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Revenues and Trade Accounts Receivable
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenues and Trade Accounts Receivable
Disaggregation of Revenues

The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of our reportable business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, quality engineering and assurance services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and security as well as business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States.
Three Months Ended
March 31, 2025
(in millions)
Health Sciences
Financial Services
Products and Resources
Communications, Media and Technology
Total
Revenues
Geography:
North America$1,330 $1,043 $911 $570 $3,854 
United Kingdom49 153 137 118 457 
Continental Europe160 147 153 33 493 
Europe - Total209 300 290 151 950 
Rest of World 32 119 77 83 311 
Total$1,571 $1,462 $1,278 $804 $5,115 
Service line:
Consulting and technology services$870 $1,020 $887 $449 $3,226 
Outsourcing services701 442 391 355 1,889 
Total$1,571 $1,462 $1,278 $804 $5,115 
Type of contract:
Time and materials$481 $764 $556 $434 $2,235 
Fixed-price791 651 634 334 2,410 
Transaction or volume-based299 47 88 36 470 
Total$1,571 $1,462 $1,278 $804 $5,115 
Three Months Ended
March 31, 2024
(in millions)
Health Sciences
Financial Services
Products & Resources
Communications, Media and Technology
Total
Revenues
Geography:
North America$1,209 $977 $773 $562 $3,521 
United Kingdom44 143 131 138 456 
Continental Europe135 151 145 52 483 
Europe - Total179 294 276 190 939 
Rest of World 28 114 84 74 300 
Total$1,416 $1,385 $1,133 $826 $4,760 
Service line:
Consulting and technology services$802 $953 $736 $464 $2,955 
Outsourcing services614 432 397 362 1,805 
Total$1,416 $1,385 $1,133 $826 $4,760 
Type of contract:
Time and materials$490 $783 $470 $467 $2,210 
Fixed-price670 556 582 328 2,136 
Transaction or volume-based256 46 81 31 414 
Total$1,416 $1,385 $1,133 $826 $4,760 
Costs to Fulfill
The following table shows significant movements in the capitalized costs to fulfill for the three months ended March 31:
(in millions)20252024
Beginning balance$209 $245 
Costs capitalized10 14 
Amortization expense(20)(22)
Impairment charge(7)(2)
Ending balance$192 $235 
Costs to obtain contracts were immaterial for the periods disclosed.
Contract Balances
The table below shows significant movements in contract assets (current and noncurrent) for the three months ended March 31:
(in millions)20252024
Beginning balance$386 $316 
Revenues recognized during the period but not billed327 248 
Amounts reclassified to trade accounts receivable(259)(180)
Ending balance$454 $384 
The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended March 31:
(in millions)20252024
Beginning balance$480 $427 
Amounts billed but not recognized as revenues374 311 
Revenues recognized related to the beginning balance of deferred revenue(302)(262)
Amounts acquired in business combinations— 9 
Ending balance$552 $485 
Revenues recognized during the three months ended March 31, 2025 for performance obligations satisfied or partially satisfied in previous periods were immaterial.
Remaining Performance Obligations
As of March 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was $5,627 million, of which approximately 35% is expected to be recognized as revenues within 1 year, approximately 55% is expected to be recognized as revenues within 2 years and approximately 90% is expected to be recognized as revenues within 5 years. Disclosure is not required for performance obligations that meet any of the following criteria:
(1)contracts with a duration of one year or less as determined under ASC Topic 606: "Revenue from Contracts with Customers",
(2)contracts for which we recognize revenues based on the right to invoice for services performed,
(3)variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or
(4)variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property.
Many of our performance obligations meet one or more of these exemptions and therefore are not included in the remaining performance obligation amount disclosed above.
Trade Accounts Receivable and Allowance for Credit Losses
The following table presents the activity in the allowance for credit losses for trade accounts receivable for the three months ended March 31:
(in millions)20252024
Beginning balance$26 $32 
Credit loss expense (1)
4 1 
Write-offs charged against the allowance(2)(3)
Ending balance$28 $30 
(1)Reported in "Selling, general and administrative expenses" in our unaudited consolidated statements of operations.