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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 September 30, 2021
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 classTrading
Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01UISNew 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 September 30, 2021: 67,152,227




UNISYS CORPORATION
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATIONPage Number
Item 1.Consolidated Financial Statements (Unaudited)
Consolidated Statements of Income (Loss)
Consolidated Statements of Comprehensive Income
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
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
September 30,
Nine Months Ended
September 30,
 2021202020212020
Revenue
Services$417.9 $426.0 $1,268.8 $1,247.9 
Technology70.1 69.2 246.3 201.5 
488.0 495.2 1,515.1 1,449.4 
Costs and expenses
Cost of revenue
Services343.1 345.9 1,019.7 1,061.6 
Technology18.0 29.4 87.1 79.9 
361.1 375.3 1,106.8 1,141.5 
Selling, general and administrative95.1 85.5 279.7 252.5 
Research and development6.7 6.7 19.1 16.1 
462.9 467.5 1,405.6 1,410.1 
Operating income25.1 27.7 109.5 39.3 
Interest expense8.5 2.4 27.0 20.9 
Other (expense), net(24.2)(32.5)(434.6)(134.3)
Loss from continuing operations before income taxes(7.6)(7.2)(352.1)(115.9)
Provision for (benefit from) income taxes10.9 6.1 (33.8)26.6 
Consolidated loss from continuing operations(18.5)(13.3)(318.3)(142.5)
Net income (loss) attributable to noncontrolling interests0.2  (1.0)0.5 
Net loss from continuing operations attributable to Unisys Corporation(18.7)(13.3)(317.3)(143.0)
Income from discontinued operations, net of tax 0.4  1,066.8 
Net (loss) income attributable to Unisys Corporation$(18.7)$(12.9)$(317.3)$923.8 
Earnings (loss) per share attributable to Unisys Corporation
Basic
  Continuing operations$(0.28)$(0.21)$(4.79)$(2.27)
  Discontinued operations 0.01  16.96 
     Total$(0.28)$(0.20)$(4.79)$14.69 
Diluted
  Continuing operations$(0.28)$(0.21)$(4.79)$(2.27)
  Discontinued operations 0.01  16.96 
    Total$(0.28)$(0.20)$(4.79)$14.69 
See notes to consolidated financial statements

2




UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(Millions)
 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Consolidated loss from continuing operations$(18.5)$(13.3)$(318.3)$(142.5)
Income from discontinued operations, net of tax 0.4  1,066.8 
     Total(18.5)(12.9)(318.3)924.3 
Other comprehensive income (loss)
Foreign currency translation(36.5)40.1 (36.8)(41.1)
Postretirement adjustments, net of tax of $7.4 and $45.2 in 2021 and $(7.8) and $6.4 in 2020
63.4 8.2 408.6 139.4 
Total other comprehensive income26.9 48.3 371.8 98.3 
Comprehensive income8.4 35.4 53.5 1,022.6 
Less comprehensive (loss) income attributable to noncontrolling interests(0.8)2.0 (0.5)0.5 
Comprehensive income attributable to Unisys Corporation$9.2 $33.4 $54.0 $1,022.1 
See notes to consolidated financial statements
3




UNISYS CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Millions)
September 30, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$615.4 $898.5 
Accounts receivable, net356.0 460.5 
Contract assets51.3 44.3 
Inventories11.2 13.4 
Prepaid expenses and other current assets91.5 89.3 
Total current assets1,125.4 1,506.0 
Properties616.4 727.0 
Less-accumulated depreciation and amortization530.2 616.5 
Properties, net86.2 110.5 
Outsourcing assets, net136.8 173.9 
Marketable software, net184.8 193.6 
Operating lease right-of-use assets62.9 79.3 
Prepaid postretirement assets123.0 187.5 
Deferred income taxes147.0 136.2 
Goodwill242.9 108.6 
Intangible assets, net16.5  
Restricted cash9.1 8.2 
Assets held for sale20.0  
Other long-term assets166.8 204.1 
Total assets$2,321.4 $2,707.9 
Liabilities and deficit
Current liabilities:
Current maturities of long-term-debt$18.8 $102.8 
Accounts payable119.7 223.2 
Deferred revenue224.2 257.1 
Other accrued liabilities299.1 352.0 
Total current liabilities661.8 935.1 
Long-term debt514.1 527.1 
Long-term postretirement liabilities1,144.5 1,286.1 
Long-term deferred revenue153.0 137.9 
Long-term operating lease liabilities47.9 62.4 
Other long-term liabilities50.2 71.4 
Commitments and contingencies (see Note 15)
Deficit:
Common stock, shares issued: 2021; 72.5, 2020; 66.8
0.7 0.7 
Accumulated deficit(1,277.8)(960.5)
Treasury stock, shares at cost: 2021; 5.3, 2020; 3.8
(152.1)(114.4)
Paid-in capital4,703.1 4,656.9 
Accumulated other comprehensive loss(3,568.2)(3,939.5)
Total Unisys Corporation stockholders’ deficit(294.3)(356.8)
Noncontrolling interests44.2 44.7 
Total deficit(250.1)(312.1)
Total liabilities and deficit$2,321.4 $2,707.9 
See notes to consolidated financial statements
4




UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Millions) 
 Nine Months Ended
September 30,
 20212020
Cash flows from operating activities
Consolidated net loss from continuing operations$(318.3)$(142.5)
Income from discontinued operations, net of tax 1,066.8 
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities:
Gain on sale of U.S. Federal business (1,057.7)
Loss on debt extinguishment 28.5 
Foreign currency losses3.2 14.3 
Non-cash interest expense1.5 3.5 
Employee stock compensation11.5 11.1 
Depreciation and amortization of properties23.2 22.0 
Depreciation and amortization of outsourcing assets50.8 48.9 
Amortization of marketable software50.9 50.2 
Amortization of intangible assets1.7  
Other non-cash operating activities(0.1)0.6 
Loss on disposal of capital assets1.5 3.3 
Postretirement contributions(43.6)(344.5)
Postretirement expense407.7 72.8 
Deferred income taxes, net(65.3)(16.9)
Changes in operating assets and liabilities, net of acquisitions
Receivables, net and contract assets135.0 12.4 
Inventories2.2 1.5 
Other assets(4.1)0.4 
Accounts payable and current liabilities(229.6)(127.7)
Other liabilities36.3 27.2 
Net cash provided by (used for) operating activities64.5 (325.8)
Cash flows from investing activities
Purchase of business(150.4) 
Net proceeds from sale of U.S. Federal business 1,162.9 
Proceeds from investments3,286.4 2,550.2 
Purchases of investments(3,294.6)(2,561.7)
Investment in marketable software(42.1)(54.8)
Capital additions of properties(19.7)(16.7)
Capital additions of outsourcing assets(14.7)(23.6)
Other(0.9)(0.5)
Net cash (used for) provided by investing activities(236.0)1,055.8 
Cash flows from financing activities
Proceeds from issuance of long-term debt1.5 7.1 
Payments of long-term debt(99.1)(451.0)
Cash paid for debt extinguishment (23.7)
Proceeds from exercise of stock options4.5  
Other(7.7)(4.8)
Net cash used for financing activities(100.8)(472.4)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(9.9)(25.3)
(Decrease) increase in cash, cash equivalents and restricted cash(282.2)232.3 
Cash, cash equivalents and restricted cash, beginning of period906.7 551.8 
Cash, cash equivalents and restricted cash, end of period$624.5 $784.1 
See notes to consolidated financial statements
5




UNISYS CORPORATION
CONSOLIDATED STATEMENTS OF DEFICIT (Unaudited)
(Millions)
  
 Unisys Corporation 
TotalTotal Unisys CorporationCommon Stock Par ValueAccumu-lated DeficitTreasury Stock At CostPaid-in CapitalAccumu-lated Other Compre-hensive LossNon-controlling Interests
Balance at December 31, 2020$(312.1)$(356.8)$0.7 $(960.5)$(114.4)$4,656.9 $(3,939.5)$44.7 
Consolidated net (loss) income(157.5)(157.8)(157.8)0.3 
Capped call on conversion of notes — (30.8)30.8 
Stock-based activity(1.3)(1.3)(6.7)5.4 
Translation adjustments(17.1)(17.9)(17.9)0.8 
Postretirement plans202.2 202.2   202.2  
Balance at March 31, 2021$(285.8)$(331.6)$0.7 $(1,118.3)$(151.9)$4,693.1 $(3,755.2)$45.8 
Consolidated net loss(142.3)(140.8)(140.8)(1.5)
Stock-based activity4.5 4.5 (0.2)4.7 
Translation adjustments16.8 16.4     16.4 0.4 
Postretirement plans143.0 142.7     142.7 0.3 
Balance at June 30, 2021$(263.8)$(308.8)$0.7 $(1,259.1)$(152.1)$4,697.8 $(3,596.1)$45.0 
Consolidated net (loss) income(18.5)(18.7)(18.7)0.2 
Stock-based activity5.3 5.3 — 5.3 
Translation adjustments(36.5)(33.9)(33.9)(2.6)
Postretirement plans63.4 61.8    61.8 1.6 
Balance at September 30, 2021$(250.1)$(294.3)$0.7 $(1,277.8)$(152.1)$4,703.1 $(3,568.2)$44.2 

  
 Unisys Corporation 
TotalTotal Unisys CorporationCommon Stock Par ValueAccumu-lated DeficitTreasury Stock At CostPaid-in CapitalAccumu-lated Other Compre-hensive LossNon-controlling Interests
Balance at December 31, 2019$(1,228.3)$(1,265.4)$0.7 $(1,711.2)$(109.6)$4,643.3 $(4,088.6)$37.1 
Consolidated net income1,015.8 1,015.3 1,015.3 0.5 
Stock-based activity(0.5)(0.5)(4.6)4.1 
Translation adjustments(87.6)(81.6)(81.6)(6.0)
Postretirement plans91.2 87.5   87.5 3.7 
Balance at March 31, 2020$(209.4)$(244.7)$0.7 $(695.9)$(114.2)$4,647.4 $(4,082.7)$35.3 
Consolidated net loss(78.6)(78.6)(78.6)
Stock-based activity2.9 2.9 (0.1)3.0 
Translation adjustments6.4 6.5     6.5 (0.1)
Postretirement plans40.0 39.6     39.6 0.4 
Balance at June 30, 2020$(238.7)$(274.3)$0.7 $(774.5)$(114.3)$4,650.4 $(4,036.6)$35.6 
Consolidated net loss(12.9)(12.9)(12.9)
Stock-based activity3.0 3.0 (0.1)3.1 
Translation adjustments40.1 38.6 38.6 1.5 
Postretirement plans8.2 7.7    7.7 0.5 
Balance at September 30, 2020$(200.3)$(237.9)$0.7 $(787.4)$(114.4)$4,653.5 $(3,990.3)$37.6 

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, operating lease right-of-use assets, outsourcing assets, marketable software, goodwill, purchased intangibles and other long-lived assets, legal contingencies, 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.
The company 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 September 30, 2021 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, purchased intangibles 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 September 30, 2021 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, 2020 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. Net cash proceeds of the sale were $1,162.9 million (net of working capital adjustments and transaction costs).
7




The results of the U.S. Federal business discontinued operations were as follows:
Three Months Ended September 30, 2020*Nine Months Ended September 30, 2020*
Revenue$ $149.5 
Income (loss):
Operations 9.1 
Gain on sale(0.2)1,060.6 
(0.2)1,069.7 
Income tax provision (benefit)(0.6)2.9 
Income from discontinued operations, net of tax$0.4 $1,066.8 
* Includes results of operations through the March 13, 2020 closing date.
Note 3 - Acquisitions
On June 3, 2021, the company acquired 100% of Unify Square, Inc. (Unify Square) for a purchase price consideration of $150.4 million on a cash-free, debt-free basis. The company funded the cash consideration and acquisition-related costs with cash on hand.
Headquartered in Bellevue, Washington, and with offices in the United Kingdom, Germany, Switzerland, India, Australia and Lithuania, Unify Square is a leading experience management provider for secure collaboration and communication platforms. The acquisition is expected to enhance the company’s digital workplace solutions and enable the company to deliver higher value solutions to its clients.
The fair values of the total net assets acquired was as follows:
Receivables$3.4 
Prepaid expenses and other current assets0.6 
Properties and other long-term assets0.4 
Operating lease right-of-use assets1.7 
Accounts payable and accruals(3.8)
Deferred revenue(2.7)
Long-term operating lease liabilities(1.7)
Intangible assets18.2 
Goodwill134.3 
Total$150.4 
During the three months ended September 30, 2021, the company finalized its valuation of assets acquired and liabilities assumed resulting in measurement period adjustments that increased goodwill by $16.7 million primarily related to a decrease of $16.3 million in the fair value of the acquired intangible assets.
Goodwill is the excess of the purchase price consideration over the fair value of the underlying intangible assets and net liabilities assumed. The goodwill represents intellectual capital and the acquired assembled workforce, none of which qualify for recognition as a separate intangible asset. Goodwill determined by the allocation of the purchase price has been recorded in the company’s Digital Workplace Solutions segment and is not deductible for tax purpose.
8




The following table summarizes the fair value of the intangible assets acquired and the related weighted average amortization period:
Weighted Average Amortization Period in Years
Technology3.2$10.0 
Customer relationships - Software and Software Solutions3.05.2 
Customer relationships - Consulting10.03.0 
Total$18.2 
For the three and nine months ended September 30, 2021, the company incurred and expensed acquisition-related costs of $0.8 million and $2.4 million, respectively, included within selling, general and administrative expense on the consolidated statements of income (loss).
The company’s consolidated financial statements include the results of Unify Square commencing as of the acquisition date.
Pro forma information and revenue and operating results of Unify Square have not been presented as the impact is not material to the company’s consolidated financial statements.
Note 4 - Cost-Reduction Actions
During the three months ended September 30, 2021, the company recognized cost-reduction charges and other costs of $0.8 million. The charges (credits) related to work-force reductions were $(0.6) million, principally related to severance costs, and were comprised of: (a) a charge of $0.7 million and (b) a credit of $(1.3) million for changes in estimates. In addition, the company recorded net charges (credits) of $1.4 million comprised of a charge of $1.3 million for net foreign currency losses related to exiting foreign countries, a charge of $0.5 million for asset impairments and a credit of $(0.4) million related to other cost-reduction efforts.
During the three months ended September 30, 2020, the company recognized cost-reduction charges and other costs of $13.2 million. The charges (credits) related to work-force reductions were $0.7 million, principally related to severance costs, and were comprised of: (a) a charge of $2.7 million and (b) a credit of $(2.0) 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, a charge of $7.5 million for asset impairments and a charge of $5.6 million of other expenses.
During the nine months ended September 30, 2021, the company recognized cost-reduction charges and other costs of $14.4 million. The charges (credits) related to work-force reductions were $(2.5) million, principally related to severance costs, and were comprised of: (a) a charge of $6.5 million and (b) a credit of $(9.0) million for changes in estimates. In addition, the company recorded charges of $16.9 million comprised of $2.9 million for net foreign currency losses related to exiting foreign countries, $7.3 million for asset impairments and $6.7 million of other expenses related to the cost-reduction effort.
During the nine months ended September 30, 2020, the company recognized cost-reduction charges and other costs of $48.6 million. The charges (credits) related to work-force reductions were $6.2 million, principally related to severance costs, and were comprised of: (a) a charge of $14.0 million and (b) a credit of $(7.8) million for changes in estimates. In addition, the company recorded charges of $17.8 million for net foreign currency losses related to exiting foreign countries, $19.0 million for asset impairments and $5.6 million of other expenses.
9




The charges (credits) were recorded in the following statement of income classifications:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Cost of revenue - services$(0.2)$2.9 $0.9 $15.7 
Selling, general and administrative(0.1)10.8 8.7 14.8 
Research and development(0.2)0.1 1.9 0.3 
Other expense, net1.3 (0.6)2.9 17.8 
Total$0.8 $13.2 $14.4 $48.6 
Liabilities and expected future payments related to the company’s work-force reduction actions are as follows:
TotalU.S.International
Balance at December 31, 2020$55.9 $13.1 $42.8 
Additional provisions6.5 4.0 2.5 
Payments(31.8)(11.8)(20.0)
Changes in estimates(9.0)(0.5)(8.5)
Translation adjustments(1.3) (1.3)
Balance at September 30, 2021$20.3 $4.8 $15.5 
Expected future utilization on balance at September 30, 2021:
Short-term$17.1 $4.8 $12.3 
Long-term$3.2 $ $3.2 
10



Note 5 - Pension and Postretirement Benefits
Net periodic pension expense is presented below:
 Three Months Ended
September 30, 2021
Three Months Ended
September 30, 2020
 TotalU.S.
Plans
International
Plans
TotalU.S.
Plans
International
Plans
Service cost(i)
$0.7 $ $0.7 $0.8 $ $0.8 
Interest cost38.2 29.4 8.8 54.1 40.6 13.5 
Expected return on plan assets(69.8)(50.0)(19.8)(75.0)(52.1)(22.9)
Amortization of prior service benefit(1.3)(0.7)(0.6)(1.3)(0.6)(0.7)
Recognized net actuarial loss45.8 34.0 11.8 44.8 33.8 11.0 
Settlement losses      
Net periodic pension expense $13.6 $12.7 $0.9 $23.4 $21.7 $1.7 

 Nine Months Ended
September 30, 2021
Nine Months Ended
September 30, 2020
 TotalU.S.
Plans
International
Plans
TotalU.S.
Plans
International
Plans
Service cost(i)
$2.4 $ $2.4 $2.2 $ $2.2 
Interest cost116.2 88.2 28.0