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Cost Reduction Actions
 6 Months Ended
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