Business Unit Segment Information

3 Months Ended

Mar. 31, 2020

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 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 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 administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the two operating segments. The CODM assesses the performance of each operating segment using information about its revenue and gross profit as its primary measure of performance, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate other income, interest expense, depreciation and amortization or taxes to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

In December 2019, the Company changed its internal reporting segment information reported to the CODM. Certain locations previously reported under Commercial are now included in Other. All prior periods presented have been reclassified to reflect the new internal reporting to the CODM.

•

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 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.


•	"Other" consists of ancillary revenue that is not specifically attributable to Commercial or Aviation and certain unallocated items, such as and including prior year insurance reserve adjustments and other corporate items.

The following is a summary of revenues and gross profit by operating segment for the three months ended March 31, 2020 and 2019:



	Three Months Ended
(millions) (unaudited)	March 31, 2020			Gross Margin %		March 31, 2019		Gross Margin %
Services Revenue
Commercial
Lease type contracts	$	76.3				$	90.6
Management type contracts	72.0					67.4
Total Commercial	148.3					158.0
Aviation
Lease type contracts	5.2					7.0
Management type contracts	62.7					63.2
Total Aviation	67.9					70.2
Other
Lease type contracts	0.2					0.2
Management type contracts	2.4					2.3
Total Other	2.6					2.5
Reimbursed management type contract revenue	190.9					178.7
Total Services Revenue	$	409.7				$	409.4
Gross Profit
Commercial
Lease type contracts	$	(0.9	)	(1.2	)%	$	4.9	5.4	%
Management type contracts	25.4			35.3	%	24.4		36.2	%
Lease impairment	(77.5		)	N/M		—		N/M
Total Commercial	(53.0		)			29.3
Aviation
Lease type contracts	0.3			5.8	%	1.4		20.0	%
Management type contracts	14.6			23.3	%	15.8		25.0	%
Total Aviation	14.9					17.2
Other
Lease type contracts	2.1			N/M		1.8		N/M
Management type contracts	5.8			N/M		4.9		N/M
Total Other	7.9					6.7
Total gross profit	$	(30.2	)			$	53.2

N/M - Not Meaningful