [1] |
Total revenue | 739.2 | 882.5 | 2,225.2 | 2,450.6 | ||
Cost of revenue: | ||||||
Services | 564.7 | 586.7 | [1] | 1,714.7 | 1,763.9 | [1] |
Technology | 33.9 | 60.9 | [1] | 128.6 | 153.6 | [1] |
Cost of Revenue, Total | 598.6 | 647.6 | 1,843.3 | 1,917.5 | ||
Selling, general and administrative | 115.4 | 138 | 389.6 | 410.1 | ||
Research and development | 16.6 | 20.3 | 63.2 | 50.5 | ||
Costs and Expenses, Total | 730.6 | 805.9 | 2,296.1 | 2,378.1 | ||
Operating profit (loss) | 8.6 | 76.6 | (70.9) | 72.5 | ||
Interest expense | 3 | 2.3 | 8.3 | 6.6 | ||
Other income (expense), net | 1.7 | 3.3 | 8 | (9) | ||
Income (loss) before income taxes | 7.3 | 77.6 | (71.2) | 56.9 | ||
Provision for income taxes | 14.9 | 26.4 | 33.3 | 62.3 | ||
Consolidated net income (loss) | (7.6) | 51.2 | (104.5) | (5.4) | ||
Net income attributable to noncontrolling interests | 2 | 3.4 | 6.5 | 9.7 | ||
Net income (loss) attributable to Unisys Corporation | (9.6) | 47.8 | (111) | (15.1) | ||
Preferred stock dividends | 2.7 | |||||
Net income (loss) attributable to Unisys Corporation common shareholders | $ (9.6) | $ 47.8 | $ (111) | $ (17.8) | ||
Earnings (loss) per common share attributable to Unisys Corporation | ||||||
Basic | $ (0.19) | $ 0.95 | $ (2.22) | $ (0.36) | ||
Diluted | $ (0.19) | $ 0.95 | $ (2.22) | $ (0.36) | ||
[1] | Changed to conform to the current-year presentation. See note (f). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated net income (loss) | $ (7.6) | $ 51.2 | $ (104.5) | $ (5.4) |
Other comprehensive income | ||||
Foreign currency translation | (72) | (61.5) | (86.5) | (19.9) |
Postretirement adjustments, net of tax of $9.8 and $15.7 in 2015 and $11.4 and $10.9 in 2014 | 82.5 | 132 | 181.3 | 186.9 |
Total other comprehensive income | 10.5 | 70.5 | 94.8 | 167 |
Comprehensive income (loss) | 2.9 | 121.7 | (9.7) | 161.6 |
Less comprehensive income attributable to noncontrolling interests | (3.3) | (1.4) | (11.3) | (10.6) |
Comprehensive income (loss) attributable to Unisys Corporation | $ (0.4) | $ 120.3 | $ (21) | $ 151 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Postretirement adjustments, tax | $ 9.8 | $ 11.4 | $ 15.7 | $ 10.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Consolidated net loss | $ (104.5) | $ (5.4) |
Add (deduct) items to reconcile consolidated net loss to net cash (used for) provided by operating activities: | ||
Foreign currency transaction losses | 8 | 7.4 |
Employee stock compensation | 7.9 | 10.6 |
Depreciation and amortization of properties | 34.1 | 38.6 |
Depreciation and amortization of outsourcing assets | 41.2 | 44.5 |
Amortization of marketable software | 50.3 | 42.5 |
Other non-cash operating activities | 1.8 | 7.8 |
Disposal of capital assets | 6.1 | 1 |
Gain on sale of business | (0.7) | |
Pension contributions | (115.6) | (161.3) |
Pension expense | 81.5 | 55.5 |
(Increase) decrease in deferred income taxes, net | (2.8) | 15.4 |
Decrease in receivables, net | 11.7 | 81.2 |
Increase in inventories | (7.7) | (6.1) |
Decrease in accounts payable and other accrued liabilities | (121.4) | (83.8) |
Decrease in other liabilities | (8.3) | (39.1) |
Decrease other assets | 9.2 | 7.8 |
Net cash (used for) provided by operating activities | (108.5) | 15.9 |
Cash flows from investing activities | ||
Proceeds from investments | 2,904 | 4,438.8 |
Purchases of investments | (2,884.2) | (4,422.8) |
Investment in marketable software | (46.8) | (56.1) |
Capital additions of properties | (40.2) | (41.9) |
Capital additions of outsourcing assets | (80.4) | (45.9) |
Other | 6.1 | (1.2) |
Net cash used for investing activities | (141.5) | (129.1) |
Cash flows from financing activities | ||
Net proceeds of short-term borrowing | 55 | |
Payments of long-term debt | (1.3) | |
Proceeds from exercise of stock options | 3.7 | 3.3 |
Proceeds from long-term debt | 31.8 | |
Financing fees | (0.2) | (0.6) |
Common stock repurchases | (29.3) | |
Dividends paid on preferred stock | (4) | |
Net cash provided by (used for) financing activities | 89 | (30.6) |
Effect of exchange rate changes on cash and cash equivalents | (40.2) | (19.5) |
Decrease in cash and cash equivalents | (201.2) | (163.3) |
Cash and cash equivalents, beginning of period | 494.3 | 639.8 |
Cash and cash equivalents, end of period | $ 293.1 | $ 476.5 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis Of Presentation | In the opinion of management, the financial information furnished herein reflects all adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income and cash flows 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, and 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 significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. The company’s accounting policies are set forth in detail in note 1 of the notes to the consolidated financial statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. Such Annual Report also contains a discussion of the company’s critical accounting policies. The company believes that these critical accounting policies affect its more significant estimates and judgments used in the preparation of the company’s consolidated financial statements. There have been no changes in the company’s critical accounting policies from those disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per Share | a. Earnings per Share. The following table shows how earnings per common share attributable to Unisys Corporation was computed for the three and nine months ended September 30, 2015 and 2014 (dollars in millions, shares in thousands): Three Months Nine Months 2015 2014 2015 2014 Basic Earnings (Loss) Per Common Share Net income (loss) attributable to Unisys Corporation common shareholders $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Weighted average shares 49,934 50,245 49,894 49,144 Total $ (.19 ) $ .95 $ (2.22 ) $ (.36 ) Diluted Earnings (Loss) Per Common Share Net income (loss) attributable to Unisys Corporation common shareholders $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Add preferred stock dividends — — — — Net income (loss) attributable to Unisys Corporation for diluted earnings per share $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Weighted average shares 49,934 50,245 49,894 49,144 Plus incremental shares from assumed conversions Employee stock plans — 177 — — Preferred stock — — — — Adjusted weighted average shares 49,934 50,422 49,894 49,144 Total $ (.19 ) $ .95 $ (2.22 ) $ (.36 ) In the nine months ended September 30, 2015 and 2014, the following weighted-average number of stock options and restricted stock units were antidilutive and therefore excluded from the computation of diluted earnings per share (in thousands): 3,319 and 3,318, respectively. In the nine months ended September 30, 2014, 585 (in thousands) of weighted-average mandatory convertible preferred stock were antidilutive and therefore excluded from the computation of diluted earnings per share. |
Cost reduction actions
Cost reduction actions | 9 Months Ended |
Sep. 30, 2015 | |
Cost reduction actions | b. Cost reduction actions. In April 2015, in connection with organizational initiatives to create a more competitive cost structure and rebalance the company’s global skill set, the company announced a plan to recognize a pretax restructuring charge estimated at approximately $300 million over the next several quarters. During the three months ended September 30, 2015, the company recognized pretax charges of $17.4 million in connection with this plan. The charges related to work-force reductions were $9.8 million, principally related to severance costs, and were comprised of: (a) a charge of $2.7 million for 176 employees in the U.S. and (b) a charge of $7.1 million for 114 employees outside the U.S. In addition, the company recorded pretax charges of $7.6 million for other expenses related to the cost reduction effort. The pretax charges were recorded in the following statement of income classifications: cost of revenue – services, $7.9 million; cost of revenue – technology, $.1 million; selling, general and administrative expenses, $8.6 million; and research and development expenses, $.8 million. During the nine months ended September 30, 2015, the company recognized pretax charges of $70.0 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $52.3 million, principally related to severance costs, and were comprised of: (a) a charge of $28.1 million for 706 employees in the U.S. and (b) a charge of $24.2 million for 527 employees outside the U.S. In addition, the company recorded pretax charges of $17.7 million, related to asset impairments and other expenses related to the cost reduction effort. The pretax charges were recorded in the following statement of income classifications: cost of revenue – services, $21.2 million; cost of revenue – technology, $.2 million; selling, general and administrative expenses, $36.1 million; and research and development expenses, $12.5 million. A breakdown of the individual components of these costs for the nine months ended September 30, 2015 follows (in millions of dollars): Work-Force Headcount Total U.S. Int’l. Charges for work-force reductions 1,233 $ 52.3 $ 28.1 $ 24.2 Utilized (1,068 ) (28.3 ) (14.2 ) (14.1 ) Translation adjustments — (.9 ) — (.9 ) Balance at Sept. 30, 2015 165 $ 23.1 $ 13.9 $ 9.2 Expected future utilization: 2015 remaining three months 151 $ 18.4 $ 10.9 $ 7.5 Beyond 2015 14 4.7 3.0 1.7 |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Pension and Postretirement Benefits | c. Pension and Postretirement Benefits. Net periodic pension expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars): Three Months Three Months Total U.S. Int’l. Total U.S. Int’l. Service cost $ 2.2 $ — $ 2.2 $ 2.1 $ — $ 2.1 Interest cost 80.0 56.1 23.9 91.4 61.6 29.8 Expected return on plan assets (103.1 ) (63.7 ) (39.4 ) (111.8 ) (71.3 ) (40.5 ) Amortization of prior service (benefit) cost (1.1 ) (.6 ) (.5 ) (1.1 ) (.5 ) (.6 ) Recognized net actuarial loss 49.2 33.1 16.1 37.5 27.5 10.0 Net periodic pension expense $ 27.2 $ 24.9 $ 2.3 $ 18.1 $ 17.3 $ .8 Nine Months Nine Months Total U.S. Int’l. Total U.S. Int’l. Service cost $ 6.5 $ — $ 6.5 $ 6.4 $ — $ 6.4 Interest cost 238.9 168.1 70.8 276.0 186.3 89.7 Expected return on plan assets (308.0 ) (191.1 ) (116.9 ) (337.4 ) (215.3 ) (122.1 ) Amortization of prior service (benefit) cost (3.3 ) (1.8 ) (1.5 ) (1.7 ) (.1 ) (1.6 ) Recognized net actuarial loss 147.4 99.5 47.9 112.8 82.3 30.5 Curtailment gain — — — (.6 ) — (.6 ) Net periodic pension expense $ 81.5 $ 74.7 $ 6.8 $ 55.5 $ 53.2 $ 2.3 In 2015, the company estimates that it will make cash contributions of approximately $151 million to its worldwide defined benefit pension plans, which is comprised of $59 million for the company’s U.S. qualified defined benefit pension plan and $92 million primarily for non-U.S. defined benefit pension plans. In 2014, the company made cash contributions of $183.4 million to its worldwide defined benefit pension plans. For the nine months ended September 30, 2015 and 2014, $115.6 million and $161.3 million, respectively, of cash contributions have been made. Net periodic postretirement benefit expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Service cost $ .1 $ .2 $ .4 $ .5 Interest cost 1.7 2.0 5.1 6.0 Expected return on assets (.1 ) (.1 ) (.3 ) (.4 ) Amortization of prior service cost .3 .4 .9 1.3 Recognized net actuarial loss .7 .8 2.1 2.5 Net periodic postretirement benefit expense $ 2.7 $ 3.3 $ 8.2 $ 9.9 The company expects to make cash contributions of approximately $16 million to its postretirement benefit plan in 2015 compared with $15.3 million in 2014. For the nine months ended September 30, 2015 and 2014, $10.8 million and $10.4 million, respectively, of cash contributions have been made. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | d. 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 September 30, 2015 and 2014, the notional amount of these contracts was $409.3 million and $421.1 million, respectively. At September 30, 2015 and 2014, the fair value of such contracts was a net loss of $.8 million and a net gain of $1.5 million, respectively, of which $.6 million and $2.6 million, respectively, has been recognized in “Prepaid expenses and other current assets” and $1.4 and $1.1 million, respectively, has been recognized in “Other accrued liabilities” in the company’s consolidated balance sheet. For the nine months ended September 30, 2015 and 2014, changes in the fair value of these instruments was a gain of $13.7 million and a gain of $15.9 million, respectively, which has been recognized in earnings in “Other income (expense), net” in the company’s consolidated statement of income. 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. 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 accrued liabilities. The carrying amounts of these financial assets and liabilities approximate fair value due to their short maturities. At September 30, 2015 and December 31, 2014, the carrying amount of long-term debt was less than fair value, which is based on market prices (Level 2 inputs), of such debt by approximately $8 million and $9 million, respectively. |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2015 | |
Stock Options | e. Stock Options. Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units may be granted to officers, directors and other key employees. At September 30, 2015, 2.2 million shares of unissued common stock of the company were available for granting under these plans. The fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values: Nine Months Ended Sept. 30 2015 2014 Weighted-average fair value of grant $ 9.00 $ 11.27 Risk-free interest rate 1.28 % 1.04 % Expected volatility 45.46 % 45.65 % Expected life of options in years 4.92 3.71 Expected dividend yield — — Restricted stock unit awards may contain time-based units, performance-based units or a combination of both. Each performance-based unit will vest into zero to 2.0 shares depending on the degree to which the performance goals are met. Compensation expense resulting from these 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. The company records all share-based expense in selling, general and administrative expense. During the nine months ended September 30, 2015 and 2014, the company recorded $7.9 million and $10.6 million of share-based compensation expense, respectively, which is comprised of $3.8 million and $4.2 million of restricted stock unit expense and $4.1 million and $6.4 million of stock option expense, respectively. A summary of stock option activity for the nine months ended September 30, 2015 follows (shares in thousands): Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2014 2,816 $ 29.51 Granted 728 23.42 Exercised (190 ) 19.53 Forfeited and expired (528 ) 33.91 Outstanding at Sept. 30, 2015 2,826 27.79 3.00 $ .0 Expected to vest at Sept. 30, 2015 1,321 26.34 4.41 .0 Exercisable at Sept. 30, 2015 1,448 29.25 1.62 .0 The aggregate intrinsic value represents the total pretax value of the difference between the company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all option holders exercised their options on September 30, 2015. The intrinsic value of the company’s stock options changes based on the closing price of the company’s stock. The total intrinsic value of options exercised for the nine months ended September 30, 2015 and 2014 was $.6 million and $4.6 million, respectively. As of September 30, 2015, $5.1 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.0 years. A summary of restricted stock unit activity for the nine months ended September 30, 2015 follows (shares in thousands): Restricted Weighted- Grant-Date Outstanding at December 31, 2014 354 $ 28.81 Granted 446 22.65 Vested (81 ) 23.87 Forfeited and expired (226 ) 29.42 Outstanding at Sept. 30, 2015 493 23.78 The fair value of restricted stock units is determined based on the trading price of the company’s common shares on the date of grant. The aggregate weighted-average grant-date fair value of restricted stock units granted during the nine months ended September 30, 2015 and 2014 was $10.1 million and $12.7 million, respectively. As of September 30, 2015, there was $6.3 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 2.3 years. The aggregate weighted-average grant-date fair value of restricted stock units vested during the nine months ended September 30, 2015 and 2014 was $1.9 million and $2.7 million, respectively. Common stock issued upon exercise of stock options or upon lapse of restrictions on restricted stock units are newly issued shares. Cash received from the exercise of stock options for the nine months ended September 30, 2015 and 2014 was $3.7 million and $3.3 million, respectively. In light of its tax position, the company is currently not recognizing any tax benefits from the exercise of stock options or upon issuance of stock upon lapse of restrictions on restricted stock units. Tax benefits resulting from tax deductions in excess of the compensation costs recognized are classified as financing cash flows. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information | f. Segment Information. Effective January 1, 2015, the company changed the grouping of certain of its classes of products and services. As a result, certain revenue (principally company technology products) previously reported in the company’s Services segment is now reported in its Technology segment. As a result, prior-periods segment revenue and cost of sales, as well as customer revenue by classes of similar products and services, have been reclassified to conform to the current-year period. The company has two business segments: Services and Technology. Revenue classifications within the Services segment are as follows: • Cloud & infrastructure services. This represents revenue from work the company performs in the data center and cloud area, technology consulting and technology-based systems integration projects, as well as global service desks and global field services. • Application services. This represents revenue from application managed services and application development, maintenance and support work. • Business processing outsourcing services. This represents revenue from the management of clients’ specific business processes. The accounting policies of each business segment are the same as those followed by the company as a whole. Intersegment sales and transfers are priced as if the sales or transfers were to third parties. Accordingly, the Technology segment recognizes intersegment revenue and manufacturing profit on hardware and software shipments to customers under Services contracts. The Services segment, in turn, recognizes 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 September 30, 2015 and 2014 was $1.6 million and zero, respectively. The amount for the nine months ended September 30, 2015 and 2014 was $9.1 million and $.4 million, respectively. The profit on these transactions is eliminated in Corporate. The company evaluates business segment performance based on operating income exclusive of pension 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 and nine month periods ended September 30, 2015 and 2014 is presented below (in millions of dollars): Total Corporate Services Technology Three Months Ended Sept. 30, 2015 Customer revenue $ 739.2 $ 656.0 $ 83.2 Intersegment $ (11.9 ) — 11.9 Total revenue $ 739.2 $ (11.9 ) $ 656.0 $ 95.1 Operating income $ 8.6 $ (42.9 ) $ 31.8 $ 19.7 Three Months Ended Sept. 30, 2014 Customer revenue $ 882.5 $ 711.9 $ 170.6 Intersegment $ (9.0 ) — 9.0 Total revenue $ 882.5 $ (9.0 ) $ 711.9 $ 179.6 Operating income $ 76.6 $ (15.6 ) $ 36.5 $ 55.7 Nine Months Ended Sept. 30, 2015 Customer revenue $ 2,225.2 $ 1,956.5 $ 268.7 Intersegment $ (40.6 ) .1 40.5 Total revenue $ 2,225.2 $ (40.6 ) $ 1,956.6 $ 309.2 Operating income $ (70.9 ) $ (152.3 ) $ 37.6 $ 43.8 Nine Months Ended Sept. 30, 2014 Customer revenue $ 2,450.6 $ 2,097.0 $ 353.6 Intersegment $ (22.9 ) .3 22.6 Total revenue $ 2,450.6 $ (22.9 ) $ 2,097.3 $ 376.2 Operating income $ 72.5 $ (46.5 ) $ 72.5 $ 46.5 Presented below is a reconciliation of total business segment operating income to consolidated income before income taxes (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Total segment operating income $ 51.5 $ 92.2 $ 81.4 $ 119.0 Interest expense (3.0 ) (2.3 ) (8.3 ) (6.6 ) Other income (expense), net 1.7 3.3 8.0 (9.0 ) Cost reduction charges (17.4 ) — (70.0 ) — Corporate and eliminations (25.5 ) (15.6 ) (82.3 ) (46.5 ) Total income before income taxes $ 7.3 $ 77.6 $ (71.2 ) $ 56.9 Customer revenue by classes of similar products or services, by segment, is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Services Cloud & infrastructure services $ 380.0 $ 439.2 $ 1,146.1 $ 1,289.4 Application services 220.7 207.2 640.6 608.5 Business processing outsourcing services 55.3 65.5 169.8 199.1 656.0 711.9 1,956.5 2,097.0 Technology 83.2 170.6 268.7 353.6 Total $ 739.2 $ 882.5 $ 2,225.2 $ 2,450.6 Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 United States $ 359.9 $ 377.3 $ 1,085.8 $ 997.0 United Kingdom 92.6 104.6 264.1 327.5 Other international 286.7 400.6 875.3 1,126.1 Total $ 739.2 $ 882.5 $ 2,225.2 $ 2,450.6 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income | g. Accumulated Other Comprehensive Income. Accumulated other comprehensive loss as of December 31, 2014 and September 30, 2015 is as follows (in millions of dollars): Total Translation Postretirement Balance at December 31, 2014 $ (4,113.4 ) $ (737.8 ) $ (3,375.6 ) Other comprehensive income before reclassifications (43.9 ) (84.0 ) 40.1 Amounts reclassified from accumulated other comprehensive income 133.9 — 133.9 Current period other comprehensive income 90.0 (84.0 ) 174.0 Balance at Sept. 30, 2015 $ (4,023.4 ) $ (821.8 ) $ (3,201.6 ) Amounts related to postretirement plans not reclassified in their entirety out of accumulated other comprehensive income for the three and nine months ended September 30, 2015 and 2014 were as follows (in millions of dollars): Three Months Ended Sept 30 Nine Months Ended Sept 30 2015 2014 2015 2014 Amortization of: Prior service cost* $ (.8 ) $ (.5 ) $ (2.3 ) $ (.4 ) Actuarial losses* 47.8 37.6 143.1 112.9 Curtailment gain* — — — (.6 ) Total before tax 47.0 37.1 140.8 111.9 Income tax benefit (3.9 ) (1.5 ) (6.9 ) (4.4 ) Net of tax $ 43.1 $ 35.6 $ 133.9 $ 107.5 * These items are included in net periodic postretirement cost (see note (c)). Noncontrolling interests as of December 31, 2014 and September 30, 2015 are as follows (in millions of dollars): Noncontrolling Balance at December 31, 2014 $ 7.6 Net income 6.5 Translation adjustments (2.5 ) Postretirement plans 7.3 Balance at September 30, 2015 $ 18.9 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information | h. Supplemental Cash Flow Information. Cash paid, net of refunds, during the nine months ended September 30, 2015 and 2014 for income taxes was $52.5 million and $58.2 million, respectively. Cash paid during the nine months ended September 30, 2015 and 2014 for interest was $13.7 million and $13.2 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | i. Commitments 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 and employment compensation in Brazil. 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 Euros. Unisys Belgium filed its defense and counterclaim in April 2008, in the amount of approximately 18.5 million Euros. 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 matters. The company believes that appropriate accruals have been established for such matters based on information currently available. At September 30, 2015, 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 $92 million. The company has been involved in a matter arising from the sale of its Health Information Management (HIM) business to Molina Information Systems, LLC (Molina) under a 2010 Asset Purchase Agreement (APA). The HIM business provided system solutions and services to state governments, including the state of Idaho, for administering Medicaid programs. In August 2012, Molina sued the company in Federal District Court in Delaware alleging breaches of contract, negligent misrepresentation and intentional misrepresentation with respect to the APA and the Medicaid contract with Idaho. Molina sought compensatory damages, punitive damages, lost profits, indemnification, and declaratory relief. Molina alleged losses of approximately $35 million in the complaint. In June 2013, the District Court granted the company’s motion to dismiss the complaint and allowed Molina to replead certain claims and file an amended complaint. In August 2013, Molina filed an amended complaint. The company filed a motion to dismiss the amended complaint. On September 2, 2014, the District Court granted the company’s motion to dismiss the negligent misrepresentation claim, but denied the company’s motion with respect to Molina’s intentional misrepresentation and breach of contract claims. The litigation continues on the remaining claims. 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 alleges 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 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 September 30, 2015, it has adequate provisions for any such matters. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | j. 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. continuing operations will have no provision or benefit associated with it due to full valuation allowance, except with respect to refundable tax credits and withholding taxes not creditable against future taxable income. As a result, the company’s provision or benefit for taxes may vary significantly depending on the geographic distribution of income. |
Foreign Currency Translation
Foreign Currency Translation | 9 Months Ended |
Sep. 30, 2015 | |
Foreign Currency Translation | k. Foreign Currency Translation. In January of 2014, the Venezuelan government announced that the exchange rate to be applied to the settlement of certain transactions, including foreign investments and royalties would be changed to the SICAD I auction rate. As a result, the company changed the exchange rate used to remeasure its Venezuelan subsidiary’s financial statements in U.S. dollars from the official rate of 6.3 bolivars to the SICAD I rate. As the company believes that the SIMADI rate is now more representative of what it might expect to receive in a dividend transaction, the company switched to using the SIMADI rate effective as of September 30, 2015. At that date the SIMADI exchange rate was approximately 198.45 bolivars to the U.S. dollar. As a result of the change in rate, the company recorded a foreign exchange loss of approximately $7 million in the September 2015 quarter. After the application of the SIMADI exchange rate at September 30, 2015, the company’s operations in Venezuela had an immaterial amount of net monetary assets denominated in local currency. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholder's Equity | l. Stockholder’s Equity. On March 1, 2014, all of the outstanding shares of 6.25% mandatory convertible preferred stock (2,587,400 shares) were automatically converted (in accordance with its terms) into 6,912,756 shares of the company’s common stock. Because March 1, 2014 was not a business day, the mandatory conversion was effected on Monday, March 3, 2014. |
Accounting Standards
Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Standards | m. Accounting Standards. In May of 2014 (subsequently amended in August of 2015), the Financial Accounting Standards Board issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” The objective of the standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer. The standard is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, which for the company in January 1, 2017. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. The company is currently assessing when and which method it will choose for adoption, and is evaluating the impact of the adoption on its consolidated results of operations and financial position. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Computation of Earnings Per Common Share Attributable to Unisys Corporation | The following table shows how earnings per common share attributable to Unisys Corporation was computed for the three and nine months ended September 30, 2015 and 2014 (dollars in millions, shares in thousands): Three Months Nine Months 2015 2014 2015 2014 Basic Earnings (Loss) Per Common Share Net income (loss) attributable to Unisys Corporation common shareholders $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Weighted average shares 49,934 50,245 49,894 49,144 Total $ (.19 ) $ .95 $ (2.22 ) $ (.36 ) Diluted Earnings (Loss) Per Common Share Net income (loss) attributable to Unisys Corporation common shareholders $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Add preferred stock dividends — — — — Net income (loss) attributable to Unisys Corporation for diluted earnings per share $ (9.6 ) $ 47.8 $ (111.0 ) $ (17.8 ) Weighted average shares 49,934 50,245 49,894 49,144 Plus incremental shares from assumed conversions Employee stock plans — 177 — — Preferred stock — — — — Adjusted weighted average shares 49,934 50,422 49,894 49,144 Total $ (.19 ) $ .95 $ (2.22 ) $ (.36 ) |
Cost reduction actions (Tables)
Cost reduction actions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Individual Components of Work Force Reduction and Idle Lease Cost | A breakdown of the individual components of these costs for the nine months ended September 30, 2015 follows (in millions of dollars): Work-Force Headcount Total U.S. Int’l. Charges for work-force reductions 1,233 $ 52.3 $ 28.1 $ 24.2 Utilized (1,068 ) (28.3 ) (14.2 ) (14.1 ) Translation adjustments — (.9 ) — (.9 ) Balance at Sept. 30, 2015 165 $ 23.1 $ 13.9 $ 9.2 Expected future utilization: 2015 remaining three months 151 $ 18.4 $ 10.9 $ 7.5 Beyond 2015 14 4.7 3.0 1.7 |
Pension and Postretirement Be24
Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plans | |
Components of Net Periodic Benefit Expense | Net periodic pension expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars): Three Months Three Months Total U.S. Int’l. Total U.S. Int’l. Service cost $ 2.2 $ — $ 2.2 $ 2.1 $ — $ 2.1 Interest cost 80.0 56.1 23.9 91.4 61.6 29.8 Expected return on plan assets (103.1 ) (63.7 ) (39.4 ) (111.8 ) (71.3 ) (40.5 ) Amortization of prior service (benefit) cost (1.1 ) (.6 ) (.5 ) (1.1 ) (.5 ) (.6 ) Recognized net actuarial loss 49.2 33.1 16.1 37.5 27.5 10.0 Net periodic pension expense $ 27.2 $ 24.9 $ 2.3 $ 18.1 $ 17.3 $ .8 Nine Months Nine Months Total U.S. Int’l. Total U.S. Int’l. Service cost $ 6.5 $ — $ 6.5 $ 6.4 $ — $ 6.4 Interest cost 238.9 168.1 70.8 276.0 186.3 89.7 Expected return on plan assets (308.0 ) (191.1 ) (116.9 ) (337.4 ) (215.3 ) (122.1 ) Amortization of prior service (benefit) cost (3.3 ) (1.8 ) (1.5 ) (1.7 ) (.1 ) (1.6 ) Recognized net actuarial loss 147.4 99.5 47.9 112.8 82.3 30.5 Curtailment gain — — — (.6 ) — (.6 ) Net periodic pension expense $ 81.5 $ 74.7 $ 6.8 $ 55.5 $ 53.2 $ 2.3 |
Other Postretirement Benefit Plans | |
Components of Net Periodic Benefit Expense | Net periodic postretirement benefit expense for the three and nine months ended September 30, 2015 and 2014 is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Service cost $ .1 $ .2 $ .4 $ .5 Interest cost 1.7 2.0 5.1 6.0 Expected return on assets (.1 ) (.1 ) (.3 ) (.4 ) Amortization of prior service cost .3 .4 .9 1.3 Recognized net actuarial loss .7 .8 2.1 2.5 Net periodic postretirement benefit expense $ 2.7 $ 3.3 $ 8.2 $ 9.9 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Assumptions on Stock Options | The fair value of stock option awards was estimated using the Black-Scholes option pricing model with the following assumptions and weighted-average fair values: Nine Months Ended Sept. 30 2015 2014 Weighted-average fair value of grant $ 9.00 $ 11.27 Risk-free interest rate 1.28 % 1.04 % Expected volatility 45.46 % 45.65 % Expected life of options in years 4.92 3.71 Expected dividend yield — — |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2015 follows (shares in thousands): Options Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2014 2,816 $ 29.51 Granted 728 23.42 Exercised (190 ) 19.53 Forfeited and expired (528 ) 33.91 Outstanding at Sept. 30, 2015 2,826 27.79 3.00 $ .0 Expected to vest at Sept. 30, 2015 1,321 26.34 4.41 .0 Exercisable at Sept. 30, 2015 1,448 29.25 1.62 .0 |
Summary of Restricted Stock Unit Activity | A summary of restricted stock unit activity for the nine months ended September 30, 2015 follows (shares in thousands): Restricted Weighted- Grant-Date Outstanding at December 31, 2014 354 $ 28.81 Granted 446 22.65 Vested (81 ) 23.87 Forfeited and expired (226 ) 29.42 Outstanding at Sept. 30, 2015 493 23.78 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Operations by Business Segment | A summary of the company’s operations by business segment for the three and nine month periods ended September 30, 2015 and 2014 is presented below (in millions of dollars): Total Corporate Services Technology Three Months Ended Sept. 30, 2015 Customer revenue $ 739.2 $ 656.0 $ 83.2 Intersegment $ (11.9 ) — 11.9 Total revenue $ 739.2 $ (11.9 ) $ 656.0 $ 95.1 Operating income $ 8.6 $ (42.9 ) $ 31.8 $ 19.7 Three Months Ended Sept. 30, 2014 Customer revenue $ 882.5 $ 711.9 $ 170.6 Intersegment $ (9.0 ) — 9.0 Total revenue $ 882.5 $ (9.0 ) $ 711.9 $ 179.6 Operating income $ 76.6 $ (15.6 ) $ 36.5 $ 55.7 Nine Months Ended Sept. 30, 2015 Customer revenue $ 2,225.2 $ 1,956.5 $ 268.7 Intersegment $ (40.6 ) .1 40.5 Total revenue $ 2,225.2 $ (40.6 ) $ 1,956.6 $ 309.2 Operating income $ (70.9 ) $ (152.3 ) $ 37.6 $ 43.8 Nine Months Ended Sept. 30, 2014 Customer revenue $ 2,450.6 $ 2,097.0 $ 353.6 Intersegment $ (22.9 ) .3 22.6 Total revenue $ 2,450.6 $ (22.9 ) $ 2,097.3 $ 376.2 Operating income $ 72.5 $ (46.5 ) $ 72.5 $ 46.5 |
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes | Presented below is a reconciliation of total business segment operating income to consolidated income before income taxes (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Total segment operating income $ 51.5 $ 92.2 $ 81.4 $ 119.0 Interest expense (3.0 ) (2.3 ) (8.3 ) (6.6 ) Other income (expense), net 1.7 3.3 8.0 (9.0 ) Cost reduction charges (17.4 ) — (70.0 ) — Corporate and eliminations (25.5 ) (15.6 ) (82.3 ) (46.5 ) Total income before income taxes $ 7.3 $ 77.6 $ (71.2 ) $ 56.9 |
Customer Revenue by Classes of Similar Products or Services | Customer revenue by classes of similar products or services, by segment, is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 Services Cloud & infrastructure services $ 380.0 $ 439.2 $ 1,146.1 $ 1,289.4 Application services 220.7 207.2 640.6 608.5 Business processing outsourcing services 55.3 65.5 169.8 199.1 656.0 711.9 1,956.5 2,097.0 Technology 83.2 170.6 268.7 353.6 Total $ 739.2 $ 882.5 $ 2,225.2 $ 2,450.6 |
Revenue by Geographic Segment | Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below (in millions of dollars): Three Months Nine Months 2015 2014 2015 2014 United States $ 359.9 $ 377.3 $ 1,085.8 $ 997.0 United Kingdom 92.6 104.6 264.1 327.5 Other international 286.7 400.6 875.3 1,126.1 Total $ 739.2 $ 882.5 $ 2,225.2 $ 2,450.6 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income. Accumulated other comprehensive loss as of December 31, 2014 and September 30, 2015 is as follows (in millions of dollars): Total Translation Postretirement Balance at December 31, 2014 $ (4,113.4 ) $ (737.8 ) $ (3,375.6 ) Other comprehensive income before reclassifications (43.9 ) (84.0 ) 40.1 Amounts reclassified from accumulated other comprehensive income 133.9 — 133.9 Current period other comprehensive income 90.0 (84.0 ) 174.0 Balance at Sept. 30, 2015 $ (4,023.4 ) $ (821.8 ) $ (3,201.6 ) |
Amounts Related to Postretirement Plans Not Reclassified in Entirely out of Accumulated Other Comprehensive Income | Amounts related to postretirement plans not reclassified in their entirety out of accumulated other comprehensive income for the three and nine months ended September 30, 2015 and 2014 were as follows (in millions of dollars): Three Months Ended Sept 30 Nine Months Ended Sept 30 2015 2014 2015 2014 Amortization of: Prior service cost* $ (.8 ) $ (.5 ) $ (2.3 ) $ (.4 ) Actuarial losses* 47.8 37.6 143.1 112.9 Curtailment gain* — — — (.6 ) Total before tax 47.0 37.1 140.8 111.9 Income tax benefit (3.9 ) (1.5 ) (6.9 ) (4.4 ) Net of tax $ 43.1 $ 35.6 $ 133.9 $ 107.5 * These items are included in net periodic postretirement cost (see note (c)). |
Noncontrolling Interests | Noncontrolling interests as of December 31, 2014 and September 30, 2015 are as follows (in millions of dollars): Noncontrolling Balance at December 31, 2014 $ 7.6 Net income 6.5 Translation adjustments (2.5 ) Postretirement plans 7.3 Balance at September 30, 2015 $ 18.9 |
Computation of Earnings Per Com
Computation of Earnings Per Common Share Attributable to Unisys Corporation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic Earnings (Loss) Per Common Share | ||||
Net income (loss) attributable to Unisys Corporation common shareholders | $ (9.6) | $ 47.8 | $ (111) | $ (17.8) |
Weighted average shares | 49,934 | 50,245 | 49,894 | 49,144 |
Total | $ (0.19) | $ 0.95 | $ (2.22) | $ (0.36) |
Diluted Earnings (Loss) Per Common Share | ||||
Net income (loss) attributable to Unisys Corporation common shareholders | $ (9.6) | $ 47.8 | $ (111) | $ (17.8) |
Add preferred stock dividends | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Unisys Corporation for diluted earnings per share | $ (9.6) | $ 47.8 | $ (111) | $ (17.8) |
Weighted average shares | 49,934 | 50,245 | 49,894 | 49,144 |
Plus incremental shares from assumed conversions | ||||
Employee stock plans | 177 | |||
Preferred stock | 0 | 0 | 0 | 0 |
Adjusted weighted average shares | 49,934 | 50,422 | 49,894 | 49,144 |
Total | $ (0.19) | $ 0.95 | $ (2.22) | $ (0.36) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 585 | |
Stock options and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 3,319 | 3,318 |
Cost Reduction Actions - Additi
Cost Reduction Actions - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Apr. 30, 2015USD ($) | Sep. 30, 2015USD ($)Employee | Sep. 30, 2015USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charge | $ 300 | $ 17.4 | $ 70 |
Work-force reduction charges | 9.8 | 52.3 | |
Asset impairments and other expenses related to the cost reduction effort | 7.6 | 17.7 | |
Cost of Revenue | Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charge | 0.1 | 0.2 | |
Cost of Revenue | Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charge | 7.9 | 21.2 | |
Selling, General and Administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charge | 8.6 | 36.1 | |
Research and Development | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated pretax restructuring charge | 0.8 | 12.5 | |
United States | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 2.7 | $ 28.1 | |
Number of employees | Employee | 176 | 706 | |
Non-US | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 7.1 | $ 24.2 | |
Number of employees | Employee | 114 | 527 |
Individual Components of Work F
Individual Components of Work Force Reduction and Idle Lease Cost (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | |
Headcount | Employee | 165 |
Charges for work-force reductions | $ 52.3 |
Utilized | (28.3) |
Translation adjustments | (0.9) |
Balance at Sept. 30, 2015 | $ 23.1 |
Remaining Of Current Year | |
Restructuring Cost and Reserve [Line Items] | |
Headcount | Employee | 151 |
Expected future utilization | $ 18.4 |
Beyond 2,015 | |
Restructuring Cost and Reserve [Line Items] | |
Headcount | Employee | 14 |
Expected future utilization | $ 4.7 |
Workforce Reductions | |
Restructuring Cost and Reserve [Line Items] | |
Headcount | Employee | 1,233 |
Workforce Reductions | United States | |
Restructuring Cost and Reserve [Line Items] | |
Charges for work-force reductions | $ 28.1 |
Utilized | (14.2) |
Balance at Sept. 30, 2015 | 13.9 |
Workforce Reductions | Non-US | |
Restructuring Cost and Reserve [Line Items] | |
Charges for work-force reductions | 24.2 |
Utilized | (14.1) |
Translation adjustments | (0.9) |
Balance at Sept. 30, 2015 | 9.2 |
Workforce Reductions | Remaining Of Current Year | United States | |
Restructuring Cost and Reserve [Line Items] | |
Expected future utilization | 10.9 |
Workforce Reductions | Remaining Of Current Year | Non-US | |
Restructuring Cost and Reserve [Line Items] | |
Expected future utilization | 7.5 |
Workforce Reductions | Beyond 2015 | United States | |
Restructuring Cost and Reserve [Line Items] | |
Expected future utilization | 3 |
Workforce Reductions | Beyond 2015 | Non-US | |
Restructuring Cost and Reserve [Line Items] | |
Expected future utilization | $ 1.7 |
Amount Fully Utilized | |
Restructuring Cost and Reserve [Line Items] | |
Headcount | Employee | (1,068) |
Components of Net Periodic Bene
Components of Net Periodic Benefit Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.1 | $ 0.2 | $ 0.4 | $ 0.5 |
Interest cost | 1.7 | 2 | 5.1 | 6 |
Expected return on assets | (0.1) | (0.1) | (0.3) | (0.4) |
Amortization of prior service (benefit) cost | 0.3 | 0.4 | 0.9 | 1.3 |
Recognized net actuarial loss | 0.7 | 0.8 | 2.1 | 2.5 |
Net periodic benefit expense | 2.7 | 3.3 | 8.2 | 9.9 |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2.2 | 2.1 | 6.5 | 6.4 |
Interest cost | 80 | 91.4 | 238.9 | 276 |
Expected return on assets | (103.1) | (111.8) | (308) | (337.4) |
Amortization of prior service (benefit) cost | (1.1) | (1.1) | (3.3) | (1.7) |
Recognized net actuarial loss | 49.2 | 37.5 | 147.4 | 112.8 |
Curtailment gain | (0.6) | |||
Net periodic benefit expense | 27.2 | 18.1 | 81.5 | 55.5 |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 56.1 | 61.6 | 168.1 | 186.3 |
Expected return on assets | (63.7) | (71.3) | (191.1) | (215.3) |
Amortization of prior service (benefit) cost | (0.6) | (0.5) | (1.8) | (0.1) |
Recognized net actuarial loss | 33.1 | 27.5 | 99.5 | 82.3 |
Net periodic benefit expense | 24.9 | 17.3 | 74.7 | 53.2 |
International Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2.2 | 2.1 | 6.5 | 6.4 |
Interest cost | 23.9 | 29.8 | 70.8 | 89.7 |
Expected return on assets | (39.4) | (40.5) | (116.9) | (122.1) |
Amortization of prior service (benefit) cost | (0.5) | (0.6) | (1.5) | (1.6) |
Recognized net actuarial loss | 16.1 | 10 | 47.9 | 30.5 |
Curtailment gain | (0.6) | |||
Net periodic benefit expense | $ 2.3 | $ 0.8 | $ 6.8 | $ 2.3 |
Pension and Postretirement Be33
Pension and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pension contributions | $ 115.6 | $ 161.3 | $ 183.4 |
Cash contributions, other postretirement benefit plans | 10.8 | $ 10.4 | $ 15.3 |
Pension Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2015 | 151 | ||
International Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2015 | 92 | ||
U.S. Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2015 | 59 | ||
Other Postretirement Benefit Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated cash contributions by the company in 2015 | $ 16 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value Measurements [Line Items] | |||
Difference between carrying amount and fair value of long-term debt | $ 8 | $ 9 | |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | |||
Fair Value Measurements [Line Items] | |||
Derivative, term of contracts | 3 months | ||
Derivative, notional amount | $ 409.3 | $ 421.1 | |
Net fair value of contracts | (0.8) | 1.5 | |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | Other Income Expense Net | |||
Fair Value Measurements [Line Items] | |||
Gain on derivative | 13.7 | 15.9 | |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | |||
Fair Value Measurements [Line Items] | |||
Fair value derivative assets | 0.6 | 2.6 | |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instrument | Other Accrued Liabilities | |||
Fair Value Measurements [Line Items] | |||
Fair value derivative liabilities | $ 1.4 | $ 1.1 |
Stock Options - Additional Info
Stock Options - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unissued common stock available for grant under the plans | 2,200,000 | |
Employee stock compensation | $ 7.9 | $ 10.6 |
Proceeds from exercise of stock options | $ 3.7 | 3.3 |
Performance-Based Unit | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals | 0 | |
Performance-Based Unit | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares which will vest after achievement of goals | 2 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock compensation | $ 3.8 | 4.2 |
Total unrecognized compensation cost | $ 6.3 | |
Unrecognized compensation cost, Weighted-average recognition period | 2 years 3 months 18 days | |
Aggregate weighted-average grant-date fair value of units granted | $ 10.1 | 12.7 |
Aggregate weighted-average grant-date fair value of units vested | 1.9 | 2.7 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock compensation | 4.1 | 6.4 |
Total intrinsic value of options exercised | 0.6 | $ 4.6 |
Total unrecognized compensation cost | $ 5.1 | |
Unrecognized compensation cost, Weighted-average recognition period | 2 years |
Fair Value Assumptions on Stock
Fair Value Assumptions on Stock Option (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ||
Weighted-average fair value of grant | $ 9 | $ 11.27 |
Risk-free interest rate | 1.28% | 1.04% |
Expected volatility | 45.46% | 45.65% |
Expected life of options in years | 4 years 11 months 1 day | 3 years 8 months 16 days |
Expected dividend yield | 0.00% | 0.00% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Shares | |
Outstanding at December 31, 2014 | 2,816 |
Granted | 728 |
Exercised | (190) |
Forfeited and expired | (528) |
Outstanding at Sept. 30, 2015 | 2,826 |
Expected to vest at Sept. 30, 2015 | 1,321 |
Exercisable at Sept. 30, 2015 | 1,448 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2014 | $ / shares | $ 29.51 |
Granted | $ / shares | 23.42 |
Exercised | $ / shares | 19.53 |
Forfeited and expired | $ / shares | 33.91 |
Outstanding at Sept. 30, 2015 | $ / shares | 27.79 |
Expected to vest at Sept. 30, 2015 | $ / shares | 26.34 |
Exercisable at Sept. 30, 2015 | $ / shares | $ 29.25 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding at Sept. 30, 2015 | 3 years |
Expected to vest at Sept. 30, 2015 | 4 years 4 months 28 days |
Exercisable at Sept. 30, 2015 | 1 year 7 months 13 days |
Aggregate Intrinsic Value | |
Outstanding at Sept. 30, 2015 | $ | $ 0 |
Expected to vest at Sept. 30, 2015 | $ | 0 |
Exercisable at Sept. 30, 2015 | $ | $ 0 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Restricted Stock Units | |
Outstanding at December 31, 2014 | 354 |
Granted | 446 |
Vested | (81) |
Forfeited and expired | (226) |
Outstanding at Sept. 30, 2015 | 493 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at December 31, 2014 | $ / shares | $ 28.81 |
Granted | $ / shares | 22.65 |
Vested | $ / shares | 23.87 |
Forfeited and expired | $ / shares | 29.42 |
Outstanding at Sept. 30, 2015 | $ / shares | $ 23.78 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating business segments | Segment | 2 | |||
Intersegment profit | $ 8.6 | $ 76.6 | $ (70.9) | $ 72.5 |
Other Technology | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment profit | $ 1.6 | $ 0 | $ 9.1 | $ 0.4 |
Summary of Operations by Segmen
Summary of Operations by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 739.2 | $ 882.5 | $ 2,225.2 | $ 2,450.6 |
Operating income | 8.6 | 76.6 | (70.9) | 72.5 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 739.2 | 882.5 | 2,225.2 | 2,450.6 |
Operating income | 51.5 | 92.2 | 81.4 | 119 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (42.9) | (15.6) | (152.3) | (46.5) |
Corporate | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (11.9) | (9) | (40.6) | (22.9) |
Corporate | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (11.9) | (9) | (40.6) | (22.9) |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 656 | 711.9 | 1,956.5 | 2,097 |
Operating income | 31.8 | 36.5 | 37.6 | 72.5 |
Services | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0.1 | 0.3 | ||
Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 656 | 711.9 | 1,956.6 | 2,097.3 |
Technology | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 83.2 | 170.6 | 268.7 | 353.6 |
Operating income | 19.7 | 55.7 | 43.8 | 46.5 |
Technology | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 11.9 | 9 | 40.5 | 22.6 |
Technology | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 95.1 | $ 179.6 | $ 309.2 | $ 376.2 |
Reconciliation of Segment Opera
Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating profit (loss) | $ 8.6 | $ 76.6 | $ (70.9) | $ 72.5 | |
Interest expense | (3) | (2.3) | (8.3) | (6.6) | |
Other income (expense), net | 1.7 | 3.3 | 8 | (9) | |
Cost reduction charges | $ (300) | (17.4) | (70) | ||
Income (loss) before income taxes | 7.3 | 77.6 | (71.2) | 56.9 | |
Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating profit (loss) | 51.5 | 92.2 | 81.4 | 119 | |
Corporate and eliminations | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating profit (loss) | $ (25.5) | $ (15.6) | $ (82.3) | $ (46.5) |
Customer Revenue by Classes of
Customer Revenue by Classes of Similar Products or Services (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 739.2 | $ 882.5 | $ 2,225.2 | $ 2,450.6 |
Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 656 | 711.9 | 1,956.5 | 2,097 |
Technology | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 83.2 | 170.6 | 268.7 | 353.6 |
Cloud & Infrastructure Services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 380 | 439.2 | 1,146.1 | 1,289.4 |
Application Services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 220.7 | 207.2 | 640.6 | 608.5 |
Business Processing Outsourcing Services | Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 55.3 | $ 65.5 | $ 169.8 | $ 199.1 |
Revenue, Properties and Outsour
Revenue, Properties and Outsourcing Assets by Geographic Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 739.2 | $ 882.5 | $ 2,225.2 | $ 2,450.6 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 359.9 | 377.3 | 1,085.8 | 997 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 92.6 | 104.6 | 264.1 | 327.5 |
Other International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 286.7 | $ 400.6 | $ 875.3 | $ 1,126.1 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ (4,113.4) |
Other comprehensive income before reclassifications | (43.9) |
Amounts reclassified from accumulated other comprehensive income | 133.9 |
Current period other comprehensive income | 90 |
Ending balance | (4,023.4) |
Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (737.8) |
Other comprehensive income before reclassifications | (84) |
Current period other comprehensive income | (84) |
Ending balance | (821.8) |
Postretirement Plans | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (3,375.6) |
Other comprehensive income before reclassifications | 40.1 |
Amounts reclassified from accumulated other comprehensive income | 133.9 |
Current period other comprehensive income | 174 |
Ending balance | $ (3,201.6) |
Amounts Related to Postretireme
Amounts Related to Postretirement Plans Not Reclassified in Entirely out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Amortization of prior service cost | [1] | $ (0.8) | $ (0.5) | $ (2.3) | $ (0.4) |
Amortization of actuarial losses | [1] | 47.8 | 37.6 | 143.1 | 112.9 |
Amortization of Curtailment gain | [1] | (0.6) | |||
Total before tax | 47 | 37.1 | 140.8 | 111.9 | |
Income tax benefit | (3.9) | (1.5) | (6.9) | (4.4) | |
Net of tax | $ 43.1 | $ 35.6 | $ 133.9 | $ 107.5 | |
[1] | These items are included in net periodic postretirement cost (see note (c)). |
Noncontrolling Interests (Detai
Noncontrolling Interests (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Noncontrolling Interest [Line Items] | ||||
Balance at December 31, 2014 | $ 7.6 | |||
Net income | $ 2 | $ 3.4 | 6.5 | $ 9.7 |
Translation adjustments | (2.5) | |||
Postretirement plans | 7.3 | |||
Balance at September 30, 2015 | $ 18.9 | $ 18.9 |
Supplemental Cash Flow Inform47
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flow Supplemental Disclosures [Line Items] | ||
Cash paid, net of refunds | $ 52.5 | $ 58.2 |
Cash paid for interest | $ 13.7 | $ 13.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | |||
Aug. 31, 2012USD ($) | Apr. 30, 2007EUR (€) | Sep. 30, 2015USD ($) | Apr. 30, 2008EUR (€) | |
Loss Contingencies [Line Items] | ||||
Unreserved tax-related matters, inclusive of interest | $ | $ 92 | |||
Ministry Of Justice Of Belgium | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | € 28 | |||
Counterclaim against termination of contract | € 18.5 | |||
Health Information Management (HIM) | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought value | $ | $ 35 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2015USD ($)VEB / $ | |
Foreign Currency Translation [Line Items] | |
Foreign exchange loss | $ | $ 7 |
SIMADI | |
Foreign Currency Translation [Line Items] | |
Foreign currency exchange rate | 198.45 |
Venezuelan Subsidiary | SICAD | |
Foreign Currency Translation [Line Items] | |
Foreign currency exchange rate | 6.3 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - shares | Mar. 01, 2014 | Sep. 30, 2015 |
Schedule Of Stockholders Equity [Line Items] | ||
Sale of preferred stock | 2,587,400 | |
Convertible preferred stock dividend, rate | 6.25% | |
Conversion rate of preferred stock | 6,912,756 | |
Convertible preferred stock, conversion date | Mar. 3, 2014 |