XML 36 R26.htm IDEA: XBRL DOCUMENT v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
Effective January 1, 2022, the company changed the grouping of certain immaterial revenue. As a result, certain prior period segment revenue as well as the related cost of sales amounts have been reclassified to be comparable to the current period’s presentation.
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 three months ended March 31, 2021 was $0.7 million. The sales and profit on these transactions are 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.
A summary of the company’s operations by segment is presented below:
Total SegmentsDWSC&IECS
Three Months Ended March 31, 2022   
Customer revenue$374.5 $124.8 $129.1 $120.6 
Intersegment— — — — 
Total revenue$374.5 $124.8 $129.1 $120.6 
Gross profit$85.8 $16.0 $7.0 $62.8 
Three Months Ended March 31, 2021   
Customer revenue$432.9 $142.9 $120.7 $169.3 
Intersegment1.0 — — 1.0 
Total revenue$433.9 $142.9 $120.7 $170.3 
Gross profit$133.8 $19.1 $9.9 $104.8 
Presented below is a reconciliation of total segment revenue to total consolidated revenue:
 Three Months Ended
March 31,
 20222021
Total segment revenue$374.5 $433.9 
Other revenue72.2 76.9 
Elimination of intercompany revenue— (1.0)
Total consolidated revenue$446.7 $509.8 
Presented below is a reconciliation of total segment gross profit to consolidated loss before income taxes:
 Three Months Ended
March 31,
 20222021
Total segment gross profit$85.8 $133.8 
Other gross profit1.6 5.4 
Total gross profit87.4 139.2 
Selling, general and administrative expense(104.4)(90.0)
Research and development expense(6.5)(5.6)
Interest expense(8.4)(10.1)
Other (expense), net(21.0)(182.6)
Total loss before income taxes$(52.9)$(149.1)
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.
Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:
 Three Months Ended
March 31,
 20222021
United States$199.0 $234.5 
United Kingdom52.9 68.0 
Other foreign194.8 207.3 
Total$446.7 $509.8