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Segment Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information In January 2025, the company changed its organizational structure to better align its portfolio of solutions to more effectively address evolving client needs and take further advantage of the synergies across the company’s reportable segments. The company’s business processing solutions, which were reported within Other, have been integrated into the company’s Enterprise Computing Solutions (ECS) and Cloud, Applications & Infrastructure Solutions (CA&I) reportable segments. Additionally, the company’s application development and modernization capabilities, which were reported within ECS, have been operationally centralized within CA&I. These changes did not impact the company’s consolidated financial statements as of December 31, 2024. Prior period 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 workplace solutions featuring intelligent workplace services, proactive experience management and collaboration tools to support business growth; •Cloud, Applications & Infrastructure Solutions (CA&I), which provides digital transformation in the areas of cloud migration and management, applications and infrastructure transformation and modernization solutions; and •Enterprise Computing Solutions (ECS), which provides solutions that harness secure, high-intensity enterprise computing and enable digital services through software-defined operating environments. This segment structure reflects the financial information used by the company’s chief operating decision maker (CODM) to make decisions regarding the company’s business, including resource allocations and performance assessments, as well as the current operating focus. The CODM evaluates the performance of the segments based on segment revenue and segment gross profit. The company’s CODM regularly reviews cost of revenues by segment and treats it as a significant segment expense. Segment revenue and segment gross profit are exclusive of certain activities and expenses that are not allocated to specific segments and reported in Other as described below. The company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis. Other, as presented in the reconciliation tables below, includes revenue and cost of revenue associated with the company’s United Kingdom business process outsourcing consolidated joint venture, which is a non-core business activity. Additionally, Other includes certain expenses within cost of revenue such as cost reduction charges, amortization of purchased intangibles and unusual and nonrecurring items that are not allocated to specific segments. These amounts are combined within other revenue and other gross profit (loss) to arrive at total consolidated revenue and total consolidated gross profit (loss) as reported in the reconciliations below. The following tables present certain financial information by reportable segments:
|  | Total Segments |  | DWS |  | CA&I |  | ECS
Three Months Ended March 31, 2025 |  |  |  |  |  |  |  |
Revenue |  | $ | 413.9 |  |  | $ | 118.6 |  |  | $ | 176.6 |  |  | $ | 118.7 |
Cost of revenue |  | 306.0 |  |  | 101.7 |  |  | 142.2 |  |  | 62.1 |
Gross profit |  | $ | 107.9 |  |  | $ | 16.9 |  |  | $ | 34.4 |  |  | $ | 56.6 |
Three Months Ended March 31, 2024 |  |  |  |  |  |  |  |
Revenue |  | $ | 460.0 |  |  | $ | 132.3 |  |  | $ | 188.4 |  |  | $ | 139.3 |
Cost of revenue |  | 328.3 |  |  | 113.3 |  |  | 151.8 |  |  | 63.2 |
Gross profit |  | $ | 131.7 |  |  | $ | 19.0 |  |  | $ | 36.6 |  |  | $ | 76.1 |
Presented below is a reconciliation of total segment revenue to total consolidated revenue:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2025 |  | 2024
Total segment revenue |  |  |  |  |  | $ | 413.9 |  |  | $ | 460.0 |
Other revenue |  |  |  |  |  | 18.2 |  |  | 27.8 |
Total consolidated revenue |  |  |  |  |  | $ | 432.1 |  |  | $ | 487.8 |
Presented below is a reconciliation of total segment gross profit to consolidated income (loss) before income taxes:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2025 |  | 2024
Total segment gross profit |  |  |  |  |  | $ | 107.9 |  |  | $ | 131.7 |
Other gross profit |  |  |  |  |  | (0.4) |  |  | 4.3 |
Total gross profit |  |  |  |  |  | 107.5 |  |  | 136.0 |
Selling, general and administrative expense |  |  |  |  |  | (96.8) |  |  | (112.2) |
Research and development expense |  |  |  |  |  | (5.6) |  |  | (6.1) |
Interest expense |  |  |  |  |  | (8.2) |  |  | (7.9) |
Other (expense), net |  |  |  |  |  | (16.9) |  |  | (142.1) |
Total loss before income taxes |  |  |  |  |  | $ | (20.0) |  |  | $ | (132.3) |
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,
|  |  |  |  |  | 2025 |  | 2024
United States |  |  |  |  |  | $ | 185.9 |  |  | $ | 212.3 |
United Kingdom |  |  |  |  |  | 55.1 |  |  | 67.0 |
Other foreign |  |  |  |  |  | 191.1 |  |  | 208.5 |
Total |  |  |  |  |  | $ | 432.1 |  |  | $ | 487.8 |

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- Definition The entire disclosure for reporting segments including data and tables. 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