XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Revenue
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
During the first quarter of 2022, certain clients were reclassified from the Government Services segment to the Commercial segment. Additionally, revenue for the Midas business divested in the first quarter of 2022 has been reclassified from the Commercial segment to the Divestitures segment. These changes have no impact on the timing of revenue recognition. All prior periods presented have been revised to reflect these changes.
The following table provides information about disaggregated revenue by major service offering, the timing of revenue recognition and a reconciliation of the disaggregated revenue by reportable segment. Refer to Note 4 – Segment Reporting for additional information on the Company's reportable segments.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)2022202120222021
Commercial:
Customer experience management$162 $152 $468 $459 
Business operations solutions138 139 415 418 
Commercial healthcare solutions100 91 278 277 
Human resource and learning services104 111 325 339 
Total Commercial504 493 1,486 1,493 
Government Services:
Government healthcare solutions150 143 438 432 
Government services solutions141 203 418 564 
Total Government Services291 346 856 996 
Transportation:
Roadway charging & management services87 79 244 237 
Transit solutions55 60 161 194 
Curbside management solutions22 22 63 60 
Public safety solutions16 17 49 52 
Commercial vehicles
Total Transportation182 180 523 549 
Divestitures— 19 54 
Total Consolidated Revenue$977 $1,038 $2,872 $3,092 
Timing of Revenue Recognition:
Point in time$37 $26 $82 $83 
Over time940 1,012 2,790 3,009 
Total Revenue$977 $1,038 $2,872 $3,092 

Contract Balances
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are the Company’s rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Contract assets are transferred to Accounts receivable, net when the rights to consideration become unconditional. Unearned income includes payments received in advance of performance under the contract, which are realized when the associated revenue is recognized under the contract.
The following table provides information about the balances of the Company's contract assets, unearned income and receivables from contracts with customers:
(in millions)September 30, 2022December 31, 2021
Contract Assets (Unearned Income)
Current contract assets$161 $154 
Long-term contract assets(1)
15 
Current unearned income(75)(82)
Long-term unearned income(2)
(44)(48)
Net Contract Assets$57 $32 
Accounts receivable, net$653 $699 
__________
(1)Presented in Other long-term assets in the Condensed Consolidated Balance Sheets.
(2)Presented in Other long-term liabilities in the Condensed Consolidated Balance Sheets.
Revenues of $14 million and $67 million were recognized during the three and nine months ended September 30, 2022, respectively, related to the Company's unearned income at December 31, 2021. Additionally, the Company recognized $7 million of revenue related to the unearned income of the divested Midas business for the nine months ended September 30, 2022. Such amount was included in Liabilities Held for Sale on the December 31, 2021 consolidated balance sheet.
Revenues of $11 million and $99 million were recognized during the three and nine months ended September 30, 2021 related to the Company's unearned income at December 31, 2020.
The Company had no material asset impairment charges related to contract assets for the three and nine months ended September 30, 2022 or 2021.
Transaction Price Allocated to the Remaining Performance Obligations
Estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially satisfied at September 30, 2022 was approximately $950 million. The Company expects to recognize approximately 73% of this revenue over the next two years and the remainder thereafter.