Other Financial Data

9 Months Ended

Sep. 30, 2025

5. Other Financial Data

Condensed Consolidated Balance Sheets Information

Receivables, net

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


	September 30, 2025		December 31, 2024
Billed and unbilled receivables	$	408	$	480
Allowance for expected credit losses	(9)		(9)
Balance at end of period	$	399	$	471

Other current assets

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


	September 30, 2025		December 31, 2024
Deferred project costs	$	29	$	23
Prepaid expenses	59		56
Commissions receivable	27		89
Other	60		46
Total	$	175	$	214

Other assets

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


	September 30, 2025		December 31, 2024
Deferred project costs	$	274	$	263
Operating lease right of use asset	40		42
Commissions receivable	10		15
Other	55		102
Total	$	379	$	422

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”). Total amortization expense related to deferred project costs was $8 million and $6 million for the three months ended September 30, 2025 and 2024, respectively, and was $21 million and $18 million for the nine months ended September 30, 2025 and 2024, respectively, and were recorded in Cost of services, exclusive of depreciation and amortization in the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss).

Other current assets and Other assets include the fair value of outstanding derivative instruments related to interest rate swaps. The interest rate swap balances in Other current assets as of September 30, 2025 and December 31, 2024 were $8 million and $23 million, respectively. As of September 30, 2025 and December 31, 2024, the interest rate swap balances

in Other assets were $1 million and $8 million, respectively (see Note 13 “Derivative Financial Instruments” for additional information). As of September 30, 2025 and December 31, 2024, the balances in Other assets included $41 million and $37 million, respectively, related to the Seller Note. As of September 30, 2025 and December 31, 2024, the balance in Other assets also included the fair value of the Additional Seller Note of zero and $50 million, respectively (see Note 4 "Discontinued Operations" and Note 14 "Financial Instruments" for additional information).

Other current liabilities

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


	September 30, 2025		December 31, 2024
Deferred revenue	$	90	$	91
Operating lease liabilities	18		17
Finance lease liabilities	20		19
Current portion of tax receivable agreement liability	164		100
Other	42		46
Total	$	334	$	273

Other liabilities

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


	September 30, 2025		December 31, 2024
Deferred revenue	$	37	$	40
Operating lease liabilities	53		56
Finance lease liabilities	32		39
Other	21		23
Total	$	143	$	158

The current and non-current portions of deferred revenue relate to consideration received in advance of performance under client contracts. During the nine months ended September 30, 2025 and 2024, revenue of approximately $69 million and $73 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 interest rate swap balance in Other current liabilities as of September 30, 2025 was $1 million. There were no interest rate swaps recorded in Other current liabilities as of December 31, 2024. There were no interest rate swaps recorded in Other liabilities as of both September 30, 2025 and December 31, 2024 (see Note 13 “Derivative Financial Instruments” for additional information).