Domestic and Foreign Operations

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Domestic and Foreign Operations

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 ("CODM") in deciding how to allocate resources and in assessing the Company's overall 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 president and chief executive officer. The business is managed based on regions administered by executive vice presidents. 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 operating 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.

Effective January 1, 2016, the Company began certain organizational and executive leadership changes to align with how our CODM reviews performance and makes decisions in managing the Company and therefore, changed internal operating segment information reported to the CODM. The operating segments are internally reported as Region One (Urban), Region Two (Airport Transportation) and Region Three (other reporting units of USA Parking and event planning and transportation services). All prior periods presented have been restated to reflect the new internal reporting to the CODM.

• Region One (Urban) encompasses our 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 shuttle and transportation services, valet services, taxi and livery dispatch services.

• Region Two (Airport transportation) encompasses our services at all major airports as well as ancillary services, which includes shuttle and transportation services and valet services.

• Region Three encompasses other operating segments including USA Parking and event planning, including shuttle and transportation services.

• Other consists of ancillary revenue that is not specifically identifiable to a region and certain unallocated insurance reserve adjustments.

The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by operating segment for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(millions)	2016		Gross Margin		2015		Gross Margin		2014		Gross Margin
Parking services revenue (a)
Region One
Lease contracts	$	414.5			$	442.7			$	443.7
Management contracts	201.2				190.9				193.0
Total Region One	615.7				633.6				636.7
Region Two
Lease contracts	124.7				123.8				48.5
Management contracts	88.1				100.6				103.3
Total Region Two	212.8				224.4				151.8
Region Three
Lease contracts	5.8				4.4				2.7
Management contracts	44.5				44.9				29.8
Total Region Three	50.3				49.3				32.5
Other
Lease contracts	—				—				1.7
Management contracts	13.0				13.9				12.2
Total Other	13.0				13.9				13.9
Reimbursed management contract revenue	723.7				694.7				679.8
Total Revenues	$	1,615.5			$	1,615.9			$	1,514.7
Gross Profit
Region One
Lease contracts	32.6		8	%	35.8		8	%	$	36.8	8	%
Management contracts	86.6		43	%	85.1		44	%	86.1		45	%
Total Region One	119.2				120.9				122.9
Region Two
Lease contracts	5.7		5	%	5.5		4	%	3.7		8	%
Management contracts	25.2		29	%	24.5		24	%	26.3		26	%
Total Region Two	30.9				30.0				30.0
Region Three

	Year Ended December 31,
(millions)	2016			Gross Margin		2015			Gross Margin		2014			Gross Margin
Lease contracts	0.8			14	%	0.3			7	%	0.2			9	%
Management contracts	12.7			29	%	11.4			26	%	11.8			40	%
Total Region Three	13.5					11.7					12.0
Region Other
Lease contracts	0.3			—	%	(3.5		)	—	%	0.2			12	%
Management contracts	12.5			96	%	11.0			79	%	6.2			51	%
Total Other	12.8					7.5					6.4
Total gross profit	176.4					170.1					171.3
General and administrative expenses	90.0					97.3					101.5
General and administrative expense percentage of gross profit	51		%			57		%			59		%
Depreciation and amortization	33.7					34.0					30.3
Operating income	52.7					38.8					39.5
Other expenses (income):
Interest expense	10.5					12.7					17.8
Interest income	(0.5		)			(0.2		)			(0.4		)
Gain on sale of business	—					(0.5		)			—
Gain on contribution of a business to an unconsolidated entity	—					—					(4.1		)
Equity in losses from investment in unconsolidated entity	0.9					1.7					0.3
Total other expenses	10.9					13.7					13.6
Earnings before income taxes	41.8					25.1					25.9
Income tax expense (benefit)	15.8					4.8					(0.2		)
Net income	26.0					20.3					26.1
Less: Net income attributable to noncontrolling interest	2.9					2.9					3.0
Net income attributable to SP Plus Corporation	$	23.1				$	17.4				$	23.1

In the first quarter of 2017, the Company changed its internal reporting segment information reported to its CODM. The Company will prospectively report on the following regions beginning in 2017 and restate prior periods presented to reflect the internal reporting to the CODM:

• Region One (Commercial) encompasses our 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 shuttle and transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services.

• Region Two (Airports) encompasses our services at all major airports as well as ancillary services, which includes shuttle and transportation services and valet services.

• Other consists of ancillary revenue that is not specifically identifiable to a region and certain unallocated insurance reserve adjustments.