Operating segments are defined by ASC 280, “Segment Reporting,” as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products and services.

The Company operates in the LoyaltyOne and Card Services reportable segments, which consist of the following:

Corporate and other immaterial businesses are reported collectively as an “all other” category labeled “Corporate/Other.” Income taxes are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes and have also been included in “Corporate/Other.”


					Corporate/
Three Months Ended March 31, 2020	LoyaltyOne		Card Services		Other		Total
	(in millions)
Revenues	$	198.1	$	1,183.6	$	0.1	$	1,381.8

Income (loss) before income taxes	$	46.7	$	32.1	$	(53.4)	$	25.4
Interest expense, net		(0.3)		110.2		28.7		138.6
Operating income (loss)		46.4		142.3		(24.7)		164.0
Depreciation and amortization		18.2		19.7		0.9		38.8
Stock compensation expense		1.0		1.7		2.0		4.7
Gain on sale of business, net of strategic transaction costs		(8.0)		—		—		(8.0)
Strategic transaction costs		0.1		—		0.6		0.7
Restructuring and other charges		0.1		(6.5)		(0.1)		(6.5)
Adjusted EBITDA ⁽¹⁾		57.8		157.2		(21.3)		193.7
Less: Securitization funding costs		—		49.9		—		49.9
Less: Interest expense on deposits		—		60.3		—		60.3
Adjusted EBITDA, net ⁽¹⁾	$	57.8	$	47.0	$	(21.3)	$	83.5


					Corporate/
Three Months Ended March 31, 2019	LoyaltyOne		Card Services		Other		Total
	(in millions)
Revenues	$	203.8	$	1,130.4	$	—	$	1,334.2

Income (loss) before income taxes	$	23.0	$	266.9	$	(76.9)	$	213.0
Interest expense, net		1.1		106.0		36.8		143.9
Operating income (loss)		24.1		372.9		(40.1)		356.9
Depreciation and amortization		20.1		24.3		2.0		46.4
Stock compensation expense		3.0		3.7		4.6		11.3
Restructuring charges		7.9		—		—		7.9
Adjusted EBITDA ⁽¹⁾		55.1		400.9		(33.5)		422.5
Less: Securitization funding costs		—		57.3		—		57.3
Less: Interest expense on deposits		—		48.7		—		48.7
Adjusted EBITDA, net ⁽¹⁾	$	55.1	$	294.9	$	(33.5)	$	316.5

(1)

Adjusted EBITDA is a non-GAAP financial measure equal to income from continuing operations, the most directly comparable financial measure based on GAAP plus stock compensation expense, (benefit) provision for income taxes, interest expense, net, depreciation and other amortization and amortization of purchased intangibles. Adjusted EBITDA also excludes the gain on the sale of Precima, strategic transaction costs, which represent costs for professional services associated with strategic initiatives, and restructuring and other charges.

Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs and interest expense on deposits. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.