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Cost-Reduction Actions
6 Months Ended
Jun. 30, 2020
Restructuring and Related Activities [Abstract]  
Cost-Reduction Actions Cost-Reduction Actions
During the three months ended June 30, 2020, the company recognized cost-reduction charges and other costs of $7.9 million. The charges (credits) related to work-force reductions were $(3.0) million, principally related to severance costs, and were comprised of: (a) a charge of $1.6 million for 19 employees and (b) a credit of $4.6 million for changes in estimates. In addition, the company recorded a credit of $0.6 million for net foreign currency gains related to exiting foreign countries and a charge of $11.5 million for asset impairments. The charges (credits) were recorded in the following statement of income classifications: cost of revenue - services, $6.9 million; selling, general and administrative expenses, $1.5 million; research and development expenses, $0.1 million; and other expense, net, $(0.6) million.
During the three months ended June 30, 2019, the company recognized cost-reduction charges and other costs of $2.6 million. Charges (credits) were comprised of $0.8 million for lease abandonment costs and $1.8 million for changes in estimates principally related to work-force reductions. The charges were recorded in the following statement of income classifications: cost of revenue - services, $(1.0) million and selling, general and administrative expenses, $3.6 million.
During the six months ended June 30, 2020, the company recognized cost-reduction charges and other costs of $35.4 million. The charges related to work-force reductions were $5.5 million, principally related to severance costs, and were comprised of: (a) a charge of $11.3 million for 309 employees and (b) a credit of $5.8 million for changes in estimates. In addition, the company recorded charges of $18.4 million for net foreign currency losses related to exiting foreign countries and $11.5 million for asset impairments. The charges were recorded in the following statement of income classifications: cost of revenue - services, $12.8 million; selling, general and administrative expenses, $4.0 million; research and development expenses, $0.2 million; and other expense, net, $18.4 million.
During the six months ended June 30, 2019, the company recognized cost-reduction charges and other costs of $5.2 million. Charges were comprised of $4.3 million for lease abandonment costs and asset write-offs and $0.9 million for changes in estimates principally related to work-force reductions. The charges were recorded in the following statement of income
classifications: cost of revenue - services, $(4.7) million; selling, general and administrative expenses, $8.6 million; and research and development expenses, $1.3 million.
Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:
 
 
Total
 
U.S.
 
International
Balance at December 31, 2019
 
$
49.8

 
$
5.2

 
$
44.6

Additional provisions
 
11.3

 
3.0

 
8.3

Payments
 
(14.3
)
 
(1.4
)
 
(12.9
)
Changes in estimates
 
(5.8
)
 
0.1

 
(5.9
)
Translation adjustments
 
(0.7
)
 

 
(0.7
)
Balance at June 30, 2020
 
$
40.3

 
$
6.9

 
$
33.4

Expected future utilization on balance at June 30, 2020:
 
 
 
 
 
 
2020 remaining six months
 
$
32.3

 
$
6.4

 
$
25.9

Beyond 2020
 
$
8.0

 
$
0.5

 
$
7.5