Segment Information | 3 Months Ended |
Mar. 31, 2015 |
Segment Reporting [Abstract] | |
Segment Information | Segment Information |
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Our operating business units offer sophisticated information processing and software services and products. We present these businesses as three operating segments, Financial Services, Healthcare Services and Customer Communications. Investments in our equity securities, private equity investments, real estate and certain financial interests are included in the Investments and Other segment. |
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As mentioned in Note 1, beginning in 2015, we modified our reportable segment presentation to reflect changes in how our chief operating decision maker (“CODM”) now operates the business and makes resource allocations. Due to modifications in how we are managing our businesses, certain operations, including the electronic presentment services for our financial services customers and our retirement plan participant communications and enrollment materials services, are now presented in the Financial Services Segment rather than the Customer Communications Segment. Additionally, real estate utilized principally by our business operations has been moved from our Investments and Other Segment to the segment that utilizes the property. Real estate which is primarily occupied by third parties or unoccupied remains within the Investments and Other Segment under the revised presentation. Prior periods have been revised to reflect the new reportable segments. |
Information concerning total assets by reporting segment is as follows (in millions): |
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| March 31, | | December 31, | | | | | | | | | | | | | | | | |
2015 | 2014 | | | | | | | | | | | | | | | | |
Financial Services | $ | 1,352.50 | | | $ | 1,428.20 | | | | | | | | | | | | | | | | | |
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Healthcare Services | 361.5 | | | 391.3 | | | | | | | | | | | | | | | | | |
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Customer Communications | 431.5 | | | 384 | | | | | | | | | | | | | | | | | |
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Investments and Other | 565.1 | | | 741.9 | | | | | | | | | | | | | | | | | |
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Elimination Adjustments | (1.9 | ) | | (2.5 | ) | | | | | | | | | | | | | | | | |
| $ | 2,708.70 | | | $ | 2,942.90 | | | | | | | | | | | | | | | | | |
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We evaluate the performance of our operating segments based on income before income taxes and interest expense. Intersegment revenues are reflected at rates prescribed by us and may not be reflective of market rates. |
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Summarized financial information concerning our segments, including historical information revised to reflect the new segment realignment, is shown in the following tables (in millions): |
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| Three Months Ended March 31, 2015 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 250.5 | | | $ | 91.9 | | | $ | 152.6 | | | $ | 0.7 | | | $ | — | | | $ | 495.7 | |
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Intersegment operating revenues | 16.1 | | | — | | | 7.5 | | | — | | | (23.6 | ) | | — | |
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Out-of-pocket reimbursements | 17 | | | 1.9 | | | 192 | | | — | | | (4.3 | ) | | 206.6 | |
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Total revenues | 283.6 | | | 93.8 | | | 352.1 | | | 0.7 | | | (27.9 | ) | | 702.3 | |
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Costs and expenses | 220 | | | 80.3 | | | 323.7 | | | (2.3 | ) | | (27.9 | ) | | 593.8 | |
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Depreciation and amortization | 16.6 | | | 4.6 | | | 7.9 | | | 0.3 | | | — | | | 29.4 | |
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Income from operations | 47 | | | 8.9 | | | 20.5 | | | 2.7 | | | — | | | 79.1 | |
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Other income (loss), net | (1.4 | ) | | — | | | — | | | 84.7 | | | — | | | 83.3 | |
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Equity in earnings of unconsolidated affiliates | 8.7 | | | 0.1 | | | 0.2 | | | 5.9 | | | — | | | 14.9 | |
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Earnings before interest and income taxes | $ | 54.3 | | | $ | 9 | | | $ | 20.7 | | | $ | 93.3 | | | $ | — | | | $ | 177.3 | |
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| Three Months Ended March 31, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 258.9 | | | $ | 92 | | | $ | 152.3 | | | $ | 2 | | | $ | — | | | $ | 505.2 | |
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Intersegment operating revenues | 12.9 | | | — | | | 6.6 | | | 0.3 | | | (19.8 | ) | | — | |
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Out-of-pocket reimbursements | 16.1 | | | 1.4 | | | 164 | | | — | | | (2.9 | ) | | 178.6 | |
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Total revenues | 287.9 | | | 93.4 | | | 322.9 | | | 2.3 | | | (22.7 | ) | | 683.8 | |
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Costs and expenses | 230 | | | 76.8 | | | 298.1 | | | 1.5 | | | (22.7 | ) | | 583.7 | |
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Depreciation and amortization | 17.7 | | | 4.9 | | | 9.1 | | | 0.3 | | | — | | | 32 | |
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Income from operations | 40.2 | | | 11.7 | | | 15.7 | | | 0.5 | | | — | | | 68.1 | |
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Other income, net | 2.2 | | | — | | | 0.1 | | | 91.3 | | | — | | | 93.6 | |
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Equity in earnings of unconsolidated affiliates | 3.9 | | | 0.1 | | | 0.4 | | | 1 | | | — | | | 5.4 | |
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Earnings before interest and income taxes | $ | 46.3 | | | $ | 11.8 | | | $ | 16.2 | | | $ | 92.8 | | | $ | — | | | $ | 167.1 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $6.1 million and $6.6 million for the three months ended March 31, 2015 and 2014 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |
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| Year Ended December 31, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 1,063.40 | | | $ | 382.2 | | | $ | 589.3 | | | $ | 7.1 | | | $ | — | | | $ | 2,042.00 | |
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Intersegment operating revenues | 54.1 | | | — | | | 26.9 | | | 0.5 | | | (81.5 | ) | | — | |
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Out-of-pocket reimbursements | 60.5 | | | 6.8 | | | 652.2 | | | 0.2 | | | (12.4 | ) | | 707.3 | |
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Total revenues | 1,178.00 | | | 389 | | | 1,268.40 | | | 7.8 | | | (93.9 | ) | | 2,749.30 | |
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Costs and expenses | 903.9 | | | 308.5 | | | 1,184.80 | | | 6.1 | | | (93.9 | ) | | 2,309.40 | |
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Depreciation and amortization | 72.4 | | | 19.5 | | | 37.8 | | | 1.3 | | | — | | | 131 | |
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Income from operations | 201.7 | | | 61 | | | 45.8 | | | 0.4 | | | — | | | 308.9 | |
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Gain on sale of sale of business | 100.5 | | | — | | | — | | | — | | | — | | | 100.5 | |
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Other income, net | 19.5 | | | 0.1 | | | 0.4 | | | 353.5 | | | — | | | 373.5 | |
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Equity in earnings of unconsolidated affiliates | 29.8 | | | 0.5 | | | 0.7 | | | 4.4 | | | — | | | 35.4 | |
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Earnings before interest and income taxes | $ | 351.5 | | | $ | 61.6 | | | $ | 46.9 | | | $ | 358.3 | | | $ | — | | | $ | 818.3 | |
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| Year Ended December 31, 2013 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 1,015.70 | | | $ | 333.3 | | | $ | 602.7 | | | $ | 8.9 | | | $ | — | | | $ | 1,960.60 | |
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Intersegment operating revenues | 47.6 | | | — | | | 22.4 | | | 1 | | | (71.0 | ) | | — | |
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Out-of-pocket reimbursements | 51.3 | | | 6.2 | | | 648.5 | | | 0.1 | | | (8.1 | ) | | 698 | |
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Total revenues | 1,114.60 | | | 339.5 | | | 1,273.60 | | | 10 | | | (79.1 | ) | | 2,658.60 | |
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Costs and expenses | 820.8 | | | 270.5 | | | 1,188.60 | | | 1.3 | | | (79.1 | ) | | 2,202.10 | |
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Depreciation and amortization | 69.1 | | | 19.3 | | | 44.1 | | | 10.8 | | | — | | | 143.3 | |
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Income (loss) from operations | 224.7 | | | 49.7 | | | 40.9 | | | (2.1 | ) | | — | | | 313.2 | |
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Other income, net | 3.3 | | | 0.3 | | | 0.2 | | | 239.4 | | | — | | | 243.2 | |
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Equity in earnings of unconsolidated affiliates | 16.8 | | | 0.4 | | | 0.3 | | | 5.5 | | | — | | | 23 | |
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Earnings before interest and income taxes | $ | 244.8 | | | $ | 50.4 | | | $ | 41.4 | | | $ | 242.8 | | | $ | — | | | $ | 579.4 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $26.6 million and $34.5 million for the years ended December 31, 2014 and 2013 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |
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| Three Months Ended December 31, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 266.5 | | | $ | 101.8 | | | $ | 147.7 | | | $ | 0.7 | | | $ | — | | | $ | 516.7 | |
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Intersegment operating revenues | 15.3 | | | — | | | 7 | | | — | | | (22.3 | ) | | — | |
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Out-of-pocket reimbursements | 16.1 | | | 1.9 | | | 175 | | | 0.1 | | | (3.3 | ) | | 189.8 | |
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Total revenues | 297.9 | | | 103.7 | | | 329.7 | | | 0.8 | | | (25.6 | ) | | 706.5 | |
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Costs and expenses | 224.4 | | | 75.6 | | | 310.3 | | | 1.6 | | | (25.6 | ) | | 586.3 | |
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Depreciation and amortization | 18.4 | | | 5.1 | | | 9.8 | | | 0.2 | | | — | | | 33.5 | |
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Income from operations | 55.1 | | | 23 | | | 9.6 | | | (1.0 | ) | | — | | | 86.7 | |
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Gain on sale of sale of business | 100.5 | | | — | | | — | | | — | | | — | | | 100.5 | |
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Other income, net | (0.9 | ) | | — | | | 0.1 | | | 92 | | | — | | | 91.2 | |
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Equity in earnings of unconsolidated affiliates | 9.4 | | | 0.1 | | | (0.1 | ) | | 0.8 | | | — | | | 10.2 | |
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Earnings before interest and income taxes | $ | 164.1 | | | $ | 23.1 | | | $ | 9.6 | | | $ | 91.8 | | | $ | — | | | $ | 288.6 | |
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| Three Months Ended September 30, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 269.3 | | | $ | 95.5 | | | $ | 143.4 | | | $ | 2.3 | | | $ | — | | | $ | 510.5 | |
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Intersegment operating revenues | 13.2 | | | — | | | 6.7 | | | — | | | (19.9 | ) | | — | |
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Out-of-pocket reimbursements | 13.6 | | | 1.9 | | | 156.7 | | | — | | | (3.2 | ) | | 169 | |
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Total revenues | 296.1 | | | 97.4 | | | 306.8 | | | 2.3 | | | (23.1 | ) | | 679.5 | |
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Costs and expenses | 224.3 | | | 73.1 | | | 287.6 | | | 1.4 | | | (23.1 | ) | | 563.3 | |
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Depreciation and amortization | 18.8 | | | 4.7 | | | 9.5 | | | 0.4 | | | — | | | 33.4 | |
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Income from operations | 53 | | | 19.6 | | | 9.7 | | | 0.5 | | | — | | | 82.8 | |
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Other income, net | 0.3 | | | 0.1 | | | 0.1 | | | 57 | | | — | | | 57.5 | |
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Equity in earnings of unconsolidated affiliates | 8.7 | | | 0.1 | | | 0.2 | | | 1.2 | | | — | | | 10.2 | |
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Earnings before interest and income taxes | $ | 62 | | | $ | 19.8 | | | $ | 10 | | | $ | 58.7 | | | $ | — | | | $ | 150.5 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $6.6 million and $6.4 million for the three months ended December 31, 2014 and September 31, 2014 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |
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| Three Months Ended June 30, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 268.7 | | | $ | 92.9 | | | $ | 145.9 | | | $ | 2.1 | | | $ | — | | | $ | 509.6 | |
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Intersegment operating revenues | 12.7 | | | — | | | 6.6 | | | 0.2 | | | (19.5 | ) | | — | |
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Out-of-pocket reimbursements | 14.7 | | | 1.6 | | | 156.5 | | | 0.1 | | | (3.0 | ) | | 169.9 | |
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Total revenues | 296.1 | | | 94.5 | | | 309 | | | 2.4 | | | (22.5 | ) | | 679.5 | |
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Costs and expenses | 225.2 | | | 83 | | | 288.8 | | | 1.6 | | | (22.5 | ) | | 576.1 | |
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Depreciation and amortization | 17.5 | | | 4.8 | | | 9.4 | | | 0.4 | | | — | | | 32.1 | |
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Income from operations | 53.4 | | | 6.7 | | | 10.8 | | | 0.4 | | | — | | | 71.3 | |
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Other income, net | 17.9 | | | — | | | 0.1 | | | 113.2 | | | — | | | 131.2 | |
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Equity in earnings of unconsolidated affiliates | 7.8 | | | 0.2 | | | 0.2 | | | 1.4 | | | — | | | 9.6 | |
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Earnings before interest and income taxes | $ | 79.1 | | | $ | 6.9 | | | $ | 11.1 | | | $ | 115 | | | $ | — | | | $ | 212.1 | |
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| Three Months Ended March 31, 2014 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 258.9 | | | $ | 92 | | | $ | 152.3 | | | $ | 2 | | | $ | — | | | $ | 505.2 | |
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Intersegment operating revenues | 12.9 | | | — | | | 6.6 | | | 0.3 | | | (19.8 | ) | | — | |
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Out-of-pocket reimbursements | 16.1 | | | 1.4 | | | 164 | | | — | | | (2.9 | ) | | 178.6 | |
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Total revenues | 287.9 | | | 93.4 | | | 322.9 | | | 2.3 | | | (22.7 | ) | | 683.8 | |
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Costs and expenses | 230 | | | 76.8 | | | 298.1 | | | 1.5 | | | (22.7 | ) | | 583.7 | |
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Depreciation and amortization | 17.7 | | | 4.9 | | | 9.1 | | | 0.3 | | | — | | | 32 | |
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Income from operations | 40.2 | | | 11.7 | | | 15.7 | | | 0.5 | | | — | | | 68.1 | |
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Other income, net | 2.2 | | | — | | | 0.1 | | | 91.3 | | | — | | | 93.6 | |
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Equity in earnings of unconsolidated affiliates | 3.9 | | | 0.1 | | | 0.4 | | | 1 | | | — | | | 5.4 | |
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Earnings before interest and income taxes | $ | 46.3 | | | $ | 11.8 | | | $ | 16.2 | | | $ | 92.8 | | | $ | — | | | $ | 167.1 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $7.0 million and $6.6 million for the three months ended June 30, 2014 and March 31, 2014 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |
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| Three Months Ended December 31, 2013 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 260.7 | | | $ | 90.6 | | | $ | 146.6 | | | $ | 2.2 | | | $ | — | | | $ | 500.1 | |
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Intersegment operating revenues | 12.7 | | | — | | | 6.5 | | | 0.2 | | | (19.4 | ) | | — | |
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Out-of-pocket reimbursements | 14.4 | | | 2 | | | 152.9 | | | — | | | (2.1 | ) | | 167.2 | |
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Total revenues | 287.8 | | | 92.6 | | | 306 | | | 2.4 | | | (21.5 | ) | | 667.3 | |
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Costs and expenses | 208.9 | | | 67.7 | | | 289.1 | | | 0.6 | | | (21.5 | ) | | 544.8 | |
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Depreciation and amortization | 18.7 | | | 5.1 | | | 11.3 | | | 7.8 | | | — | | | 42.9 | |
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Income from operations | 60.2 | | | 19.8 | | | 5.6 | | | (6.0 | ) | | — | | | 79.6 | |
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Other income, net | 3.3 | | | 0.1 | | | — | | | 64.8 | | | — | | | 68.2 | |
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Equity in earnings of unconsolidated affiliates | 2.7 | | | 0.1 | | | — | | | 1.3 | | | — | | | 4.1 | |
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Earnings before interest and income taxes | $ | 66.2 | | | $ | 20 | | | $ | 5.6 | | | $ | 60.1 | | | $ | — | | | $ | 151.9 | |
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| Three Months Ended September 30, 2013 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 251.3 | | | $ | 80.7 | | | $ | 146.2 | | | $ | 2 | | | $ | — | | | $ | 480.2 | |
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Intersegment operating revenues | 12.4 | | | — | | | 5.5 | | | 0.4 | | | (18.3 | ) | | — | |
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Out-of-pocket reimbursements | 10.6 | | | 1.5 | | | 161.7 | | | 0.1 | | | (2.3 | ) | | 171.6 | |
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Total revenues | 274.3 | | | 82.2 | | | 313.4 | | | 2.5 | | | (20.6 | ) | | 651.8 | |
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Costs and expenses | 198.7 | | | 66 | | | 289.8 | | | (2.5 | ) | | (20.6 | ) | | 531.4 | |
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Depreciation and amortization | 17 | | | 4.8 | | | 10.9 | | | 1.4 | | | — | | | 34.1 | |
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Income from operations | 58.6 | | | 11.4 | | | 12.7 | | | 3.6 | | | — | | | 86.3 | |
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Other income, net | 2.6 | | | 0.1 | | | 0.5 | | | 70.2 | | | — | | | 73.4 | |
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Equity in earnings of unconsolidated affiliates | 2.5 | | | 0.1 | | | 0.2 | | | 1 | | | — | | | 3.8 | |
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Earnings before interest and income taxes | $ | 63.7 | | | $ | 11.6 | | | $ | 13.4 | | | $ | 74.8 | | | $ | — | | | $ | 163.5 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $7.2 million and $8.4 million for the three months ended December 31, 2013 and September 30, 2013 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |
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| Three Months Ended June 30, 2013 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 251.8 | | | $ | 82 | | | $ | 149 | | | $ | 2.3 | | | $ | — | | | $ | 485.1 | |
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Intersegment operating revenues | 11 | | | — | | | 5 | | | 0.2 | | | (16.2 | ) | | — | |
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Out-of-pocket reimbursements | 12.7 | | | 1.4 | | | 159.6 | | | — | | | (1.7 | ) | | 172 | |
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Total revenues | 275.5 | | | 83.4 | | | 313.6 | | | 2.5 | | | (17.9 | ) | | 657.1 | |
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Costs and expenses | 203.5 | | | 67.3 | | | 296.9 | | | 1.5 | | | (17.9 | ) | | 551.3 | |
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Depreciation and amortization | 16.5 | | | 4.7 | | | 11.1 | | | 0.8 | | | — | | | 33.1 | |
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Income from operations | 55.5 | | | 11.4 | | | 5.6 | | | 0.2 | | | — | | | 72.7 | |
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Other income, net | 1.9 | | | — | | | 0.5 | | | 26 | | | — | | | 28.4 | |
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Equity in earnings of unconsolidated affiliates | 8.1 | | | 0.1 | | | — | | | 1.3 | | | — | | | 9.5 | |
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Earnings before interest and income taxes | $ | 65.5 | | | $ | 11.5 | | | $ | 6.1 | | | $ | 27.5 | | | $ | — | | | $ | 110.6 | |
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| Three Months Ended March 31, 2013 |
| Financial | | Healthcare | | Customer | | Investments / | | Elimination | | Consolidated |
Services | Services | Communications | Other | Adjustments | Total |
Operating revenues | $ | 251.9 | | | $ | 80 | | | $ | 160.9 | | | $ | 2.4 | | | $ | — | | | $ | 495.2 | |
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Intersegment operating revenues | 11.5 | | | — | | | 5.4 | | | 0.2 | | | (17.1 | ) | | — | |
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Out-of-pocket reimbursements | 13.6 | | | 1.3 | | | 174.3 | | | — | | | (2.0 | ) | | 187.2 | |
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Total revenues | 277 | | | 81.3 | | | 340.6 | | | 2.6 | | | (19.1 | ) | | 682.4 | |
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Costs and expenses | 209.7 | | | 69.5 | | | 312.8 | | | 1.7 | | | (19.1 | ) | | 574.6 | |
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Depreciation and amortization | 16.9 | | | 4.7 | | | 10.8 | | | 0.8 | | | — | | | 33.2 | |
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Income from operations | 50.4 | | | 7.1 | | | 17 | | | 0.1 | | | — | | | 74.6 | |
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Other income, net | (4.5 | ) | | 0.1 | | | (0.8 | ) | | 78.4 | | | — | | | 73.2 | |
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Equity in earnings of unconsolidated affiliates | 3.5 | | | 0.1 | | | 0.1 | | | 1.9 | | | — | | | 5.6 | |
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Earnings before interest and income taxes | $ | 49.4 | | | $ | 7.3 | | | $ | 16.3 | | | $ | 80.4 | | | $ | — | | | $ | 153.4 | |
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Earnings before interest and income taxes in the segment reporting information above less interest expense of $9.3 million and $9.6 million for the three months ended June 30, 2013 and March 31, 2013 is equal to our income before income taxes on a consolidated basis for the corresponding periods. |