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 | 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) | (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 | | | 145.6 | | | | 11.2 |
| Stock-based compensation | 21.2 | 21.2 | | | | (0.7) | 21.9 | | |
| Dividends declared to preferred holders | (16.2) | (16.2) | | | | | (16.2) | | |
| Dividends declared to noncontrolling interests | (3.5) | | | | | | | | (3.5) |
| Sale of subsidiary | (1.4) | | | | | | | | (1.4) |
| Translation adjustments | 17.7 | 14.8 | | | | | | 14.8 | 2.9 |
| Postretirement plans | (452.3) | (447.5) | | | | | | (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 | | | 108.5 | | | | 11.6 |
| Stock-based compensation | 14.8 | 14.8 | | | | (1.9) | 16.7 | | |
| Dividends declared to preferred holders | (12.1) | (12.1) | | | | | (12.1) | | |
| Common stock repurchases | (11.7) | (11.7) | | | | (11.7) | | | |
| Translation adjustments | (40.1) | (42.5) | | | | | | (42.5) | 2.4 |
| Postretirement plans | 853.8 | 842.7 | | | | | | 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 | | | 46.7 | | | | 12.6 |
| Stock-based compensation | 13.5 | 13.5 | | | | (1.5) | 15.0 | | |
| Dividends declared to preferred holders | (4.0) | (4.0) | | | | | (4.0) | | |
| Preferred stock conversion | -- | -- | (249.7) | 0.1 | | | 249.6 | | |
| Sale of subsidiary | 1.5 | | | | | | | | 1.5 |
| Common stock repurchases | (35.7) | (35.7) | | | | (35.7) | | | |
| Translation adjustments | (66.3) | (61.0) | | | | | | (61.0) | (5.3) |
| Postretirement plans | (756.8) | (719.0) | | | | | | (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.
