Other Financial Data

9 Months Ended

Sep. 30, 2024

5. Other Financial Data

Condensed Consolidated Balance Sheets Information

Receivables, net

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


	September 30, 2024		December 31, 2023
Billed and unbilled receivables	$	463	$	442
Allowance for expected credit losses	(10)		(7)
Balance at end of period	$	453	$	435

Other current assets

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


	September 30, 2024		December 31, 2023
Deferred project costs	$	23	$	20
Prepaid expenses	67		48
Commissions receivable	34		107
Other	62		85
Total	$	186	$	260

Other assets

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


	September 30, 2024		December 31, 2023
Deferred project costs	$	255	$	240
Operating lease right of use asset	52		55
Commissions receivable	17		22
Other	119		24
Total	$	443	$	341

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 were $6 million and $6 million, for the three months ended September 30, 2024 and 2023, respectively, and were $18 million and $18 million, for the nine months ended September 30, 2024 and 2023, 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 September 30, 2024 and December 31, 2023 were $26 million and $60 million, respectively. As of September 30, 2024 and December 31, 2023, the interest rate swap balances in Other assets also included $4 million and $17 million, respectively (see Note 13 “Derivative Financial Instruments” for additional information). Other assets also includes the Seller Note and Additional Seller Note (see Note 4 "Discontinued Operations" for additional information). As of September 30, 2024, the balances in Other assets includes $36 million related to the Seller Note and $72 million from the Additional Seller Note.

Other current liabilities

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


	September 30, 2024		December 31, 2023
Deferred revenue	$	73	$	97
Operating lease liabilities	20		27
Finance lease liabilities	18		10
Other	194		99
Total	$	305	$	233

Other liabilities

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


	September 30, 2024		December 31, 2023
Deferred revenue	$	41	$	45
Operating lease liabilities	59		65
Finance lease liabilities	33		6
Other	27		26
Total	$	160	$	142

The current and non-current portions of deferred revenue relate to consideration received in advance of performance under client contracts. During the nine months ended September 30, 2024 and 2023, revenue of approximately $68 million and $92 million was recognized that was recorded as deferred revenue at the beginning of each period, respectively.

Other current liabilities as of September 30, 2024 and December 31, 2023 included the current portion of tax receivable agreement liability of $119 million and $62 million, respectively (see Note 15 "Tax Receivable Agreement" for additional information).

Other current liabilities and Other liabilities include the fair value of outstanding derivative instruments related to interest rate swaps. There were no interest rate swaps recorded in Other current liabilities as of both September 30, 2024 and December 31, 2023. The balance in Other liabilities as of each of September 30, 2024 and December 31, 2023 was $3 million (see Note 13 “Derivative Financial Instruments” for additional information).