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Segment Reporting | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting Our reportable segments correspond to how we organize and manage the business, as defined by our CEO who is also our Chief Operating Decision Maker, and are aligned to the industries in which our clients operate. Our segments involve the delivery of business process services and include service arrangements where we manage a customer's business activity or process. During 2018, in an effort to better reflect how we manage our business, we segregated our Public Sector segment into Government Services (including Health Enterprise, which was previously reported in Other segment) and Transportation segments. In addition, the Company also reclassified the operating results of our divestitures from the reportable segments to Other segment and separately reflected Shared IT/Infrastructure & Corporate Costs. All prior periods presented have been revised to reflect these changes. We report our financial performance based on the three reportable segments: Commercial Industries, Government Services and Transportation.
• | Commercial Industries: Our Commercial Industries segment provides business process services and customized solutions to clients in a variety of industries. Across the Commercial Industries segment, we deliver end-to-end business-to-business and business-to-customer services that enable our clients to optimize their key processes. Our multi-industry competencies include omni-channel communications, human resource management and finance and accounting services.
• | Government Services: Our Government Services segment provides government-centric business process services to U.S. federal, state and local and foreign governments for, public assistance, program administration, transaction processing and payment services.
• | Transportation: Our Transportation segment provides systems and support services to transportation departments and agencies globally. Offerings include support for electronic toll collection, public transit, parking and photo enforcement.
Other includes our divestitures and our Student Loan business, which the Company exited in the third quarter of 2018. Selected financial information for our reportable segments was as follows:
|  | Year Ended December 31,
(in millions) |  | Commercial Industries |  | Government Services |  | Transportation |  | Other |  | Shared IT / Infrastructure & Corporate Costs |  | Total
2018 |  |  |  |  |  |  |  | Divestitures |  | Other |  |  |  |
Revenue |  | $ | 2,547 |  |  | $ | 1,351 |  |  | $ | 729 |  |  | $ | 752 |  |  | $ | 14 |  |  | $ | — |  |  | $ | 5,393 |
Segment profit (loss) |  | $ | 500 |  |  | $ | 424 |  |  | $ | 113 |  |  | $ | 98 |  |  | $ | (18 | ) |  | $ | (695 | ) |  | $ | 422 |
Segment depreciation and amortization |  | $ | 97 |  |  | $ | 30 |  |  | $ | 36 |  |  | $ | 7 |  |  | $ | 3 |  |  | $ | 48 |  |  | $ | 221 |
Adjusted EBITDA |  | $ | 597 |  |  | $ | 451 |  |  | $ | 149 |  |  | $ | 105 |  |  | $ | (15 | ) |  | $ | (647 | ) |  | $ | 640 |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,685 |  |  | $ | 1,433 |  |  | $ | 767 |  |  | $ | 1,062 |  |  | $ | 75 |  |  | $ | — |  |  | $ | 6,022 |
Segment profit (loss) |  | $ | 563 |  |  | $ | 398 |  |  | $ | 114 |  |  | $ | 128 |  |  | $ | 16 |  |  | $ | (802 | ) |  | $ | 417 |
Segment depreciation and amortization |  | $ | 98 |  |  | $ | 41 |  |  | $ | 43 |  |  | $ | 13 |  |  | $ | 2 |  |  | $ | 57 |  |  | $ | 254 |
Adjusted EBITDA |  | $ | 661 |  |  | $ | 440 |  |  | $ | 157 |  |  | $ | 141 |  |  | $ | 18 |  |  | $ | (745 | ) |  | $ | 672 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,827 |  |  | $ | 1,575 |  |  | $ | 766 |  |  | $ | 1,109 |  |  | $ | 131 |  |  | $ | — |  |  | $ | 6,408 |
Segment profit (loss) |  | $ | 520 |  |  | $ | 421 |  |  | $ | 88 |  |  | $ | 166 |  |  | $ | (149 | ) |  | $ | (850 | ) |  | $ | 196 |
Segment depreciation and amortization |  | $ | 103 |  |  | $ | 43 |  |  | $ | 41 |  |  | $ | 24 |  |  | $ | 52 |  |  | $ | 70 |  |  | $ | 333 |
Adjusted EBITDA |  | $ | 623 |  |  | $ | 464 |  |  | $ | 129 |  |  | $ | 190 |  |  | $ | 9 |  |  | $ | (780 | ) |  | $ | 635 |
The following is a reconciliation of segment profit (loss) profit to pre-tax (loss) income:
(in millions) |  | Year Ended December 31,
Segment Profit (Loss) Reconciliation to Pre-tax Income (Loss) |  | 2018 |  | 2017 |  | 2016
Income (Loss) Before Income Taxes |  | $ | (395 | ) |  | $ | (16 | ) |  | $ | (1,227 | )
Reconciling items: |  |  |  |  |  |
Restructuring and related costs |  | 81 |  |  | 101 |  |  | 101 |
Amortization of acquired intangible assets |  | 242 |  |  | 243 |  |  | 280 |
Goodwill impairment |  | — |  |  | — |  |  | 935 |
Interest expense |  | 112 |  |  | 137 |  |  | 40 |
Separation costs |  | — |  |  | 12 |  |  | 44 |
(Gain) loss on divestitures and transaction costs |  | 42 |  |  | (42 | ) |  | 2 |
Litigation costs (recoveries), net |  | 227 |  |  | (11 | ) |  | 40 |
(Gain) loss on extinguishment of debt |  | 108 |  |  | — |  |  | — |
Other (income) expenses, net |  | 5 |  |  | (7 | ) |  | (22 | )
Business transformation costs |  | — |  |  | — |  |  | 3 |
Segment Pre-Tax Income (Loss) |  | $ | 422 |  |  | $ | 417 |  |  | $ | 196 |
Segment depreciation and amortization |  | 221 |  |  | 254 |  |  | 333 |
NY MMIS depreciation |  | — |  |  | — |  |  | (52 | )
Business transformation costs |  | — |  |  | — |  |  | (3 | )
NY MMIS charge (credit) |  | (2 | ) |  | 9 |  |  | 161 |
HE charge (credit) |  | (1 | ) |  | (8 | ) |  | — |
Adjusted EBITDA |  | $ | 640 |  |  | $ | 672 |  |  | $ | 635 |
Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows for each of the years ended December 31:
|  | Revenues |  | Long-Lived Assets (1)
(in millions) |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017
United States |  | $ | 4,748 |  |  | $ | 5,303 |  |  | $ | 5,686 |  |  | $ | 375 |  |  | $ | 289 |
Europe |  | 497 |  |  | 538 |  |  | 547 |  |  | 28 |  |  | 42 |
Other areas |  | 148 |  |  | 181 |  |  | 175 |  |  | 62 |  |  | 54 |
Total Revenues and Long-Lived Assets |  | $ | 5,393 |  |  | $ | 6,022 |  |  | $ | 6,408 |  |  | $ | 465 |  |  | $ | 385 |
________________
(1) | Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Internal use software, net and (iii) Product software, net.
In 2016, our methodology to disclose revenue on a geographic basis changed to reflect where the work is contracted.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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