REPORTABLE SEGMENT AND RELATED INFORMATION

3 Months Ended

Mar. 31, 2020

REPORTABLE SEGMENT AND RELATED INFORMATION

Beginning in the first quarter of 2020, the Company determined that it has two reportable segments: 1) State Enterprise and 2) Payments. Prior to the first quarter of 2020, the Company had one reportable segment: State Enterprise. The change from one to two reportable segments was based on quantitative and qualitative considerations, and was a result of recent changes in the Company's reporting structure to reclassify the current Texas payment processing contract from the state enterprise category to the software & services category. The revised reportable segments reflect the way the Company evaluates its business performance and manages its operations. All prior year amounts have been restated to conform to the current year presentation.

The State Enterprise reportable segment generally includes the Company’s subsidiaries operating digital government services on an enterprise-wide basis for state and local governments. The Payments reportable segment includes subsidiaries in the software & services category that provide certain payment processing-related, transaction-based services to state and local government agencies in states where the Company does not maintain an enterprise-wide contract and to a few private sector entities. The All Other category primarily includes subsidiaries in the software & services category that provide software development and digital government services, other than those provided on an enterprise-wide basis, to federal agencies, including the Company's contract with the FMCSA to operate the Federal PSP and the Company's subcontract for the Recreation.gov outdoor recreation service, as well as to other state and local governments, including the Company's RxGov prescription drug monitoring business and NIC Licensing Solutions regulatory licensing business. Each of the Company’s businesses within the All Other category is an operating segment and has been grouped together to form the All Other category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all operating segments.

The measure of profitability by which management, including the Company’s Chief Operating Decision Maker ("CODM"), evaluates the performance of its operating segments and allocates resources to them is operating income (loss). Segment assets or other segment balance sheet information is not presented to the Company’s CODM. Accordingly, the Company has not presented information relating to segment assets.

The table below reflects summarized financial information for the Company’s reportable segments for the three months ended March 31, (in thousands):


	State Enterprise		Payments		All Other		Other Reconciling Items		Consolidated Total
2020
Revenues	$	74,411	$	10,016	$	6,692	$	—	$	91,119
Costs & expenses	46,271		7,948		2,776		15,318		72,313
Depreciation & amortization	699		1		1,073		1,709		3,482
Operating income (loss)	$	27,441	$	2,067	$	2,843	$	(17,027)	$	15,324

2019
Revenues	$	69,853	$	9,352	$	5,975	$	—	$	85,180
Costs & expenses	41,978		7,357		2,040		16,409		67,784
Depreciation & amortization	636		1		20		1,764		2,421
Operating income (loss)	$	27,239	$	1,994	$	3,915	$	(18,173)	$	14,975

The Company's enterprise contract with the state of Colorado accounted for approximately 10% of the Company's total consolidated revenues for the three months ended March 31, 2019. No other customer accounted for more than 10% of the Company's total consolidated revenues for any period presented.