Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

As disclosed above in Note 1 “Basis of Presentation and Nature of Business”, on July 12, 2024, the Company closed on its previously announced sale of the Divested Business. As a result of the Transaction, the Company has determined it has one remaining reportable segment, Employer Solutions. 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 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Employer Solutions
Recurring	$	493	$	505	$	1,014	$	1,038
Project	45		47		83		90
Total Employer Solutions	538		552		1,097		1,128
Other	—		9		—		19
Total revenue	$	538	$	561	$	1,097	$	1,147

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Employer Solutions	$	167	$	189	$	349	$	376
Other	—		(2)		—		(2)
Total Gross Profit	167		187		349		374
Selling, general and administrative	146		149		292		300
Depreciation and intangible amortization	73		74		149		150
Operating Income (Loss) From Continuing Operations	(52)		(36)		(92)		(76)
(Gain) Loss from change in fair value of financial instruments	(52)		—		(31)		25
(Gain) Loss from change in fair value of tax receivable agreement	(31)		11		24		19
Interest expense	33		33		64		66
Other (income) expense, net	—		—		1		1
Income (Loss) From Continuing Operations Before Taxes	$	(2)	$	(80)	$	(150)	$	(187)