Segment and Geographic Area Information

12 Months Ended

Dec. 31, 2021

Segment and Geographic Area Information

Segment and Geographic Area Information

19. Segment and Geographic Area Information

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approaches the markets and interacts with its clients. The Company is organized into three segments: ITPS, HS, and LLPS.

ITPS: The ITPS segment provides a wide range of solutions and services designed to aid businesses in information capture, processing, decisioning and distribution to customers primarily in the financial services, commercial, public sector and legal industries.

HS: The HS segment operates and maintains a consulting and outsourcing business specializing in both the healthcare provider and payer markets.

LLPS: The LLPS segment provides a broad and active array of legal services in connection with class action, bankruptcy labor, claims adjudication and employment and other legal matters.

The chief operating decision maker reviews segment profit to evaluate operating segment performance and determine how to allocate resources to operating segments. “Segment profit” is defined as revenue less cost of revenue (exclusive of depreciation and amortization). The Company does not allocate Selling, general, and administrative expenses, depreciation and amortization, interest expense and sundry, net. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segments are not presented. A reconciliation of segment profit to net loss before income taxes is presented below.

		Year ended December 31, 2021
	ITPS		HS		LLPS		Total
Revenue	$	874,126	$	217,839	$	74,641	$	1,166,606
Cost of revenue (exclusive of depreciation and amortization)		672,191		163,445		53,459		889,095
Segment profit		201,935		54,394		21,182		277,511
Selling, general and administrative expenses (exclusive of depreciation and amortization)								169,781
Depreciation and amortization								77,150
Related party expense								9,191
Interest expense, net								168,048
Debt modification and extinguishment costs (gain), net								(16,689)
Sundry expense, net								363
Other expense, net								401
Net loss before income taxes							$	(130,734)

		Year ended December 31, 2020
	ITPS		HS		LLPS		Total
Revenue	$	1,005,043	$	219,047	$	68,472	$	1,292,562
Cost of revenue (exclusive of depreciation and amortization)		815,013		159,917		48,614		1,023,544
Segment profit		190,030		59,130		19,858		269,018
Selling, general and administrative expenses (exclusive of depreciation and amortization)								186,104
Depreciation and amortization								93,953
Related party expense								5,381
Interest expense, net								173,878
Debt modification and extinguishment costs (gain), net								9,589
Sundry income, net								(153)
Other income, net								(34,788)
Net loss before income taxes							$	(164,946)

		Year ended December 31, 2019
	ITPS		HS		LLPS		Total
Revenue	$	1,234,284	$	256,721	$	71,332	$	1,562,337
Cost of revenue (exclusive of depreciation and amortization)		1,001,655		180,045		43,035		1,224,735
Segment profit		232,629		76,676		28,297		337,602
Selling, general and administrative expenses (exclusive of depreciation and amortization)								198,864
Depreciation and amortization								100,903
Impairment of goodwill and other intangible assets								349,557
Related party expense								9,501
Interest expense, net								163,449
Debt modification and extinguishment costs (gain), net								1,404
Sundry expense, net								969
Other expense, net								14,429
Net loss before income taxes							$	(501,474)

The following table presents revenues by principal geographic area where the Company’s customers are located for the years ended December 31, 2021, 2020, and 2019.

	Years ended December 31,
	2021		2020		2019
United States	$	941,985	$	1,057,006	$	1,286,678
EMEA		205,772		213,418		248,466
Other		18,849		22,138		27,193
Total Consolidated Revenue	$	1,166,606	$	1,292,562	$	1,562,337