Segment Reporting and Major Customers

3 Months Ended

Mar. 31, 2015

Segment Reporting and Major Customers

Note 8 — Segment Reporting and Major Customers

Refer to Note 22 of the Company’s audited financial statements for the year ended December 31, 2014, which are included as Exhibit 13.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC, for a discussion regarding segment reporting and major customers.

The following table presents the Company’s operating results by segment:

Operating Segments

	Three months ended March 31,
(in thousands)	2015			2014
Revenues before reimbursable items
North America Services	$	266,219			224,368
International Services		73,730			76,773
Merchant Services		110,398			104,625
NetSpend		155,074			132,640
Intersegment revenues		(9,637	)		(5,656	)
Revenues before reimbursable items from external customers	$	595,784			532,750
Total revenues
North America Services	$	309,233			262,178
International Services		79,802			82,378
Merchant Services		129,104			122,690
NetSpend		155,074			132,640
Intersegment revenues		(11,057	)		(7,038	)
Revenues from external customers	$	662,156			592,848
Depreciation and amortization
North America Services	$	23,064			20,276
International Services		8,778			9,805
Merchant Services		4,277			3,400
NetSpend		2,293			1,735
Segment depreciation and amortization		38,412			35,216
Acquisition intangible amortization		23,867			24,313
Corporate Administration and Other		536			506
Total depreciation and amortization	$	62,815			60,035
Adjusted segment operating income
North America Services	$	102,570			74,578
International Services		6,983			4,555
Merchant Services		34,115			30,168
NetSpend		35,467			28,717
Total adjusted segment operating income		179,135			138,018
Acquisition intangible amortization		(23,867	)		(24,313	)
NetSpend merger and acquisition operating expenses		—			(1,253	)
Share-based compensation		(8,143	)		(7,611	)
Corporate Administration and Other		(24,629	)		(24,144	)
Operating income	$	122,496			80,697
	As of
	March 31, 2015			December 31,2014
Total assets
North America Services	$	3,373,386			3,327,160
International Services		332,940			356,590
Merchant Services		687,674			695,744
NetSpend		1,561,386			1,556,369
Intersegment eliminations		(2,177,948	)		(2,202,282	)
Total assets	$	3,777,438			3,733,581

Revenues by Geographic Area

The following tables reconcile geographic revenues to external revenues by operating segment based on the domicile of the Company’s customers:

	Three months ended March 31, 2015
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	214.0		—		128.8		155.1	$	497.9
Canada		77.8		—		0.1		—		77.9
Europe*		0.2		67.6		—		—		67.8
Mexico		4.3		—		—		—		4.3
Other*		4.4		9.7		0.2		—		14.3
Total	$	300.7		77.3		129.1		155.1	$	662.2
	Three months ended March 31, 2014
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	185.3		—		122.5		132.6	$	440.4
Canada		62.9		—		0.1		—		63.0
Europe*		0.2		69.8		—		—		70.0
Mexico		3.9		—		—		—		3.9
Other*		3.8		11.5		0.2		—		15.5
Total	$	256.1		81.3		122.8		132.6	$	592.8

* Revenues are impacted by movements in foreign currency exchange rates.

The Company maintains property and equipment, net of accumulated depreciation and amortization, in the following geographic areas:

	As of
(in millions)	March 31, 2015		December 31, 2014
United States	$	236.1		237.9
Europe*		42.9		45.5
Other*		6.4		7.2
Total	$	285.4		290.6

* Property and equipment are impacted by movements in foreign currency exchange rates.

Major Customers

For the three months ended March 31, 2015 and 2014, the Company did not have any major customers.