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, 2016. The reconciliation of the reportable segments revenue to revenue from external customers for the three months ended December 31, 2016 and 2015, respectively, is as follows: Revenue From Reportable Inter external Segment segment customers South African transaction processing $ 59,862 $ 5,395 $ 54,467 International transaction processing 44,000 - 44,000 Financial inclusion and applied technologies 59,258 6,292 52,966 Total for the three months ended December 31, 2016 $ 163,120 $ 11,687 $ 151,433 South African transaction processing $ 52,764 $ 3,350 $ 49,414 International transaction processing 40,836 - 40,836 Financial inclusion and applied technologies 65,686 5,655 60,031 Total for the three months ended December 31, 2015 $ 159,286 $ 9,005 $ 150,281 The reconciliation of the reportable segments revenue to revenue from external customers for the six months ended December 31, 2016 and 2015, respectively, is as follows: Revenue From Reportable Inter external Segment segment customers South African transaction processing $ 117,430 $ 10,796 $ 106,634 International transaction processing 90,190 - 90,190 Financial inclusion and applied technologies 122,800 12,558 110,242 Total for the six months ended December 31, 2016 $ 330,420 $ 23,354 $ 307,066 South African transaction processing $ 108,403 $ 6,977 $ 101,426 International transaction processing 82,065 - 82,065 Financial inclusion and applied technologies 133,046 11,783 121,263 Total for the six months ended December 31, 2015 $ 323,514 $ 18,760 $ 304,754 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 six months ended December 31, 2016 and 2015, respectively, is as follows: Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Reportable segments measure of profit or loss $ 33,383 $ 29,839 $ 67,931 $ 66,447 Operating income: Corporate/Eliminations (7,794 ) (5,060 ) (10,161 ) (10,453 ) Interest income 5,061 3,664 9,365 7,939 Interest expense (510 ) (1,054 ) (1,306 ) (2,028 ) Income before income taxes $ 30,140 $ 27,389 $ 65,829 $ 61,905 The following tables summarize segment information which is prepared in accordance with GAAP for the three and six months ended December 31, 2016 and 2015: Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 Revenues South African transaction processing $ 59,862 $ 52,764 $ 117,430 $ 108,403 International transaction processing 44,000 40,836 90,190 82,065 Financial inclusion and applied technologies 59,258 65,686 122,800 133,046 Total 163,120 159,286 330,420 323,514 Operating income (loss) South African transaction processing 15,372 12,080 28,920 25,591 International transaction processing 3,904 4,240 9,721 10,783 Financial inclusion and applied technologies 14,107 13,519 29,290 30,073 Subtotal: Operating segments 33,383 29,839 67,931 66,447 Corporate/Eliminations (7,794 ) (5,060 ) (10,161 ) (10,453 ) Total 25,589 24,779 57,770 55,994 Depreciation and amortization South African transaction processing 1,137 1,600 2,294 3,395 International transaction processing 5,521 6,063 11,357 10,759 Financial inclusion and applied technologies 354 332 691 572 Subtotal: Operating segments 7,012 7,995 14,342 14,726 Corporate/Eliminations 3,611 2,591 6,485 5,975 Total 10,623 10,586 20,827 20,701 Expenditures for long-lived assets South African transaction processing 635 1,096 1,042 2,543 International transaction processing 2,167 8,205 4,966 16,243 Financial inclusion and applied technologies 324 646 541 1,859 Subtotal: Operating segments 3,126 9,947 6,549 20,645 Corporate/Eliminations - - - - Total $ 3,126 $ 9,947 $ 6,549 $ 20,645 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. |