XML 42 R30.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Segment information | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Segment information | Note 21 — Segment information In January 2021, the company changed its organizational structure to more effectively address evolving client needs. With these changes, the company changed its reportable segments, but this did not impact the consolidated financial statements as of December 31, 2020 and 2019. The company’s reportable segments are as follows:
| • |  | Digital Workplace Solutions (DWS), which provides solutions that transform digital workplaces securely and create exceptional end-user experiences;
| • |  | Cloud and Infrastructure Solutions (C&I), which provides solutions that drive modern IT service platforms, cloud applications development, intelligent services, and cybersecurity services; and
| • |  | Enterprise Computing Solutions (ECS), which provides solutions that harness secure, continuous high-intensity computing and enable digital services through software-defined operating environments.
The accounting policies of each segment are the same as those followed by the company as a whole. Intersegment sales and transfers are priced as if the sales or transfers were to third parties. Accordingly, the ECS segment records intersegment revenue and manufacturing profit on hardware and software shipments to customers under contracts of other segments. These segments, in turn, record customer revenue and marketing profits on such shipments of company hardware and software to customers. In the company’s consolidated statements of income (loss), the manufacturing costs of products sourced from the ECS segment and sold to other segments’ customers are reported in cost of revenue for these other segments. Also included in the ECS segment’s sales and gross profit are sales of hardware and software sold to other segments for internal use in their engagements. The amount of such profit included in gross profit of the ECS segment for the years ended December 31, 2021, 2020 and 2019 was $1.4 million, $7.8 million and $5.7 million, respectively. The sales and profit on these transactions is eliminated in Corporate. The company evaluates segment performance based on gross profit exclusive of the service cost component of postretirement income or expense, restructuring charges, amortization of purchased intangibles and unusual and nonrecurring items, which are included in Corporate. In 2021, the company also changed its internal measurement of segment profitability. Prior period amounts have therefore been reclassified to be comparable to the current period’s presentation. No single customer accounts for more than 10% of revenue. Corporate assets are principally cash and cash equivalents, prepaid postretirement assets and deferred income taxes. The expense or income related to corporate assets and centrally incurred costs are allocated to the business segments. A summary of the company’s operations by reportable segment is presented below:
|  | Total Segments |  |  | DWS |  |  | C&I |  |  | ECS |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer revenue |  | $ | 1,741.0 |  |  | $ | 567.0 |  |  | $ | 496.5 |  |  | $ | 677.5 |
Intersegment |  |  | 1.4 |  |  |  | — |  |  |  | — |  |  |  | 1.4 |
Total revenue |  | $ | 1,742.4 |  |  | $ | 567.0 |  |  | $ | 496.5 |  |  | $ | 678.9 |
Gross profit |  | $ | 561.5 |  |  | $ | 76.3 |  |  | $ | 56.6 |  |  | $ | 428.6 |
Depreciation and amortization |  | $ | 129.1 |  |  | $ | 18.5 |  |  | $ | 55.1 |  |  | $ | 55.5 |
Total assets |  | $ | 1,236.6 |  |  | $ | 352.7 |  |  | $ | 290.7 |  |  | $ | 593.2 |
Capital expenditures |  | $ | 78.8 |  |  | $ | 13.4 |  |  | $ | 13.2 |  |  | $ | 52.2 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer revenue |  | $ | 1,713.2 |  |  | $ | 588.3 |  |  | $ | 465.2 |  |  | $ | 659.7 |
Intersegment |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |
Total revenue |  | $ | 1,713.3 |  |  | $ | 588.3 |  |  | $ | 465.2 |  |  | $ | 659.8 |
Gross profit |  | $ | 454.2 |  |  | $ | 55.3 |  |  | $ | 23.2 |  |  | $ | 375.7 |
Depreciation and amortization |  | $ | 119.3 |  |  | $ | 14.5 |  |  | $ | 49.3 |  |  | $ | 55.5 |
Total assets |  | $ | 1,005.3 |  |  | $ | 220.7 |  |  | $ | 203.6 |  |  | $ | 581.0 |
Capital expenditures |  | $ | 83.4 |  |  | $ | 13.6 |  |  | $ | 24.6 |  |  | $ | 45.2 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer revenue |  | $ | 1,878.4 |  |  | $ | 641.2 |  |  | $ | 527.1 |  |  | $ | 710.1 |
Intersegment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total revenue |  | $ | 1,878.4 |  |  | $ | 641.2 |  |  | $ | 527.1 |  |  | $ | 710.1 |
Gross profit |  | $ | 512.9 |  |  | $ | 65.2 |  |  | $ | 33.5 |  |  | $ | 414.2 |
Depreciation and amortization |  | $ | 116.7 |  |  | $ | 18.0 |  |  | $ | 54.1 |  |  | $ | 44.6 |
Total assets |  | $ | 962.8 |  |  | $ | 182.2 |  |  | $ | 231.1 |  |  | $ | 549.5 |
Capital expenditures |  | $ | 120.2 |  |  | $ | 15.2 |  |  | $ | 42.1 |  |  | $ | 62.9 |
Presented below is a reconciliation of total segment revenue to total consolidated revenue:
Year ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
Total segment revenue |  | $ | 1,742.4 |  |  | $ | 1,713.3 |  |  | $ | 1,878.4 |
Other revenue |  |  | 313.4 |  |  |  | 313.1 |  |  |  | 344.4 |
Elimination of intercompany revenue |  |  | (1.4 | ) |  |  | (0.1 | ) |  |  | — |
Total consolidated revenue |  | $ | 2,054.4 |  |  | $ | 2,026.3 |  |  | $ | 2,222.8 |
Presented below is a reconciliation of total segment gross profit to total consolidated loss from continuing operations before income taxes:
Year ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
Total segment gross profit |  | $ | 561.5 |  |  | $ | 454.2 |  |  | $ | 512.9 |
Other gross profit |  |  | 10.5 |  |  |  | 28.8 |  |  |  | 21.1 |
Total gross profit |  |  | 572.0 |  |  |  | 483.0 |  |  |  | 534.0 |
Selling, general and administrative expense |  |  | (389.5 | ) |  |  | (369.4 | ) |  |  | (364.8 | )
Research and development expense |  |  | (28.5 | ) |  |  | (26.6 | ) |  |  | (31.3 | )
Interest expense |  |  | (35.4 | ) |  |  | (29.2 | ) |  |  | (62.1 | )
Other (expense), net |  |  | (580.3 | ) |  |  | (329.6 | ) |  |  | (136.4 | )
Total loss from continuing operations before income taxes |  | $ | (461.7 | ) |  | $ | (271.8 | ) |  | $ | (60.6 | )
Other revenue and other gross profit, are comprised of an aggregation of a number of immaterial business activities that principally provide for the management of processes and functions for clients in select industries, helping them improve performance and reduce costs. Presented below is a reconciliation of total business segment assets to consolidated assets:
As of December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
Total segment assets |  | $ | 1,236.6 |  |  | $ | 1,005.3 |  |  | $ | 962.8 |
Other assets |  |  | 207.3 |  |  |  | 297.0 |  |  |  | 300.6 |
Cash and cash equivalents |  |  | 552.9 |  |  |  | 898.5 |  |  |  | 538.8 |
Deferred income taxes |  |  | 125.3 |  |  |  | 136.2 |  |  |  | 114.0 |
Operating lease right-of-use assets |  |  | 62.7 |  |  |  | 79.3 |  |  |  | 71.4 |
Prepaid postretirement assets |  |  | 159.7 |  |  |  | 187.5 |  |  |  | 136.2 |
Assets of discontinued operations |  |  | — |  |  |  | — |  |  |  | 243.2 |
Other corporate assets |  |  | 75.0 |  |  |  | 104.1 |  |  |  | 137.0 |
Total assets |  | $ | 2,419.5 |  |  | $ | 2,707.9 |  |  | $ | 2,504.0 |
Geographic information about the company’s revenue, which is principally based on location of the selling organization, properties and outsourcing assets, is presented below:
Year ended December 31, |  | 2021 |  |  | 2020 |  |  | 2019 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 856.2 |  |  | $ | 781.5 |  |  | $ | 824.0 |
United Kingdom |  |  | 284.9 |  |  |  | 228.0 |  |  |  | 334.3 |
Other foreign |  |  | 913.3 |  |  |  | 1,016.8 |  |  |  | 1,064.5 |
Total Revenue |  | $ | 2,054.4 |  |  | $ | 2,026.3 |  |  | $ | 2,222.8 |
Properties, net |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 62.5 |  |  | $ | 82.0 |  |  | $ | 82.3 |
Other foreign |  |  | 24.0 |  |  |  | 28.5 |  |  |  | 33.7 |
Total Properties, net |  | $ | 86.5 |  |  | $ | 110.5 |  |  | $ | 116.0 |
Outsourcing assets, net |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 66.2 |  |  | $ | 93.1 |  |  | $ | 99.5 |
United Kingdom |  |  | 36.3 |  |  |  | 55.3 |  |  |  | 71.7 |
Australia |  |  | 16.7 |  |  |  | 19.3 |  |  |  | 21.5 |
Other foreign |  |  | 5.4 |  |  |  | 6.2 |  |  |  | 9.4 |
Total Outsourcing assets, net |  | $ | 124.6 |  |  | $ | 173.9 |  |  | $ | 202.1 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -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 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration