Segment Information

3 Months Ended

Mar. 31, 2020



17.	Segment Information

The Company determines its operating segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) allocates resources and assesses performance. The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below.


•	Fleet Solutions provides customers with payment and transaction processing services specifically designed for the needs of commercial and government fleets. This segment also provides information management services to these fleet customers.


•	Travel and Corporate Solutions focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs.


•	Health and Employee Benefit Solutions provides healthcare payment products and SaaS consumer-directed platforms, as well as payroll related benefits to customers.

The following tables present the Company’s reportable segment revenues:



	Three Months Ended March 31, 2020
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Payment processing revenue	$	113,323	$	70,268	$	20,446	$	204,037
Account servicing revenue	39,208		11,063		63,569		113,840
Finance fee revenue	55,342		535		50		55,927
Other revenue	41,974		2,493		13,408		57,875
Total revenues	$	249,847	$	84,359	$	97,473	$	431,679

Interest income	$	1,266	$	225	$	419	$	1,910



	Three Months Ended March 31, 2019
(In thousands)	Fleet Solutions		Travel and Corporate Solutions		Health and Employee Benefit Solutions		Total
Payment processing revenue	$	107,408	$	59,998	$	19,392	$	186,798
Account servicing revenue	39,239		10,585		37,262		87,086
Finance fee revenue	45,864		357		152		46,373
Other revenue	40,271		10,708		10,640		61,619
Total revenues	$	232,782	$	81,648	$	67,446	$	381,876

Interest income	$	2,221	$	377	$	159	$	2,757

The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) unallocated corporate expenses; (ii) acquisition and divestiture related items (including acquisition-related intangible amortization); (iii) debt restructuring costs; (iv) stock-based compensation; and (v) other costs. Additionally, we do not allocate foreign currency gains and losses, financing interest expense, unrealized and realized gains and losses on financial instruments, income taxes and adjustments attributable to non-controlling interests to our operating segments.

The following table reconciles total segment adjusted operating income to income before income taxes:



	Three Months Ended March 31,
(In thousands)	2020			2019
Segment adjusted operating income
Fleet Solutions	$	104,608		$	92,975
Travel and Corporate Solutions	21,915			34,387
Health and Employee Benefit Solutions	29,467			19,780
Total segment adjusted operating income	$	155,990		$	147,142

Reconciliation:
Total segment adjusted operating income	$	155,990		$	147,142
Less:
Unallocated corporate expenses	16,543			16,942
Acquisition-related intangible amortization	42,538			33,888
Other acquisition and divestiture related items	7,942			9,780
Debt restructuring costs	78			4,400
Stock-based compensation	11,820			10,442
Other costs	2,240			2,755
Operating income	74,829			68,935
Financing interest expense	(32,031		)	(31,112		)
Net foreign currency loss	(28,727		)	(3,885		)
Net unrealized loss on financial instruments	(32,047		)	(11,912		)
(Loss) income before income taxes	$	(17,976	)	$	22,026