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.