Cost reduction actions

In 2015, the company initiated a restructuring plan in connection with organizational initiatives to create a more competitive cost structure and rebalance the company’s global skill set. The company recognized charges and other costs of $347.4 million through 2017 in connection with this plan, principally related to a reduction in employees.

During 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 comprised of $20.2 million for asset impairments and $19.5 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, $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 2016, the company recognized charges of $82.1 million in connection with this plan, principally related to a reduction in employees. The charges related to work-force reductions were $62.6 million, principally related to severance costs, and were comprised of: (a) a charge of $8.3 million for 351 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $58.6 million for 1,048 employees and $(3.0) million for changes in estimates outside the U.S. In addition, the company recorded charges of $19.5 million comprised of $1.4 million for idle leased facilities costs, $4.1 million for contract amendment and termination costs, $13.3 million for professional fees and other expenses related to the cost reduction effort and $0.7 million for net asset sales and write-offs. The charges were recorded in the following statement of income classifications: cost of revenue – services, $42.4 million; selling, general and administrative expenses, $38.0 million; and research and development expenses, $1.7 million.

During 2017, the company recognized charges of $146.8 million in connection with this plan. The charges related to work-force reductions were $117.9 million, principally related to severance costs, and were comprised of: (a) a charge of $9.4 million for 542 employees and $(1.3) million for changes in estimates in the U.S. and (b) a charge of $109.4 million for 2,274 employees, $8.2 million for additional benefits provided in 2017 and $(7.8) million for changes in estimates outside the U.S. In addition, the company recorded charges of $28.9 million comprised of $4.7 million for idle leased facilities costs, $5.4 million for contract amendment and termination costs, $5.2 million for professional fees and other expenses related to the cost reduction effort, $1.8 million for net asset sales and write-offs and $11.8 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, $99.6 million; cost of revenue - technology, $0.4 million; selling, general and administrative expenses, $33.6 million; and research and development expenses, $1.4 million; and other income (expense), net, $11.8 million.

Liabilities and expected future payments related to these costs are as follows:



				Work-Force Reductions						Idle Leased
	Total			U.S.			International			Facilities Costs
Charges for work-force reductions	$	78.8		$	27.9		$	50.9		$	—
Payments	(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	68.3			8.3			58.6			1.4
Payments	(59.3		)	(9.4		)	(49.9		)	—
Changes in estimates	(4.3		)	(1.3		)	(3.0		)	—
Translation adjustments	(1.1		)	—			(1.1		)	—
Balance at December 31, 2016	36.6			1.8			33.4			1.4
Additional Provisions	131.2			9.4			117.6			4.2
Payments	(49.3		)	(6.0		)	(41.3		)	(2.0		)
Changes in estimates	(8.6		)	(1.3		)	(7.8		)	0.5
Translation adjustments	7.9			—			7.7			0.2
Balance at December 31, 2017	$	117.8		$	3.9		$	109.6		$	4.3

Expected future payments on balance at December 31, 2017
In 2018	$	87.7		$	3.9		$	82.0		$	1.8
Beyond 2018	30.1			—			27.6			2.5