Other Financial Data

3 Months Ended

Mar. 31, 2025

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):

	March 31, 2025		December 31, 2024
Billed and unbilled receivables	$	448	$	480
Allowance for expected credit losses	(10)		(9)
Balance at end of period	$	438	$	471

Other current assets

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

	March 31, 2025		December 31, 2024
Deferred project costs	$	24	$	23
Prepaid expenses	46		56
Commissions receivable	57		89
Other	47		46
Total	$	174	$	214

Other assets

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

	March 31, 2025		December 31, 2024
Deferred project costs	$	268	$	263
Operating lease right of use asset	42		42
Commissions receivable	14		15
Other	87		102
Total	$	411	$	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 $6 million and $6 million for the three months ended March 31, 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 March 31, 2025 and December 31, 2024 were $17 million and $23 million, respectively. As of March 31, 2025 and December 31, 2024, the interest rate swap balances in Other assets also included $4 million and $8 million, respectively (see Note 13 “Derivative Financial Instruments” for additional information). As of March 31, 2025 and December 31, 2024, the balances in Other assets included $38 million and $37 million, respectively related to the Seller Note and $36 million and $50 million, respectively related to the Additional Seller Note (see Note 4 "Discontinued Operations" for additional information).

Other current liabilities

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

	March 31, 2025		December 31, 2024
Deferred revenue	$	91	$	91
Operating lease liabilities	17		17
Finance lease liabilities	21		19
Other	229		146
Total	$	358	$	273

Other liabilities

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

	March 31, 2025		December 31, 2024
Deferred revenue	$	39	$	40
Operating lease liabilities	53		56
Finance lease liabilities	39		39
Other	20		23
Total	$	151	$	158

The current and non-current portions of deferred revenue relate to consideration received in advance of performance under client contracts. During the three months ended March 31, 2025 and 2024, revenue of approximately $23 million and $24 million was recognized that was recorded as deferred revenue at the beginning of each period, respectively.

Other current liabilities as of March 31, 2025 and December 31, 2024 included the current portion of tax receivable agreement liability of $188 million and $100 million, respectively (see Note 15 "Tax Receivable Agreement" for additional information).

Other current liabilities and Other liabilities include the fair value of outstanding derivative instruments related to interest rate swaps. There were no interest rate swaps recorded in Other current liabilities as of both March 31, 2025 and December 31, 2024. The interest rate swap balance in Other liabilities as of March 31, 2025 was $1 million. There were no interest rate swaps recorded in Other liabilities as of December 31, 2024 (see Note 13 “Derivative Financial Instruments” for additional information).