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Cost reduction actions

6 Months Ended

Jun. 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 incur pretax restructuring charges estimated at approximately $300 million over the next several quarters.

During the three months ended June 30, 2015, the company recognized pretax charges of $52.6 million in connection with this plan, principally related to a reduction in employees. The charges related to workforce reductions were $42.5 million, principally related to severance costs, and were comprised of: (a) charges of $25.4 million for 530 employees in the U.S. and (b) charges of $17.1 million for 413 employees outside the U.S. In addition, the company recorded pretax charges of $10.1 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, $13.3 million; cost of revenue – technology, $.1 million; selling, general and administrative expenses, $27.5 million; and research and development expenses, $11.7 million.

A breakdown of the individual components of the workforce reduction costs follows (in millions of dollars):

										Workforce Reductions
		Headcount				Total				U.S.				Int’l.
Charges for workforce reductions			943			$	42.5			$	25.4			$	17.1
Utilized			(602	)			(11.8	)			(3.7	)			(8.1	)
Translation adjustments			—				(.3	)			—				(.3	)
Balance at June 30, 2015			341			$	30.4			$	21.7			$	8.7
Expected future utilization:
2015 remaining six months			337			$	28.9			$	20.4			$	8.5
2016			4				1.5				1.3				.2

X

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 420



-SubTopic 10



-Section S99



-Paragraph 2



-Subparagraph (SAB TOPIC 5.P.4)



-URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 420



-SubTopic 10



-Section S99



-Paragraph 1



-Subparagraph (SAB TOPIC 5.P.3)



-URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747



Reference 3: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 420



-SubTopic 10



-Section 50



-Paragraph 1



-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869



Reference 4: http://www.xbrl.org/2003/role/presentationRef



-Publisher SEC



-Name Staff Accounting Bulletin (SAB)



-Number Topic 5



-Section P



-Subsection 3, 4

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