Segment Reporting and Major Customers

9 Months Ended

Sep. 30, 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 September 30,						Nine months ended September 30,
(in thousands)	2015			2014			2015			2014
Revenues before reimbursable items
North America Services	$	293,571			240,957			846,989			698,543
International Services		86,446			87,385			244,033			248,890
Merchant Services		123,721			115,012			351,987			327,972
NetSpend		139,648			114,048			436,343			363,521
Intersegment revenues		(7,000	)		(4,542	)		(25,098	)		(15,248	)
Revenues before reimbursable items from external customers	$	636,386			552,860			1,854,254			1,623,678
Total revenues
North America Services	$	341,416			282,833			984,493			818,335
International Services		92,177			91,865			261,597			264,710
Merchant Services		143,100			134,117			409,676			384,824
NetSpend		139,648			114,048			436,343			363,521
Intersegment revenues		(8,451	)		(5,972	)		(29,411	)		(19,616	)
Revenues from external customers	$	707,890			616,891			2,062,698			1,811,774
Depreciation and amortization
North America Services	$	25,300			22,173			72,831			63,377
International Services		8,678			9,610			26,084			29,176
Merchant Services		4,670			3,624			13,394			10,591
NetSpend		2,632			2,155			7,547			5,779
Segment depreciation and amortization		41,280			37,562			119,856			108,923
Acquisition intangible amortization		22,883			24,210			69,601			72,805
Corporate Administration and Other		336			662			1,762			1,702
Total depreciation and amortization	$	64,499			62,434			191,219			183,430
Adjusted segment operating income
North America Services	$	113,946			92,736			324,902			251,892
International Services		18,370			15,976			38,706			32,274
Merchant Services		42,387			40,409			117,192			103,473
NetSpend		37,315			36,123			109,224			95,543
Total adjusted segment operating income		212,018			185,244			590,024			483,182
Acquisition intangible amortization		(22,883	)		(24,210	)		(69,601	)		(72,805	)
NetSpend merger and acquisition operating expenses		—			(779	)		—			(3,213	)
Share-based compensation		(11,295	)		(5,420	)		(31,468	)		(23,019	)
Corporate Administration and Other		(14,736	)		(25,428	)		(72,753	)		(75,278	)
Operating income	$	163,104			129,407			416,202			308,867

	As of
	September 30, 2015			December 31, 2014
Total assets
North America Services	$	3,496,252			3,327,160
International Services		339,186			356,590
Merchant Services		697,154			695,744
NetSpend		1,518,196			1,556,369
Intersegment eliminations		(2,161,266	)		(2,202,282	)
Total assets	$	3,889,522			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 September 30, 2015
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	257.8		—		142.8		139.6	$	540.2
Canada*		68.4		—		0.1		—		68.5
Europe*		0.2		79.4		—		—		79.6
Mexico		4.0		—		—		—		4.0
Other*		4.3		11.1		0.2		—		15.6
Total	$	334.7		90.5		143.1		139.6	$	707.9
	Nine months ended September 30, 2015
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	716.1		—		408.7		436.3	$	1,561.1
Canada*		218.6		—		0.3		—		218.9
Europe*		0.6		223.7		—		—		224.3
Mexico		12.4		—		—		—		12.4
Other*		14.1		31.4		0.5		—		46.0
Total	$	961.8		255.1		409.5		436.3	$	2,062.7
	Three months ended September 30, 2014
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	195.8		—		133.8		114.0	$	443.6
Canada*		75.4		—		0.1		—		75.5
Europe*		0.2		78.2		—		—		78.4
Mexico		4.0		—		—		—		4.0
Other*		4.1		11.1		0.2		—		15.4
Total	$	279.5		89.3		134.1		114.0	$	616.9
	Nine months ended September 30, 2014
(in millions)	North America Services		International Services		Merchant Services		NetSpend		Total
United States	$	573.4		—		384.0		363.5	$	1,320.9
Canada*		207.4		—		0.2		—		207.6
Europe*		0.5		224.3		—		—		224.8
Mexico		12.2		—		—		—		12.2
Other*		11.9		33.9		0.5		—		46.3
Total	$	805.4		258.2		384.7		363.5	$	1,811.8

* 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)	September 30, 2015		December 31, 2014
United States	$	237.3		237.9
Europe*		43.1		45.5
Other*		6.7		7.2
Total	$	287.1		290.6

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

Major Customers

For the three and nine months ended September 30, 2015 and 2014, the Company did not have any major customers.