Assets Held for Sale and Discontinued Operations

During the third quarter of 2026, we executed a definitive commercial agreement to sell our LS&H business. The transaction

closed on October 6, 2026 and we received $488.4 in cash at close (net of closing costs and after giving effect to the working

capital adjustment mechanisms in the purchase agreement), a $75.0 unsecured senior note, and deferred cash consideration of

$25.0 payable upon the later of the completion of a transition services agreement and January 31, 2028 (but no later than

January 31, 2028, in any case). The divestiture is part of the previously announced strategic shift that will allow us to increase

our focus on our A&G and IP businesses and strengthen our balance sheet through reduced indebtedness.

During the second quarter of 2026, we recognized a $221.7 goodwill impairment charge because the estimated fair value of

the LS&H reporting unit, as indicated by the anticipated sale price under negotiation, was below its carrying amount. During

the three months ended September 30, 2026, we recognized a $62.2 goodwill impairment charge based on the carrying value

of the LS&H net assets held for sale as of September 30, 2026 and a $10.1 loss on the classification of the LS&H segment as

held for sale. This amount is subject to adjustment during the fourth quarter of 2026 based on the carrying value of LS&H net

assets as of the close date.

We determined that the criteria for held-for-sale classification and discontinued operations presentation were met as of

September 30, 2026. Accordingly, the operating results of the LS&H segment have been reported as discontinued operations

and excluded from continuing operations in the Condensed Consolidated Statements of Operations for all periods presented.

In addition, the related assets and liabilities have been reclassified to assets held for sale and liabilities held for sale in the

Condensed Consolidated Balance Sheets. Disposal group net assets are recorded at the lower of their carrying amount or

estimated fair value less costs to sell. Prior period amounts have been reclassified to conform to current period presentation.

The following table summarizes the carrying amounts of the major classes of assets and liabilities classified as held for sale in

the Condensed Consolidated Balance Sheets as of the periods indicated:


	September 30, 2026	December 31, 2025
ASSETS
Accounts receivable, net	$54.3	$124.9
Prepaid expenses	13.0	15.0
Other current assets	3.3	2.9
Current assets held for sale	$70.6	$142.8
Property and equipment, net	1.0	0.7
Other intangible assets, net	484.0	492.2
Goodwill	193.9	477.8
Other non-current assets	8.0	8.2
Deferred income taxes	0.8	1.1
Operating lease right-of-use assets	2.1	1.2
Valuation allowance on disposal group classified as held for sale	(10.1)	–
Non-current assets held for sale	$679.7	$981.2
LIABILITIES
Accounts payable	$6.0	$11.8
Accrued compensation	24.1	32.1
Accrued expenses and other current liabilities	10.3	13.0
Current portion of deferred revenues	103.7	141.2
Current portion of operating lease liability	0.4	0.6
Current liabilities held for sale	$144.5	$198.7
Other non-current liabilities	5.0	5.1
Deferred income taxes	9.0	10.3
Operating lease liabilities	1.8	0.6
Non-current liabilities held for sale	$15.8	$16.0

The following table summarizes the financial results of our discontinued operations, presented as Income (loss) from

discontinued operations in the Condensed Consolidated Statements of Operations for the periods indicated:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Revenues	$86.3	$92.8	$268.3	$291.5
Operating expenses:
Cost of revenues	35.5	39.7	109.7	117.5
Selling, general and administrative costs	30.4	24.3	75.6	76.3
Depreciation and amortization	–	23.2	47.3	68.9
Goodwill and intangible asset impairments	62.2	–	283.9	–
Loss on classification as held for sale	10.1	–	10.1	–
Restructuring costs	0.4	4.0	4.1	11.6
Other operating expense (income), net	(0.1)	3.5	1.2	2.2
Total operating expenses	138.5	94.7	531.9	276.5
Provision (benefit) for income taxes	2.2	1.5	3.7	5.9
Income (loss) from discontinued operations, net of taxes	$(54.4)	$(3.4)	$(267.3)	$9.1

The following table presents depreciation and amortization, capital expenditures, and other significant noncash operating and

investing activities, as applicable, from discontinued operations that are included in the accompanying Condensed

Consolidated Statements of Cash Flows:


	Nine Months Ended September 30,
	2026	2025
Depreciation and amortization	$47.3	$68.9
Capital expenditures	40.9	43.9
Goodwill and intangible asset impairments	283.9	–
Loss on classification as held for sale	10.1	–
Share-based compensation	8.2	8.5