Segment Information

12 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

General Information

We operate in two reportable segments: North America merchant services and International merchant services. The merchant services segments primarily offer processing solutions for credit cards, debit cards and check-related services.

Information About Profit and Assets

We evaluate performance and allocate resources based on the operating income of each segment. The operating income of each segment includes the revenues of the segment less those expenses that are directly related to those revenues. Operating overhead, shared costs and certain compensation costs are included in Corporate in the following table. Interest expense and income and income tax expense are not allocated to the individual segments. We do not evaluate performance or allocate resources using segment asset data. The accounting policies of the reportable segments are the same as those described in the Summary of Significant Accounting Policies in Note 1.

Information on segments, including revenue by geographic distribution within segments, and reconciliations to consolidated revenues and consolidated operating income are as follows for the years ended May 31, 2014, 2013, and 2012:

	2014			2013			2012
	(in thousands)
Revenues:
United States	$	1,488,659		$	1,394,675		$	1,234,818
Canada	320,333			311,000			332,434
North America merchant services	1,808,992			1,705,675			1,567,252
Europe	587,463			522,593			489,300
Asia-Pacific	157,781			147,655			147,295
International merchant services	745,244			670,248			636,595
Consolidated revenues	$	2,554,236		$	2,375,923		$	2,203,847
Operating income (loss) for segments:
North America merchant services	$	272,251		$	258,910		$	281,305
International merchant services	240,179			211,242			196,137
Corporate (1)	(106,931		)	(112,939		)	(170,093		)
Consolidated operating income	$	405,499		$	357,213		$	307,349
Depreciation and amortization:
North America merchant services	$	60,970		$	48,882		$	35,479
International merchant services	54,728			57,520			60,462
Corporate	6,371			5,386			3,158
Consolidated depreciation and amortization	$	122,069		$	111,788		$	99,099

⁽¹⁾ Includes a processing system intrusion credit of $7.0 million in fiscal 2014 and charges of $36.8 million and $84.4 million in fiscal 2013 and 2012, respectively.

Our results of operations and our financial condition are not significantly reliant upon any single customer.

The following is a breakdown of long-lived assets by geographic regions as of May 31, 2014 and 2013:

	2014		2013
	(in thousands)
United States	$	1,291,909	$	826,972
Canada	150,635		162,374
Europe	722,140		719,991
Asia-Pacific region	77,527		82,538
South America	—		1,259
	$	2,242,211	$	1,793,134