Domestic and Foreign Operations

12 Months Ended

Dec. 31, 2015

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 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 chief operating decision maker. The chief operating decision maker 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 chief operating decision maker 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.

On January 1, 2015, the Company changed its internal reporting segment information reported to its CODM. All periods presented have been restated to reflect the new internal reporting to the CODM. The following includes the current internal reporting:

• Region One encompasses operations in Delaware, District of Columbia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Northern California, Ohio, Oregon, Pennsylvania, Rhode Island, Virginia, Washington, West Virginia, Wisconsin and three Canadian provinces of Alberta, Ontario and Quebec.

• Region Two encompasses operations in Alabama, Arizona, Colorado, Florida, Georgia, Hawaii, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Mexico, North Carolina, Oklahoma, South Carolina, Southern California, Tennessee, Texas, Utah and Puerto Rico.

• Region Three encompasses operations in the New York metropolitan tri-state area of New York, New Jersey and Connecticut.

• Region Four encompasses all major airport and transportation operations nationwide.

• Region Five encompasses other reporting units of USA Parking and event planning and transportation services.

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

The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by operating segment for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
(millions)	2015		Gross Margin		2014		Gross Margin		2013			Gross Margin
Parking services revenue (a)
Region One
Lease contracts	$	208.1			$	206.0			$	199.1
Management contracts	84.7				84.0				95.3
Total Region One	292.8				290.0				294.4
Region Two
Lease contracts	125.7				119.9				124.0
Management contracts	79.6				83.2				87.0
Total Region Two	205.3				203.1				211.0
Region Three
Lease contracts	108.8				117.8				120.6
Management contracts	27.8				25.8				23.4
Total Region Three	136.6				143.6				144.0
Region Four
Lease contracts	123.8				48.5				43.7
Management contracts	100.6				103.3				96.6
Total Region Four	224.4				151.8				140.3
Region Five
Lease contracts	4.4				2.7				2.6
Management contracts	43.8				29.8				33.7
Total Region Five	48.2				32.5				36.3
Other
Lease contracts	—				1.7				(0.4		)
Management contracts	13.9				12.2				11.3
Total Other	13.9				13.9				10.9
Reimbursed management contract revenue	694.7				679.8				629.9
Total revenues	$	1,615.9			$	1,514.7			$	1,466.8
Gross Profit
Region One
Lease contracts	12.5		6	%	12.4		6	%	$	10.6		5	%
Management contracts	38.0		45	%	36.0		43	%	42.8			45	%
Total Region One	50.5				48.4				53.4

	Year Ended December 31,
(millions)	2015			Gross Margin		2014			Gross Margin		2013			Gross Margin
Region Two
Lease contracts	21.1			17	%	19.8			17	%	18.9			15	%
Management contracts	32.9			41	%	35.8			43	%	38.8			45	%
Total Region Two	54.0					55.6					57.7
Region Three
Lease contracts	2.2			2	%	4.7			4	%	(0.1		)	—	%
Management contracts	14.2			51	%	14.3			55	%	12.6			54	%
Total Region Three	16.4					19.0					12.5
Region Four
Lease contracts	5.5			4	%	3.6			7	%	3.2			7	%
Management contracts	24.5			24	%	26.4			26	%	24.6			25	%
Total Region Four	30.0					30.0					27.8
Region Five
Lease contracts	0.3			7	%	0.2			8	%	—			(2	)%
Management contracts	11.4			26	%	11.7			39	%	11.3			34	%
Total Region Five	11.7					11.9					11.3
Other
Lease contracts	(3.5		)	N/A		0.2			N/A		0.9			N/A
Management contracts	11.0			N/A		6.2			N/A		8.5			N/A
Total Other	7.5					6.4					9.4
Total gross profit	170.1					171.3					172.1
General and administrative expenses	97.3					101.5					98.9
General and administrative expense percentage of gross profit	57		%			59		%			57		%
Depreciation and amortization	34.0					30.3					31.2
Operating income	38.8					39.5					42.0
Other expenses (income):
Interest expense	12.7					17.8					19.0
Interest income	(0.2		)			(0.4		)			(0.6		)
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	1.7					0.3					—
	13.7					13.6					18.4
Income before income taxes	25.1					25.9					23.6
Income tax (benefit) expense	4.8					(0.2		)			8.8
Net income	20.3					26.1					14.8
Less: Net income attributable to noncontrolling interest	2.9					3.0					2.7
Net income attributable to SP Plus Corporation	$	17.4				$	23.1				$	12.1

On January 1, 2016, the Company changed its internal reporting segment information reported to its CODM. The Company will prospectively report on the following regions beginning in 2016 and restate prior periods presented to reflect the internal reporting to the CODM:

• Region One (Urban) encompasses operations in Alabama, Arizona, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, North Carolina, Northern California, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Southern California, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Puerto Rico, and three Canadian provinces of Alberta, Ontario and Quebec.

• Region Two (Airport transportation) encompasses all major airport and transportation operations nationwide.

• Region Three encompasses other reporting units of USA Parking and event planning and transportation services.

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