Segment Reporting and Major Customers | Note 8 — Segment Reporting and Major Customers Refer to Note 22 of the Company’s audited financial statements for the year ended December 31, 2014, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC, for a discussion regarding segment reporting and major customers. The following table presents the Company’s operating results by segment: Operating Segments Three months ended June 30, Six months ended June 30, (in thousands) 2015 2014 2015 2014 Revenues before reimbursable items North America Services $ 287,199 233,217 $ 553,418 457,585 International Services 83,857 84,732 157,587 161,505 Merchant Services 117,868 108,335 228,266 212,960 NetSpend 141,621 116,833 296,695 249,473 Intersegment revenues (8,461 ) (5,050 ) (18,098 ) (10,705 ) Revenues before reimbursable items from external customers $ 622,084 538,067 1,217,868 1,070,818 Total revenues North America Services $ 333,844 273,324 $ 643,077 535,502 International Services 89,618 90,466 169,420 172,844 Merchant Services 137,472 128,017 266,576 250,707 NetSpend 141,621 116,833 296,695 249,473 Intersegment revenues (9,903 ) (6,604 ) (20,960 ) (13,643 ) Revenues from external customers $ 692,652 602,036 1,354,808 1,194,883 Depreciation and amortization North America Services $ 24,468 20,928 $ 47,532 41,204 International Services 8,628 9,761 17,406 19,566 Merchant Services 4,446 3,567 8,723 6,967 NetSpend 2,622 1,890 4,915 3,625 Segment depreciation and amortization 40,164 36,146 78,576 71,362 Acquisition intangible amortization 22,852 24,282 46,718 48,595 Corporate Administration and Other 889 533 1,426 1,038 Total depreciation and amortization $ 63,905 60,961 126,720 120,995 Adjusted segment operating income North America Services $ 108,385 84,578 $ 210,956 159,155 International Services 13,353 11,743 20,336 16,298 Merchant Services 40,690 32,896 74,805 63,064 NetSpend 36,442 30,703 71,909 59,421 Total adjusted segment operating income 198,870 159,920 378,006 297,938 Acquisition intangible amortization (22,852 ) (24,282 ) (46,718 ) (48,595 ) NetSpend merger and acquisition operating expenses — (1,182 ) — (2,435 ) Share-based compensation (12,030 ) (9,988 ) (20,173 ) (17,599 ) Corporate Administration and Other (33,386 ) (25,705 ) (58,017 ) (49,849 ) Operating income $ 130,602 98,763 $ 253,098 179,460 As of June 30, 2015 December 31, 2014 Total assets North America Services $ 3,413,067 3,327,160 International Services 357,282 356,590 Merchant Services 696,684 695,744 NetSpend 1,523,156 1,556,369 Intersegment eliminations (2,177,665 ) (2,202,282 ) Total assets $ 3,812,524 3,733,581 Revenues by Geographic Area The following tables reconcile geographic revenues to external revenues by operating segment based on the domicile of the Company’s customers: Three months ended June 30, 2015 (in millions) North America International Merchant NetSpend Total United States $ 244.9 — 137.0 141.6 $ 523.5 Canada 72.4 — 0.2 — 72.6 Europe* 0.2 76.7 — — 76.9 Mexico 4.1 — — — 4.1 Other* 4.8 10.6 0.2 — 15.6 Total $ 326.4 87.3 137.4 141.6 $ 692.7 Six months ended June 30, 2015 (in millions) North America International Merchant NetSpend Total United States $ 458.3 — 265.8 296.7 $ 1,020.8 Canada 150.2 — 0.2 — 150.4 Europe* 0.4 144.3 — — 144.7 Mexico 8.4 — — — 8.4 Other* 9.9 20.2 0.4 — 30.5 Total $ 627.2 164.5 266.4 296.7 $ 1,354.8 Three months ended June 30, 2014 (in millions) North America International Merchant NetSpend Total United States $ 192.3 — 127.7 116.8 $ 436.8 Canada 69.0 — 0.1 — 69.1 Europe* 0.2 76.2 — — 76.4 Mexico 4.2 — — — 4.2 Other* 4.0 11.3 0.2 — 15.5 Total $ 269.7 87.5 128.0 116.8 $ 602.0 Six months ended June 30, 2014 (in millions) North America International Merchant NetSpend Total United States $ 377.6 — 250.2 249.5 $ 877.3 Canada 132.0 — 0.1 — 132.1 Europe* 0.4 146.0 — — 146.4 Mexico 8.1 — — — 8.1 Other* 7.8 22.9 0.3 — 31.0 Total $ 525.9 168.9 250.6 249.5 $ 1,194.9 * Revenues are impacted by movements in foreign currency exchange rates. The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas: As of (in millions) June 30, 2015 December 31, 2014 United States $ 234.7 237.9 Europe* 45.0 45.5 Other* 7.6 7.2 Total $ 287.3 290.6 * Property and equipment are impacted by movements in foreign currency exchange rates. Major Customers For the three and six months ended June 30, 2015 and 2014, the Company did not have any major customers. |