Segment Information |
Segment Information Our reportable segments are: | | • | Financial Services, which consists of our banking and insurance operating segments; |
| | • | Healthcare, which consists of our healthcare and life sciences operating segments; |
| | • | Products and Resources (previously referred to as Manufacturing/Retail/Logistics), which consists of our retail and consumer goods, manufacturing and logistics, travel and hospitality, and energy and utilities operating segments; and |
| | • | Communications, Media and Technology (previously referred to as Other), which includes our communications and media operating segment and our technology operating segment. |
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 groups may affect revenues 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 global 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, costs related to our realignment program 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, by reportable segment were as follows: | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2017 | | 2016 | | 2017 | | 2016 | | (in millions) | Revenues: | | | | | | | | Financial Services | $ | 1,406 |
| | $ | 1,351 |
| | $ | 2,782 |
| | $ | 2,637 |
| Healthcare | 1,050 |
| | 959 |
| | 2,053 |
| | 1,873 |
| Products and Resources | 747 |
| | 660 |
| | 1,484 |
| | 1,293 |
| Communications, Media and Technology | 467 |
| | 400 |
| | 897 |
| | 769 |
| Total revenues | $ | 3,670 |
| | $ | 3,370 |
| | $ | 7,216 |
| | $ | 6,572 |
| | | | | | | | | Segment Operating Profit: | | | | | | | | Financial Services | $ | 411 |
| | $ | 459 |
| | $ | 802 |
| | $ | 882 |
| Healthcare | 343 |
| | 270 |
| | 616 |
| | 565 |
| Products and Resources | 214 |
| | 226 |
| | 417 |
| | 445 |
| Communications, Media and Technology | 146 |
| | 134 |
| | 267 |
| | 256 |
| Total segment operating profit | 1,114 |
| | 1,089 |
| | 2,102 |
| | 2,148 |
| Less: unallocated costs | 508 |
| | 498 |
| | 926 |
| | 1,003 |
| Income from operations | $ | 606 |
| | $ | 591 |
| | $ | 1,176 |
| | $ | 1,145 |
|
Geographic Area Information Revenue and long-lived assets, by geographic area, are as follows: | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2017 | | 2016 | | 2017 | | 2016 | | (in millions) | Revenues: (1) | | | | | | | | North America(2) | $ | 2,851 |
| | $ | 2,624 |
| | $ | 5,612 |
| | $ | 5,121 |
| United Kingdom | 288 |
| | 311 |
| | 562 |
| | 610 |
| Rest of Europe | 291 |
| | 237 |
| | 576 |
| | 463 |
| Europe - Total | 579 |
| | 548 |
| | 1,138 |
| | 1,073 |
| Rest of World (3) | 240 |
| | 198 |
| | 466 |
| | 378 |
| Total | $ | 3,670 |
| | $ | 3,370 |
| | $ | 7,216 |
| | $ | 6,572 |
|
| | | | | | | | | | As of | | June 30, 2017 | | December 31, 2016 | | (in millions) | Long-lived Assets: (4) | | | | North America(2) | $ | 293 |
| | $ | 279 |
| Europe | 49 |
| | 52 |
| Rest of World (3)(5) | 942 |
| | 980 |
| Total | $ | 1,284 |
| | $ | 1,311 |
|
________________ | | (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. |
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