Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are: Financial Services, which includes customers providing banking/transaction processing, capital markets and insurance services; Healthcare, which includes healthcare providers and payers as well as life sciences customers; Manufacturing/Retail/Logistics, which includes consumer goods, manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services; and Other, which is an aggregation of industry segments each of which, individually, represents less than 10% of consolidated revenues and segment operating profit. The Other reportable segment includes our information, media and entertainment services, communications and high technology operating segments. Our sales managers, account executives, account managers and project teams are aligned in accordance with the specific industries they serve.

Our chief operating decision maker evaluates the company’s performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject to the same factors, pressures and challenges. However, the economic environment and its effects on industries served by our operating segments may affect revenue and operating expenses to differing degrees. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as a per seat charge for use of the development and delivery centers. Certain selling, general and administrative expenses, excess or shortfall of incentive compensation for delivery personnel as compared to target, stock-based compensation expense, a portion of depreciation and amortization and the impact of the settlements of our cash flow hedges are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are excluded from segment operating profit and are separately disclosed as “unallocated” and adjusted only against our total income from operations. Additionally, management has determined that it is not practical to allocate identifiable assets by segment, since such assets are used interchangeably among the segments.

Revenues from external customers and segment operating profit, before unallocated expenses, for the Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other reportable segments were as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Revenues:
Financial Services	$	1,082,245	$	954,379	$	3,164,467	$	2,720,427
Healthcare	655,415		599,947		1,916,770		1,651,540
Manufacturing/Retail/Logistics	533,048		490,622		1,559,288		1,378,062
Other	310,301		260,775		879,926		737,672
Total revenue	$	2,581,009	$	2,305,723	$	7,520,451	$	6,487,701
Segment Operating Profit:
Financial Services	$	318,022	$	324,450	$	1,019,986	$	895,079
Healthcare	200,804		230,145		642,399		612,210
Manufacturing/Retail/Logistics	168,686		177,075		527,786		466,485
Other	96,762		86,959		290,451		238,611
Total segment operating profit	784,274		818,629		2,480,622		2,212,385
Less: unallocated costs(1)	326,761		381,270		1,075,152		982,316
Income from operations	$	457,513	$	437,359	$	1,405,470	$	1,230,069

_____________________

(1) Includes $31,271 and $27,023 of stock-based compensation expense for the three months ended September 30, 2014 and 2013, respectively, and $100,622 and $86,353 of stock-based compensation expense for the nine months ended September 30, 2014 and 2013, respectively. In addition, the unallocated costs for the three and nine months ended September 30, 2014 include the benefit of accruing incentive-based compensation at lower accrual rates than the comparable 2013 periods.

Geographic Area Information

Revenue and long-lived assets, by geographic area, are as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Revenues: (1)
North America(2)	$	1,981,229	$	1,783,081	$	5,746,012	$	5,042,666
Europe(3)	472,114		414,656		1,408,508		1,150,140
Rest of World (4)	127,666		107,986		365,931		294,895
Total	$	2,581,009	$	2,305,723	$	7,520,451	$	6,487,701

	As of
	September 30, 2014		December 31, 2013
Long-lived Assets: (5)
North America(2)	$	50,781	$	48,352
Europe	24,586		22,707
Rest of World (4)(6)	1,026,101		1,010,105
Total	$	1,101,468	$	1,081,164

________________

(1) Revenues are attributed to regions based upon customer location.

(2) Substantially all relates to operations in the United States.

(3) Includes revenue from operations in the United Kingdom of $276,996 and $246,397 for the three months ended September 30, 2014 and 2013, respectively, and $820,531 and $696,650 for the nine months ended September 30, 2014 and 2013, respectively.

(4) Includes our operations in Asia Pacific, the Middle East and Latin America.

(5) Long-lived assets include property and equipment, net of accumulated depreciation and amortization.

(6) Substantially all of these long-lived assets relate to our operations in India.