Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The company’s reportable segments are as follows:

•Digital Workplace Solutions (DWS), which provides modern and traditional workplace solutions;

•Cloud, Applications & Infrastructure Solutions (CA&I), which provides digital platform, applications, and infrastructure solutions; and

•Enterprise Computing Solutions (ECS), which provides solutions that harness secure, continuous high-intensity computing and enable digital services through software-defined operating environments.

The accounting policies of each segment are the same as those followed by the company as a whole. The company evaluates segment performance based on gross profit exclusive of the service cost component of postretirement income or expense, restructuring charges, amortization of purchased intangibles and unusual and nonrecurring items, which are included in other gross profit.

A summary of the company’s operations by segment is presented below:

	Total Segments		DWS		CA&I		ECS
Three Months Ended September 30, 2023
Revenue	$	396.6	$	140.9	$	133.5	$	122.2
Gross profit	$	102.7	$	20.9	$	20.4	$	61.4
Three Months Ended September 30, 2022
Revenue	$	390.1	$	130.1	$	122.3	$	137.7
Gross profit	$	107.3	$	19.7	$	6.8	$	80.8

	Total Segments		DWS		CA&I		ECS
Nine Months Ended September 30, 2023
Revenue	$	1,244.0	$	406.9	$	392.1	$	445.0
Gross profit	$	373.8	$	54.9	$	59.2	$	259.7
Nine Months Ended September 30, 2022
Revenue	$	1,207.7	$	382.1	$	381.5	$	444.1
Gross profit	$	339.7	$	52.2	$	20.9	$	266.6

Presented below is a reconciliation of total segment revenue to total consolidated revenue:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total segment revenue	$	396.6	$	390.1	$	1,244.0	$	1,207.7
Other revenue	68.0		71.1		213.8		215.2
Total consolidated revenue	$	464.6	$	461.2	$	1,457.8	$	1,422.9

Presented below is a reconciliation of total segment gross profit to consolidated loss before income taxes:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total segment gross profit	$	102.7	$	107.3	$	373.8	$	339.7
Other gross profit	(7.4)		(3.0)		(3.7)		0.1
Total gross profit	95.3		104.3		370.1		339.8
Selling, general and administrative expense	(108.1)		(106.3)		(321.3)		(320.3)
Research and development expense	(4.3)		(6.0)		(15.9)		(17.3)
Interest expense	(7.8)		(7.9)		(22.9)		(24.6)
Other (expense), net	(3.6)		(23.3)		(217.2)		(66.2)
Total loss before income taxes	$	(28.5)	$	(39.2)	$	(207.2)	$	(88.6)

Other revenue and other gross profit are comprised of an aggregation of a number of immaterial business activities and cost reductions charges. These businesses principally provide for the management of processes and functions for clients in select industries, helping them improve performance and reduce costs.

Geographic information about the company’s revenue, which is principally based on location of the selling organization, is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
United States	$	217.4	$	208.9	$	630.6	$	643.5
United Kingdom	54.9		59.0		228.4		181.7
Other foreign	192.3		193.3		598.8		597.7
Total	$	464.6	$	461.2	$	1,457.8	$	1,422.9