Description of Business

DST Systems, Inc. (the “Company” or “DST”) provides sophisticated information processing and services solutions to companies around the world. Through its global enterprise, DST delivers strategically unified business processing, data management solutions, and customer communications, including integrated print and electronic statement and billing solutions, to the asset management, brokerage, retirement and healthcare markets. In addition to its technology products and services, DST's data centers provide technology infrastructure support for companies worldwide. Historically, the Company presented these businesses as two operating segments, Financial Services and Customer Communications. During 2013, DST created a new reportable segment entitled Healthcare Services, by separating DST Healthcare (comprised of DST Health Solutions and Argus Health Systems) from the previously reported Financial Services Segment. The Company's operating business units are now reported as three operating segments (Financial Services, Healthcare Services, and Customer Communications). Prior periods have been revised to reflect the new reportable operating segments. Investments in the Company's real estate subsidiaries and affiliates, equity securities, private equity investments and certain financial interests have been aggregated into the Investments and Other Segment.

A summary of each of the Company's Segments follows:

Financial Services

The Financial Services Segment provides a variety of services to the asset management, brokerage, retirement and insurance industries and is the largest provider of third party shareowner recordkeeping services to the mutual fund industry. The Company has developed a number of proprietary systems that are integrated into its solutions including:


•	Shareowner recordkeeping and distribution support systems for United States (“U.S.”) and international mutual fund companies, broker/dealers and financial advisors;


•	A defined-contribution participant recordkeeping system for the U.S. retirement plan market;


•	Investment management systems offered to U.S. and international investment managers and fund accountants; and


•	Business process management and customer contact system offered to a broad variety of industries.

Healthcare Services

The Healthcare Services Segment provides a variety of servicing solutions to U.S. healthcare organizations that, collectively, help meet the industry's information processing, quality of care and cost management needs while achieving compliance and improving operational efficiencies of each business. The Company's proprietary systems include medical and pharmacy claims administration processing systems and services offered to providers of healthcare plans, third-party administrators, pharmacy benefit managers and medical practice groups.

Customer Communications

The Customer Communications Segment helps businesses deploy customer communications while improving operational performance across critical business functions such as sales, marketing, customer service, technology, finance, operations, and compliance. By delivering information in the desired combination of print, digital and archival formats, the Segment helps its clients deliver better customer experiences at each point of interaction. The Segment's product offering combines data insights and analysis with business decision-making tools and multi-channel execution and delivery designed to help businesses acquire, grow, retain and win back customers.

Investments and Other

The Investments and Other Segment is comprised of the Company's real estate subsidiaries and joint ventures, investments in equity securities, private equity investments and other financial interests. The Company owns and operates real estate mostly in North America, primarily for lease to the Company's other business segments. The Company is a partner in certain real estate joint ventures that lease office space to the Company, certain of its unconsolidated affiliates and unrelated third parties. The assets held by the Segment are primarily passive in nature.