

16.	Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below.


•	Fleet Solutions provides customers with payment and transaction processing services specifically designed for the needs of commercial and government fleets. This segment also provides information management services to these fleet customers.


•	Travel and Corporate Solutions focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs.


•	Health and Employee Benefit Solutions provides healthcare payment products and SaaS consumer directed platforms, as well as payroll related benefits to customers.

The following tables present the Company’s reportable segment results:



	Three Months Ended September 30, 2018
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	116,023	$	54,345	$	12,503	$	182,871
Account servicing revenue	42,810		9,120		26,818		78,748
Finance fee revenue	51,644		670		1,389		53,703
Other revenue	39,135		18,675		9,558		67,368
Total revenues	$	249,612	$	82,810	$	50,268	$	382,690

Interest income	$	1,092	$	172	$	543	$	1,807



	Three Months Ended September 30, 2017
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	90,270	$	44,177	$	11,255	$	145,702
Account servicing revenue	44,858		206		26,258		71,322
Finance fee revenue	40,773		87		10,019		50,879
Other revenue	36,177		16,556		3,366		56,099
Total revenues	$	212,078	$	61,026	$	50,898	$	324,002

Interest income	$	944	$	208	$	10,899	$	12,051



	Nine Months Ended September 30, 2018
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	335,896	$	150,411	$	43,756	$	530,063
Account servicing revenue	128,039		27,584		80,545		236,168
Finance fee revenue	140,436		1,157		13,365		154,958
Other revenue	117,076		46,201		23,929		187,206
Total revenues	$	721,447	$	225,353	$	161,595	$	1,108,395

Interest income	$	3,127	$	715	$	11,698	$	15,540



	Nine Months Ended September 30, 2017
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	264,210	$	119,328	$	39,896	$	423,434
Account servicing revenue	122,238		528		75,772		198,538
Finance fee revenue	113,754		469		22,113		136,336
Other revenue	103,003		43,414		14,518		160,935
Total revenues	$	603,205	$	163,739	$	152,299	$	919,243

Interest income	$	2,764	$	569	$	23,253	$	26,586

The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) acquisition and divestiture related items (including acquisition-related intangible amortization); (ii) debt restructuring costs; (iii) stock-based compensation; (iv) restructuring and other costs; and (v) certain impairment charges. Additionally, we do not allocate foreign currency gains and losses, financing interest expense, unrealized and realized gains and losses on derivative instruments, income taxes and net gains or losses from non-controlling interest to our operating segments.

Effective January 1, 2018, the Company revised how it allocates certain costs in its measure of segment adjusted operating income. The primary change is how the Company allocates information technology and corporate related costs to its segments. Certain information technology and corporate related costs that support multiple segments, which were previously included in Fleet Solutions, are now being allocated to the segment that they support. Certain residual unallocated corporate costs represent the portion of expenses relating to general corporate functions including acquisition expenses, certain finance, legal, information technology, human resources, administrative, executive and other expenses. These expenses are recorded in unallocated corporate expenses, as these items are centrally and directly controlled and are not included in internal measures of segment operating performance. Segment results for the three and nine months ended September 30, 2017 have been recast to conform to the current presentation as described above.

The following table reconciles segment adjusted operating income to income before income taxes:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2018			2017			2018			2017
Segment adjusted operating income
Fleet Solutions	$	113,731		$	92,698		$	329,364		$	267,718
Travel and Corporate Solutions	39,377			28,995			99,074			69,697
Health and Employee Benefit Solutions	10,482			11,507			42,444			41,897
Total segment adjusted operating income	$	163,590		$	133,200		$	470,882		$	379,312

Reconciliation:
Total segment adjusted operating income	$	163,590		$	133,200		$	470,882		$	379,312
Less:
Unallocated corporate expenses	13,414			12,935			42,378			38,056
Acquisition-related intangible amortization	33,439			38,510			103,596			114,603
Other acquisition and divestiture related items	1,536			1,006			2,792			3,380
Debt restructuring costs	317			2,519			3,798			2,519
Stock-based compensation	9,799			8,483			25,659			22,354
Restructuring and other costs	1,973			6,024			8,274			10,169
Impairment charges	2,424			—			2,424			16,175
Operating income	100,688			63,723			281,961			172,056
Financing interest expense	(25,718		)	(25,754		)	(78,560		)	(81,449		)
Net foreign currency (loss) gain	(1,094		)	14,611			(27,438		)	33,578
Net unrealized gain (loss) on financial instruments	2,157			(150		)	18,371			(849		)
Income before income taxes	$	76,033		$	52,430		$	194,334		$	123,336