Segments

The Company reports information about its operating segments in accordance with the authoritative guidance related to segments. The Company’s reportable segments represent components of the business for which separate financial information is evaluated regularly by the chief operating decision maker in determining how to allocate resources and in assessing performance. The Company operates in two reportable segments, North America and International. There were no inter-segment sales.

The Company’s segment results are as follows for the three and nine month periods ended September 30 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017²		2018		2017²
Revenues, net:¹
North America	$	412,816	$	368,006	$	1,148,034	$	1,040,949
International	206,770		209,871		642,036		598,598
	$	619,586	$	577,877	$	1,790,070	$	1,639,547
Operating income:¹
North America	$	177,769	$	138,480	$	495,095	$	394,378
International	103,321		94,157		310,866		249,370
	$	281,090	$	232,637	$	805,961	$	643,748
Depreciation and amortization:
North America	$	39,049	$	38,399	$	116,041	$	104,960
International	28,218		30,757		91,338		93,771
	$	67,267	$	69,156	$	207,379	$	198,731
Capital expenditures:
North America	$	12,604	$	9,167	$	32,700	$	30,901
International	9,094		7,692		23,612		18,558
	$	21,698	$	16,859	$	56,312	$	49,459

¹Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effect of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect ASC 606.

²The results from our Cambridge business acquired in the third quarter of 2017 are reported in our North America segment. As we have concluded that this business is part of our North America segment, the results for this business have been recast from International segment into our North America segment for the three and nine month periods ended September 30, 2017.