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Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
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.