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Cost Reduction Actions | 6 Months Ended
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Jun. 30, 2016
Restructuring and Related Activities [Abstract] |
Cost Reduction Actions | 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 initiated a plan to incur pretax restructuring charges currently estimated at approximately $300 million through 2017. During the twelve months ended December 31, 2015, the company recognized charges of $118.5 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $78.8 million and were comprised of: (a) a charge of $27.9 million for 700 employees in the U.S. and (b) a charge of $50.9 million for 782 employees outside the U.S. In addition, the company recorded charges of $39.7 million, related to asset impairments ($20.2 million) and other expenses related to the cost reduction effort ($19.5 million). The charges were recorded in the following statement of income classifications: cost of revenue – services, $52.3 million; cost of revenue – technology, $0.3 million; selling, general and administrative expenses, $53.5 million; and research and development expenses, $12.4 million. During the three months ended June 30, 2016, the company recognized charges of $10.2 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $6.5 million, principally related to severance costs, and were comprised of: (a) a charge of $1.2 million for 69 employees in the U.S. and (b) a charge of $5.3 million for 262 employees outside the U.S. In addition, the company recorded charges of $3.7 million, for other expenses related to the cost reduction effort. The net charges were recorded in the following statement of income classifications: cost of revenue – services, $5.1 million; selling, general and administrative expenses, $5.5 million; and research and development expenses, $(0.4) million. During the six months ended June 30, 2016, the company recognized charges of $37.1 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $28.6 million, principally related to severance costs, and were comprised of: (a) a charge of $5.4 million for 244 employees in the U.S. and (b) a charge of $23.2 million for 599 employees outside the U.S. In addition, the company recorded charges of $8.5 million, for other expenses related to the cost reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue – services, $16.6 million; selling, general and administrative expenses, $18.8 million; and research and development expenses, $1.7 million. During the three and six months ended June 30, 2015, the company recognized charges of $52.6 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $42.5 million, principally related to severance costs, and were comprised of: (a) a charge of $25.4 million for 530 employees in the U.S. and (b) a charge of $17.1 million for 413 employees outside the U.S. In addition, the company recorded charges of $10.1 million related to asset impairments of $3.5 million and other expenses of $6.6 million related to the cost reduction effort. The charges were recorded in the following statement of income classifications: cost of revenue – services, $13.3 million; cost of revenue - technology, $0.1 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 work-force reduction costs follows:
|  | Total |  | U.S. |  | Int’l.
Charges for work-force reductions |  | $ | 78.8 |  |  | $ | 27.9 |  |  | $ | 50.9 |
Utilized |  | (45.3 | ) |  | (23.7 | ) |  | (21.6 | )
Translation adjustments |  | (0.5 | ) |  | — |  |  | (0.5 | )
Balance at December 31, 2015 |  | 33.0 |  |  | 4.2 |  |  | 28.8 |
Additional provisions |  | 32.2 |  |  | 6.0 |  |  | 26.2 |
Utilized |  | (30.2 | ) |  | (5.7 | ) |  | (24.5 | )
Changes in estimates and revisions |  | (3.6 | ) |  | (0.6 | ) |  | (3.0 | )
Translation adjustments |  | 1.1 |  |  | — |  |  | 1.1 |
Balance at June 30, 2016 |  | $ | 32.5 |  |  | $ | 3.9 |  |  | $ | 28.6 |
Expected future utilization: |  |  |  |  |  |
2016 remaining six months |  | $ | 29.7 |  |  | $ | 3.9 |  |  | $ | 25.8 |
Beyond 2016 |  | $ | 2.8 |  |  | $ | — |  |  | $ | 2.8 |

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- 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 + Details
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