Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are:

• Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services;

• Healthcare, which includes healthcare providers and payers as well as life sciences customers, including pharmaceutical, biotech and medical device companies;

• Manufacturing/Retail/Logistics, which includes consumer goods, manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services; and

• Other, which is an aggregation of industry segments each of which, individually, represents less than 10% of consolidated revenues and segment operating profit. The Other reportable segment includes our information, media and entertainment services, communications and high technology operating segments.

Our sales managers, account executives, account managers and project teams are aligned in accordance with the specific industries they serve. Our chief operating decision maker evaluates the Company’s performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject to the same factors, pressures and challenges. However, the economic environment and its effects on industries served by our operating segments may affect revenue and operating expenses to differing degrees. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as a per seat charge for use of the development and delivery centers. Certain selling, general and administrative expenses, excess or shortfall of incentive compensation for delivery personnel as compared to target, stock-based compensation expense, a portion of depreciation and amortization and the impact of the settlements of our cash flow hedges are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are excluded from segment operating profit and are separately disclosed as “unallocated costs” and adjusted only against our total income from operations.Additionally, management has determined that it is not practical to allocate identifiable assets by segment, since such assets are used interchangeably among the segments.

Revenues from external customers and segment operating profit, before unallocated expenses, for the Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other reportable segments were as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2016		2015		2016		2015
	(in millions)
Revenues:
Financial Services	$	1,375.4	$	1,284.0	$	4,012.3	$	3,695.2
Healthcare	992.8		939.2		2,865.7		2,715.6
Manufacturing/Retail/Logistics	678.7		606.2		1,971.6		1,733.4
Other	406.3		357.6		1,175.5		1,039.3
Total revenue	$	3,453.2	$	3,187.0	$	10,025.1	$	9,183.5
Segment Operating Profit:
Financial Services	$	433.1	$	430.0	$	1,315.4	$	1,197.5
Healthcare	314.2		322.8		879.4		885.4
Manufacturing/Retail/Logistics	213.5		215.5		658.8		598.0
Other	118.4		117.3		374.0		332.2
Total segment operating profit	1,079.2		1,085.6		3,227.6		3,013.1
Less: unallocated costs	495.8		542.8		1,499.3		1,424.5
Income from operations	$	583.4	$	542.8	$	1,728.3	$	1,588.6

Geographic Area Information

Revenue and long-lived assets, by geographic area, are as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2016		2015		2016		2015
	(in millions)
Revenues: (1)
North America(2)	$	2,709.4	$	2,510.6	$	7,830.8	$	7,226.5
United Kingdom	293.0		299.9		902.5		882.6
Rest of Europe	244.7		209.2		707.8		604.7
Europe - Total	537.7		509.1		1,610.3		1,487.3
Rest of World (3)	206.1		167.3		584.0		469.7
Total	$	3,453.2	$	3,187.0	$	10,025.1	$	9,183.5

	As of
	September 30, 2016		December 31, 2015
	(in millions)
Long-lived Assets: (4)
North America(2)	$	284.1	$	242.4
Europe	36.1		32.2
Rest of World (3)(5)	1,003.1		996.8
Total	$	1,323.3	$	1,271.4

________________

(1) Revenues are attributed to regions based upon customer location.

(2) Substantially all relates to operations in the United States.

(3) Includes our operations in Asia Pacific, the Middle East and Latin America.

(4) Long-lived assets include property and equipment, net of accumulated depreciation and amortization.

(5) Substantially all of these long-lived assets relate to our operations in India.