v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company's reportable segments correspond to how it organizes and manages the business, as defined by the Company's Chief Executive Officer, who is also its Chief Operating Decision Maker ("CODM"), and are aligned to the industries in which the Company's clients operate. The Company's segments involve the delivery of business process services and include service arrangements where it manages a customer's business activity or process.
The Company's CODM evaluates the Company's financial performance based on Segment profit (loss) for its three reportable segments - Commercial, Government and Transportation. The Company's CODM uses Segment profit (loss) information to monitor budget versus actual results and then uses this information to help make informed decisions about future resource investment, potential restructuring of segments to enhance overall company performance, and future divestitures and acquisitions.
The Company's CODM does not evaluate operating segments using discrete asset information as a significant portion of the assets is managed at the total company level.
A description of the Company's reportable segments is as follows:
•Commercial: The Commercial segment provides business process services that span its clients' businesses end-to-end from the front-office to the back-office for a variety of commercial industries. These solutions are both cross-industry and industry-specific in nature. Across the Commercial segment, the Company operates on its clients’ behalf to deliver mission-critical solutions and services to reduce costs, improve efficiencies and enable revenue growth for the Company's clients and deliver better experiences for their consumers and employees.
•Government: The Government segment provides government-centric services and solutions to U.S. federal, state, local and foreign governments for public assistance, healthcare programs administration, transaction processing, eligibility and enrollment processing, payment services and case management. In this segment, the Company helps governments respond to changing rules for eligibility and keep pace with increasing citizen expectations, modernize legacy technology systems, combat benefits fraud and adapt to an evolving regulatory environment.
•Transportation: The Transportation segment provides government agencies and transportation authorities around the world with systems, support and revenue-generating solutions serving toll and fare collections as well as mobility and digital payments that help streamline operations and increase revenue to government transportation agencies. With an expanded focus on sustainability and enhancing the quality of life for citizens and communities around the world, the Company's solutions help reduce congestion and greenhouse emissions, while creating seamless travel experiences for consumers throughout transportation ecosystems.
Selected financial information for the Company's segments is as follows:
Three Months Ended
March 31,
(in millions)CommercialGovernmentTransportation
Total(1)
2026
Segment revenue$361 $226 $136 $723 
Expenses
Wages and benefits$236 $87 $63 $386 
Services and supplies48 63 63 174 
Rent lease and maintenance expense34 15 12 61 
Other operating expense1 2 2 5 
Depreciation and amortization expense20 12 7 39 
Segment expenses$339 $179 $147 $665 
Segment profit (loss)$22 $47 $(11)$58 
2025
Segment revenue$402 $216 $133 $751 
Expenses(2)
Wages and benefits$270 $95 $60 $425 
Services and supplies54 66 52 172 
Rent lease and maintenance expense38 16 13 67 
Other operating expense— 1 2 3 
Depreciation and amortization expense24 10 8 42 
Segment expenses$386 $188 $135 $709 
Segment profit (loss)$16 $28 $(2)$42 
__________
(1)    Total excludes Unallocated Costs.
(2)    In the first quarter of 2026, the Company revised its methodology for allocating certain technology costs to the expense categories within its reportable segments. The prior year's expenses have been reclassified to conform to the current year's methodology. This update had no impact on total segment expenses by reportable segment or on total expenses by expense category.

Other operating expense shown above is primarily comprised of third-party legal fees and other miscellaneous expenses.
The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:
Three Months Ended
March 31,
(in millions)20262025
Segment Profit (Loss)$58 $42 
Reconciling items:
Unallocated costs(1)
(60)(78)
Amortization of acquired intangible assets(1)— 
Restructuring and related costs(8)(4)
Interest expense(12)(12)
Gain (loss) on divestitures and transaction costs, net(3)(3)
Litigation (settlements) recoveries, net— (2)
Other income (expenses), net(1)1 
Income (Loss) Before Income Taxes$(27)$(56)
(1)    Unallocated Costs includes IT infrastructure costs that are shared by multiple reportable segments, enterprise application costs and certain corporate overhead expenses not directly attributable or allocated to the reportable segments. Included in the three months ended March 31, 2026 period are $4 million of former CEO separation costs and a benefit related to a stock compensation plan change as described in Note 12 – Preferred Stock and Common Stock. Included in the three months ended March 31, 2025 period are $25 million of Direct response costs related to the January 2025 Cyber Event as well as a $9 million insurance recovery related to the 2019 Texas Matter.
Refer to Note 3 – Revenue for additional information on disaggregated revenues of the reportable segments.