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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Information About Profit and Assets We operate in two reportable segments: Merchant Solutions and Issuer Solutions. As described in "Note 3—Business Dispositions," during the second quarter of 2023, we completed the sale of the consumer portion of our Netspend business, which comprised our former Consumer Solutions segment. Our former Consumer Solutions segment is presented below for periods prior to disposition. Our Merchant Solutions payment technology is similar around the world in that we enable our customers to accept card and other digital-based payments. Through this segment, our offerings include, but are not limited to, authorization, settlement and funding services, customer support, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and on-line reporting. In addition, we offer a wide array of enterprise software solutions that streamline business operations to customers in numerous vertical markets. We also provide a variety of value-added solutions and services, including specialty point-of-sale software, analytics and customer engagement, human capital management and payroll and reporting that assist our customers with driving demand and operating their businesses more efficiently. Through our Issuer Solutions segment, we provide financial institutions and retailers technologies to manage their card portfolios, reduce technical complexity and overhead and offer a seamless experience for cardholders on a single platform. In addition, we provide flexible commercial payments, accounts payable and electronic payment alternative solutions that support B2B payment processes for businesses and governments. We also offer complementary services including account management and servicing, fraud solution services, analytics and business intelligence, cards, statements and correspondence, customer contact services and risk management solutions. Additionally, our Issuer Solutions segment provides B2B payment services and other financial service solutions marketed to businesses, including SaaS offerings that automate key procurement processes, provide invoice capture, coding and approval, and enable virtual cards and integrated payments options across a variety of key vertical markets. Through our former Consumer Solutions segment, we provided general purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers and businesses in the United States. Our segment structure reflects the financial information and reports used by our chief operating decision maker to make decisions regarding the business, including resource allocations and performance assessments. Our Chief Executive Officer is the chief operating decision maker ("CODM"). We evaluate performance and allocate resources based on the operating income of each operating segment. The CODM uses segment operating income in the annual budget and forecasting process, and considers budget-to-actual and forecast-to-actual variances on a monthly, quarterly and annual basis. The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues. Operating overhead, shared costs and share-based compensation costs are included in Corporate. Impairment of goodwill and gains or losses on business dispositions are not included in determining segment operating income. Interest and other income, interest and other expense, income tax expense and equity in income of equity method investments are not allocated to the individual segments. The CODM does not evaluate the performance of or allocate resources to our operating segments using asset data. The accounting policies of the reportable operating segments are the same as those described in the Summary of Significant Accounting Policies in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies." Information on segments and reconciliations to consolidated revenues, consolidated operating expenses, consolidated operating income and consolidated depreciation and amortization were as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Revenues(1): |  |  |  |  |
Merchant Solutions | $ | 7,688,703 |  |  | $ | 7,151,793 |  |  | $ | 6,204,917 |
Issuer Solutions | 2,483,657 |  |  | 2,398,870 |  |  | 2,245,623 |
Consumer Solutions | — |  |  | 182,740 |  |  | 620,482 |
Intersegment eliminations | (66,466) |  |  | (78,984) |  |  | (95,507) |
Consolidated revenues | $ | 10,105,894 |  |  | $ | 9,654,419 |  |  | $ | 8,975,515 |
Operating expenses(1): |  |  |  |  |
Merchant Solutions: |  |  |  |  |
Cost of service | $ | 2,008,126 |  |  | $ | 1,925,880 |  |  | $ | 1,798,300 |
Selling, general and administrative | 3,067,662 |  |  | 2,880,658 |  |  | 2,366,362 |
Total Merchant Solutions expenses | 5,075,788 |  |  | 4,806,538 |  |  | 4,164,662 |
Issuer Solutions: |  |  |  |  |
Cost of service | 1,795,001 |  |  | 1,738,047 |  |  | 1,633,708 |
Selling, general and administrative | 246,214 |  |  | 251,016 |  |  | 255,700 |
Total Issuer Solutions expenses | 2,041,215 |  |  | 1,989,063 |  |  | 1,889,408 |
Consumer Solutions(2) | — |  |  | 186,648 |  |  | 566,888 |
Corporate | 994,886 |  |  | 898,024 |  |  | 777,744 |
Intersegment eliminations | (66,466) |  |  | (78,984) |  |  | (95,507) |
Operating income (loss)(1): |  |  |  |  |
Merchant Solutions | $ | 2,612,915 |  |  | $ | 2,345,255 |  |  | $ | 2,040,255 |
Issuer Solutions | 442,442 |  |  | 409,807 |  |  | 356,215 |
Consumer Solutions | — |  |  | (3,908) |  |  | 53,594 |
Corporate | (994,886) |  |  | (898,024) |  |  | (777,744) |
Impairment of goodwill | — |  |  | — |  |  | (833,075) |
Net gain (loss) on business dispositions | 273,134 |  |  | (136,744) |  |  | (199,094) |
Consolidated operating income | $ | 2,333,605 |  |  | $ | 1,716,386 |  |  | $ | 640,151 |
Depreciation and amortization(1): |  |  |  |  |
Merchant Solutions | $ | 1,179,845 |  |  | $ | 1,109,186 |  |  | $ | 981,297 |
Issuer Solutions | 658,186 |  |  | 646,118 |  |  | 623,755 |
Consumer Solutions | — |  |  | — |  |  | 35,773 |
Corporate | 24,300 |  |  | 21,388 |  |  | 21,630 |
Consolidated depreciation and amortization | $ | 1,862,331 |  |  | $ | 1,776,692 |  |  | $ | 1,662,455 |
(1) Revenues, operating expenses, operating income and depreciation and amortization reflect the effects of acquired businesses from the respective acquisition dates and the effects of disposed businesses through the respective disposal dates. See “Note 2—Acquisitions” and “Note 3—Business Dispositions” for further discussion. Operating income and operating expenses included acquisition and integration expenses of $211.6 million, $341.9 million and $259.2 million for the years ended December 31, 2024, 2023 and 2022, respectively, which were primarily included within Corporate selling, general and administrative expenses. For the years ended December 31, 2024, 2023 and 2022, operating expenses for Corporate also included $13.4 million, $18.5 million and $47.1 million, respectively, of other charges related to facilities exit activities as a result of actions taken to reduce our facility footprint in certain markets around the world. During the year ended December 31, 2024, Corporate operating expenses also reflected costs of $99.1 million associated with our business transformation initiative, employee termination benefits of $99.6 million, which included $19.4 million of share-based compensation expense, and charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy. These charges are presented within selling, general and administrative expenses in our consolidated statements of income. (2) Prior to the disposition of the consumer portion of our Netspend business, the information provided to the CODM included segment revenue and operating income, but not cost of service or selling, general and administrative expense. Therefore, the segment expense detail is not provided for the Consumer Solutions business. Entity-Wide Information As a percentage of our total consolidated revenues, revenues from external customers in the United States were 75% for the year ended December 31, 2024, 76% for the year ended December 31, 2023, and 80% for the year ended December 31, 2022. Revenues from external customers are attributed to individual countries based on the location of the customer arrangements. Our results of operations and our financial condition are not significantly reliant upon any single customer. Long-lived assets, excluding goodwill and other intangible assets, by location as of December 31, 2024 and 2023 were as follows:
| 2024 |  | 2023
| (in thousands)
United States | $ | 1,725,811 |  |  | $ | 1,672,532 |
Foreign countries | 551,782 |  |  | 517,473 |
| $ | 2,277,593 |  |  | $ | 2,190,005 |

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- Definition The entire disclosure for reporting segments including data and tables. 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