Domestic and Foreign Operations

12 Months Ended

Dec. 31, 2012

Domestic and Foreign Operations

Domestic and Foreign Operations

Note R. Domestic and Foreign Operations

• Business Unit Segment Information

        Segment information is presented in accordance with a "management approach," which designates the internal reporting used by the chief operating decision maker 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 separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing 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 our chief operating decision maker. 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 years ended December 31, 2012, 2011 and 2010. Information related to prior periods has been recast to conform to the current regional alignment.

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

	Year Ended December 31,
	2012			Gross Margin			2011			Gross Margin			2010			Gross Margin
Revenues(a):
Region One
Lease contracts	$	133,559					$	71,896					$	66,786
Management contracts		65,768						50,152						44,455
Total Region One		199,327						122,048						111,241
Region Two
Lease contracts		1,425						—						—
Management contracts		21,604						9,178						14,817
Total Region Two		23,029						9,178						14,817
Region Three
Lease contracts		30,729						20,396						17,558
Management contracts		59,218						53,835						53,214
Total Region Three		89,947						74,231						70,772
Region Four
Lease contracts		42,986						39,522						39,433
Management contracts		61,454						47,490						45,007
Total Region Four		104,440						87,012						84,440
Region Five
Lease contracts		41,749						15,676						14,843
Management contracts		22,261						12,059						12,955
Total Region Five		64,010						27,735						27,798
Other
Lease contracts		(93	)					20						44
Management contracts		196						1,011						883
Total Other		103						1,031						927
Reimbursed management contract revenue		473,082						408,427						411,148
Total revenues	$	953,938					$	729,662					$	721,143
Gross Profit
Region One
Lease contracts	$	7,144			5	%	$	5,318			7	%	$	4,591			7	%
Management contracts		32,256			49	%		27,110			54	%		25,334			57	%
Total Region One		39,400						32,428						29,925
Region Two
Lease contracts		78			5	%		—			0	%		—			0	%
Management contracts		3,775			17	%		1,928			21	%		3,241			22	%
Total Region Two		3,853						1,928						3,241
Region Three
Lease contracts		2,303			7	%		1,916			9	%		1,546			9	%
Management contracts		23,235			39	%		23,210			43	%		24,296			46	%
Total Region Three		25,538						25,126						25,842
Region Four
Lease contracts		3,180			7	%		2,743			7	%		2,961			8	%
Management contracts		17,926			29	%		16,183			34	%		16,879			38	%
Total Region Four		21,106						18,926						19,840
Region Five
Lease contracts		4,885			12	%		948			6	%		677			5	%
Management contracts		8,127			37	%		6,462			54	%		6,065			47	%
Total Region Five		13,012						7,410						6,742
Other
Lease contracts		2,504			(2,692	)%		91			455	%		276			627	%
Management contracts		4,338			2,213	%		2,673			264	%		1,035			117	%
Total Other		6,842						2,764						1,311
Total gross profit		109,751						88,582						86,901
General and administrative expenses		86,663						48,297						47,878
General and administrative expense percentage of gross profit		79	%					55	%					55	%
Depreciation and amortization		13,241						6,618						6,074
Operating income		9,847						33,667						32,949
Other expenses (income):
Interest expense		8,449						4,691						5,335
Interest income		(382	)					(537	)					(249	)
		8,067						4,154						5,086
Income before income taxes		1,780						29,513						27,863
Income tax (benefit) expense		(2,374	)					11,235						10,755
Net income		4,154						18,278						17,108
Less: Net income attributable to noncontrolling interest		1,034						378						268
Net income attributable to Standard Parking Corporation	$	3,120					$	17,900					$	16,840

(a)

Excludes reimbursed management contract revenue.

        Region One encompasses operations in Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, West Virginia and Wisconsin.

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

        Region Three encompasses operations in Canada, Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

        Region Four encompasses all major airport and transportation operations nationwide.

        Region Five encompasses Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Puerto Rico, Tennessee, and Texas.

        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.