XML 24 R12.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's reportable segments correspond to how it organizes and manages the business, as defined by the Company's Chief Executive Officer, who is also its Chief Operating Decision Maker (CODM), and are aligned to the industries in which the Company's clients operate. The Company's segments involve the delivery of business process services and include service arrangements where it manages a customer's business activity or process.
In the first quarter of 2022, the Company realigned certain clients between reportable segments to reflect how the Company currently manages its business. Certain clients were reclassified from the Government reportable segment to the Commercial reportable segment to align with a product view of the business. Additionally, in the first quarter of 2022, in order to provide greater visibility into the profitability of the Company's segments, certain real estate costs that were previously included in Unallocated Costs have been allocated to each of the reportable segments.
As described in Note 4 – Assets/Liabilities Held for Sale and Divestiture, the Company sold its Midas Suite of patient safety, quality and advanced analytics solutions (Midas business) to a third party in the first quarter of 2022. Accordingly, the results of this disposed business, which had previously been reported in the Commercial segment have been reclassified to the Divestitures segment.
All prior periods presented have been recast to reflect these changes.
The Company's financial performance is based on Segment Profit/(Loss) for its three reportable segments (Commercial, Government and Transportation), Other and Unallocated Costs. The Company's CODM does not evaluate operating segments using discrete asset information.
•Commercial: The Commercial segment provides business process services and customized solutions to clients in a variety of commercial industries. Across the Commercial segment, the Company operates on its clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enable revenue growth for the Company's clients and their consumers and employees.
•Government: The Government segment provides government-centric business process services to U.S. federal, state and local and foreign governments for public assistance, health services, program administration, transaction processing and payment services. The solutions in this segment help governments respond to changing rules for eligibility and increasing citizen expectations.
•Transportation: The Transportation segment provides systems, support, and revenue-generating solutions, to government transportation agency clients. The Company delivers mission-critical public safety, mobility and digital payment solutions that streamline operations, increase revenue and reduce congestion while creating safe, seamless travel experiences for consumers and have a positive impact on the environment.
Other includes the Company's divestitures and the Student Loan business, which the Company exited in the third quarter of 2018.
Unallocated Costs includes IT infrastructure costs that are shared by multiple reportable segments, enterprise application costs and certain corporate overhead expenses not directly attributable or allocated to the reportable segments.
Selected financial information for the Company's reportable segments was as follows:
Year Ended December 31,
(in millions)CommercialGovernmentTransportationOtherUnallocated CostsTotal
2022DivestituresOther
Revenue$1,992 $1,150 $709 $7 $— $— $3,858 
Segment profit (loss)$124 $294 $49 $2 $— $(293)$176 
2021
Revenue$2,017 $1,307 $746 $70 $— $— $4,140 
Segment profit (loss)$95 $409 $72 $32 $1 $(372)$237 
2020
Revenue$2,104 $1,268 $719 $72 $— $— $4,163 
Segment profit (loss)$98 $375 $82 $33 $9 $(332)$265 
The following is a reconciliation of segment profit (loss) to income (loss) before income taxes:
(in millions)Year Ended December 31,
Segment Profit (Loss) Reconciliation to Pre-tax Income (Loss)202220212020
Income (Loss) Before Income Taxes$(127)$(25)$(139)
Reconciling items:
Amortization of acquired intangible assets13 135 239 
Restructuring and related costs39 45 67 
Interest expense84 55 60 
Loss on extinguishment of debt— 15 — 
Goodwill impairment358 — — 
(Gain) loss on divestitures and transaction costs, net(158)3 17 
Litigation settlements (recoveries), net(32)3 20 
Other (income) expenses, net(1)6 1 
Segment Profit (Loss)$176 $237 $265 
Refer to Note 2 – Revenue for additional information on disaggregated revenues of the reportable segments.
Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for each of the years ended December 31:
 Revenues
Long-Lived Assets (1)
(in millions)20222021202020222021
United States$3,473 $3,712 $3,748 $638 $651 
Europe328 368 357 39 39 
Other areas57 60 58 86 96 
Total Revenues and Long-Lived Assets$3,858 $4,140 $4,163 $763 $786 
__________
(1)Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Internal use software, net, (iii) Product software, net and (iv) Operating lease right-of-use assets.