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Segment Information
3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 13. Segment Information

The Company operates its business through four operating and reportable segments: Capital Markets – Software Solutions, Capital Markets – Compliance and Communications Management, Investment Companies – Software Solutions and Investment Companies – Compliance and Communications Management. Corporate is not an operating segment and consists primarily of unallocated selling, general and administrative (“SG&A”) activities and associated expenses including, in part, executive, legal, finance and certain facility costs. In addition, certain costs and earnings of employee benefits plans, such as pension and other postretirement benefits plans expense (income) as well as share-based compensation expense, are included in Corporate and not allocated to the operating segments.

Capital Markets

The Company provides software solutions, tech-enabled services and print and distribution solutions to public and private companies for deal solutions and compliance to companies that are, or are preparing to become, subject to the filing and reporting requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act. Capital markets clients leverage the Company’s software offerings, proprietary technology, deep industry expertise and experience to successfully navigate the SEC’s specified file formats when submitting compliance documents through the SEC’s EDGAR system for their transactional and ongoing compliance needs. The Company assists its capital markets clients throughout the course of initial public offerings, secondary offerings, mergers and acquisitions, public and private debt offerings, leveraged buyouts, spinouts, special purpose acquisition company (“SPAC”) and de-SPAC transactions and other similar transactions. In addition, the Company provides clients with compliance solutions to prepare their ongoing required Exchange Act filings that are compatible with the SEC’s EDGAR system, most notably Form 10-K, Form 10-Q, Form 8-K and proxy filings. The Company’s operating segments associated with its capital markets services and product offerings are as follows:

Capital Markets – Software Solutions—The Company provides Venue and ActiveDisclosure to public and private companies to help manage public and private transactional and compliance processes; collaborate; and tag, validate and file SEC documents.

Capital Markets – Compliance & Communications Management—The Company provides tech-enabled services and print and distribution solutions to public and private companies for deal solutions and SEC compliance requirements.

Investment Companies

The Company provides software solutions, tech-enabled services and print, distribution and fulfillment solutions to its investment companies clients, which are primarily mutual fund companies, alternative investment companies, insurance companies and third-party fund administrators, that are subject to the filing and reporting requirements of the Investment Company Act of 1940, as amended (the “Investment Company Act”) as well as European and Canadian regulations. The Company’s suite of solutions enables its investment companies clients to comply with applicable ongoing SEC regulations, as well as to create, manage and deliver accurate and timely financial communications to investors and regulators. Investment companies clients leverage the Company’s proprietary technology, deep industry expertise and experience to successfully navigate the SEC’s specified file formats when submitting compliance documents through the SEC's EDGAR system. The Company’s operating segments associated with its investment companies services and products offerings are as follows:

Investment Companies – Software Solutions—The Company provides clients with the Arc Suite platform that contains a comprehensive suite of cloud-based solutions, including ArcDigital, ArcReporting, ArcPro and ArcRegulatory, as well as services that enable storage and management of compliance and regulatory information in a self-service, central repository so that documents can be easily accessed, assembled, edited, tagged, translated, rendered and submitted to regulators and investors.

Investment Companies – Compliance & Communications Management—The Company provides its investment companies clients tech-enabled services to prepare, file, tag and distribute registration forms, as well as iXBRL-formatted filings pursuant to the Investment Company Act, through the SEC’s EDGAR system. In addition, the Company provides print and distribution solutions for its clients to communicate with their investors.

Information by Segment

The Company has disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by the Company’s CODM and is most consistent with the presentation of profitability reported within the Unaudited Condensed Consolidated Financial Statements.

 

 

Net Sales

 

 

Income (Loss) from Operations

 

 

Assets(a)

 

 

Depreciation and Amortization

 

 

Capital Expenditures

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Markets - Software Solutions

 

$

53.0

 

 

$

9.5

 

 

$

193.8

 

 

$

6.5

 

 

$

3.7

 

Capital Markets - Compliance and Communications Management

 

 

91.1

 

 

 

38.6

 

 

 

387.6

 

 

 

2.1

 

 

 

1.9

 

Investment Companies - Software Solutions

 

 

27.3

 

 

 

3.8

 

 

 

110.7

 

 

 

4.2

 

 

 

5.1

 

Investment Companies - Compliance and Communications Management

 

 

32.0

 

 

 

7.1

 

 

 

36.4

 

 

 

1.1

 

 

 

1.1

 

Total operating segments

 

 

203.4

 

 

 

59.0

 

 

 

728.5

 

 

 

13.9

 

 

 

11.8

 

Corporate

 

 

 

 

 

(14.4

)

 

 

139.3

 

 

 

 

 

 

0.5

 

Total

 

$

203.4

 

 

$

44.6

 

 

$

867.8

 

 

$

13.9

 

 

$

12.3

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Markets - Software Solutions

 

$

43.7

 

 

$

(0.6

)

 

$

189.7

 

 

$

6.2

 

 

$

5.5

 

Capital Markets - Compliance and Communications Management

 

 

94.1

 

 

 

16.6

 

 

 

415.3

 

 

 

1.8

 

 

 

1.1

 

Investment Companies - Software Solutions

 

 

26.4

 

 

 

5.0

 

 

 

103.3

 

 

 

3.3

 

 

 

3.5

 

Investment Companies - Compliance and Communications Management

 

 

34.4

 

 

 

8.1

 

 

 

43.6

 

 

 

1.1

 

 

 

0.3

 

Total operating segments

 

 

198.6

 

 

 

29.1

 

 

 

751.9

 

 

 

12.4

 

 

 

10.4

 

Corporate

 

 

 

 

 

(14.3

)

 

 

119.4

 

 

 

 

 

 

0.2

 

Total

 

$

198.6

 

 

$

14.8

 

 

$

871.3

 

 

$

12.4

 

 

$

10.6

 

 

(a)
Certain assets are recorded within a segment based on predominant usage, however, as they benefit more than one segment, the related operating expenses are allocated between segments.