Other Financial Data

9 Months Ended

Sep. 30, 2021

Other Financial Data [Abstract]

Other Financial Data

5. Other Financial Data

Condensed Consolidated Balance Sheets Information

Receivables, net

The components of Receivables, net are as follows (in millions):

	Successor			Predecessor
	September 30,			December 31,
	2021			2020
Billed and unbilled receivables	$	509		$	547
Allowance for expected credit losses		(4	)			(15	)
Balance at end of period	$	505		$		532

As a result of the Business Combination, all receivables acquired were recorded at preliminary fair value and allowance for expected credit losses previously recorded by the Predecessor was reduced to zero as of July 1, 2021 (see Note 4 “Acquisitions”). The Company has not experienced significant write-downs in its receivable balances.

Other current assets

The components of Other current assets are as follows (in millions):

	Successor		Predecessor
	September 30,		December 31,
	2021		2020
Deferred project costs	$	39	$	53
Prepaid expenses		65		57
Commissions receivable		35		32
Other		33		21
Total	$	172	$	163

Other assets

The components of Other assets are as follows (in millions):

	Successor		Predecessor
	September 30,		December 31,
	2021		2020
Deferred project costs	$	252	$	228
Operating lease right of use asset		144		129
Commissions receivable		33		25
Other		27		26
Total	$	456	$	408

The current and non-current portions of deferred project costs relate to costs to obtain and fulfill contracts (see Note 3 “Revenue from Contracts with Customers”). During the Successor three months ended September 30, 2021 and the Predecessor six months ended June 30, 2021 and three and nine months ended September 30, 2020, total amortization expense of $17 million, $33 million, $15 million and $47 million was recorded in Cost of services, exclusive of depreciation and amortization in the Condensed Consolidated Statements of Comprehensive Income (Loss), respectively.

Other assets include the fair value of outstanding derivative instruments related to interest rate swaps. The balance in Other assets as of September 30, 2021 was $5 million (see Note 13 “Derivative Financial Instruments” for further information).

Fixed assets, net

The components of Fixed assets, net are as follows (in millions):

	Successor		Predecessor
	September 30,		December 31,
	2021		2020
Capitalized software	$	40	$	242
Leasehold improvements		39		63
Computer equipment		98		192
Furniture, fixtures and equipment		12		21
Construction in progress		44		28
Total Fixed assets, gross		233		546
Less: Accumulated depreciation		14		212
Fixed assets, net	$	219	$	334

As a result of the Business Combination, all fixed assets acquired were recorded at preliminary fair value and accumulated depreciation previously recorded by the Predecessor was reduced to zero as of July 1, 2021 (see Note 4 “Acquisitions”). In addition, as part of the purchase price accounting for the Business Combination, Capitalized software related to internally developed software in-service as of the Closing Date was reclassified and included in the preliminary fair value of the Technology related intangible assets acquired.

Included in Computer equipment are assets under finance leases. The balances as of September 30, 2021 and December 31, 2020, net of accumulated depreciation related to these assets, were $67 million and $83 million, respectively.

Other current liabilities

The components of Other current liabilities are as follows (in millions):

	Successor		Predecessor
	September 30,		December 31,
	2021		2020
Deferred revenue	$	123	$	148
Operating lease liabilities		53		41
Finance lease liabilities		28		28
Other		85		107
Total	$	289	$	324

Other liabilities

The components of Other liabilities are as follows (in millions):

	Successor		Predecessor
	September 30,		December 31,
	2021		2020
Deferred revenue	$	54	$	60
Operating lease liabilities		132		155
Finance lease liabilities		40		59
Unrecognized tax positions		49		48
Other		83		125
Total	$	358	$	447

The current and non-current portions of deferred revenue relates to consideration received in advance of performance under client contracts. During the Successor three months ended September 30, 2021 and the Predecessor six months ended June 30, 2021 and nine months ended September 30, 2020, revenue of approximately $22 million, $101 million, and $152 million was recognized that was recorded as deferred revenue at the beginning of each period, respectively.

Other current liabilities and Other liabilities include the fair value of outstanding derivative instruments related to interest rate swaps. The balances in Other current liabilities as of September 30, 2021 and December 31, 2020 were $12 million and $28 million, respectively. The balances in Other liabilities as of September 30, 2021 and December 31, 2020 were $1 million and $19 million, respectively (see Note 13 “Derivative Financial Instruments” for further information).