Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

13. Segment Information

Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance.

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 the CODM. The CODM is the Company’s chief executive officer.

Each of the operating segments are directly responsible for revenue and expenses related to their operations, including direct segment general and administrative expenses. The CODM assesses the performance of each operating segment using information about operating income (loss) as the primary measure of performance, but does not evaluate segments using discrete asset information. Therefore, assets are not presented at the segment level. There were no inter-segment transactions during the three and nine months ended September 30, 2023, and the Company does not allocate other expense (income), interest expense (income) or income tax expense (benefit) to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

The Company’s operating segments are Commercial and Aviation:

•Commercial encompasses the Company's services in healthcare facilities, municipalities, including meter revenue collection and enforcement services, government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as providing technology-based mobility solutions, shuttle and ground transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services.

•Aviation encompasses the Company's services in aviation (i.e., airports, airline and certain hospitality clients with baggage and parking services) as well as ancillary services, which include shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services, as well as providing technology-based mobility solutions.

The Other segment includes costs related to the Company’s operational support teams and costs related to common and shared infrastructure, including finance, accounting, information technology, human resources, procurement, legal and corporate development.

Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the three and nine months ended September 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended						Nine Months Ended
(millions)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Services revenue
Commercial
Management type contracts	$	75.6		$	68.2		$	230.6		$	206.0
Lease type contracts		70.9			68.6			207.9			194.9
Total Commercial		146.5			136.8			438.5			400.9
Aviation
Management type contracts		77.9			66.7			216.0			176.6
Lease type contracts		4.0			3.6			11.5			10.5
Total Aviation		81.9			70.3			227.5			187.1
Reimbursed management type contract revenue		232.3			197.3			662.2			547.2
Total services revenue	$	460.7		$	404.4		$	1,328.2		$	1,135.2
Operating income (loss)
Commercial	$	35.7		$	32.4		$	103.0		$	95.7
Aviation		10.6			9.7			28.8			26.3
Other		(25.3	)		(18.3	)		(66.2	)		(52.5	)
Total operating income	$	21.0		$	23.8		$	65.6		$	69.5
General and administrative expenses
Commercial	$	9.8		$	7.2		$	27.3		$	21.1
Aviation		4.8			3.1			12.7			8.7
Other		23.0			16.9			60.0			48.6
Total general and administrative expenses	$	37.6		$	27.2		$	100.0		$	78.4
Depreciation and amortization
Commercial(1)	$	3.8		$	3.4		$	11.2		$	9.2
Aviation(2)		2.9			2.4			8.8			7.4
Other		2.3			1.4			6.2			3.9
Total depreciation and amortization	$	9.0		$	7.2		$	26.2		$	20.5

(1)Included depreciation and amortization expenses related to cost of services activities of $2.0 million and $2.1 million during the three months ended September 30, 2023 and 2022, respectively, and $6.1 million and $5.5 million during the nine months ended September 30, 2023 and 2022, respectively.

(2)Included depreciation and amortization expenses related to cost of service activities of $1.4 million and $1.3 million during the three months ended September 30, 2023 and 2022, respectively, and $4.2 million and $3.5 million during the nine months ended September 30, 2023 and 2022, respectively.