Divestitures (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017
	Conduent			ITO		Total
Revenue	$	—		$	—	$	—
Loss from operations(1)	$	(9	)	$	—	$	(9	)
Loss on disposal	—			—		—
Net loss before income taxes	(9		)	—		(9		)
Income tax benefit(2)	12			—		12
Income from discontinued operations, net of tax	$	3		$	—	$	3

_____________

(1) 2017 includes $9 of Separation related costs.

(2) Primarily reflects changes in estimates.

	Year Ended December 31, 2016
	Conduent			ITO		Total
Revenue	$	6,355		$	—	$	6,355
Loss from operations(1)	$	(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	)

_____________

(1) 2016 includes $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.

	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	)

The balance Due from Conduent at December 31, 2016 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, Conduent, costs and expenses

The following is a summary of selected financial information of Conduent for the years ended December 31, 2016 and 2015:

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

_____________

(1) 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 year ended December 31, 2016 and 2015.

(2) 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.

Discontinued Operations - Conduent Balance Sheet

The following is a summary of the major categories of assets and liabilities that were transferred to Conduent as of December 31, 2016:

	December 31, 2016
Cash and cash equivalents	$	390
Accounts receivable, net	1,287
Other current assets	239
Total current assets of discontinued operations	1,916
Land, buildings and equipment, net	283
Intangible assets, net	1,144
Goodwill	3,889
Other long-term assets	477
Total long-term assets of discontinued operations	5,793
Total Assets of Discontinued Operations	$	7,709
Current portion of long-term debt	$	28
Accounts payable	159
Accrued pension and benefit costs	284
Unearned income	208
Other current liabilities	742
Total current liabilities of discontinued operations	1,421
Long-term debt	1,913
Pension and other benefit liabilities	173
Other long-term liabilities	757
Total long-term liabilities of discontinued operations	2,843
Total Liabilities of Discontinued Operations	$	4,264