Divestitures (Tables)

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Summarized Financial Information - Discontinued Operations

Summarized financial information for our Discontinued Operations is as follows:

	Year Ended December 31, 2016
	Conduent			ITO		Total
Revenue	$	6,355		$	—	$	6,355
Loss from operations	$	(1,343	)	$	—	$	(1,343	)
Loss on disposal	—			—		—
Net loss before income taxes	(1,343		)	—		(1,343		)
Income tax benefit	250			—		250
Loss from discontinued operations, net of tax	$	(1,093	)	$	—	$	(1,093	)

	Year Ended December 31, 2015
	Conduent			ITO			Total
Revenue	$	6,604		$	619		$	7,223
(Loss) income from operations	$	(511	)	$	104		$	(407	)
Loss on disposal	—			(101		)	(101		)
Net (loss) income before income taxes	(511		)	3			(508		)
Income tax benefit (expense)	215			(81		)	134
Loss from discontinued operations, net of tax	$	(296	)	$	(78	)	$	(374	)

	Year Ended December 31, 2014
	Conduent			ITO			Other			Total
Revenue	$	6,885		$	1,320		$	45		$	8,250
Income (loss) from operations	$	116		$	74		$	(1	)	$	189
Loss on disposal	—			(181		)	(1		)	(182		)
Net income (loss) before income taxes	116			(107		)	(2		)	7
Income tax expense	(17		)	(5		)	(1		)	(23		)
Income (loss) from discontinued operations, net of tax	$	99		$	(112	)	$	(3	)	$	(16	)

The following is a summary of disclosed acquisitions over the past three years that were part of the Distribution of Conduent at December 31, 2016.

Acquisition	Date of Acquisition	Acquisition Price
RSA Medical LLC (RSA Medical)	September 2015	$	141
Intellinex LLC	January 2015	28
Consilience Software, Inc. (Consilience)	September 2014	25
ISG Holdings, Inc. (ISG)	May 2014	225
Invoco Holding GmbH (Invoco)	January 2014	54

The balance Due from Conduent includes the following amounts:

Due from\(to) Conduent	December 31, 2016
Cash adjustment	$	161
Taxes payable	(32		)
Other	(2		)
Total Due from Conduent	$	127

Discontinued Operations - Balance Sheet

The balances as of December 31, 2015 are presented for comparative purposes and are included in Assets and Liabilities of discontinued operations in the Consolidated Balance Sheet at December 31, 2015:

	December 31, 2016		December 31, 2015
Cash and cash equivalents	$	390	$	140
Accounts receivable, net	1,287		1,251
Other current assets	239		227
Total current assets of discontinued operations	1,916		1,618
Land, buildings and equipment, net	283		279
Intangible assets, net	1,144		1,425
Goodwill	3,889		4,872
Other long-term assets	477		609
Total long-term assets of discontinued operations	5,793		7,185
Total Assets of Discontinued Operations	$	7,709	$	8,803
Current portion of long-term debt	$	28	$	23
Accounts payable	159		272
Accrued pension and benefit costs	284		245
Unearned income	208		226
Other current liabilities	742		861
Total current liabilities of discontinued operations	1,421		1,627
Long-term debt	1,913		37
Pension and other benefit liabilities	173		153
Other long-term liabilities	757		932
Total long-term liabilities of discontinued operations	2,843		1,122
Total Liabilities of Discontinued Operations	$	4,264	$	2,749

Discontinued operations, Conduent, costs and expenses [Text Block]

The following is a summary of selected financial information of Conduent for the three years ended December 31, 2016:

	Year Ended December 31,
	2016		2015		2014
Cost and Expenses:
Cost of services	$	5,456	$	5,923	$	5,749
Other Expenses (1)	2,065		1,192		1,020
Total Costs and Expenses	$	7,521	$	7,115	$	6,769
Selected amounts included in Costs and Expenses:
Depreciation of buildings and equipment	$	130	$	126	$	145
Amortization of internal use software	49		51		52
Amortization of product software	61		65		58
Amortization of acquired intangible assets	280		250		250
Amortization of customer contract costs	93		108		122
Operating lease rent expense	378		389		385
Defined contribution plans	35		34		31
Interest expense (2)	13		8		11
Goodwill impairment charge(3)	935		—		—
Expenditures:
Cost of additions to land, buildings and equipment	$	150	$	126	$	144
Cost of additions to internal use software	39		26		26
Customer-related deferred set-up/transition and inducement costs	62		55		55

_____________

(1) 2016 amount excludes $159 of Separation related costs and $18 of interest on the $1.0 billion Senior Unsecured Term Facility, which was required to be repaid upon completion of the Separation, and therefore was also reported in the loss from discontinued operations.

(2) Represents interest on Conduent third-party borrowings only that were transferred to Conduent as part of the Distribution. 2016 amount excludes $18 of interest associated with the $1.0 billion Senior Unsecured Term Facility noted above. No additional interest expense was allocated to discontinued operations for the three years ended December 31, 2016.

(3) Prior to the Separation and Distribution of Conduent, in connection with the annual goodwill impairment test, a pre-tax goodwill impairment charge was recorded in the fourth quarter 2016 associated with the Commercial Services reporting unit of the BPO business.