Document
false--12-31Q2202000007468380000659000006680000084200000440000000842000000.10750.0550.05500.05542000005500000240000004200000310000040000014300000P6MP1Y35000003800000 0000746838 2020-01-01 2020-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000746838 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000746838 2020-06-30 0000746838 2019-01-01 2019-06-30 0000746838 2020-04-01 2020-06-30 0000746838 uis:TechnologyMember 2020-04-01 2020-06-30 0000746838 uis:TechnologyMember 2019-01-01 2019-06-30 0000746838 uis:ServicesMember 2020-04-01 2020-06-30 0000746838 2019-04-01 2019-06-30 0000746838 uis:ServicesMember 2020-01-01 2020-06-30 0000746838 uis:ServicesMember 2019-04-01 2019-06-30 0000746838 uis:TechnologyMember 2020-01-01 2020-06-30 0000746838 uis:TechnologyMember 2019-04-01 2019-06-30 0000746838 uis:ServicesMember 2019-01-01 2019-06-30 0000746838 2019-12-31 0000746838 2018-12-31 0000746838 2019-06-30 0000746838 2019-01-01 2019-03-31 0000746838 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000746838 us-gaap:CommonStockMember 2018-12-31 0000746838 us-gaap:TreasuryStockMember 2019-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000746838 us-gaap:ParentMember 2019-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000746838 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000746838 us-gaap:ParentMember 2019-01-01 2019-03-31 0000746838 us-gaap:CommonStockMember 2019-03-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000746838 2019-03-31 0000746838 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0000746838 us-gaap:ParentMember 2019-04-01 2019-06-30 0000746838 us-gaap:TreasuryStockMember 2019-06-30 0000746838 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000746838 us-gaap:CommonStockMember 2019-06-30 0000746838 us-gaap:RetainedEarningsMember 2018-12-31 0000746838 us-gaap:NoncontrollingInterestMember 2018-12-31 0000746838 us-gaap:TreasuryStockMember 2018-12-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000746838 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000746838 us-gaap:RetainedEarningsMember 2019-06-30 0000746838 us-gaap:RetainedEarningsMember 2019-03-31 0000746838 us-gaap:NoncontrollingInterestMember 2019-06-30 0000746838 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000746838 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000746838 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000746838 us-gaap:ParentMember 2018-12-31 0000746838 us-gaap:NoncontrollingInterestMember 2019-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000746838 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000746838 us-gaap:ParentMember 2019-06-30 0000746838 2020-01-01 2020-03-31 0000746838 us-gaap:ParentMember 2020-04-01 2020-06-30 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000746838 us-gaap:ParentMember 2020-01-01 2020-03-31 0000746838 us-gaap:ParentMember 2019-12-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000746838 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000746838 us-gaap:CommonStockMember 2020-06-30 0000746838 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0000746838 us-gaap:TreasuryStockMember 2020-04-01 2020-06-30 0000746838 2020-03-31 0000746838 us-gaap:TreasuryStockMember 2020-03-31 0000746838 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000746838 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000746838 us-gaap:TreasuryStockMember 2019-12-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000746838 us-gaap:NoncontrollingInterestMember 2019-12-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000746838 us-gaap:NoncontrollingInterestMember 2020-03-31 0000746838 us-gaap:CommonStockMember 2020-03-31 0000746838 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000746838 us-gaap:RetainedEarningsMember 2020-06-30 0000746838 us-gaap:RetainedEarningsMember 2020-03-31 0000746838 us-gaap:NoncontrollingInterestMember 2020-06-30 0000746838 us-gaap:CommonStockMember 2019-12-31 0000746838 us-gaap:TreasuryStockMember 2020-06-30 0000746838 us-gaap:RetainedEarningsMember 2019-12-31 0000746838 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000746838 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000746838 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000746838 us-gaap:ParentMember 2020-06-30 0000746838 us-gaap:ParentMember 2020-03-31 0000746838 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember uis:U.S.FederalBusinessMember 2019-04-01 2019-06-30 0000746838 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember uis:U.S.FederalBusinessMember 2020-04-01 2020-06-30 0000746838 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember uis:U.S.FederalBusinessMember 2019-01-01 2019-06-30 0000746838 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember uis:U.S.FederalBusinessMember 2020-01-01 2020-06-30 0000746838 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember uis:U.S.FederalBusinessMember 2020-03-13 2020-03-13 0000746838 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0000746838 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0000746838 us-gaap:OtherNonoperatingIncomeExpenseMember 2020-04-01 2020-06-30 0000746838 uis:ForeignCurrencyTranslationAdjustmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:EmployeeSeveranceMember 2020-04-01 2020-06-30 0000746838 us-gaap:CostOfSalesMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 us-gaap:CostOfSalesMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 us-gaap:CostOfSalesMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 us-gaap:OtherNonoperatingIncomeExpenseMember 2020-01-01 2020-06-30 0000746838 uis:LeaseAbandonmentandAssetWriteOffsMember 2019-01-01 2019-06-30 0000746838 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-06-30 0000746838 us-gaap:CostOfSalesMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 us-gaap:EmployeeSeveranceMember 2020-01-01 2020-06-30 0000746838 uis:AssetImpairmentsMember 2020-04-01 2020-06-30 0000746838 uis:LeaseAbandonmentandAssetWriteOffsMember 2019-04-01 2019-06-30 0000746838 uis:RestructuringReserveAccrualAdjustmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-06-30 0000746838 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-04-01 2019-06-30 0000746838 uis:RestructuringReserveAccrualAdjustmentMember 2020-04-01 2020-06-30 0000746838 uis:AssetImpairmentsMember 2020-01-01 2020-06-30 0000746838 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0000746838 uis:RestructuringReserveAccrualAdjustmentMember 2019-01-01 2019-06-30 0000746838 uis:ForeignCurrencyTranslationAdjustmentMember 2020-04-01 2020-06-30 0000746838 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-06-30 0000746838 uis:RestructuringReserveAccrualAdjustmentMember 2019-04-01 2019-06-30 0000746838 us-gaap:EmployeeSeveranceMember 2020-06-30 0000746838 us-gaap:NonUsMember us-gaap:EmployeeSeveranceMember 2019-12-31 0000746838 country:US us-gaap:EmployeeSeveranceMember 2020-06-30 0000746838 country:US us-gaap:EmployeeSeveranceMember 2020-01-01 2020-06-30 0000746838 us-gaap:EmployeeSeveranceMember 2019-12-31 0000746838 us-gaap:NonUsMember us-gaap:EmployeeSeveranceMember 2020-06-30 0000746838 country:US us-gaap:EmployeeSeveranceMember 2019-12-31 0000746838 us-gaap:NonUsMember us-gaap:EmployeeSeveranceMember 2020-01-01 2020-06-30 0000746838 us-gaap:NonUsMember srt:ScenarioForecastMember us-gaap:EmployeeSeveranceMember 2020-12-31 0000746838 country:US srt:ScenarioForecastMember us-gaap:EmployeeSeveranceMember 2020-12-31 0000746838 srt:ScenarioForecastMember us-gaap:EmployeeSeveranceMember 2020-12-31 0000746838 us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000746838 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000746838 country:US us-gaap:PensionPlansDefinedBenefitMember 2020-04-01 2020-06-30 0000746838 us-gaap:PensionPlansDefinedBenefitMember 2020-04-01 2020-06-30 0000746838 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-04-01 2020-06-30 0000746838 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000746838 country:US us-gaap:PensionPlansDefinedBenefitMember 2020-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000746838 2019-01-01 2019-12-31 0000746838 us-gaap:PensionPlansDefinedBenefitMember 2020-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-06-30 0000746838 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-06-30 0000746838 country:US us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000746838 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000746838 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000746838 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000746838 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-04-01 2019-06-30 0000746838 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-04-01 2020-06-30 0000746838 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0000746838 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0000746838 us-gaap:RestrictedStockUnitsRSUMember 2020-06-30 0000746838 srt:MinimumMember uis:PerformanceBasedUnitMember 2020-01-01 2020-06-30 0000746838 srt:MaximumMember uis:PerformanceBasedUnitMember 2020-01-01 2020-06-30 0000746838 us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0000746838 uis:StockOptionsAndRestrictedStockUnitsMember 2020-04-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesFivePointFivePercentDueTwentyTwentyOneMember 2019-04-01 2019-06-30 0000746838 uis:ConvertibleSeniorNotesFivePointFivePercentDueTwentyTwentyOneMember 2020-01-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesFivePointFivePercentDueTwentyTwentyOneMember 2019-01-01 2019-06-30 0000746838 uis:StockOptionsAndRestrictedStockUnitsMember 2019-01-01 2019-06-30 0000746838 uis:StockOptionsAndRestrictedStockUnitsMember 2020-01-01 2020-06-30 0000746838 uis:StockOptionsAndRestrictedStockUnitsMember 2019-04-01 2019-06-30 0000746838 uis:ConvertibleSeniorNotesFivePointFivePercentDueTwentyTwentyOneMember 2020-04-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesFivePointFivePercentDueTwentyTwentyOneMember 2020-06-30 0000746838 uis:SalesCommissionMember 2020-06-30 0000746838 uis:SalesCommissionMember 2019-12-31 0000746838 uis:SalesCommissionMember 2020-04-01 2020-06-30 0000746838 uis:SalesCommissionMember 2019-01-01 2019-06-30 0000746838 uis:SalesCommissionMember 2019-04-01 2019-06-30 0000746838 uis:SalesCommissionMember 2020-01-01 2020-06-30 0000746838 us-gaap:ForeignExchangeForwardMember 2020-06-30 0000746838 us-gaap:ForeignExchangeForwardMember 2020-01-01 2020-06-30 0000746838 us-gaap:ForeignExchangeForwardMember 2019-12-31 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2019-12-31 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SeniorNotesMember 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-12-31 0000746838 uis:OtherIncomeExpenseNetMember 2020-04-01 2020-06-30 0000746838 uis:OtherIncomeExpenseNetMember 2019-04-01 2019-06-30 0000746838 uis:OtherIncomeExpenseNetMember 2019-01-01 2019-06-30 0000746838 uis:OtherIncomeExpenseNetMember 2020-01-01 2020-06-30 0000746838 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000746838 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2020-06-30 0000746838 us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2020-06-30 0000746838 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000746838 uis:OtherAccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2020-06-30 0000746838 uis:OtherAccruedLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000746838 uis:BusinessProcessOutsourcingServicesMember uis:ServicesMember 2020-06-30 0000746838 uis:TechnologyMember 2020-06-30 0000746838 uis:ServicesMember 2020-06-30 0000746838 uis:ServicesMember 2019-12-31 0000746838 uis:TechnologyMember 2019-12-31 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-08-06 0000746838 uis:SoftwareLicensesFinancingAgreementMember 2019-09-05 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2020-04-15 0000746838 us-gaap:RevolvingCreditFacilityMember uis:CreditAgreementMember 2020-01-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2016-01-01 2016-12-31 0000746838 us-gaap:RevolvingCreditFacilityMember uis:CreditAgreementMember 2020-06-30 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2020-04-01 2020-06-30 0000746838 uis:InstallmentPaymentAgreementMember 2019-03-27 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2016-12-31 0000746838 us-gaap:RevolvingCreditFacilityMember uis:CreditAgreementMember us-gaap:LineOfCreditMember 2020-06-30 0000746838 uis:SoftwareLicensesFinancingAgreementMember 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-08-06 2019-08-06 0000746838 uis:InstallmentPaymentAgreementMember 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-08-07 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2020-04-15 2020-04-15 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2016-01-01 2019-08-05 0000746838 us-gaap:LetterOfCreditMember uis:CreditAgreementMember 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member 2016-12-31 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2020-04-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2020-01-01 2020-06-30 0000746838 uis:ConvertibleSeniorNotesDue2021Member us-gaap:SeniorNotesMember 2019-04-01 2019-06-30 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2020-06-30 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2019-12-31 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2019-04-01 2019-06-30 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2020-01-01 2020-06-30 0000746838 uis:SeniorSecuredNotesDue2022Member us-gaap:SeniorNotesMember 2019-01-01 2019-06-30 0000746838 us-gaap:InsuranceClaimsMember 2014-06-26 2014-06-26 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-04-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-04-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-04-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-06-30 0000746838 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-04-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-01-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-01-01 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-04-01 2020-06-30 0000746838 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-04-01 2019-06-30 0000746838 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-04-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000746838 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0000746838 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:AccumulatedTranslationAdjustmentMember 2020-06-30 0000746838 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-06-30 0000746838 us-gaap:CorporateNonSegmentMember 2020-04-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:TechnologyMember 2020-01-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember 2020-04-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0000746838 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:TechnologyMember 2019-04-01 2019-06-30 0000746838 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:TechnologyMember 2020-04-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:TechnologyMember 2019-01-01 2019-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:TechnologyMember 2019-04-01 2019-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:TechnologyMember 2019-01-01 2019-06-30 0000746838 us-gaap:OperatingSegmentsMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember 2019-04-01 2019-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:TechnologyMember 2020-01-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:TechnologyMember 2020-04-01 2020-06-30 0000746838 us-gaap:IntersegmentEliminationMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 uis:OtherInternationalMember 2019-04-01 2019-06-30 0000746838 country:GB 2019-01-01 2019-06-30 0000746838 country:GB 2020-04-01 2020-06-30 0000746838 uis:OtherInternationalMember 2020-04-01 2020-06-30 0000746838 country:GB 2020-01-01 2020-06-30 0000746838 uis:OtherInternationalMember 2019-01-01 2019-06-30 0000746838 country:US 2020-01-01 2020-06-30 0000746838 country:US 2019-04-01 2019-06-30 0000746838 uis:OtherInternationalMember 2020-01-01 2020-06-30 0000746838 country:GB 2019-04-01 2019-06-30 0000746838 country:US 2019-01-01 2019-06-30 0000746838 country:US 2020-04-01 2020-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember 2020-01-01 2020-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember 2019-04-01 2019-06-30 0000746838 uis:CorporateAndReconcilingItemsMember 2020-04-01 2020-06-30 0000746838 uis:CorporateAndReconcilingItemsMember 2019-04-01 2019-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember 2020-04-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0000746838 uis:CorporateAndReconcilingItemsMember 2019-01-01 2019-06-30 0000746838 uis:CorporateAndReconcilingItemsMember 2020-01-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember 2020-01-01 2020-06-30 0000746838 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0000746838 us-gaap:OperatingSegmentsMember 2020-04-01 2020-06-30 0000746838 uis:BusinessProcessOutsourcingServicesMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 uis:CloudAndInfrastructureServicesMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 uis:BusinessProcessOutsourcingServicesMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 uis:CloudAndInfrastructureServicesMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 uis:BusinessProcessOutsourcingServicesMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 uis:CloudAndInfrastructureServicesMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 uis:ApplicationServicesMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 uis:BusinessProcessOutsourcingServicesMember uis:ServicesMember 2019-04-01 2019-06-30 0000746838 uis:ApplicationServicesMember uis:ServicesMember 2020-04-01 2020-06-30 0000746838 uis:ApplicationServicesMember uis:ServicesMember 2019-01-01 2019-06-30 0000746838 uis:ApplicationServicesMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 uis:CloudAndInfrastructureServicesMember uis:ServicesMember 2020-01-01 2020-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember uis:OtherTechnologyMember uis:TechnologyMember 2020-01-01 2020-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember uis:OtherTechnologyMember uis:TechnologyMember 2019-01-01 2019-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember uis:OtherTechnologyMember uis:TechnologyMember 2020-04-01 2020-06-30 0000746838 us-gaap:MaterialReconcilingItemsMember uis:OtherTechnologyMember uis:TechnologyMember 2019-04-01 2019-06-30 0000746838 2021-01-01 2020-06-30 0000746838 2020-07-01 2020-06-30 iso4217:USD xbrli:pure xbrli:shares iso4217:USD xbrli:shares uis:employee uis:segment




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 
FORM 10-Q
 
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     .
Commission file number 1-8729
 
 
 
UNISYS CORPORATION
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
38-0387840
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
801 Lakeview Drive, Suite 100
Blue Bell, Pennsylvania 19422
(215986-4011 
(Address, zip code and telephone number, including area code, of principal executive offices)
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01
UIS
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
  
Accelerated filer
 
 
 
 
 
Non-accelerated filer
 
  
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Number of shares of Common Stock outstanding as of June 30, 2020: 63,017,239.






UNISYS CORPORATION
TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
 
Page Number
Item 1.
Consolidated Financial Statements (Unaudited)
 
 
 
Consolidated Statements of Income (Loss)
 
 
Consolidated Statements of Comprehensive Income (Loss)
 
 
Consolidated Balance Sheets
 
 
Consolidated Statements of Cash Flows
 
 
Consolidated Statements of Deficit
 
 
Notes to Consolidated Financial Statements
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
 
Item 4.
Controls and Procedures
 
Item 5.
Other Information
 
PART II - OTHER INFORMATION
Item 1.
Legal Proceedings
 
Item 1A.
Risk Factors
 
Item 6.
Exhibits
 
 
 
 
 
Exhibit Index
 
Signatures
 






Part I - FINANCIAL INFORMATION
Item 1. Financial Statements

UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)
(Millions, except per share data)
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Revenue
 
 
 
 
 
 
 
 
Services
 
$
396.0

 
$
481.0

 
$
821.9

 
$
955.0

Technology
 
42.8

 
88.4

 
132.3

 
168.9

 
 
438.8

 
569.4

 
954.2

 
1,123.9

Costs and expenses
 
 
 
 
 
 
 
 
Cost of revenue:
 
 
 
 
 
 
 
 
Services
 
340.0

 
399.1

 
715.7

 
795.9

Technology
 
23.9

 
17.7

 
50.5

 
50.3

 
 
363.9

 
416.8

 
766.2

 
846.2

Selling, general and administrative
 
80.2

 
92.4

 
167.0

 
183.3

Research and development
 
3.2

 
7.2

 
9.4

 
16.2

 
 
447.3

 
516.4

 
942.6

 
1,045.7

Operating income (loss)
 
(8.5
)
 
53.0

 
11.6

 
78.2

Interest expense
 
4.6

 
16.2

 
18.5

 
31.7

Other expense, net
 
(53.7
)
 
(28.9
)
 
(101.8
)
 
(59.3
)
Income (loss) from continuing operations before income taxes
 
(66.8
)
 
7.9

 
(108.7
)
 
(12.8
)
Provision for income taxes
 
9.7

 
3.6

 
20.5

 
13.0

Consolidated net income (loss) from continuing operations
 
(76.5
)
 
4.3

 
(129.2
)
 
(25.8
)
Net income attributable to noncontrolling interests
 

 
3.6

 
0.5

 
6.2

Net income (loss) from continuing operations attributable to Unisys Corporation
 
(76.5
)
 
0.7

 
(129.7
)
 
(32.0
)
Income (loss) from discontinued operations, net of tax
 
(2.1
)
 
25.5

 
1,066.4

 
38.8

Net income (loss) attributable to Unisys Corporation
 
$
(78.6
)
 
$
26.2

 
$
936.7

 
$
6.8

Earnings (loss) per share attributable to Unisys Corporation
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
  Continuing operations
 
$
(1.21
)
 
$
0.01

 
$
(2.06
)
 
$
(0.62
)
  Discontinued operations
 
(0.04
)
 
0.50

 
16.97

 
0.75

       Total
 
$
(1.25
)
 
$
0.51

 
$
14.91

 
$
0.13

Diluted
 
 
 
 
 
 
 
 
  Continuing operations
 
$
(1.21
)
 
$
0.01

 
$
(2.06
)
 
$
(0.62
)
  Discontinued operations
 
(0.04
)
 
0.49

 
16.97

 
0.75

       Total
 
$
(1.25
)
 
$
0.50

 
$
14.91

 
$
0.13

See notes to consolidated financial statements


2





UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(Millions)
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Consolidated net income (loss) from continuing operations
 
$
(76.5
)
 
$
4.3

 
$
(129.2
)
 
$
(25.8
)
Income (loss) from discontinued operations, net of tax
 
(2.1
)
 
25.5

 
1,066.4

 
38.8

     Total
 
(78.6
)
 
29.8

 
937.2

 
13.0

Other comprehensive income:
 
 
 

 
 
 
 
Foreign currency translation
 
6.4

 
(13.8
)
 
(81.2
)
 
(48.0
)
Postretirement adjustments, net of tax of $0.4 and $14.3 in 2020 and $4.2 and $3.1 in 2019
 
40.0

 
50.4

 
131.2

 
118.9

Total other comprehensive income
 
46.4

 
36.6

 
50.0

 
70.9

Comprehensive income (loss)
 
(32.2
)
 
66.4

 
987.2

 
83.9

Less comprehensive income (loss) attributable to noncontrolling interests
 
0.3

 
2.7

 
(1.5
)
 
3.2

Comprehensive income (loss) attributable to Unisys Corporation
 
$
(32.5
)
 
$
63.7

 
$
988.7

 
$
80.7

See notes to consolidated financial statements

3





UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Millions)
 
June 30, 2020
 
December 31, 2019
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
782.2

 
$
538.8

Accounts receivable, net
364.5

 
417.7

Contract assets
39.0

 
38.4

Inventories
14.8

 
16.4

Prepaid expenses and other current assets
119.6

 
100.7

     Current assets of discontinued operations

 
109.3

Total current assets
1,320.1

 
1,221.3

Properties
761.2

 
784.0

Less-accumulated depreciation and amortization
652.7

 
668.0

Properties, net
108.5

 
116.0

Outsourcing assets, net
182.1

 
202.1

Marketable software, net
187.5

 
186.8

Operating lease right-of-use assets
66.3

 
71.4

Prepaid postretirement assets
136.1

 
136.2

Deferred income taxes
109.0

 
114.0

Goodwill
108.6

 
110.4

Restricted cash
10.2

 
13.0

Other long-term assets
170.9

 
198.9

Long-term assets of discontinued operations

 
133.9

Total assets
$
2,399.3

 
$
2,504.0

Liabilities and deficit
 
 
 
Current liabilities:
 
 
 
Notes payable
$
60.3

 
$

Current maturities of long-term debt
97.5

 
13.5

Accounts payable
161.6

 
204.3

Deferred revenue
217.8

 
246.4

Other accrued liabilities
255.6

 
316.7

     Current liabilities of discontinued operations

 
146.4

Total current liabilities
792.8

 
927.3

Long-term debt
47.3

 
565.9

Long-term postretirement liabilities
1,574.4

 
1,960.2

Long-term deferred revenue
130.4

 
147.0

Long-term operating lease liabilities
47.9

 
56.0

Other long-term liabilities
45.2

 
47.6

Long-term liabilities of discontinued operations

 
28.3

Commitments and contingencies (see note 14)

 

Deficit:
 
 
 
Common stock, shares issued: 2020; 66.8, 2019; 65.9
0.7

 
0.7

Accumulated deficit
(774.5
)
 
(1,711.2
)
Treasury stock, shares at cost: 2020; 3.8, 2019; 3.5
(114.3
)
 
(109.6
)
Paid-in capital
4,650.4

 
4,643.3

Accumulated other comprehensive loss
(4,036.6
)
 
(4,088.6
)
Total Unisys Corporation stockholders’ deficit
(274.3
)
 
(1,265.4
)
Noncontrolling interests
35.6

 
37.1

Total deficit
(238.7
)
 
(1,228.3
)
Total liabilities and deficit
$
2,399.3

 
$
2,504.0

See notes to consolidated financial statements

4





UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Millions) 
 
 
Six Months Ended
June 30,
 
 
2020
 
2019
Cash flows from operating activities
 
 
 
 
Consolidated net loss from continuing operations
 
$
(129.2
)
 
$
(25.8
)
Income from discontinued operations, net of tax
 
1,066.4

 
38.8

Adjustments to reconcile consolidated net loss to net cash used for operating activities:
 
 
 
 
Gain on sale of U. S. Federal business
 
(1,057.4
)
 

Loss on debt extinguishment
 
28.5

 

Foreign currency translation losses
 
15.3

 
5.3

Non-cash interest expense
 
2.7

 
5.4

Employee stock compensation
 
8.0

 
7.3

Depreciation and amortization of properties
 
15.6

 
17.8

Depreciation and amortization of outsourcing assets
 
32.7

 
31.7

Amortization of marketable software
 
36.0

 
21.6

Other non-cash operating activities
 
1.3

 
(0.2
)
Loss on disposal of capital assets
 
0.5

 
1.3

Postretirement contributions
 
(333.0
)
 
(47.7
)
Postretirement expense
 
48.4

 
47.1

Deferred income taxes, net
 
(7.0
)
 
2.7

Changes in operating assets and liabilities:
 
 
 
 
Receivables, net
 
39.6

 
10.1

Inventories
 
1.4

 
(0.3
)
Accounts payable and other current liabilities
 
(161.5
)
 
(140.3
)
Other liabilities
 
2.6

 
16.9

Other assets
 
(3.0
)
 
(11.2
)
Net cash used for operating activities
 
(392.1
)
 
(19.5
)
Cash flows from investing activities
 
 
 
 
Net proceeds from sale of U.S. Federal business
 
1,159.4

 

Proceeds from investments
 
1,735.3

 
1,704.1

Purchases of investments
 
(1,755.9
)
 
(1,706.9
)
Investment in marketable software
 
(36.7
)
 
(37.2
)
Capital additions of properties
 
(10.6
)
 
(20.8
)
Capital additions of outsourcing assets
 
(15.8
)
 
(39.7
)
Net proceeds from sale of properties
 

 
(0.2
)
Other
 
(0.2
)
 
(0.4
)
Net cash provided by (used for) investing activities
 
1,075.5

 
(101.1
)
Cash flows from financing activities
 
 
 
 
Proceeds from notes payable
 
60.3

 

Proceeds from issuance of long-term debt
 
4.0

 
28.1

Payments of long-term debt
 
(448.4
)
 
(10.5
)
Cash paid for debt extinguishment
 
(23.7
)
 

Other
 
(4.7
)
 
(4.5
)
Net cash (used for) provided by financing activities
 
(412.5
)
 
13.1

Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(30.3
)
 
0.9

Increase (decrease) in cash, cash equivalents and restricted cash
 
240.6

 
(106.6
)
Cash, cash equivalents and restricted cash, beginning of period
 
551.8

 
624.1

Cash, cash equivalents and restricted cash, end of period
 
$
792.4

 
$
517.5

See notes to consolidated financial statements


5





UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF DEFICIT (Unaudited)
(Millions)
  
 
 
 
Unisys Corporation
 
 
 
 
Total
 
Total Unisys Corporation
 
Common Stock Par Value
 
Accumu-lated Deficit
 
Treasury Stock At Cost
 
Paid-in Capital
 
Accumu-lated Other Compre-hensive Loss
 
Non-controlling Interests
Balance at January 1, 2020
 
$
(1,228.3
)
 
$
(1,265.4
)
 
$
0.7

 
$
(1,711.2
)
 
$
(109.6
)
 
$
4,643.3

 
$
(4,088.6
)
 
$
37.1

Consolidated net income
 
1,015.8

 
1,015.3

 
 
 
1,015.3

 
 
 
 
 
 
 
0.5

Stock-based activity
 
(0.5
)
 
(0.5
)
 

 
 
 
(4.6
)
 
4.1

 
 
 
 
Translation adjustments
 
(87.6
)
 
(81.6
)
 
 
 
 
 
 
 
 
 
(81.6
)
 
(6.0
)
Postretirement plans
 
91.2

 
87.5

 
 
 
 
 
 
 
 
 
87.5

 
3.7

Balance at March 31, 2020
 
$
(209.4
)
 
$
(244.7
)
 
$
0.7

 
$
(695.9
)
 
$
(114.2
)
 
$
4,647.4

 
$
(4,082.7
)
 
$
35.3

Consolidated net loss
 
(78.6
)
 
(78.6
)
 
 
 
(78.6
)
 
 
 
 
 
 
 


Stock-based activity
 
2.9

 
2.9

 
 
 
 
 
(0.1
)
 
3.0

 
 
 
 
Translation adjustments
 
6.4

 
6.5

 
 
 
 

 
 
 
 
 
6.5

 
(0.1
)
Postretirement plans
 
40.0

 
39.6

 
 
 
 
 
 

 
 

 
39.6

 
0.4

Balance at June 30, 2020
 
$
(238.7
)
 
$
(274.3
)
 
$
0.7

 
$
(774.5
)
 
$
(114.3
)
 
$
4,650.4

 
$
(4,036.6
)
 
$
35.6


  
 
 
 
Unisys Corporation
 
 
 
 
Total
 
Total Unisys Corporation
 
Common Stock Par Value
 
Accumu-lated Deficit
 
Treasury Stock At Cost
 
Paid-in Capital
 
Accumu-lated Other Compre-hensive Loss
 
Non-controlling Interests
Balance at January 1, 2019
 
$
(1,299.6
)
 
$
(1,343.5
)
 
$
0.5

 
$
(1,694.0
)
 
$
(105.0
)
 
$
4,539.8

 
$
(4,084.8
)
 
$
43.9

Consolidated net income (loss)
 
(16.8
)
 
(19.4
)
 
 
 
(19.4
)
 
 
 
 
 
 
 
2.6

Stock-based activity
 
(0.4
)
 
(0.4
)
 
0.1

 
 
 
(4.4
)
 
3.9

 
 
 
 
Translation adjustments
 
(34.2
)
 
(32.8
)
 
 
 
 
 
 
 
 
 
(32.8
)
 
(1.4
)
Postretirement plans
 
68.5

 
69.2

 
 
 
 
 
 
 
 
 
69.2

 
(0.7
)
Balance at March 31, 2019
 
$
(1,282.5
)
 
$
(1,326.9
)
 
$
0.6

 
$
(1,713.4
)
 
$
(109.4
)
 
$
4,543.7

 
$
(4,048.4
)
 
$
44.4

Consolidated net income
 
29.8

 
26.2

 
 
 
26.2

 
 
 
 
 
 
 
3.6

Stock-based activity
 
2.4

 
2.4

 
 
 
 
 
(0.1
)
 
2.5

 
 
 
 
Translation adjustments
 
(13.8
)
 
(11.6
)
 
 
 
 

 
 
 
 
 
(11.6
)
 
(2.2
)
Postretirement plans
 
50.4

 
49.1

 
 
 
 
 
 

 
 

 
49.1

 
1.3

Balance at June 30, 2019
 
$
(1,213.7
)
 
$
(1,260.8
)
 
$
0.6

 
$
(1,687.2
)
 
$
(109.5
)
 
$
4,546.2

 
$
(4,010.9
)
 
$
47.1


See notes to consolidated financial statements

6



UNISYS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Dollars in millions, except share and per share amounts)
Note 1 - Basis of Presentation
The accompanying consolidated financial statements and footnotes of Unisys Corporation have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP). The financial statements and footnotes are unaudited. In the opinion of management, the financial information furnished herein reflects all adjustments necessary for a fair statement of the results of operations, comprehensive income, financial position, cash flows and deficit for the interim periods specified. These adjustments consist only of normal recurring accruals except as disclosed herein. Because of seasonal and other factors, results for interim periods are not necessarily indicative of the results to be expected for the full year.
The preparation of financial statements in conformity with GAAP 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 estimated credit losses, contract assets, inventories, operating lease right-of-use assets, outsourcing assets, marketable software, goodwill and other long-lived assets, legal contingencies, indemnifications, assumptions used in the calculation 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 materially 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.
We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of June 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to the valuation of estimated credit losses, contract assets, outsourcing assets, marketable software, goodwill and other long-lived assets, and retirement and other post-employment benefits. While there was not a material impact to our consolidated financial position as of June 30, 2020 resulting from our assessments, our future assessment of our current expectations at that time of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial position in future reporting periods. 
The company’s accounting policies are set forth in detail in Note 1 of the Notes to Consolidated Financial Statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission. Such Annual Report also contains a discussion of the company’s critical accounting policies and estimates. The company believes that these critical accounting policies and estimates affect its more significant estimates and judgments used in the preparation of the company’s consolidated financial statements.
Note 2 - Discontinued Operations
On March 13, 2020, the company completed the sale of its U.S. Federal business to Science Applications International Corporation for cash of $1.2 billion. The company’s financial statements have been retroactively reclassified to report the U.S. Federal business as discontinued operations. As a result, all items relating to the business within the consolidated statements of income (loss) have been reported as income from discontinued operations, net of tax, and all items relating to the business within the consolidated balance sheets have been reported as either assets or liabilities of discontinued operations. Depreciation, amortization, capital expenditures, and significant noncash operating and investing activities related to the U.S. Federal business were immaterial for all periods presented.
The results of the U.S. Federal business discontinued operations for the three and six months ended June 30, 2020 and 2019 were as follows:

7





 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
2019
 
2020*
2019
Revenue
 
$

$
184.4

 
$
149.5

$
325.7

Income (loss):
 
 
 
 
 
 
Operations
 
0.1

34.0

 
9.1

51.7

Gain on sale
 
(0.9
)

 
1,060.8


 
 
(0.8
)
34.0

 
1,069.9

51.7

Income tax provision
 
1.3

8.5

 
3.5

12.9

Income (loss) from discontinued operations, net of tax
 
$
(2.1
)
$
25.5

 
$
1,066.4

$
38.8

* Includes results of operations through the March 13, 2020 closing date.

Note 3 - Accounting Standards
Effective January 1, 2020, the company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract which clarifies the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The company adopted the new guidance on a prospective basis and the adoption did not have a material impact on its consolidated results of operations and financial position.
Effective January 1, 2020, the company adopted 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, contract assets, loans and other financial instruments. The adoption did not have a material impact on the company’s consolidated results of operations and financial position.
Effective January 1, 2020, the company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which removed certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new standard was applied to the presentation of the company’s U.S. Federal business, which is reflected in discontinued operations.
Note 4 - 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

8





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


Note 5 - Pension and Postretirement Benefits
Net periodic pension expense for the three and six months ended June 30, 2020 and 2019 is presented below:
 
 
Three Months Ended
June 30, 2020
 
Three Months Ended
June 30, 2019
 
 
Total
 
U.S.
Plans
 
International
Plans
 
Total
 
U.S.
Plans
 
International
Plans
Service cost(i)
 
$
0.7

 
$

 
$
0.7

 
$
0.7

 
$

 
$
0.7

Interest cost
 
53.8

 
40.8

 
13.0

 
66.5

 
49.3

 
17.2

Expected return on plan assets
 
(73.9
)
 
(52.0
)
 
(21.9
)
 
(80.9
)
 
(54.5
)
 
(26.4
)
Amortization of prior service benefit
 
(1.3
)
 
(0.7
)
 
(0.6
)
 
(1.3
)
 
(0.7
)
 
(0.6
)
Recognized net actuarial loss
 
44.7

 
34.3

 
10.4

 
37.6

 
29.0

 
8.6

Net periodic pension expense (benefit)
 
$
24.0

 
$
22.4

 
$
1.6

 
$
22.6

 
$
23.1

 
$
(0.5
)

 
 
Six Months Ended
June 30, 2020
 
Six Months Ended
June 30, 2019
 
 
Total
 
U.S.
Plans
 
International
Plans
 
Total
 
U.S.
Plans
 
International
Plans
Service cost(i)
 
$
1.4

 
$

 
$
1.4

 
$
1.4

 
$

 
$
1.4

Interest cost
 
107.6

 
81.2

 
26.4

 
133.2

 
98.5

 
34.7

Expected return on plan assets
 
(149.0
)
 
(104.3
)
 
(44.7
)
 
(162.1
)
 
(109.0
)
 
(53.1
)
Amortization of prior service benefit
 
(2.5
)
 
(1.3
)
 
(1.2
)
 
(2.5
)
 
(1.3
)
 
(1.2
)
Recognized net actuarial loss
 
89.0

 
67.8

 
21.2

 
75.2

 
57.9

 
17.3

Net periodic pension expense (benefit)
 
$
46.5

 
$
43.4

 
$
3.1

 
$
45.2

 
$
46.1

 
$
(0.9
)
(i)Service cost is reported in selling, general and administrative expense. All other components of net periodic pension expense are reported in other expense, net in the consolidated statements of income (loss).

In 2020, the company expects to make cash contributions of approximately $634 million to its worldwide defined benefit pension plans, which are comprised of $600 million for the company’s U.S. qualified defined benefit pension plans and $34 million primarily for the company’s international defined benefit pension plans. In 2019, the company made cash contributions of $103.9 million to its worldwide defined benefit pension plans. For the six months ended June 30, 2020 and 2019, the company made cash contributions of $329.9 million and $45.9 million, respectively.


9



Net periodic postretirement benefit expense for the three and six months ended June 30, 2020 and 2019 is presented below:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2020
 
2019
 
2020
 
2019
Service cost(i)
 
$
0.1

 
$
0.1

 
$
0.2

 
$
0.2

Interest cost
 
1.1

 
1.2

 
2.2

 
2.4

Expected return on assets
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
(0.2
)
Recognized net actuarial loss
 
0.2

 
0.2

 
0.5

 
0.3

Amortization of prior service benefit
 
(0.4
)
 
(0.4
)
 
(0.8
)
 
(0.8
)
Net periodic postretirement benefit expense
 
$
0.9

 
$
1.0

 
$
1.9

 
$
1.9

(i)Service cost is reported in selling, general and administrative expense. All other components of net periodic postretirement benefit expense are reported in other expense, net in the consolidated statements of income (loss).

The company expects to make cash contributions of approximately $7.0 million to its postretirement benefit plan in 2020 compared to $5.5 million in 2019. For the six months ended June 30, 2020 and 2019, the company made cash contributions of $3.1 million and $1.8 million, respectively.
Note 6 - Stock Compensation
Under stockholder approved stock-based plans, stock options, stock appreciation rights, restricted stock and restricted stock units may be granted to officers, directors and other key employees.
As of June 30, 2020, the company has granted non-qualified stock options and restricted stock units under these plans. The company recognizes compensation cost, net of a forfeiture rate, in selling, general and administrative expense, and recognizes compensation cost only for those awards expected to vest. The company estimates the forfeiture rate based on its historical experience and its expectations about future forfeitures.
During the six months ended June 30, 2020 and 2019, the company recorded $