Segment Reporting

3 Months Ended

Mar. 31, 2020

Our reportable segments correspond to how we organize and manage the business, as defined by our CEO, who is also our Chief Operating Decision Maker, and are aligned to the industries in which our clients operate. Our segments involve the delivery of business process services and include service arrangements where we manage a customer's business activity or process. During the first quarter of 2020, we realigned our sales organization and certain shared IT and other allocated functions to reflect how we currently manage our business. All prior periods presented have been revised to reflect this change in costs structure.

Our financial performance is based on Segment Profit / (Loss) and Segment Adjusted EBITDA for our three reportable segments (Commercial Industries, Government Services and Transportation), Other operations and Shared IT / Infrastructure & Corporate Costs.

Commercial Industries: Our Commercial Industries segment provides business process services and customized solutions to clients in a variety of industries. Across the Commercial Industries segment, we operate on our clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enable revenue growth for our clients and their consumers and employees.

Government Services: Our Government Services segment provides government-centric business process services to U.S. federal, state and local and foreign governments for public assistance, program administration, transaction processing and payment services. Our solutions in this segment help governments respond to changing rules for eligibility and increasing citizen expectations.

Transportation: Our Transportation segment provides systems and support, as well as revenue-generating services, to government clients. On behalf of government agencies and authorities in the transportation industry, we deliver mission-critical mobility and payment solutions that improve automation, interoperability and decision-making to streamline operations, increase revenue and reduce congestion while creating safer communities and seamless travel experiences for consumers.

Other includes our divestitures and our Student Loan business, which the Company exited in the third quarter of 2018.

Shared IT / Infrastructure & Corporate Costs includes both normal ongoing IT infrastructure and enterprise application costs and costs related to modernization of a significant portion of our infrastructure with new systems and processes and consolidation of our data centers as part of our transformation initiatives. It also includes costs related to corporate overhead functions and shared real estate costs. These costs are not allocated to the reportable segments.

Selected financial information for our reportable segments was as follows:


	Three Months Ended March 31,
(in millions)	Commercial Industries		Government Services		Transportation		Other						Shared IT / Infrastructure & Corporate Costs		Total
2020							Divestitures		Other
Revenue	$	572	$	290	$	189	$	—	$	—	$	—	$	1,051
Segment profit (loss)	$	90	$	93	$	23	$	—	$	4	$	(165)	$	45
Segment depreciation and amortization	$	25	$	6	$	9	$	—	$	—	$	18	$	58
Adjusted EBITDA	$	115	$	99	$	32	$	—	$	(3)	$	(147)	$	96

2019
Revenue	$	612	$	325	$	184	$	36	$	1	$	—	$	1,158
Segment profit (loss)	$	117	$	80	$	19	$	1	$	—	$	(148)	$	69
Segment depreciation and amortization	$	22	$	9	$	9	$	—	$	—	$	14	$	54
Adjusted EBITDA	$	139	$	89	$	28	$	1	$	—	$	(134)	$	123


(in millions)	Three Months Ended March 31,
Segment Profit (Loss) Reconciliation to Pre-tax Income (Loss)	2020		2019
Income (Loss) Before Income Taxes	$	(51)	$	(338)
Reconciling items:
Amortization of acquired intangible assets	60		62
Restructuring and related costs	7		16
Interest expense	17		20
Goodwill impairment	—		284
(Gain) loss on divestitures and transaction costs	4		14
Litigation costs (recoveries), net	6		12
Other (income) expenses, net	2		(1)
Segment Pre-tax Income (Loss)	$	45	$	69
Segment depreciation and amortization (including contract inducements)	$	58	$	54
CA MMIS charge (credit)	(7)		—
Adjusted EBITDA	$	96	$	123

Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.