Other Financial Data

3 Months Ended

Mar. 31, 2026

5. Other Financial Data

Condensed Consolidated Balance Sheets Information

Receivables, net

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


	March 31, 2026		December 31, 2025
Billed and unbilled receivables	$	364	$	393
Allowance for expected credit losses	(5)		(6)
Balance at end of period	$	359	$	387

Other current assets

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


	March 31, 2026		December 31, 2025
Deferred project costs	$	33	$	30
Prepaid expenses	56		55
Commissions receivable	52		90
Other	64		59
Total	$	205	$	234

Other assets

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


	March 31, 2026		December 31, 2025
Deferred project costs	$	274	$	276
Operating lease right of use asset	36		36
Commissions receivable	6		7
Other	66		58
Total	$	382	$	377

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 $11 million and $6 million for the three months ended March 31, 2026 and 2025, 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, 2026 and December 31, 2025 were $5 million and $5 million, respectively. As of March 31, 2026 and December 31, 2025, there were no interest rate swap balances in Other assets (see Note 13 “Derivative Financial Instruments” for additional information). As of March 31, 2026 and December 31, 2025, the balances in Other assets included $44 million and $42 million, respectively, related to the Seller Note.

Other current liabilities

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


	March 31, 2026		December 31, 2025
Deferred revenue	$	108	$	112
Operating lease liabilities	19		18
Finance lease liabilities	21		20
Current portion of tax receivable agreement liability	20		156
Other	51		47
Total	$	219	$	353

Other liabilities

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


	March 31, 2026		December 31, 2025
Deferred revenue	$	35	$	36
Operating lease liabilities	50		49
Finance lease liabilities	24		27
Other	24		29
Total	$	133	$	141

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, 2026 and 2025, revenue of approximately $28 million and $23 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 both March 31, 2026 and December 31, 2025 were $1 million and $1 million, respectively. There were no interest rate swaps recorded in Other liabilities as of both March 31, 2026 and December 31, 2025, respectively (see Note 13, “Derivative Financial Instruments” for additional information).