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Segment Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Information | Note 22—Segment Information The Company operates in three business segments: Merchant Acquiring, Payment Processing and Business Solutions. The Merchant Acquiring segment consists of revenues from services that allow merchants to accept electronic methods of payment. In the Merchant Acquiring segment, revenues include a discount fee and membership fees charged to merchants, debit network fees and rental fees from POS devices and other equipment, net of credit card interchange and assessment fees charged by credit cards associations (such as VISA or MasterCard) or payment networks. The discount fee is generally a percentage of the transaction value. EVERTEC also charge merchants for other services that are unrelated to the number of transactions or the transaction value. The Payment Processing segment revenues are comprised of revenues related to providing access to the ATH network and other card networks to financial institutions, including related services such as authorization, processing, management and recording of ATM and POS transactions, and ATM management and monitoring. Payment Processing revenues also include revenues from card processing services (such as credit and debit card processing, authorization and settlement and fraud monitoring and control to debit or credit issuers), payment processing services (such as payment and billing products for merchants, businesses and financial institutions) and electronic benefit transfer (“EBT”) (which principally consist of services to the government of Puerto Rico for the delivery of benefits to participants). For ATH network and processing services, revenues are primarily driven by the number of transactions processed. Revenues are derived primarily from network fees, transaction switching and processing fees, and the leasing POS devices. For card issuer processing, revenues are primarily dependent upon the number of cardholder accounts on file, transactions and authorizations processed, the number of cards embossed and other processing services. For EBT services, revenues are primarily derived from the number of beneficiaries on file. The Business Solutions segment consists of revenues from a full suite of business process management solutions in various product areas such as core bank processing, network hosting and management, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Core bank processing and network services revenues are derived in part from a recurrent fee and from fees based on the number of accounts on file (i.e. savings or checking accounts, loans, etc.) or computer resources utilized. Revenues from other processing services within the Business Solutions segment are generally volume-based and depend on factors such as the number of accounts processed. In addition, EVERTEC are a reseller of hardware and software products and these resale transactions are generally one-time transactions. The Company’s business segments are organized based on the nature of products and services. The Chief Operating Decision Maker (“CODM”) reviews their separate financial information to assess performance and to allocate resources. Management evaluates the operating results of each of its reportable segments based upon revenues and operating income. Segment asset disclosure is not used by the CODM as a measure of segment performance since the segment evaluation is driven by earnings. As such, segment assets are not disclosed in the notes to the accompanying consolidated financial statements. The following tables set forth information about the Company’s operations by its three business segments for the periods indicated:
(Dollar amounts in thousands) |  | Merchant Acquiring, net |  |  | Payment Processing |  |  | Business Solutions |  |  | Other |  |  | Total |
Year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 85,411 |  |  | $ | 136,566 |  |  | $ | 179,797 |  |  | $ | (28,246 | )(1) |  | $ | 373,528 |
Income from operations |  |  | 36,466 |  |  |  | 55,429 |  |  |  | 50,200 |  |  |  | (38,735 | )(2) |  |  | 103,360 |
Year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues—As restated |  |  | 79,136 |  |  |  | 131,381 |  |  |  | 177,939 |  |  |  | (26,668 | )(1) |  |  | 361,788 |
Income from operations—As restated |  |  | 34,362 |  |  |  | 58,796 |  |  |  | 48,299 |  |  |  | (44,470 | )(2) |  |  | 96,987 |
Year ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues—As restated |  |  | 73,616 |  |  |  | 125,610 |  |  |  | 184,682 |  |  |  | (25,506 | )(1) |  |  | 358,402 |
Income from operations—As restated |  |  | 35,398 |  |  |  | 54,635 |  |  |  | 42,687 |  |  |  | (46,474 | )(2) |  |  | 86,246 |
(1) | Represents the elimination of intersegment revenues for services provided by the Payment Processing segment to the Merchant Acquiring segment, and other miscellaneous intersegment revenues.
(2) | Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.
The reconciliation of income from operations to consolidated net income (loss) is as follows:
|  | Years ended December 31, |
(Dollar amounts in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
|  |  |  |  | (As Restated) |
Segment income from operations |  |  |  |  |  |  |  |  |  |  |  |
Merchant Acquiring |  | $ | 36,466 |  |  | $ | 34,362 |  |  | $ | 35,398 |
Payment Processing |  |  | 55,429 |  |  |  | 58,796 |  |  |  | 54,635 |
Business Solutions |  |  | 50,200 |  |  |  | 48,299 |  |  |  | 42,687 |
Total segment income from operations |  |  | 142,095 |  |  |  | 141,457 |  |  |  | 132,720 |
Merger related depreciation and amortization and other unallocated expenses (1) |  |  | (38,735 | ) |  |  | (44,470 | ) |  |  | (46,474 | )
Income from operations |  |  | 103,360 |  |  |  | 96,987 |  |  |  | 86,246 |
Interest expense, net |  |  | (23,771 | ) |  |  | (25,444 | ) |  |  | (37,181 | )
Earnings of equity method investment |  |  | 147 |  |  |  | 1,140 |  |  |  | 935 |
Other income (expenses) |  |  | 2,306 |  |  |  | 2,375 |  |  |  | (75,682 | )
Income tax benefit (expense) |  |  | 3,335 |  |  |  | (8,901 | ) |  |  | (1,435 | )
Net income (loss) |  | $ | 85,377 |  |  | $ | 66,157 |  |  | $ | (27,117 | )
(1) | Primarily represents non-operating depreciation and amortization expenses generated as a result of the Merger and certain non-recurring fees and expenses.
The geographic segment information below is classified based on the geographic location of the Company’s subsidiaries:
|  | Years ended December 31, |
(Dollar amounts in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
|  |  |  |  | (As restated) |
Revenues (1) |  |  |  |  |  |  |  |  |  |  |  |
Puerto Rico |  | $ | 322,319 |  |  | $ | 313,228 |  |  | $ | 309,735 |
Caribbean |  |  | 12,154 |  |  |  | 13,752 |  |  |  | 16,225 |
Latin America |  |  | 39,055 |  |  |  | 34,808 |  |  |  | 32,442 |
Total revenues |  | $ | 373,528 |  |  | $ | 361,788 |  |  | $ | 358,402 |
(1) | Revenues are based on subsidiaries’ country of domicile.
Major customers For the years ended December 31, 2015, 2014 and 2013, the Company had one major customer which accounted for approximately $167.3 million or 45%, $161.8 million, as restated, or 45% and $164.4 million, as restated, or 46%, respectively, of total revenues. See Note 20. The Company’s next largest customer, the Government of Puerto Rico, consolidating all individual agencies and public corporations, represented 9%, 10% and 11% of the Company’s total revenues for the years ended December 31, 2015, 2014 and 2013, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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