v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting
12. Segment Reporting
As disclosed above in Note 1 “Basis of Presentation and Nature of Business”, on July 12, 2024, the Company closed on its previously announced sale of the Divested Business. As a result of the Transaction, the Company has
determined it has one reportable segment, Employer Solutions. See Notes 1 “Basis of Presentation and Nature of Business” and Note 4 “Discontinued Operations” for additional information.
The Company’s reportable segments have been determined using a management approach, which is consistent with the basis and manner in which the Company’s chief operating decision maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance. The Company’s Chief Executive Officer is its CODM. The CODM evaluates the performance of the Company based on its total revenue and segment profit.
The CODM also uses revenue and segment gross profit to manage and evaluate our business, make planning decisions, and as performance measures for Company-wide bonus plans. These key financial measures provide an additional view of our operational performance over the long-term and provide useful information that we use in order to maintain and grow our business. The Company does not report assets by reportable segments as this information is not reviewed by the CODM on a regular basis.
Information regarding the Company’s reportable segment revenue is as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Employer Solutions
Recurring$504 $497 $1,518 $1,535 
Project51 53 134 143 
Total Employer Solutions555 550 1,652 1,678 
Other— 7 — 26 
Total revenue$555 $557 $1,652 $1,704 
There was no single client who accounted for more than 10% of the Company’s revenues in any of the periods presented.
Segment Profit
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Employer Solutions$174 $166 $523 $542 
Other— — — (2)
Total Gross Profit174 166 523 540 
Selling, general and administrative142 136 434 436 
Depreciation and intangible amortization74 75 223 225 
Operating Income (Loss) From Continuing Operations(42)(45)(134)(121)
(Gain) Loss from change in fair value of financial instruments(23)(36)(54)(11)
(Gain) Loss from change in fair value of tax receivable agreement27 11 51 30 
Interest expense19 34 83 100 
Other (income) expense, net(12)— (11)1 
Income (Loss) From Continuing Operations Before Taxes$(53)$(54)$(203)$(241)