v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of reportable segments
Selected financial information for the Company's segments is as follows:
Three Months Ended
June 30,
(in millions)CommercialGovernment
Total(1)
2026
Segment revenue$316 $215 $531 
Expenses
Wages and benefits$214 $90 $304 
Services and supplies42 57 99 
Rent lease and maintenance expense35 15 50 
Other operating expense1 2 3 
Depreciation and amortization expense17 12 29 
Segment expenses$309 $176 $485 
Segment profit (loss)$7 $39 $46 
2025
Segment revenue$365 $238 $603 
Expenses(2)
Wages and benefits$253 $91 $344 
Services and supplies47 68 115 
Rent lease and maintenance expense36 16 52 
Other operating expense2 3 5 
Depreciation and amortization expense20 11 31 
Segment expenses$358 $189 $547 
Segment profit (loss)$7 $49 $56 
__________
(1)    Total excludes Discontinued Operations and 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.
Six Months Ended
June 30,
(in millions)CommercialGovernment
Total(1)
2026
Segment revenue$677 $441 $1,118 
Expenses
Wages and benefits$449 $177 $626 
Services and supplies90 120 210 
Rent lease and maintenance expense69 30 99 
Other operating expense2 4 6 
Depreciation and amortization expense38 24 62 
Segment expenses$648 $355 $1,003 
Segment profit (loss)$29 $86 $115 
2025
Segment revenue$767 $454 $1,221 
Expenses(2)
Wages and benefits$523 $185 $708 
Services and supplies101 135 236 
Rent lease and maintenance expense74 32 106 
Other operating expense2 4 6 
Depreciation and amortization expense44 21 65 
Segment expenses$744 $377 $1,121 
Segment profit (loss)$23 $77 $100 
__________
(1)    Total excludes Discontinued Operations and 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 from continuing operations:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Segment Profit (Loss)$46 $56 $115 $100 
Reconciling items:
Unallocated costs(1)
(66)(73)(130)(158)
Amortization of acquired intangible assets(1)(1)(1)(1)
Restructuring and related costs(20)(8)(28)(12)
Interest expense(13)(12)(25)(24)
Gain (loss) on divestitures and transaction costs, net(2)(4)(3)(6)
Litigation (settlements) recoveries, net(1)— (1)(2)
Other income (expenses), net— (1)(3)(2)
Income (Loss) Before Income Taxes From Continuing Operations$(57)$(43)$(76)$(105)
(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 six months ended June 30, 2026 period are $4 million of former CEO separation costs and a benefit related to a stock compensation plan change as described in Note 13 – Preferred Stock and Common Stock. Included in the six months ended June 30, 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. Additionally, Unallocated Costs includes certain indirect costs that are no longer allocated to the former Transportation segment, which is now classified as Discontinued Operations.