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Table of Contents
In April 2015, the FASB issued ASU 2015-05, Intangibles—GoodwillandOther—Internal-UseSoftware(Subtopic350-40):Customer’sAccountingforFeesPaid
inaCloudComputingArrangement("ASU 2015-05"), which amends ASC 350-40 to provide customers with guidance on whether a cloud computing arrangement
contains a software license to be accounted for as internal use software. ASU 2015-05 will be effective for annual periods, including interim periods within those
annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-05 will not have a significant impact on our
consolidated financial statements.
In May 2015, the FASB issued ASU 2015-07, FairValue Measurement(Topic 820):Disclosures forInvestments inCertainEntities ThatCalculate NetAsset
ValueperShare(orItsEquivalent)("ASU 2015-07"), which removes the requirement to categorize within the fair value hierarchy all investments for which fair
value is measured using the net asset value per share practical expedient. Instead, those investments must be included as a reconciling line item so that the total fair
value amount of investments in the disclosure is consistent with the amount on the balance sheet. ASU 2015-07 is effective for fiscal years beginning after
December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2015-07 will not have a significant impact on
our consolidated financial statements.
In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16") which replaces the
requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize
adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.
ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The
adoption of ASU 2015-16 will not have a significant impact on our consolidated financial statements.
Note 3 — Reorganization and Restructuring Costs
In the first quarter of 2014 , the Company announced the implementation of a global transformation program (the "2014 Global Transformation Program"), which
includes certain reorganization and restructuring activities centered around facilities and headcount rationalization, system efficiencies and headcount right-shoring
and outsourcing. The Company expects to complete these reorganization and restructuring activities in early 2016 . In the third quarter of 2015 , the Company
initiated additional reorganization and restructuring activities to further improve operational efficiencies. The Company projects that these other restructuring
activities will conclude at or near the end of 2016 . The 2014 Global Transformation Program and other restructuring activities include employee termination
benefits and other costs which qualify as restructuring activities as defined by ASC 420, Exit or Disposal Cost Obligations ("ASC 420"), as well as certain
reorganization activities related to the relocation of various operations to existing or new Company facilities and third-party providers which are outside the scope
of ASC 420. The following figures are the Company’s estimates and are subject to change as the 2014 Global Transformation Program comes to an end and the
other restructuring activities continue to be implemented.
The following table is a roll-forward of the restructuring costs accrual as of December 31, 2015 :
2014 Global Transformation Program
Other Restructuring
(Amounts in millions)
Severance,
Outplacement and
Related Benefits
Other (1)
Severance,
Outplacement and
Related Benefits
Total
Balance, December 31, 2014 $ 12.6
$ 0.7
$ —
$ 13.3
Expenses 3.1
1.3
0.6
5.0
Cash payments (11.9)
(2.0)
(0.4)
(14.3)
Balance, December 31, 2015 $ 3.8
$ —
$ 0.2
$ 4.0
(1) Other primarily relates to expenses for facilities relocation and professional fees. Such costs are expensed as incurred.
F-17