Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Jan. 31, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	UIS
Entity Registrant Name	UNISYS CORP
Entity Central Index Key	0000746838
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		50,484,040
Entity Public Float			$ 639.0

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue
Services	$ 2,328.2	$ 2,406.3	$ 2,605.6
Technology	413.6	414.4	409.5
Total revenue	2,741.8	2,820.7	3,015.1
Cost of revenue:
Services	2,102.1	2,092.9	2,306.7
Technology	161.4	169.2	167.5
Total cost of revenue	2,263.5	2,262.1	2,474.2
Selling, general and administrative expenses	426.5	455.6	519.6
Research and development expenses	47.2	55.4	76.4
Total costs and expenses	2,737.2	2,773.1	3,070.2
Operating income (loss)	4.6	47.6	(55.1)
Interest expense	52.8	27.4	11.9
Other income (expense), net	(23.9)	0.3	8.2
Income (loss) before income taxes	(72.1)	20.5	(58.8)
(Benefit) provision for income taxes	(5.5)	57.2	44.4
Consolidated net loss	(66.6)	(36.7)	(103.2)
Net income (loss) attributable to noncontrolling interests	(1.3)	11.0	6.7
Net loss attributable to Unisys Corporation common shareholders	$ (65.3)	$ (47.7)	$ (109.9)
Loss per common share attributable to Unisys Corporation
Basic (in dollars per share)	$ (1.30)	$ (0.95)	$ (2.20)
Diluted (in dollars per share)	$ (1.30)	$ (0.95)	$ (2.20)

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Consolidated net loss	$ (66.6)	$ (36.7)	$ (103.2)
Other comprehensive income
Foreign currency translation	117.8	(108.4)	(100.8)
Postretirement adjustments, net of tax of $18.3 in 2017, $(13.3) in 2016 and $18.1 in 2015	265.1	(137.6)	265.7
Total other comprehensive income (loss)	382.9	(246.0)	164.9
Comprehensive income (loss)	316.3	(282.7)	61.7
Comprehensive income (loss) attributable to noncontrolling interests	(44.6)	27.5	(3.5)
Comprehensive income (loss) attributable to Unisys Corporation	$ 271.7	$ (255.2)	$ 58.2

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Current assets

Cash and cash equivalents

$ 733.9

$ 370.6

Accounts receivable, net

503.3

505.8

Inventories:

Parts and finished equipment

13.6

14.0

Work in process and materials

12.5

15.0

Prepaid expenses and other current assets

126.2

121.9

Total current assets

1,389.5

1,027.3

Properties

898.8

886.6

Less – Accumulated depreciation and amortization

756.3

741.3

Properties, net

142.5

145.3

Outsourcing assets, net

202.3

172.5

Marketable software, net

138.3

137.0

Prepaid postretirement assets

148.3

33.3

Deferred income taxes

119.9

146.1

Goodwill

180.8

178.6

Restricted cash

30.2

30.5

^[1]

Other long-term assets

190.6

151.0

^[1]

Total assets

2,542.4

2,021.6

Current liabilities:

Current maturities of long-term debt

10.8

106.0

Accounts payable

241.8

189.0

Deferred revenue

327.5

337.4

Other accrued liabilities

391.5

349.2

Total current liabilities

971.6

981.6

Long-term debt

633.9

194.0

Long-term postretirement liabilities

2,004.4

2,292.6

Long-term deferred revenue

159.0

117.6

Other long-term liabilities

100.0

83.2

Commitments and contingencies

Deficit:

Common stock, par value $.01 per share (150.0 million shares authorized; 53.4 million shares and 52.8 million shares issued)

0.5

Accumulated deficit

(1,963.1)

(1,893.4)

Treasury stock, at cost

(102.7)

(100.5)

Paid-in capital

4,526.4

4,515.2

Accumulated other comprehensive loss

(3,815.8)

(4,152.8)

Total Unisys stockholders’ deficit

(1,354.7)

(1,631.0)

Noncontrolling interests

28.2

(16.4)

Total deficit

(1,326.5)

(1,647.4)

Total liabilities and deficit

$ 2,542.4

$ 2,021.6

[1]	Amounts were changed to conform to the current-year presentation. See Note 5

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	100,000,000
Common stock, shares issued (in shares)	53,400,000	52,800,000

Consolidated Statements of Cash Flows - USD ($)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash flows from operating activities

Consolidated net loss

$ (66,600,000)

$ (36,700,000)

$ (103,200,000)

Adjustments to reconcile consolidated net loss to net cash provided by operating activities:

Foreign currency transaction losses

21,700,000

400,000

8,400,000

Non-cash interest expense

9,500,000

7,000,000

Loss on debt extinguishment

1,500,000

4,000,000

Employee stock compensation

11,200,000

9,500,000

9,400,000

Depreciation and amortization of properties

39,700,000

38,900,000

57,500,000

Depreciation and amortization of outsourcing assets

53,700,000

51,900,000

55,700,000

Amortization of marketable software

63,100,000

64,800,000

66,900,000

Other non-cash operating activities

3,200,000

1,900,000

4,600,000

Loss on disposal of capital assets

5,000,000

6,200,000

9,700,000

Pension contributions

(138,400,000)

(132,500,000)

(148,300,000)

Pension expense

92,400,000

82,700,000

108,700,000

Decrease in deferred income taxes, net

3,400,000

2,700,000

1,200,000

Changes in operating assets and liabilities:

Receivables, net

5,900,000

87,300,000

(11,500,000)

Inventories

4,100,000

15,300,000

(3,700,000)

Other assets

(27,500,000)

16,500,000

^[1]

18,100,000

^[1]

Accounts payable and other accrued liabilities

48,600,000

7,500,000

^[1]

(60,300,000)

^[1]

Other liabilities

35,900,000

(9,200,000)

(7,500,000)

Net cash provided by operating activities

166,400,000

218,200,000

5,700,000

^[1]

Cash flows from investing activities

Proceeds from investments

4,717,200,000

4,455,900,000

3,831,600,000

Purchases of investments

(4,692,400,000)

(4,490,000,000)

(3,806,200,000)

Capital additions of properties

(25,800,000)

(32,500,000)

(49,600,000)

Capital additions of outsourcing assets

(86,300,000)

(51,300,000)

(102,000,000)

Investment in marketable software

(64,400,000)

(63,300,000)

(62,100,000)

Other

(800,000)

(900,000)

^[1]

7,000,000

^[1]

Net cash used for investing activities

(152,500,000)

(182,100,000)

^[1]

(181,300,000)

^[1]

Cash flows from financing activities

Proceeds from issuance of long-term debt

452,900,000

213,500,000

31,800,000

Payments for capped call transactions

(27,300,000)

Issuance costs relating to long-term debt

(12,100,000)

(7,300,000)

Payments of long-term debt

(107,500,000)

(129,800,000)

(10,400,000)

Proceeds from exercise of stock options

3,700,000

Net (payments) proceeds from short-term borrowings

(65,800,000)

65,800,000

Financing fees

(1,100,000)

(300,000)

Other

2,300,000

400,000

^[1]

800,000

^[1]

Net cash provided by (used for) financing activities

329,900,000

(17,100,000)

^[1]

89,800,000

^[1]

Effect of exchange rate changes on cash, cash equivalents and restricted cash

19,200,000

(14,700,000)

^[1]

(47,600,000)

^[1]

Increase (decrease) in cash, cash equivalents and restricted cash

363,000,000

4,300,000

^[1]

(133,400,000)

^[1]

Cash, cash equivalents and restricted cash, beginning of year

^[1]

401,100,000

396,800,000

530,200,000

Cash, cash equivalents and restricted cash, end of year

$ 764,100,000

$ 401,100,000

^[1]

$ 396,800,000

^[1]

[1]	Amounts were changed to conform to the current-year presentation. See Note 5

Consolidated Statements of Deficit - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Deficit - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ (1,647.4)	$ (1,378.6)	$ (1,452.4)
Consolidated net income (loss)	(66.6)	(36.7)	(103.2)
Stock-based compensation	9.0	8.8	12.1
Discount on debt issuance		33.6
Capped call on debt issuance		(27.3)
Expenses of convertible notes		(1.2)
Translation adjustments	117.8	(108.4)	(100.8)
Postretirement plans	265.1	(137.6)	265.7
Cumulative effect adjustment - ASU No. 2016-16	(4.4)
Ending Balance	(1,326.5)	(1,647.4)	(1,378.6)
Total Unisys Corporation
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(1,631.0)	(1,389.7)	(1,460.0)
Consolidated net income (loss)	(65.3)	(47.7)	(109.9)
Stock-based compensation	9.0	8.8	12.1
Discount on debt issuance		33.6
Capped call on debt issuance		(27.3)
Expenses of convertible notes		(1.2)
Translation adjustments	110.1	(93.3)	(96.0)
Postretirement plans	226.9	(114.2)	264.1
Cumulative effect adjustment - ASU No. 2016-16	(4.4)
Ending Balance	(1,354.7)	(1,631.0)	(1,389.7)
Common Stock Par Value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	0.5	0.5	0.5
Ending Balance	0.5	0.5	0.5
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(1,893.4)	(1,845.7)	(1,735.8)
Consolidated net income (loss)	(65.3)	(47.7)	(109.9)
Cumulative effect adjustment - ASU No. 2016-16	(4.4)
Ending Balance	(1,963.1)	(1,893.4)	(1,845.7)
Treasury Stock At Cost
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(100.5)	(100.1)	(99.6)
Stock-based compensation	(2.2)	(0.4)	(0.5)
Ending Balance	(102.7)	(100.5)	(100.1)
Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	4,515.2	4,500.9	4,488.3
Stock-based compensation	11.2	9.2	12.6
Discount on debt issuance		33.6
Capped call on debt issuance		(27.3)
Expenses of convertible notes		(1.2)
Ending Balance	4,526.4	4,515.2	4,500.9
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(4,152.8)	(3,945.3)	(4,113.4)
Translation adjustments	110.1	(93.3)	(96.0)
Postretirement plans	226.9	(114.2)	264.1
Ending Balance	(3,815.8)	(4,152.8)	(3,945.3)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(16.4)	11.1	7.6
Consolidated net income (loss)	(1.3)	11.0	6.7
Translation adjustments	7.7	(15.1)	(4.8)
Postretirement plans	38.2	(23.4)	1.6
Ending Balance	$ 28.2	$ (16.4)	$ 11.1

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of significant accounting policies

Principles of consolidation The consolidated financial statements include the accounts of all majority-owned subsidiaries.

Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions about future events. These estimates and assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and the reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, assumptions used in the measurement of progress toward completion for systems integration projects, income taxes and retirement and other post-employment benefits, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Cash and Cash equivalents Cash and cash equivalents consists of cash on hand, short-term investments purchased with a maturity of three months or less and certificates of deposit which may be withdrawn at any time at the discretion of the company without penalty.

Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. Restricted cash primarily consists of cash the company is contractually obligated to maintain in accordance with the terms of its U.K. business process outsourcing joint venture agreement.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the total of the amounts shown in the consolidated statements of cash flows.



As of December 31,	2017		2016
Cash and cash equivalents	$	733.9	$	370.6
Restricted cash	30.2		30.5
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	764.1	$	401.1

Inventories Inventories are valued at the lower of cost and net realizable value. Cost is determined on the first-in, first-out method.

Properties Properties are carried at cost and are depreciated over the estimated lives of such assets using the straight-line method. The estimated lives used, in years, are as follows: buildings, 20 – 50; machinery and office equipment, 4 – 7; rental equipment, 4; and internal-use software, 3 – 10.

Advertising costs All advertising costs are expensed as incurred. The amount charged to expense during 2017, 2016 and 2015 was $1.6 million, $2.7 million and $4.9 million, respectively.

Shipping and handling Costs related to shipping and handling are included in cost of revenue.

Goodwill Goodwill arising from the acquisition of an entity represents the excess of the cost of acquisition over the fair value of the acquired identifiable assets, liabilities and contingent liabilities of the entity recognized at the date of acquisition. Goodwill is initially recognized as an asset and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each balance sheet date.

The company tests goodwill for impairment annually in the fourth quarter using data as of September 30th of that year, as well as whenever there are events or changes in circumstances (triggering events) that would more likely than not reduce the fair value of one or more reporting units below its respective carrying amount. The company compares the fair value of each of its reporting units to their respective carrying value. If the carrying value exceeds fair value, an impairment charge is recognized for the difference. Impaired goodwill is written down to its fair value through a charge to the consolidated statement of income in the period the impairment is identified.

We estimate the fair value of each reporting unit using a combination of the income approach and market approach.

The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for each reporting unit are discounted to present value. Cash flow projections are based on management’s estimates of economic and market conditions, which drive key assumptions of revenue growth rates, operating margins, capital expenditures and working capital requirements. The discount rate in turn is based on various market factors and specific risk characteristics of each reporting unit.

The market approach estimates fair value by applying performance metric multiples to the reporting unit’s prior and expected operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit.

If the fair value of the reporting unit derived using the income approach is significantly different from the fair value estimate using the market approach, the company reevaluates its assumptions used in the two models. When considering the weighting between the market approach and income approach, we gave more weighting to the income approach. The higher weighting assigned to the income approach took into consideration that the guideline companies used in the market approach generally represent larger diversified companies relative to the reporting units and may have different long term growth prospects, among other factors.

In order to assess the reasonableness of the calculated reporting unit fair values, the company also compares the sum of the reporting units’ fair values to its market capitalization (per share stock price multiplied by shares outstanding) and calculates an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization).

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods.

Revenue recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collectability is probable.

Revenue from hardware sales with standard payment terms is recognized upon the passage of title and the transfer of risk of loss. Outside the United States, the company recognizes revenue even if it retains a form of title to products delivered to customers, provided the sole purpose is to enable the company to recover the products in the event of customer payment default and the arrangement does not prohibit the customer’s use of the product in the ordinary course of business.

Revenue from software licenses with standard payment terms is recognized at the inception of the initial license term and upon execution of an extension to the license term.

The company also enters into multiple-element arrangements, which may include any combination of software, hardware, or services. For example, a client may purchase an enterprise server that includes operating system software. In addition, the arrangement may include post-contract support for the software and a contract for post-warranty maintenance for service of the hardware. These arrangements consist of multiple deliverables, with software and hardware delivered in one reporting period and the software support and hardware maintenance services delivered across multiple reporting periods. In another example, the company may provide desktop managed services to a client on a long term multiple year basis and periodically sell software and hardware products to the client. The services are provided on a continuous basis across multiple reporting periods and the software and hardware products are delivered in one reporting period. To the extent that a deliverable in a multiple-deliverable arrangement is subject to specific guidance, that deliverable is accounted for in accordance with such specific guidance. Examples of such arrangements may include leased hardware which is subject to specific leasing guidance or software which is subject to specific software revenue recognition guidance.

In these transactions, the company allocates the total revenue to be earned under the arrangement among the various elements based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”) if available, third party evidence (“TPE”) if VSOE is not available, or the best estimated selling price (“ESP”) if neither VSOE nor TPE is available. VSOE of selling price is based upon the normal pricing and discounting practices for those services and products when sold separately. TPE of selling price is based on evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. ESP is established considering factors such as margin objectives, discounts off of list prices, market conditions, competition and other factors. ESP represents the price at which the company would transact for the deliverable if it were sold by the company regularly on a standalone basis.

As mentioned above, some of the company’s multiple-element arrangements may include leased hardware which is subject to specific leasing guidance. Revenue under these arrangements is allocated considering the relative selling prices of the lease and non-lease elements. Lease deliverables include hardware, financing, maintenance and other executory costs, while non-lease deliverables generally consist of services other than maintenance. The determination of the amount of revenue allocated to the lease deliverables begins by allocating revenue to maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease. The remaining amounts are allocated to the hardware and financing elements. The amount allocated to hardware is recognized as revenue monthly over the term of the lease for those leases which are classified as operating leases and at the inception of the lease term for those leases which are classified as sales-type leases. The amount of finance income attributable to sales-type leases is recognized on the accrual basis using the effective interest method.

For multiple-element arrangements that involve the licensing, selling or leasing of software, for software and software-related elements, the allocation of revenue is based on VSOE. There may be cases in which there is VSOE of fair value of the undelivered elements but no such evidence for the delivered elements. In these cases, the residual method is used to allocate the arrangement consideration. Under the residual method, the amount of consideration allocated to the delivered elements equals the total arrangement consideration less the aggregate VSOE of fair value of the undelivered elements.

For multiple-element arrangements that include services or products that (a) do not include the licensing, selling or leasing of software, or (b) contain software that is incidental to the services or products as a whole or (c) contain software components that are sold, licensed or leased with tangible products when the software components and non-software components (i.e., the software and hardware) of the tangible product function together to deliver the tangible product’s essential functionality (e.g., sales of the company’s enterprise-class servers including software and hardware), or some combination of the above, the allocation of revenue is based on the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy, discussed above.

For multiple-element arrangements that include both software and non-software deliverables, the company allocates arrangement consideration to the software group and to the non-software group based on the relative selling prices of the deliverables in the arrangement based on the selling price hierarchy discussed above. For the software group, arrangement consideration is further allocated using VSOE as described above.

The company recognizes revenue on delivered elements only if: (a) any undelivered services or products are not essential to the functionality of the delivered services or products, (b) the company has an enforceable claim to receive the amount due in the event it does not deliver the undelivered services or products, (c) there is evidence of the selling price for each undelivered service or product, and (d) the revenue recognition criteria otherwise have been met for the delivered elements. Otherwise, revenue on delivered elements is recognized as the undelivered elements are delivered. The company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A delivered element constitutes a separate unit of accounting when it has standalone value and there is no customer-negotiated refund or return right for the delivered elements. If these criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and revenue recognition are determined for the combined unit as a single unit.

Revenue from hardware sales and software licenses with extended payment terms is recognized as payments from customers become due (assuming that all other conditions for revenue recognition have been satisfied).

Revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term.

Revenue from equipment and software maintenance and post-contract support is recognized on a straight-line basis as earned over the terms of the respective contracts. Cost related to such contracts is recognized as incurred.

Revenue and profit under systems integration contracts are recognized either on the percentage-of-completion method of accounting using the cost-to-cost method, or when services have been performed, depending on the nature of the project. For contracts accounted for on the percentage-of-completion basis, revenue and profit recognized in any given accounting period are based on estimates of total projected contract costs. The estimates are continually reevaluated and revised, when necessary, throughout the life of a contract. Any adjustments to revenue and profit resulting from changes in estimates are accounted for in the period of the change in estimate. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes evident.

Revenue from time and materials service contracts and outsourcing contracts is recognized as the services are provided using either an objective measure of output or on a straight-line basis over the term of the contract.

Income taxes Income taxes are based on income before taxes for financial reporting purposes and reflect a current tax liability for the estimated taxes payable in the current-year tax returns and changes in deferred taxes. Deferred tax assets or liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax laws and rates. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. The company recognizes penalties and interest accrued related to income tax liabilities in provision for income taxes in its consolidated statements of income.

The Tax Cuts & Jobs Act (“TCJA”) was enacted by the U.S. on December 22, 2017 and introduced a tax on “global intangible low-taxed income” (“GILTI”) effective in 2018. The company will treat GILTI as a period cost when included in U.S. taxable income.

Marketable software The cost of development of computer software to be sold or leased, incurred subsequent to establishment of technological feasibility, is capitalized and amortized to cost of sales over the estimated revenue-producing lives of the products, which is generally not in excess of three years following product release. The company performs quarterly reviews to ensure that unamortized costs remain recoverable from future revenue.

Internal-use software The company capitalizes certain internal and external costs incurred to acquire or create internal-use software, principally related to software coding, designing system interfaces, and installation and testing of the software. These costs are amortized in accordance with the fixed asset policy described above.

Outsourcing assets Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (principally initial customer setup) are deferred and expensed over the initial contract life. Fixed assets and software used in connection with outsourcing contracts are capitalized and depreciated over the shorter of the initial contract life or in accordance with the fixed asset policy described above.

Recoverability of outsourcing assets is subject to various business risks. Quarterly, the company compares the carrying value of the outsourcing assets with the undiscounted future cash flows expected to be generated by the outsourcing assets to determine if there is impairment. If impaired, the outsourcing assets are reduced to an estimated fair value on a discounted cash flow basis. The company prepares its cash flow estimates based on assumptions that it believes to be reasonable but are also inherently uncertain. Actual future cash flows could differ from these estimates.

Translation of foreign currency The local currency is the functional currency for most of the company’s international subsidiaries, and as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from changes in exchange rates are reported in other comprehensive income (loss). Exchange gains and losses on intercompany balances are reported in other income (expense), net.

For those international subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and as such, nonmonetary assets and liabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and losses arising from translation are included in other income (expense), net.

Stock-based compensation plans Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The company recognizes compensation expense for the fair value of stock options, which have graded vesting, on a straight-line basis over the requisite service period. The company estimates the fair value of stock options using a Black-Scholes valuation model. The expense is recorded in selling, general and administrative expenses.

Retirement benefits Accounting rules covering defined benefit pension plans and other postretirement benefits require that amounts recognized in financial statements be determined on an actuarial basis. A significant element in determining the company’s retirement benefits expense or income is the expected long-term rate of return on plan assets. This expected return is an assumption as to the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected pension benefit obligation. The company applies this assumed long-term rate of return to a calculated value of plan assets, which recognizes changes in the fair value of plan assets in a systematic manner over four years. This produces the expected return on plan assets that is included in retirement benefits expense or income. The difference between this expected return and the actual return on plan assets is deferred. The net deferral of past asset losses or gains affects the calculated value of plan assets and, ultimately, future retirement benefits expense or income.

At December 31 of each year, the company determines the fair value of its retirement benefits plan assets as well as the discount rate to be used to calculate the present value of plan liabilities. The discount rate is an estimate of the interest rate at which the retirement benefits could be effectively settled. In estimating the discount rate, the company looks to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the retirement benefits. The company uses a portfolio of fixed-income securities, which receive at least the second-highest rating given by a recognized ratings agency.

Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company assumes that the transaction is an orderly transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale). The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date; Level 2 – Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – Unobservable inputs for the asset or liability. The company has applied fair value measurements to its long-term debt (see note 9), derivatives (see note 12) and to its postretirement plan assets (see note 16).

Noncontrolling interest The company owns a fifty-one percent interest in Intelligent Processing Solutions Ltd. (“iPSL”), a U.K. business process outsourcing joint venture. The remaining interests, which are reflected as a noncontrolling interest in the company’s financial statements, are owned by three financial institutions for which iPSL performs services.

Earnings per common share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings per common share

The following table shows how the loss per common share attributable to Unisys Corporation was computed for the three years ended December 31, 2017 (shares in thousands).



Year ended December 31,	2017			2016			2015
Basic earnings (loss) per common share computation:
Net loss attributable to Unisys Corporation common shareholders	$	(65.3	)	$	(47.7	)	$	(109.9	)
Weighted average shares	50,409			50,060			49,905
Basic loss per common share	$	(1.30	)	$	(0.95	)	$	(2.20	)
Diluted earnings (loss) per common share computation:
Net loss attributable to Unisys Corporation for diluted earnings per share	$	(65.3	)	$	(47.7	)	$	(109.9	)
Weighted average shares	50,409			50,060			49,905
Diluted loss per common share	$	(1.30	)	$	(0.95	)	$	(2.20	)

Anti-dilutive weighted-average stock options and restricted stock units^(a)	2,206			3,553			2,915
Anti-dilutive weighted-average common shares issuable upon conversion of the 5.50% convertible senior notes^(a)	21,868			17,230			—

^(a)Amounts represent shares excluded from the computation of diluted earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

Cost reduction actions

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

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

Recent accounting pronouncements and accounting changes

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Recent accounting pronouncements and accounting changes

Accounting Pronouncements Adopted

Effective January 1, 2017, the company adopted Accounting Standards Update (“ASU”) No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the Financial Accounting Standards Board (“FASB”) which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amended guidance, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Adoption of this new guidance had no impact on the company’s consolidated results of operations and financial position.

Effective January 1, 2017, the company adopted ASU No. 2016-18 Statement of Cash Flows (Topic 230) - Restricted Cash issued by the FASB which requires companies to include amounts generally described as restricted cash or restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance has been applied on retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. Amounts reclassified in the consolidated statements of cash flows for the years ended December 31, 2016 and 2015 are as follows:



Year ended December 31,	2016				2015
Cash flows from operating activities
Other assets	$	(1.9	)	2.60	$	2.6
Cash flows from investing activities
Other	1.6				(2.3		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.8		)		(4.6		)
Cash, cash equivalents and restricted cash, beginning of year	31.6				35.9
Cash, cash equivalents and restricted cash, end of year	30.5				31.6

Effective January 1, 2017, the company adopted ASU No. 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory issued by the FASB which allows the recognition of deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. The new guidance has been applied on a modified retrospective basis through a cumulative-effect adjustment directly to accumulated deficit. At January 1, 2017, the adjustment to accumulated deficit was an increase of $4.4 million.

Effective January 1, 2017, the company adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), issued by the FASB which clarifies the treatment of several cash flow categories. In addition, the guidance also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The company previously reported premium payments on and proceeds from the settlement of corporate-owned life insurance policies as cash flows from operating activities in the company’s consolidated statement of cash flows. Under the new guidance, these amounts were reclassified to investing activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $1.5 million and $1.1 million, respectively, were reclassified from “other assets” in operating activities to “other” in investing activities in the company’s consolidated statements of cash flows.

Effective January 1, 2017, the company adopted ASU No. 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, issued by the FASB, which changes certain aspects of accounting for share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the standard requires all tax-related cash flows resulting from share-based payments to be reported as operating activities on the consolidated statement of cash flows, and any cash payments made to taxing authorities on an employee’s behalf as financing activities, which the company previously reported as operating activities. The new guidance has been applied on a retrospective basis whereby prior-period financial statements have been adjusted to reflect the application of the new guidance, as required by the FASB. For the years ended December 31, 2016 and 2015, $0.4 million and $0.8 million, respectively, were reclassified from “accounts payable and other accrued liabilities” in operating activities to “other” in financing activities in the company’s consolidated statements of cash flows.

Accounting Pronouncements Not Yet Adopted

In March 2017, the FASB issued ASU No. 2017-07 Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line items that include service cost and outside the subtotal of operating income. This update is effective for annual periods beginning after December 15, 2017, which for the company is January 1, 2018. Adoption of this new guidance will result in the reclassification of net periodic benefit cost, other than service costs ($92.5 million and $81.6 million for the years ended December 31, 2017 and 2016, respectively), from operating income to non-operating income. There will be no overall impact on the company’s consolidated financial position.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected losses. This includes trade and other receivables, loans and other financial instruments. This update is effective for annual periods beginning after December 15, 2019, with earlier adoption permitted. The company is currently assessing when it will choose to adopt, and is currently evaluating the impact of the adoption on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842), which is intended to improve financial reporting about leasing transactions. The ASU requires organizations that lease assets, referred to as lessees, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods beginning after December 15, 2018, with earlier adoption permitted. The company will adopt the new guidance on January 1, 2019, and is currently evaluating the impact of the adoption on its consolidated results of operations and financial position.

In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606), which establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer. The standard, and its various amendments, is effective for annual reporting periods beginning after December 15, 2017, which for the company is January 1, 2018. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. The new standard would require the company to recognize revenue for certain transactions, including extended payment term software licenses and short-term software licenses, sooner than the current rules would allow and require the company to recognize software license extensions and renewals (the most significant impact upon adoption), later than the current rules would allow. The standard also requires significantly expanded disclosure requirements. The company will adopt the standard on January 1, 2018 using the modified retrospective method. The company does not believe there will be a material impact to its consolidated financial position upon adoption.

Accounts receivable

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Accounts receivable

Accounts receivable consist principally of trade accounts receivable from customers and are generally unsecured and due within 30 to 90 days. Credit losses relating to these receivables consistently have been within management’s expectations. Expected credit losses are recorded as an allowance for doubtful accounts in the consolidated balance sheets. Estimates of expected credit losses are based primarily on the aging of the accounts receivable balances. The company records a specific reserve for individual accounts when it becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The collection policies and procedures of the company vary by credit class and prior payment history of customers.

Revenue recognized in excess of billings on services contracts, or unbilled accounts receivable, was $109.4 million and $98.0 million at December 31, 2017 and 2016, respectively.

As of December 31, 2017, receivables under sales-type leases before the allowance for unearned income were collectible as follows:



Year
2018	$	45.5
2019	25.8
2020	16.3
2021	10.8
2022	9.7
Thereafter	19.1
Total	$	127.2

Unearned income, which is deducted from accounts receivable, was $12.5 million and $7.0 million at December 31, 2017 and 2016, respectively. The allowance for doubtful accounts, which is reported as a deduction from accounts receivable, was $22.0 million and $22.8 million at December 31, 2017 and 2016, respectively. The provision for doubtful accounts, which is reported in selling, general and administrative expenses in the consolidated statements of income, was expense of $3.1 million, $2.2 million and $3.0 million, in 2017, 2016 and 2015, respectively.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Income taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income taxes

Following is the total income (loss) before income taxes and the provision for income taxes for the three years ended December 31, 2017.



Year ended December 31,	2017			2016			2015
Income (loss) before income taxes
United States	$	(152.7	)	$	(88.3	)	$	(130.6	)
Foreign	80.6			108.8			71.8
Total income (loss) before income taxes	$	(72.1	)	$	20.5		$	(58.8	)
Provision for income taxes
Current
United States	$	(42.8	)	$	6.7		$	1.0
Foreign	33.9			47.7			42.2
State and local	—			—			0.3
Total	(8.9		)	54.4			43.5
Deferred
Foreign	3.4			2.8			0.9
Total (benefit) provision for income taxes	$	(5.5	)	$	57.2		$	44.4

Following is a reconciliation of the (benefit) provision for income taxes at the United States statutory tax rate to the provision for income taxes as reported:



Year ended December 31,	2017			2016			2015
United States statutory income tax provision (benefit)	$	(25.2	)	$	7.2		$	(20.6	)
Income and losses for which no provision or benefit has been recognized	70.3			65.5			69.1
Foreign rate differential and other foreign tax expense	(11.3		)	(21.1		)	(15.9		)
Income tax withholdings	16.8			22.8			12.5
Permanent items	(3.0		)	(4.7		)	(1.9		)
Enacted rate changes	(0.4		)	3.5			9.1
Change in uncertain tax positions	2.3			0.4			1.5
Change in valuation allowances due to changes in judgment	(4.6		)	(16.4		)	(5.4		)
Income tax credits, U.S.	(50.4		)	—			(4.0		)
(Benefit) provision for income taxes	$	(5.5	)	$	57.2		$	44.4

The TCJA was enacted by the U.S. on December 22, 2017. The TCJA eliminates the corporate Alternative Minimum Tax (“AMT”) beginning in 2018, and also provides for refunds of all remaining AMT credits. Consequently, the company recorded a benefit of $50.4 million in 2017. Of this total, $9.1 million was received in 2017, and approximately $7.2 million will be received in 2018 under Internal Revenue Code section 168(k)(4) of the prior tax law. The remainder, $34.1 million, will be refundable under the TCJA between 2019 and 2022.

The 2016 and 2015 provision for income taxes included $3.5 million and $9.1 million due to a reduction in the UK income tax rate. The rate reductions were enacted in the third quarter of 2016 and the fourth quarter of 2015 and reduced the rate from 18% to 17% and from 20% to 18% effective April 1, 2020 and 2017, respectively.

The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows:



As of December 31,	2017			2016
Deferred tax assets
Tax loss carryforwards	$	837.6		$	889.6
Postretirement benefits	437.7			728.9
Foreign tax credit carryforwards	127.0			317.6
Other tax credit carryforwards	29.1			91.4
Deferred revenue	40.9			81.0
Employee benefits and compensation	35.2			49.1
Purchased capitalized software	22.2			32.6
Depreciation	24.5			28.3
Warranty, bad debts and other reserves	5.3			16.1
Capitalized costs	3.1			10.9
Other	39.3			27.7
	1,601.9			2,273.2
Valuation allowance	(1,441.1		)	(2,084.6		)
Total deferred tax assets	$	160.8		$	188.6
Deferred tax liabilities
Capitalized research and development	$	24.3		$	20.3
Other	25.8			28.4
Total deferred tax liabilities	$	50.1		$	48.7
Net deferred tax assets	$	110.7		$	139.9

The TCJA reduced the U.S. federal tax rate from 35% to 21% effective in 2018. This rate decrease resulted in a remeasurement of U.S. deferred tax balances in 2017, with no net financial statement impact due to the valuation allowance recorded against all U.S. deferred tax assets.

At December 31, 2017, the company has tax effected U.S. Federal ($319.5 million), state and local ($250.7 million), and foreign ($267.4 million) tax loss carryforwards, the total of which is $837.6 million. These carryforwards will expire as follows: 2018, $5.3; 2019, $7.3; 2020, $28.5; 2021, $14.5; 2022, $114.0; and $668.0 thereafter. The company also has available tax credit carryforwards of $127.0 million, which will expire as follows: 2018, $10.1; 2019, $10.2; 2020, $20.9; 2021, $8.7; 2022, $7.7; and $69.4 thereafter.

Failure to achieve forecasted taxable income might affect the ultimate realization of the company’s net deferred tax assets. Factors that may affect the company’s ability to achieve sufficient forecasted taxable income include, but are not limited to, the following: increased competition, a decline in sales or margins, loss of market share, the impact of the economic environment, delays in product availability and technological obsolescence.

Under U.S. tax law effective through December 31, 2017, undistributed earnings of foreign subsidiaries were generally taxable upon repatriation to the U.S. shareholder. Under the TCJA, effective January 1, 2018, distributions from foreign subsidiaries to U.S. shareholders are generally exempt from taxation. As a part of the transition to this new participation exemption system of taxation, the TCJA requires a transition tax to be paid on the net accumulated post-1986 undistributed earnings of foreign subsidiaries. The company has determined that, due to accumulated deficits of foreign subsidiaries offsetting the accumulated earnings of foreign subsidiaries, the company will not incur a transition tax.

With this change in U.S. taxation of earnings of foreign subsidiaries under the TCJA, future distributions of earnings from foreign subsidiaries will generally be exempt from U.S. taxation. Consequently, the deferred income tax liability on undistributed earnings is generally limited to any foreign withholding or other foreign taxes that will be imposed on such distributions. As the company currently intends to indefinitely reinvest the earnings of certain foreign subsidiaries, no provision has been made for income taxes that may become payable upon distribution of the earnings of such subsidiaries. The unrecognized deferred income tax liability at December 31, 2017 approximated $21.5 million.

While subsequent to 2017, the U.S. will not generally tax distributions from foreign subsidiaries, the TCJA introduced a tax on GILTI. Beginning in 2018, U.S. taxable income will include GILTI, which essentially includes net foreign subsidiaries’ earnings above a routine 10% return on their aggregate specified tangible assets. The company has made an accounting policy election to treat the GILTI as a period cost when included in U.S. taxable income, and consequently GILTI has no impact on the 2017 financial statements.

Cash paid for income taxes, net of refunds, during 2017, 2016 and 2015 was $34.3 million, $46.4 million and $59.7 million, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Year ended December 31,	2017			2016			2015
Balance at January 1	$	35.8		$	27.7		$	35.0
Additions based on tax positions related to the current year	4.2			2.7			3.4
Changes for tax positions of prior years	(11.2		)	12.0			(4.0		)
Reductions as a result of a lapse of applicable statute of limitations	(2.7		)	(2.8		)	(3.4		)
Settlements	(0.2		)	(0.1		)	(0.9		)
Changes due to foreign currency	2.0			(3.7		)	(2.4		)
Balance at December 31	$	27.9		$	35.8		$	27.7

The company recognizes penalties and interest accrued related to income tax liabilities in the provision for income taxes in its consolidated statements of income. At December 31, 2017 and 2016, the company had an accrual of $2.3 million and $1.2 million, respectively, for the payment of penalties and interest.

At December 31, 2017, all of the company’s liability for unrecognized tax benefits, if recognized, would affect the company’s effective tax rate. Within the next 12 months, the company believes that it is reasonably possible that the amount of unrecognized tax benefits may significantly change; however, various events could cause this belief to change in the future.

The company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Several U.S. state and foreign income tax audits are in process. The company is under an audit in India, for which years prior to 2006 are closed. For the most significant jurisdictions outside the U.S., the audit periods through 2012 are closed for Brazil, and the audit periods through 2013 are closed for the United Kingdom. All of the various ongoing income tax audits throughout the world are not expected to have a material impact on the company’s financial position.

Internal Revenue Code Sections 382 and 383 provide annual limitations with respect to the ability of a corporation to utilize its net operating loss (as well as certain built-in losses) and tax credit carryforwards, respectively (“Tax Attributes”), against future U.S. taxable income, if the corporation experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. The company regularly monitors ownership changes (as calculated for purposes of Section 382). The company has determined that, for purposes of the rules of Section 382 described above, an ownership change occurred in February 2011. Any future transaction or transactions and the timing of such transaction or transactions could trigger additional ownership changes under Section 382.

As a result of the February 2011 ownership change, utilization for certain of the company’s Tax Attributes, U.S. net operating losses and tax credits, is subject to an overall annual limitation of $70.6 million. The cumulative limitation as of December 31, 2017 is approximately $416.0 million. This limitation will be applied first to any recognized built in losses, then to any net operating losses, and then to any other Tax Attributes. Any unused limitation may be carried over to later years. Based on presently available information and the existence of tax planning strategies, the company does not expect to incur a U.S. cash tax liability in the near term. The company maintains a full valuation allowance against the realization of all U.S. deferred tax assets as well as certain foreign deferred tax assets in excess of deferred tax liabilities.

Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt

Long-term debt is comprised of the following:



As of December 31,	2017		2016
10.75% senior secured notes due April 15, 2022 ($440.0 million face value less unamortized discount and fees of $10.4 million at December 31, 2017)	$	429.6	$	—
5.50% convertible senior notes due March 1, 2021 ($213.5 million face value less unamortized discount and fees of $27.2 million and $34.4 million at December 31, 2017 and 2016, respectively)	186.3		179.1
6.25% senior notes	—		94.7
Capital leases	7.5		10.1
Other debt	21.3		16.1
Total	644.7		300.0
Less – current maturities	10.8		106.0
Total long-term debt	$	633.9	$	194.0

Long-term debt is carried at amortized cost and its estimated fair value is based on market prices classified as Level 2 in the fair value hierarchy. Presented below are the estimated fair values of long-term debt as of December 31, 2017 and 2016.



As of December 31,	2017		2016
10.75% senior secured notes due April 15, 2022^(a)	$	492.8	$	—
5.50% convertible senior notes due March 1, 2021	237.9		379.8
6.25% senior notes^(b)	—		97.8

^(a)Issued in April 2017

^(b)Retired in April 2017

Maturities of long-term debt, including capital leases, in each of the next five years and thereafter are as follows:



Year	Total		Long-Term Debt		Capital Leases
2018	$	10.8	$	8.2	$	2.6
2019	1.4		—		1.4
2020	2.3		0.9		1.4
2021	189.5		188.1		1.4
2022	432.3		431.5		0.8
Thereafter	8.4		8.4		—
Total	$	644.7	$	637.1	$	7.6

Cash paid for interest during 2017, 2016 and 2015 was $39.9 million, $22.1 million and $14.4 million, respectively. Capitalized interest expense during 2017, 2016 and 2015 was $4.2 million, $3.0 million and $3.1 million, respectively.

On April 17, 2017, the company issued $440.0 million aggregate principal amount of 10.75% Senior Secured Notes due 2022 (the “Notes”). The Notes are initially fully and unconditionally guaranteed on a senior secured basis by Unisys Holding Corporation, Unisys AP Investment Company I and Unisys NPL, Inc. (together with the Company, the “Grantors”). In the future, the Notes will be guaranteed by each material domestic subsidiary and each restricted subsidiary that guarantees the secured revolving credit facility and other indebtedness of the company or another subsidiary guarantor. The Notes and the guarantees will rank equally in right of payment with all of the existing and future senior debt of the company and the subsidiary guarantors. The Notes and the guarantees will be structurally subordinated to all existing and future liabilities (including preferred stock, trade payables and pension liabilities) of the company’s subsidiaries that are not subsidiary guarantors.

The Notes pay interest semiannually on April 15 and October 15, commencing on October 15, 2017, at an annual rate of 10.75%, and will mature on April 15, 2022, unless earlier repurchased or redeemed.

The company may, at its option, redeem some or all of the Notes at any time on or after April 15, 2020 at a redemption price determined in accordance with the redemption schedule set forth in the indenture governing the Notes (the “indenture”), plus accrued and unpaid interest, if any.

Prior to April 15, 2020, the company may, at its option, redeem some or all of the Notes at any time, at a price equal to 100% of the principal amount of the Notes redeemed plus a “make-whole” premium, plus accrued and unpaid interest, if any. The company may also redeem, at its option, up to 35% of the Notes at any time prior to April 15, 2020, using the proceeds of certain equity offerings at a redemption price of 110.75% of the principal amount thereof, plus accrued and unpaid interest, if any. In addition, the company may redeem all (but not less than all) of the Notes at any time that the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio (as such terms are described below and further defined in the indenture) at a price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, if any.

The indenture contains covenants that limit the ability of the company and its restricted subsidiaries to, among other things: (i) incur additional indebtedness and guarantee indebtedness; (ii) pay dividends or make other distributions or repurchase or redeem its capital stock; (iii) prepay, redeem or repurchase certain debt; (iv) make certain prepayments in respect of pension obligations; (v) issue certain preferred stock or similar equity securities; (vi) make loans and investments (including investments by the company and subsidiary guarantors in subsidiaries that are not guarantors); (vii) sell assets; (viii) create or incur liens; (ix) enter into transactions with affiliates; (x) enter into agreements restricting its subsidiaries’ ability to pay dividends; and (xi) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to several important limitations and exceptions.

The indenture also includes a covenant requiring that the company maintain a Collateral Coverage Ratio of not less than 1.50:1.00 (the “Required Collateral Coverage Ratio”) as of any test date. The Collateral Coverage Ratio is based on the ratio of (A) Grantor unrestricted cash and cash equivalents plus 4.75 multiplied by of the greater of (x) Grantor EBITDA for the most recently ended four fiscal quarters and (y) (i) the average quarterly Grantor EBITDA for the most recently ended seven fiscal quarters, multiplied by (ii) four, to (B) secured indebtedness of the Grantors. The Collateral Coverage Ratio is tested quarterly. If the Collateral Coverage Ratio is less than the Required Collateral Coverage Ratio as of any test date, and the company has not redeemed the Notes within 90 days thereafter, this will be an event of default under the indenture.

If the company experiences certain kinds of changes of control, it must offer to purchase the Notes at 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any. In addition, if the company sells assets under certain circumstances it must apply the proceeds towards an offer to repurchase the Notes at a price equal to par plus accrued and unpaid interest, if any.

The indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Notes to be due and payable immediately.

On May 8, 2017, the company redeemed all of its then outstanding 6.25% senior notes due 2017. As a result of this redemption, the company recognized a charge of $1.5 million in “Other income (expense), net” in the second quarter of 2017, which is comprised of $1.3 million of premium and expenses paid and $0.2 million for the write-off of unamortized discount and fees related to the portion of the notes redeemed.

In 2016, the company issued $213.5 million aggregate principal amount of Convertible Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes, which are senior unsecured obligations, bear interest at a coupon rate of 5.50% (or 9.5% effective interest rate) per year until maturity, payable semiannually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016. The 2021 Notes are not redeemable prior to maturity and are convertible into shares of the company’s common stock. The conversion rate for the 2021 Notes is 102.4249 shares of the company’s common stock per $1,000 principal amount of the 2021 Notes (or a total amount of 21,867,716 shares), which is equivalent to an initial conversion price of approximately $9.76 per share of the company’s common stock. Upon any conversion, the company will settle its conversion obligation in cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election.

In connection with the issuance of the 2021 Notes, the company also paid $27.3 million to enter into privately negotiated capped call transactions with the initial purchasers and/or affiliates of the initial purchasers. The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of the company’s common stock that will initially underlie the 2021 Notes. The capped call transactions will effectively raise the conversion premium on the 2021 Notes from approximately 22.5% to approximately 60%, which raises the initial conversion price from approximately $9.76 per share of common stock to approximately $12.75 per share of common stock. The capped call transactions are expected to reduce potential dilution to the company’s common stock and/or offset potential cash payments the company is required to make in excess of the principal amount upon any conversion of the 2021 Notes.

Interest expense related to the 2021 Notes^(a) is comprised of the following:



Year ended December 31,	2017		2016
Contractual interest coupon	$	11.8	$	9.2
Amortization of debt discount	6.0		4.3
Amortization of debt issuance costs	1.2		1.0
Total	$	19.0	$	14.5

^(a)Issued in 2016

The company has a secured revolving credit facility (the “Credit Agreement”) that provides for loans and letters of credit up to an aggregate amount of $125.0 million (with a limit on letters of credit of $30.0 million). The Credit Agreement includes an accordion feature allowing for an increase in the amount of the facility up to $150.0 million. Availability under the credit facility is subject to a borrowing base calculated by reference to the company’s receivables. At December 31, 2017, the company had no borrowings and $4.7 million of letters of credit outstanding, and availability under the facility was $110.5 million net of letters of credit issued. The Credit Agreement expires October 5, 2022, subject to a springing maturity (i) on the date that is 91 days prior to the maturity date of the 2021 Notes unless, on such date, certain conditions are met; or (ii) on the date that is 60 days prior to the maturity date of the Notes unless, by such date, such secured notes have not been redeemed or refinanced.

The credit facility is guaranteed by Unisys Holding Corporation, Unisys NPL, Inc., Unisys AP Investment Company I and any future material domestic subsidiaries. The facility is secured by the assets of the company and the subsidiary guarantors, other than certain excluded assets, under a security agreement entered into by the company and the subsidiary guarantors in favor of JPMorgan Chase Bank, N.A., as agent for the lenders under the credit facility.

The company is required to maintain a minimum fixed charge coverage ratio if the availability under the credit facility falls below the greater of 10% of the lenders’ commitments under the facility and $15 million.

The Credit Agreement contains customary representations and warranties, including that there has been no material adverse change in the company’s business, properties, operations or financial condition. The Credit Agreement includes limitations on the ability of the company and its subsidiaries to, among other things, incur other debt or liens, dispose of assets and make acquisitions, loans and investments, repurchase its equity, and prepay other debt. Events of default include non-payment, failure to comply with covenants, materially incorrect representations and warranties, change of control and default under other debt aggregating at least $50.0 million.

At December 31, 2017, the company has met all covenants and conditions under its various lending agreements. The company expects to continue to meet these covenants and conditions.

The company’s principal sources of liquidity are cash on hand, cash from operations and its revolving credit facility, discussed above. The company and certain international subsidiaries have access to uncommitted lines of credit from various banks.

The company’s anticipated future cash expenditures include anticipated contributions to its defined benefit pension plans. The company believes that it has adequate sources of liquidity to meet its expected 2018 cash requirements.