Company: UIS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000746838-25-000008
Chunk: 126

Company: UNISYS CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 126
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 the company’s consolidated balance sheets. Deferred commissions were as follows:As of December 31,20242023Deferred commissions$7.2 $3.7 Amortization expense related to deferred commissions was as follows:Year ended December 31,202420232022Deferred commissions - amortization expense(i)$1.1 $1.5 $2.9 (i)Reported in selling, general and administrative expense in the company’s consolidated statements of income (loss).Costs on outsourcing contracts are generally expensed as incurred. However, certain costs incurred upon initiation of an outsourcing contract (costs to fulfill a contract), principally initial customer setup, are capitalized and expensed over the initial contract life. These costs are included in outsourcing assets, net in the company’s consolidated balance sheets, and are amortized over the initial contract life and reported in cost of revenue. Costs to fulfill a contract were as follows:As of December 31,20242023Costs to fulfill a contract$12.9 $19.2 Amortization expense related to costs to fulfill a contract was as follows:Year ended December 31,202420232022Costs to fulfill a contract - amortization expense$3.5 $6.7 $23.7 The remaining balance of outsourcing assets, net is comprised of fixed assets and software used in connection with outsourcing contracts. These costs are capitalized and depreciated over the shorter of the initial contract life or in accordance with the company’s fixed asset policy.

Note 12 — Financial instruments and concentration of credit risks

Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. The company uses derivative financial instruments to reduce its exposure to market risks from changes in foreign currency exchange rates on such balances. The company enters into foreign exchange forward contracts, generally having maturities of three months or less, which have not been designated as hedging instruments. At December 31, 2024 and 2023, the notional amount of these contracts was $501.3 million and $488.4 million, respectively. The fair value of these forward contracts is based on quoted prices for similar but not identical financial instruments; as such, the inputs are considered Level 2 inputs.

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The following table summarizes the fair value of the company’s foreign exchange forward contracts.As of December 31,20242023Balance Sheet LocationPrepaid expenses and