XML 23 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
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.
Divestitures includes the Company's BenefitWallet Portfolio, for which the Company completed the transfer in the second quarter of 2024, its Curbside Management and Public Safety Solutions businesses, which it sold in the second quarter of 2024, and its Casualty Claims business which it sold in the third quarter of 2024. Refer to Note 5 – Divestitures for additional information.
The Company's CODM evaluates the Company's financial performance based on Segment profit (loss) for its three reportable segments - Commercial, Government and Transportation. The Company's CODM uses Segment profit (loss) information to monitor budget versus actual results and then uses this information to help make informed decisions about future resource investment, potential restructuring of segments to enhance overall company performance, and future divestitures and acquisitions.
The Company's CODM does not evaluate operating segments using discrete asset information as a significant portion of the assets is managed at the total company level.
A description of the Company's reportable segments is as follows:
•Commercial: The Commercial segment provides business process services that span its clients' businesses end-to-end from the front-office to the back-office for a variety of commercial industries. These solutions are both cross-industry and industry-specific in nature. Across the Commercial segment, the Company operates on its clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enhance performance for the Company's clients and deliver better experiences for their consumers and employees.
•Government: The Government segment provides government-centric business process services and solutions to U.S. federal, state, local and foreign governments for public assistance, healthcare programs and administration, transaction processing, payment services and case management. In this segment, the Company helps governments respond to changing rules for eligibility and keep pace with increasing citizen expectations, modernize legacy technology systems, combat benefits fraud and shift in response to an evolving regulatory environment.
•Transportation: The Transportation segment provides government agencies and transportation authorities around the world with systems, support and revenue-generating solutions serving toll and fare collections as well as mobility and digital payments that help streamline operations and increase revenue to government transportation agencies. With an expanded focus on sustainability and enhancing the quality of life for citizens and communities around the world, the Company's solutions help reduce congestion and greenhouse emissions, while creating seamless travel experiences for consumers throughout transportation ecosystems.
Selected financial information for the Company's segments is as follows:
Three Months Ended
September 30,
(in millions)CommercialGovernmentTransportation
Total(1)
2025
Segment revenue$367 $238 $162 $767 
Expenses
Wages and benefits$247 $96 $61 $404 
Services and supplies47 63 84 194 
Rent lease and maintenance expense36 18 12 66 
Other operating expense— — 1 1 
Depreciation and amortization expense20 13 7 40 
Segment expenses$350 $190 $165 $705 
Segment profit (loss)$17 $48 $(3)$62 
2024
Segment revenue$385 $255 $141 $781 
Expenses
Wages and benefits$265 $107 $61 $433 
Services and supplies49 72 66 187 
Rent lease and maintenance expense37 16 12 65 
Other operating expense— — 2 2 
Depreciation and amortization expense19 10 6 35 
Segment expenses$370 $205 $147 $722 
Segment profit (loss)$15 $50 $(6)$59 
__________
(1)    Total excludes Divestitures and Unallocated Costs.
Nine Months Ended
September 30,
(in millions)CommercialGovernmentTransportation
Total(1)
2025
Segment revenue$1,134 $692 $446 $2,272 
Expenses
Wages and benefits$761 $290 $187 $1,238 
Services and supplies155 188 203 546 
Rent lease and maintenance expense112 51 36 199 
Other operating expense3 4 3 10 
Depreciation and amortization expense63 34 22 119 
Segment expenses$1,094 $567 $451 $2,112 
Segment profit (loss)$40 $125 $(5)$160 
2024
Segment revenue$1,192 $758 $426 $2,376 
Expenses
Wages and benefits$810 $322 $194 $1,326 
Services and supplies158 219 191 568 
Rent lease and maintenance expense107 49 34 190 
Other operating expense2 4 4 10 
Depreciation and amortization expense67 34 18 119 
Segment expenses$1,144 $628 $441 $2,213 
Segment profit (loss)$48 $130 $(15)$163 
__________
(1)    Total excludes Divestitures and Unallocated Costs.
Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.
The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2025202420252024
Segment Profit (Loss)$62 $59 $160 $163 
Reconciling items:
Divestitures profit(1)
— 3 — 35 
Unallocated costs(2)
(70)(70)(215)(213)
Amortization of acquired intangible assets(1)(1)(2)(4)
Restructuring and related costs(12)(4)(24)(21)
Interest expense(12)(16)(36)(62)
Loss on extinguishment of debt(1)(1)(1)(6)
Gain (loss) on divestitures and transaction costs, net(1)188 (8)696 
Litigation (settlements) recoveries, net— (1)(2)(6)
Other income (expenses), net(3)2 (4)4 
Income (Loss) Before Income Taxes$(38)$159 $(132)$586 
(1)    Divestitures profit is Income (loss) before income taxes excluding certain non-operating income and expenses.
(2)    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. Included in the three and nine months ended September 30, 2025 periods are $0 million and $25 million, respectively, of Direct response costs related to the January 2025 Cyber Incident as well as a $0 million and $9 million, respectively, insurance recovery related to the 2019 Texas Matter.
Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.