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v3.23.1

Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Schedule of Reportable Segments | Information regarding the Company’s current reportable segments is as follows (in millions):
|  | Revenue |
|  | Three Months Ended |  | Three Months Ended |
|  | March 31, |  | March 31, |
|  | 2023 |  | 2022 |
Employer Solutions |  |  |  |  |  |  |
Recurring |  | $ |  | 669 |  | $ |  | 570 |
Project |  |  |  | 54 |  |  |  | 53 |
Total Employer Solutions |  |  |  | 723 |  |  |  | 623 |
Professional Services |  |  |  |  |  |  |
Recurring |  |  |  | 33 |  |  |  | 30 |
Project |  |  |  | 65 |  |  |  | 60 |
Total Professional Services |  |  |  | 98 |  |  |  | 90 |
Total Reportable Segments |  |  |  | 821 |  |  |  | 713 |
Other |  |  |  | 10 |  |  |  | 12 |
Total revenue |  | $ |  | 831 |  | $ |  | 725 |
There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.
|  | Segment Profit |
|  | Three Months Ended |  | Three Months Ended |
|  | March 31, |  | March 31, |
|  | 2023 |  | 2022 |
Employer Solutions |  | $ |  | 238 |  | $ |  | 204 |
Professional Services |  |  |  | 19 |  |  |  | 19 |
Total Gross Profit |  |  |  | 257 |  |  |  | 223 |
Selling, general and administrative |  |  |  | 185 |  |  |  | 140 |
Depreciation and intangible amortization |  |  |  | 85 |  |  |  | 85 |
Operating Income (Loss) |  |  |  | (13 | ) |  |  | (2 | )
(Gain) Loss from change in fair value of financial instruments |  |  |  | 25 |  |  |  | (13 | )
(Gain) Loss from change in fair value of tax receivable agreement |  |  |  | 8 |  |  |  | (5 | )
Interest expense |  |  |  | 33 |  |  |  | 29 |
Other (income) expense, net |  |  |  | 3 |  |  |  | (1 | )
Income (Loss) Before Taxes |  | $ |  | (82 | ) | $ |  | (12 | )
Recast of Segment Information As a result of the Company’s segment changes noted above, the Company recast its segment revenues and profit measure to conform to current year presentation for the three and six months ended June 30, 2022, the three and nine months ended September 30, 2022 and for the fiscal year ended December 31, 2022.
|  | Revenue |
|  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Twelve Months Ended |
|  | June 30, |  | June 30, |  | September 30, |  | September 30, |  | December 31, |
|  | 2022 |  | 2022 |  | 2022 |  | 2022 |  | 2022 |
Employer Solutions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring |  | $ |  | 559 |  | $ |  | 1,129 |  | $ |  | 583 |  | $ |  | 1,712 |  | $ |  | 2,467 |
Project |  |  |  | 55 |  |  |  | 108 |  |  |  | 62 |  |  |  | 170 |  |  |  | 251 |
Total Employer Solutions |  |  |  | 614 |  |  |  | 1,237 |  |  |  | 645 |  |  |  | 1,882 |  |  |  | 2,718 |
Professional Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recurring |  |  |  | 32 |  |  |  | 62 |  |  |  | 32 |  |  |  | 94 |  |  |  | 128 |
Project |  |  |  | 59 |  |  |  | 119 |  |  |  | 63 |  |  |  | 182 |  |  |  | 243 |
Total Professional Services |  |  |  | 91 |  |  |  | 181 |  |  |  | 95 |  |  |  | 276 |  |  |  | 371 |
Total Reportable Segments |  |  |  | 705 |  |  |  | 1,418 |  |  |  | 740 |  |  |  | 2,158 |  |  |  | 3,089 |
Other |  |  |  | 10 |  |  |  | 22 |  |  |  | 10 |  |  |  | 32 |  |  |  | 43 |
Total |  | $ |  | 715 |  | $ |  | 1,440 |  | $ |  | 750 |  | $ |  | 2,190 |  | $ |  | 3,132 |
|  | Segment Profit |
|  | Three Months Ended |  | Six Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Twelve Months Ended |
|  | June 30, |  | June 30, |  | September 30, |  | September 30, |  | December 31, |
|  | 2022 |  | 2022 |  | 2022 |  | 2022 |  | 2022 |
Employer Solutions |  | $ |  | 200 |  | $ |  | 404 |  | $ |  | 189 |  | $ |  | 593 |  | $ |  | 911 |
Professional Services |  |  |  | 20 |  |  |  | 39 |  |  |  | 23 |  |  |  | 62 |  |  |  | 86 |
Other |  |  |  | (1 | ) |  |  | (1 | ) |  |  | — |  |  |  | (1 | ) |  |  | (1 | )
Total Gross Profit |  |  |  | 219 |  |  |  | 442 |  |  |  | 212 |  |  |  | 654 |  |  |  | 996 |
Selling, general and administrative |  |  |  | 157 |  |  |  | 297 |  |  |  | 178 |  |  |  | 475 |  |  |  | 671 |
Depreciation and intangible amortization |  |  |  | 85 |  |  |  | 170 |  |  |  | 84 |  |  |  | 254 |  |  |  | 339 |
Operating Income (Loss) |  |  |  | (23 | ) |  |  | (25 | ) |  |  | (50 | ) |  |  | (75 | ) |  |  | (14 | )
(Gain) Loss from change in fair value of financial instruments |  |  |  | (50 | ) |  |  | (63 | ) |  |  | 10 |  |  |  | (53 | ) |  |  | (38 | )
(Gain) Loss from change in fair value of tax receivable agreement |  |  |  | (38 | ) |  |  | (43 | ) |  |  | (20 | ) |  |  | (63 | ) |  |  | (41 | )
Interest expense |  |  |  | 29 |  |  |  | 58 |  |  |  | 31 |  |  |  | 89 |  |  |  | 122 |
Other (income) expense, net |  |  |  | (7 | ) |  |  | (8 | ) |  |  | (6 | ) |  |  | (14 | ) |  |  | (16 | )
Income (Loss) Before Taxes |  | $ |  | 43 |  | $ |  | 31 |  | $ |  | (65 | ) | $ |  | (34 | ) | $ |  | (41 | )

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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