Operating Segments | 16. Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets or reports material revenues. A description of the Company's operating segments is contained in Note 23 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2015. The reconciliation of the reportable segments revenue to revenue from external customers for the three months ended March 31, 2016 and 2015, respectively, is as follows: Revenue From Reportable Inter external Segment segment customers South African transaction processing $ 50,594 $ 5,621 $ 44,973 International transaction processing 40,588 - 40,588 Financial inclusion and applied technologies 54,286 5,111 49,175 Total for the three months ended March 31, 2016 145,468 10,732 134,736 South African transaction processing 57,999 5,359 52,640 International transaction processing 38,311 - 38,311 Financial inclusion and applied technologies 66,830 6,660 60,170 Total for the three months ended March 31, 2015 $ 163,140 $ 12,019 $ 151,121 The reconciliation of the reportable segments revenue to revenue from external customers for the nine months ended March 31, 2016 and 2015, respectively, is as follows: Revenue From Reportable Inter external Segment segment customers South African transaction processing $ 158,997 $ 12,598 $ 146,399 International transaction processing 122,653 - 122,653 Financial inclusion and applied technologies 187,332 16,894 170,438 Total for the nine months ended March 31, 2016 468,982 29,492 439,490 South African transaction processing 176,678 15,917 160,761 International transaction processing 121,981 - 121,981 Financial inclusion and applied technologies 199,558 20,607 178,951 Total for the nine months ended March 31, 2015 $ 498,217 $ 36,524 $ 461,693 The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and allocation of expenses allocated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measure of profit or loss to income before income taxes for the three and nine months ended March 31, 2016 and 2015, respectively, is as follows: Three months ended Nine months ended March 31, March 31, 2016 2015 2016 2015 Reportable segments measure of profit or loss $ 29,415 $ 37,703 $ 95,862 $ 112,751 Operating income: Corporate/Eliminations (3,224 ) (5,737 ) (13,677 ) (16,845 ) Interest income 3,345 4,211 11,284 11,888 Interest expense (852 ) (941 ) (2,880 ) (3,360 ) Income before income taxes $ 28,684 $ 35,236 $ 90,589 $ 104,434 The following tables summarize segment information which is prepared in accordance with GAAP for the three and nine months ended March 31, 2016 and 2015: Three months ended Nine months ended March 31, March 31, 2016 2015 2016 2015 Revenues South African transaction processing $ 50,594 $ 57,999 $ 158,997 $ 176,678 International transaction processing 40,588 38,311 122,653 121,981 Financial inclusion and applied technologies 54,286 66,830 187,332 199,558 Total 145,468 163,140 468,982 498,217 Operating income (loss) South African transaction processing 13,133 13,218 38,724 39,740 International transaction processing 4,813 6,579 15,596 19,671 Financial inclusion and applied technologies 11,469 17,906 41,542 53,340 Subtotal: Operating segments 29,415 37,703 95,862 112,751 Corporate/Eliminations (3,224 ) (5,737 ) (13,677 ) (16,845 ) Total 26,191 31,966 82,185 95,906 Depreciation and amortization South African transaction processing 1,463 1,726 4,858 5,271 International transaction processing 5,232 4,560 15,991 13,224 Financial inclusion and applied technologies 272 207 844 589 Subtotal: Operating segments 6,967 6,493 21,693 19,084 Corporate/Eliminations 2,314 3,567 8,289 11,307 Total 9,281 10,060 29,982 30,391 Expenditures for long-lived assets South African transaction processing 926 1,514 3,469 3,678 International transaction processing 6,864 4,561 23,107 20,167 Financial inclusion and applied technologies 263 232 2,122 977 Subtotal: Operating segments 8,053 6,307 28,698 24,822 Corporate/Eliminations - - - - Total $ 8,053 $ 6,307 $ 28,698 $ 24,822 The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. It is impractical to disclose revenues from external customers for each product and service or each group of similar products and services. |