Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

On March 20, 2024, the Company entered into the Disposition Agreement to sell its Payroll & Professional Services business. As a result of the agreement, the Company has one remaining reportable segment. See Notes 1 “Basis of Presentation and Nature of Business” and Note 4 “Discontinued Operations and Assets Held for Sale” for additional information.

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 gross 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 reportable segment revenue is as follows (in millions):

		Three Months Ended			Three Months Ended
		March 31,			March 31,
		2024			2023
Employer Solutions
Recurring	$		521	$		533
Project			38			43
Total Employer Solutions			559			576
Other			-			10
Total revenue	$		559	$		586

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

	Segment Profit
		Three Months Ended				Three Months Ended
		March 31,				March 31,
		2024				2023
Employer Solutions	$		182		$		187
Other			-				-
Total Gross Profit			182				187
Selling, general and administrative			146				151
Depreciation and intangible amortization			76				76
Operating Income (Loss) From Continuing Operations			(40	)			(40	)
(Gain) Loss from change in fair value of financial instruments			21				25
(Gain) Loss from change in fair value of tax receivable agreement			55				8
Interest expense			31				33
Other (income) expense, net			1				1
Income (Loss) From Continuing Operations Before Taxes	$		(148	)	$		(107	)