Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

The Company’s reportable segments have been determined using a management approach, which is consistent with the basis and manner in which the Company’s chief operating decision maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance. The Company’s Chief Executive Officer is its CODM. The CODM evaluates the performance of the Company based on its total revenue and segment profit.

The CODM also uses revenue and segment profit to manage and evaluate our business, make planning decisions, and as performance measures for Company-wide bonus plans. These key financial measures provide an additional view of our operational performance over the long-term and provide useful information that we use in order to maintain and grow our business.

The accounting policies of the segments are the same as those described in Note 2 “Accounting Policies and Practices.” The Company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis.

Information regarding the Company’s current reportable segments is as follows (in millions):

	Revenue
	Successor				Predecessor
	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2022		2022		2021		2021
Employer Solutions
Recurring	$	559	$	1,129	$	516	$	1,049
Project		55		108		53		107
Total Employer Solutions		614		1,237		569		1,156
Professional Services
Recurring		32		62		31		60
Project		59		119		61		124
Total Professional Services		91		181		92		184
Hosted Business		10		22		11		21
Total	$	715	$	1,440	$	672	$	1,361

There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.

	Segment Profit
	Successor						Predecessor
	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2022			2021			2021
Employer Solutions	$	147		$	289		$	138		$	274
Professional Services		(3	)		(3	)		7			7
Hosted Business		(2	)		(2	)		—			(3	)
Total of all reportable segments		142			284			145			278
Share-based compensation		42			75			3			5
Transaction and integration expenses(1)		3			9			—			—
Non-recurring professional expenses(2)		—			—			9			18
Restructuring		14			20			2			9
Other(3)		8			11			—			(5	)
Depreciation		18			35			25			49
Intangible amortization		80			159			50			100
Operating (Loss) Income		(23	)		(25	)		56			102
Gain from change in fair value of financial instruments		(50	)		(63	)		—			—
Gain from change in fair value of tax receivable agreement		(38	)		(43	)		—			—
Interest expense		29			58			61			123
Other (income) expense, net		(7	)		(8	)		1			9
Income (Loss) Before Income Tax Benefit	$	43		$	31		$	(6	)	$	(30	)

(1)Transaction and integration expenses includes activity related to acquisitions.

(2)Non-recurring professional expenses includes external advisor and legal costs related to the Company’s Business Combination completed in 2021.

(3)For the three and six months ended June 30, 2022, Other primarily includes expenses related to debt refinancing completed in the first quarter of 2022 and other non-operational expenses, offset by Other income, net. For the three and six months ended June 30, 2021, Other includes long-term incentive expenses, offset by Other expense, net.