v3.21.2

Other Financial Data

9 Months Ended

Sep. 30, 2021

Other Financial Data [Abstract]

Other Financial Data

5. Other Financial Data

Condensed Consolidated Balance Sheets Information

Receivables, net

The components of Receivables, net are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Billed and unbilled receivables		$		509				$	547
Allowance for expected credit losses				(4	)					(15	)
Balance at end of period		$		505				$		532

As a result of the Business Combination, all receivables acquired were recorded at preliminary fair value and allowance for expected credit losses previously recorded by the Predecessor was reduced to zero as of July 1, 2021 (see Note 4 “Acquisitions”). The Company has not experienced significant write-downs in its receivable balances.

Other current assets

The components of Other current assets are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Deferred project costs		$		39				$		53
Prepaid expenses				65						57
Commissions receivable				35						32
Other				33						21
Total		$		172				$		163

Other assets

The components of Other assets are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Deferred project costs		$		252				$		228
Operating lease right of use asset				144						129
Commissions receivable				33						25
Other				27						26
Total		$		456				$		408

The current and non-current portions of deferred project costs relate to costs to obtain and fulfill contracts (see Note 3 “Revenue from Contracts with Customers”). During the Successor three months ended September 30, 2021 and the Predecessor six months ended June 30, 2021 and three and nine months ended September 30, 2020, total amortization expense of $17 million, $33 million, $15 million and $47 million was recorded in Cost of services, exclusive of depreciation and amortization in the Condensed Consolidated Statements of Comprehensive Income (Loss), respectively.

Other assets include the fair value of outstanding derivative instruments related to interest rate swaps. The balance in Other assets as of September 30, 2021 was $5 million (see Note 13 “Derivative Financial Instruments” for further information).

Fixed assets, net

The components of Fixed assets, net are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Capitalized software		$		40				$		242
Leasehold improvements				39						63
Computer equipment				98						192
Furniture, fixtures and equipment				12						21
Construction in progress				44						28
Total Fixed assets, gross				233						546
Less: Accumulated depreciation				14						212
Fixed assets, net		$		219				$		334

As a result of the Business Combination, all fixed assets acquired were recorded at preliminary fair value and accumulated depreciation previously recorded by the Predecessor was reduced to zero as of July 1, 2021 (see Note 4 “Acquisitions”). In addition, as part of the purchase price accounting for the Business Combination, Capitalized software related to internally developed software in-service as of the Closing Date was reclassified and included in the preliminary fair value of the Technology related intangible assets acquired.

Included in Computer equipment are assets under finance leases. The balances as of September 30, 2021 and December 31, 2020, net of accumulated depreciation related to these assets, were $67 million and $83 million, respectively.

Other current liabilities

The components of Other current liabilities are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Deferred revenue		$		123				$		148
Operating lease liabilities				53						41
Finance lease liabilities				28						28
Other				85						107
Total		$		289				$		324

Other liabilities

The components of Other liabilities are as follows (in millions):

		Successor						Predecessor
		September 30,						December 31,
		2021						2020
Deferred revenue		$		54				$		60
Operating lease liabilities				132						155
Finance lease liabilities				40						59
Unrecognized tax positions				49						48
Other				83						125
Total		$		358				$		447

The current and non-current portions of deferred revenue relates to consideration received in advance of performance under client contracts. During the Successor three months ended September 30, 2021 and the Predecessor six months ended June 30, 2021 and nine months ended September 30, 2020, revenue of approximately $22 million, $101 million, and $152 million was recognized that was recorded as deferred revenue at the beginning of each period, respectively.

Other current liabilities and Other liabilities include the fair value of outstanding derivative instruments related to interest rate swaps. The balances in Other current liabilities as of September 30, 2021 and December 31, 2020 were $12 million and $28 million, respectively. The balances in Other liabilities as of September 30, 2021 and December 31, 2020 were $1 million and $19 million, respectively (see Note 13 “Derivative Financial Instruments” for further information).

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Other financial data.

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- Definition

The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-URI http://asc.fasb.org/topic&trid=2122208

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