Accounts Receivable and Contract Balances

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Accounts Receivable and Contract Balances

Accounts Receivable and Contract Balances

Accounts Receivable

The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets:

	December 31,
	2024		2023
Accounts receivable, current(1)	$	4,386.4	$	4,292.6
Unbilled accounts receivable, current(1)	749.4		274.9
Unbilled accounts receivable, noncurrent(2)	923.0		337.5
Total accounts receivable	$	6,058.8	$	4,905.0

(1)Accounts receivable, current are presented within Accounts receivable, net of allowance for credit losses on the Consolidated Balance Sheets.

(2)Unbilled accounts receivable, noncurrent are presented within Accounts receivable and other assets, noncurrent on the Consolidated Balance Sheets.

From time to time, the Company transfers certain accounts receivable, without recourse, to third-party financial companies as a method to reduce the Company’s credit exposure and accelerate cash collections. Such transfers are recognized as a sale and the related accounts receivable are derecognized from the Consolidated Balance Sheets upon receipt of payment from the third-party financing company. During the years ended December 31, 2024 and 2023, the Company sold approximately $477 million and $506 million of accounts receivable, respectively.

The Company recognizes an allowance for credit losses at inception and reassesses quarterly based on expected collectability and forecasted macroeconomic conditions. The following table details the changes in the allowance for credit losses related to accounts receivable:

	As of December 31,
	2024		2023
Balance as of January 1	$	28.8	$	25.7
Increase to provision for credit losses	32.2		14.9
Write-offs charged against the allowance for credit losses	(14.8)		(14.5)
Other	1.2		2.7
Balance as of December 31(1)	$	47.4	$	28.8

(1)Includes a $4 million allowance for credit losses related to unbilled accounts receivable, noncurrent which is presented within Accounts receivable and other assets, noncurrent on the Consolidated Balance Sheets as of December 31, 2024.

Contract Balances

Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from customers. Contract assets represent revenue recognized on performance obligations satisfied or partially satisfied for which the Company has no unconditional right to consideration. Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services. The following table details information about the Company’s contract balances recognized on the Consolidated Balance Sheets:

	December 31,
	2024		2023
Contract assets(1)	$	97.1	$	111.8
Contract liabilities(2)(3)	522.3		527.4

(1)Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets.

(2)Includes $31 million and $40 million of long-term contract liabilities that are presented within Accounts payable and other liabilities on the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

(3)For the years ended December 31, 2024 and 2023, the Company recognized revenue of $315 million and $329 million, respectively, related to its contract liabilities that were included in the beginning balance of the respective periods.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For additional information regarding the Company’s performance obligations, see Note 1 (Description of Business and Summary of Significant Accounting Policies). The following table represents the total transaction price for the remaining performance obligations as of December 31, 2024 related to non-cancelable service contracts whereby the Company is acting as the principal and the duration is longer than 12 months, which is expected to be recognized over future periods.

	Within 1 Year		Years 1-2		Years 2-3		Thereafter
Remaining performance obligations	$	113.3	$	67.7	$	28.7	$	11.1