Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2026

Selected financial information for the Company's segments is as follows:


	Three Months Ended March 31,
(in millions)	Commercial		Government		Transportation		Total(1)
2026
Segment revenue	$	361	$	226	$	136	$	723

Expenses
Wages and benefits	$	236	$	87	$	63	$	386
Services and supplies	48		63		63		174
Rent lease and maintenance expense	34		15		12		61
Other operating expense	1		2		2		5
Depreciation and amortization expense	20		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 supplies	54		66		52		172
Rent lease and maintenance expense	38		16		13		67
Other operating expense	—		1		2		3
Depreciation and amortization expense	24		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.

Reconciliation to pre-tax income (loss)

The following is a reconciliation of Segment profit (loss) to Income (loss) before income taxes:


	Three Months Ended March 31,
(in millions)		2026		2025
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.