Segment Information

6 Months Ended

Jun. 30, 2019



17.	Segment Information

The Company determines its operating segments and reports information in accordance with how the Company’s chief operating decision maker (“CODM”) allocates resources and assesses performance. The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below.


•	Fleet Solutions primarily 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 revenues:



	Three Months Ended June 30, 2019
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	120,717	$	77,273	$	16,836	$	214,826
Account servicing revenue	41,506		10,717		54,669		106,892
Finance fee revenue	62,385		496		31		62,912
Other revenue	42,706		2,864		11,607		57,177
Total revenues	$	267,314	$	91,350	$	83,143	$	441,807

Interest income	$	1,798	$	430	$	428	$	2,656



	Three Months Ended June 30, 2018
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	112,895	$	51,289	$	14,554	$	178,738
Account servicing revenue	43,019		8,995		26,702		78,716
Finance fee revenue	45,188		228		6,137		51,553
Other revenue	40,310		15,252		6,229		61,791
Total revenues	$	241,412	$	75,764	$	53,622	$	370,798

Interest income	$	1,040	$	122	$	6,301	$	7,463



	Six Months Ended June 30, 2019
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	228,125	$	137,271	$	36,228	$	401,624
Account servicing revenue	80,745		21,302		91,931		193,978
Finance fee revenue	108,249		853		183		109,285
Other revenue	82,977		13,572		22,247		118,796
Total revenues	$	500,096	$	172,998	$	150,589	$	823,683

Interest income	$	4,019	$	807	$	587	$	5,413



	Six Months Ended June 30, 2018
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Revenues
Payment processing revenue	$	219,873	$	96,066	$	31,253	$	347,192
Account servicing revenue	85,229		18,464		53,727		157,420
Finance fee revenue	88,792		487		11,155		100,434
Other revenue	77,883		27,526		14,371		119,780
Total revenues	$	471,777	$	142,543	$	110,506	$	724,826

Interest income	$	2,035	$	543	$	12,268	$	14,846

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) other costs; and (v) unallocated corporate expenses. Additionally, we do not allocate foreign currency gains and losses, financing interest expense, unrealized and realized gains and losses on financial instruments, income taxes and adjustments attributable to non-controlling interests to our operating segments.

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2019			2018			2019			2018
Segment adjusted operating income
Fleet Solutions	$	122,577		$	112,953		$	215,552		$	220,926
Travel and Corporate Solutions	40,838			34,448			75,225			59,697
Health and Employee Benefit Solutions	21,146			11,608			40,926			29,679
Total segment adjusted operating income	$	184,561		$	159,009		$	331,703		$	310,302

Reconciliation:
Total segment adjusted operating income	$	184,561		$	159,009		$	331,703		$	310,302
Less:
Unallocated corporate expenses	18,177			15,044			35,119			28,964
Acquisition-related intangible amortization	39,814			34,921			73,702			70,157
Other acquisition and divestiture related items	7,017			619			16,797			1,256
Debt restructuring costs	5,078			466			9,478			3,481
Stock-based compensation	14,992			6,905			25,434			15,860
Other costs	4,746			630			7,501			6,301
Operating income	94,737			100,424			163,672			184,283
Financing interest expense	(35,638		)	(25,505		)	(66,750		)	(52,842		)
Net foreign currency gain (loss)	6,665			(26,734		)	2,780			(26,344		)
Net unrealized (loss) gain on financial instruments	(21,516		)	2,706			(33,428		)	16,214
Income before income taxes	$	44,248		$	50,891		$	66,274		$	121,311