XML 18 R25.htm IDEA: XBRL DOCUMENT
v3.20.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information The company has two business segments: Services and Technology. Revenue classifications within the Services and Technology segments are as follows:
• | Cloud & infrastructure services. This represents revenue from helping clients apply cloud and as-a-service delivery models to capitalize on business opportunities, make their end users more productive and manage and secure their IT infrastructure and operations more economically.
• | Application services. This represents revenue from helping clients transform their business processes by developing and managing new leading-edge applications for select industries, offering advanced data analytics and modernizing existing enterprise applications.
• | Business process outsourcing (BPO) services. This represents revenue from the management of critical processes and functions for clients in target industries, helping them improve performance and reduce costs.
• | Technology. This represents revenue from designing and developing software and offering hardware and other related products to help clients improve security and flexibility, reduce costs and improve the efficiency of their data-center environments.
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 records intersegment revenue and manufacturing profit on hardware and software shipments to customers under Services contracts. The Services segment, in turn, records 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 March 31, 2020 and 2019 was zero and $0.2 million, respectively. The sales and profit on these transactions are eliminated in Corporate. The company evaluates business segment performance based on operating income exclusive of the service cost component of postretirement 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 month periods ended March 31, 2020 and 2019 is presented below:
|  | Total |  | Corporate |  | Services |  | Technology
Three Months Ended March 31, 2020 |  |  |  |  |  |  |  |
Customer revenue |  | $ | 515.4 |  |  | $ | — |  |  | $ | 425.9 |  |  | $ | 89.5 |
Intersegment |  | — |  |  | (2.5 | ) |  | — |  |  | 2.5 |
Total revenue |  | $ | 515.4 |  |  | $ | (2.5 | ) |  | $ | 425.9 |  |  | $ | 92.0 |
Operating income (loss) |  | $ | 20.1 |  |  | $ | (8.1 | ) |  | $ | (14.0 | ) |  | $ | 42.2 |
Three Months Ended March 31, 2019 |  |  |  |  |  |  |  |
Customer revenue |  | $ | 554.5 |  |  | $ | — |  |  | $ | 474.0 |  |  | $ | 80.5 |
Intersegment |  | — |  |  | (2.4 | ) |  | — |  |  | 2.4 |
Total revenue |  | $ | 554.5 |  |  | $ | (2.4 | ) |  | $ | 474.0 |  |  | $ | 82.9 |
Operating income (loss) |  | $ | 25.2 |  |  | $ | (1.7 | ) |  | $ | (1.4 | ) |  | $ | 28.3 |
Presented below is a reconciliation of total business segment operating income to consolidated loss from continuing operations before income taxes:
|  | Three Months Ended March 31,
|  | 2020 |  | 2019
Total segment operating income |  | $ | 28.2 |  |  | $ | 26.9 |
Interest expense |  | (13.9 | ) |  | (15.5 | )
Other income (expense), net |  | (48.1 | ) |  | (30.4 | )
Cost-reduction charges |  | (8.5 | ) |  | (2.6 | )
Corporate and eliminations |  | 0.4 |  |  | 0.9 |
Total loss from continuing operations before income taxes |  | $ | (41.9 | ) |  | $ | (20.7 | )
Customer revenue by classes of similar products or services, by segment, is presented below:
|  | Three Months Ended March 31,
|  | 2020 |  | 2019
Services |  |  |  |
Cloud & infrastructure services |  | $ | 295.2 |  |  | $ | 321.7 |
Application services |  | 85.1 |  |  | 90.5 |
Business process outsourcing services |  | 45.6 |  |  | 61.8 |
|  | 425.9 |  |  | 474.0 |
Technology |  | 89.5 |  |  | 80.5 |
Total |  | $ | 515.4 |  |  | $ | 554.5 |
Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
|  | Three Months Ended March 31,
|  | 2020 |  | 2019
United States |  | $ | 215.6 |  |  | $ | 191.4 |
United Kingdom |  | 64.5 |  |  | 95.3 |
Other foreign |  | 235.3 |  |  | 267.8 |
Total |  | $ | 515.4 |  |  | $ | 554.5 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration