Business Unit Segment Information

6 Months Ended

Jun. 30, 2011

Business Unit Segment Information [Abstract]

Business Unit Segment Information

11. Business Unit Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by our chief operating decision maker, in deciding how to allocate resources. Our chief operating decision maker is the Company’s President and Chief Executive Officer.

Each of the operating segments is directly responsible for revenue and expenses related to their operations including direct regional administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the four operating segments. The CODM assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest, taxes, and depreciation and amortization, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate interest and other income, interest expense, depreciation and amortization or taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

Our business is managed based on regions administered by executive vice presidents. The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by regions for the three and six months ended June 30, 2011 and 2010. Information related to prior periods has been recast to conform to the current region alignment.

The Company has provided this business unit segment information for all comparable prior periods. Segment information is summarized as follows (in thousands):

	For the three months ended												For the six months ended
	June 30,			Gross			June 30,			Gross			June 30,			Gross			June 30,			Gross
	2011			Margin			2010			Margin			2011			Margin			2010			Margin
Revenues:
Region One
Lease contracts	$	20,649					$	18,309					$	39,591					$	35,344
Management contracts		13,340						12,000						26,595						23,906
Total Region One		33,989						30,309						66,186						59,250
Region Two
Lease contracts		682						561						1,340						1,307
Management contracts		3,911						4,825						12,658						12,931
Total Region Two		4,593						5,386						13,998						14,238
Region Three
Lease contracts		5,809						5,171						11,498						10,126
Management contracts		12,847						12,876						24,953						25,319
Total Region Three		18,656						18,047						36,451						35,445
Region Four
Lease contracts		10,048						10,110						19,963						20,485
Management contracts		12,025						12,325						23,772						19,873
Total Region Four		22,073						22,435						43,735						40,358
Other
Lease contracts		5						11						6						16
Management contracts		220						55						319						127
Total Other		225						66						325						143
Reimbursed revenue		100,126						100,757						201,250						206,812
Total revenues	$	179,662					$	177,000					$	361,945					$	356,246
Gross Profit
Region One
Lease contracts	$	1,741			8	%	$	1,610			9	%	$	2,295			6	%	$	1,762			5	%
Management contracts		7,420			56	%		7,126			59	%		14,130			53	%		13,354			56	%
Total Region One		9,161						8,736						16,425						15,116
Region Two
Lease contracts		49			7	%		58			10	%		152			11	%		133			10	%
Management contracts		1,211			31	%		1,518			31	%		2,957			23	%		3,722			29	%
Total Region Two		1,260						1,576						3,109						3,855
Region Three
Lease contracts		599			10	%		432			8	%		1,160			10	%		800			8	%
Management contracts		6,145			48	%		6,476			50	%		11,930			48	%		12,231			48	%
Total Region Three		6,744						6,908						13,090						13,031
Region Four
Lease contracts		656			7	%		856			8	%		1,230			6	%		1,522			7	%
Management contracts		4,009			33	%		4,265			35	%		8,156			34	%		7,883			40	%
Total Region Four		4,665						5,121						9,386						9,405
Other
Lease contracts		(138	)		(2,760	)%		(11	)		(100	)%		(224	)		(3,733	)%		73			456	%
Management contracts		343			156	%		418			760	%		417			131	%		424			334	%
Total Other		205						407						193						497
Total gross profit		22,035						22,748						42,203						41,904
General and administrative expenses		11,597						12,218						22,779						23,778
General and administrative expense percentage of gross profit		53	%					54	%					54	%					57	%
Depreciation and amortization		1,677						1,570						3,210						3,030
Operating income		8,761						8,960						16,214						15,096
Other expenses (income):
Interest expense		1,180						1,398						2,349						2,888
Interest income		(113	)					(52	)					(173	)					(105	)
		1,067						1,346						2,176						2,783
Income before income taxes		7,694						7,614						14,038						12,313
Income tax expense		3,066						3,021						5,545						4,868
Net income		4,628						4,593						8,493						7,445
Less: Net income attributable to noncontrolling interest		85						85						171						92
Net income attributable to Standard Parking Corporation	$	4,543					$	4,508					$	8,322					$	7,353

Region One encompasses operations in Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Region Two encompasses our Canadian operations, event planning and transportation, and our technology-based parking and traffic management systems.

Region Three encompasses operations in Arizona, California, Colorado, Hawaii, Louisiana, Minnesota, Nevada, Ohio, Texas, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Other consists of ancillary revenue that is not specifically identifiable to a region and insurance reserve adjustments related to prior years.

The CODM does not evaluate segments using discrete asset information.