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2014 Annual Report

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Consolidated Financial Statements

Consolidated Statements of Income

Year ended December 31 (millions, except per share data)

2014

2013

2012

Revenue

Services

$2,887.7

$2,996.1

$3,192.4

Technology

468.7

460.4

514.0

3,356.4

3,456.5

3,706.4

Costs and expenses

Cost of revenue:

Services

2,394.2

2,405.5

2,567.7

Technology

184.4

202.6

165.2

2,578.6

2,608.1

2,732.9

Selling, general and administrative expenses

554.1

559.4

572.8

Research and development expenses

68.8

69.5

81.5

3,201.5

3,237.0

3,387.2

Operating profit

154.9

219.5

319.2

Interest expense

9.2

9.9

27.5

Other income (expense), net

(0.2)

9.8

(37.6

Income before income taxes

145.5

219.4

254.1

Provision for income taxes

86.2

99.3

97.3

Consolidated net income

59.3

120.1

156.8

Net income attributable to noncontrolling interests

12.6

11.6

11.2

Net income attributable to Unisys Corporation

46.7

108.5

145.6

Preferred stock dividends

2.7

16.2

Net income attributable to Unisys Corporation common shareholders

$44.0

$92.3

$129.4

Earnings per common share attributable to Unisys Corporation

Basic

$0.89

$2.10

$2.95

Diluted

$0.89

$2.08

$2.84

See notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income

Year ended December 31 (millions)

2014

2013

2012

Consolidated net income

$59.3

$120.1

$156.8

Other comprehensive income

Foreign currency translation

(66.3)

(40.1)

17.7

Postretirement adjustments, net of tax of ($42.5) in 2014, $14.6 in 2013 and ($28.3) in 2012

(756.8)

853.8

(452.3)

Total other comprehensive income (loss)

(823.1)

813.7

(434.6)

Comprehensive income (loss)

(763.8)

933.8

(277.8)

Comprehensive income (loss) attributable to noncontrolling interests

30.5

(25.1)

(9.3)

Comprehensive income (loss) attributable to Unisys Corporation

($733.3)

$908.7

($287.1)

See notes to consolidated financial statements.

Consolidated Balance Sheets

December 31 (millions)

2014

2013

Assets

Current assets

Cash and cash equivalents

$494.3

$639.8

Accounts and notes receivable, net

619.3

683.1

Inventories:

Parts and finished equipment

22.2

32.8

Work in process and materials

24.5

22.3

Deferred income taxes

16.4

24.1

Prepaid expenses and other current assets

140.6

138.7

Total

1,317.3

1,540.8

Properties

1,059.4

1,095.5

Less -- Accumulated depreciation and amortization

890.7

920.8

Properties, net

168.7

174.7

Outsourcing assets, net

150.9

115.5

Marketable software, net

144.1

129.1

Prepaid postretirement assets

19.9

83.7

Deferred income taxes

154.6

112.3

Goodwill

183.9

188.7

Other long-term assets

209.3

165.2

Total

$2,348.7

$2,510.0

Liabilities and deficit

Current liabilities

Current maturities of long-term debt

$1.8

$ --

Accounts payable

262.5

246.7

Deferred revenue

348.3

402.4

Other accrued liabilities

385.1

375.7

Total

997.7

1,024.8

Long-term debt

222.2

210.0

Long-term postretirement liabilities

2,369.9

1,697.2

Long-term deferred revenue

119.5

122.7

Other long-term liabilities

91.8

119.2

Commitments and contingencies

Deficit

6.25% mandatory convertible preferred stock

249.7

Common stock, par value $0.01 per share (100.0 million shares authorized; 52.4 million shares and 45.1 million shares issued)

0.5

0.4

Accumulated deficit

(1,735.8)

(1,782.5)

Treasury stock, at cost

(99.6)

(62.4)

Paid-in capital

4,488.3

4,227.7

Accumulated other comprehensive loss

(4,113.4)

(3,333.4)

Total Unisys stockholders' deficit

(1,460.0)

(700.5)

Noncontrolling interests

7.6

36.6

Total deficit

(1,452.4)

(663.9)

Total

$2,348.7

$2,510.0

See notes to consolidated financial statements.

Consolidated Statements of Cash Flows

Year ended December 31 (millions)

2014

2013

2012

Cash flows from operating activities

Consolidated net income

$59.3

$120.1

$156.8

Add (deduct) items to reconcile consolidated net income to net cash provided by operating activities:

Company stock issued for U.S. 401(k) plan

6.2

Foreign currency transaction losses

7.4

6.5

Loss on debt extinguishment

30.6

Employee stock compensation

10.4

12.5

14.3

Depreciation and amortization of properties

52.0

46.7

54.7

Depreciation and amortization of outsourcing assets

58.1

53.5

57.9

Amortization of marketable software

58.5

59.4

62.0

Other non-cash operating activities

7.8

(0.6)

(2.7)

Disposal of capital assets

1.8

2.0

6.3

(Gain) loss on sale of businesses and assets

(0.7)

1.5

(11.7)

Pension contributions

(183.4)

(147.2)

(201.5)

Pension expense

73.8

93.5

108.2

Decrease in deferred income taxes, net

24.8

29.4

26.3

Increase in receivables, net

(14.3)

(63.5)

(11.2)

Decrease (increase) in inventories

6.3

(6.5)

14.2

(Increase) decrease in other assets

(23.7)

(16.5)

32.2

Increase (decrease) in accounts payable and other accrued liabilities

14.4

1.9

(80.7)

Decrease in other liabilities

(31.1)

(5.3)

(0.6)

Net cash provided by operating activities

121.4

187.4

261.3

Cash flows from investing activities

Proceeds from investments

5,654.0

5,315.9

4,108.5

Purchases of investments

(5,640.3)

(5,325.8)

(4,107.2)

Investment in marketable software

(73.6)

(64.3)

(56.4)

Capital additions of properties

(53.3)

(47.2)

(40.1)

Capital additions of outsourcing assets

(85.9)

(39.9)

(36.1)

Other

3.8

(1.4)

4.6

Net cash used for investing activities

(195.3)

(162.7)

(126.7)

Cash flows from financing activities

Common stock repurchases

(35.7)

(11.7)

Dividends paid on preferred stock

(4.0)

(16.2)

Proceeds from exercise of stock options

3.4

4.9

0.4

Financing fees

(0.6)

Proceeds from issuance of long-term debt

204.8

Payments of long-term debt

(388.9)

Dividends paid to noncontrolling interest

(4.5)

Net cash used for financing activities

(36.9)

(23.0)

(204.4)

Effect of exchange rate changes on cash and cash equivalents

(34.7)

(17.5)

10.5

Decrease in cash and cash equivalents

(145.5)

(15.8)

(59.3)

Cash and cash equivalents, beginning of year

639.8

655.6

714.9

Cash and cash equivalents, end of year

$494.3

$639.8

$655.6

See notes to consolidated financial statements.

Consolidated Statements of Deficit

(millions)

Total

Total
Unisys
Corporation

Preferred
Stock

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 December 31, 2011

($1,311.0)

($1,318.1)

$249.7

$0.4

($2,036.6)

($48.1)

$4,217.4

($3,700.9)

$7.1

Consolidated net income

156.8

145.6

11.2

Stock-based compensation

21.2

(0.7)

21.9

Dividends declared to preferred holders

(16.2)

Dividends declared to noncontrolling interests

(3.5)

Sale of subsidiary

(1.4)

Translation adjustments

17.7

14.8

2.9

Postretirement plans

(452.3)

(447.5)

(4.8)

Balance at December 31, 2012

(1,588.7)

(1,600.2)

249.7

0.4

(1,891.0)

(48.8)

4,223.1

(4,133.6)

11.5

Consolidated net income

120.1

108.5

11.6

Stock-based compensation

14.8

(1.9)

16.7

Dividends declared to preferred holders

(12.1)

Common stock repurchases

(11.7)

Translation adjustments

(40.1)

(42.5)

2.4

Postretirement plans

853.8

842.7

11.1

Balance at December 31, 2013

(663.9)

(700.5)

249.7

0.4

(1,782.5)

(62.4)

4,227.7

(3,333.4)

36.6

Consolidated net income

59.3

46.7

12.6

Stock-based compensation

13.5

(1.5)

15.0

Dividends declared to preferred holders

(4.0)

Preferred stock conversion

(249.7)

0.1

249.6

Sale of subsidiary

1.5

Common stock repurchases

(35.7)

Translation adjustments

(66.3)

(61.0)

(5.3)

Postretirement plans

(756.8)

(719.0)

(37.8)

Balance at December 31, 2014

($1,452.4)

($1,460.0)

$ --

$0.5

($1,735.8)

($99.6)

$4,488.3

($4,113.4)

$7.6

See notes to consolidated financial statements.

​2014 Annual Report

Consolidated Financial Statements

2014 Annual Report