SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.

Revenues and cost of revenue are generally directly attributed to the segments. Certain revenue contracts are allocated among the segments based on the relative value of the underlying products and services. Cost of revenue, excluding non-cash stock compensation expense and purchased intangible asset amortization, is directly charged in most cases and allocated in certain cases based upon proportional usage.

Operating expenses, excluding non-cash stock compensation expense and purchased intangible asset amortization, are attributed to the segment groups as follows:


•	Research and development expenses are primarily directly recorded to each segment group based on identified products supported.


•	Sales and marketing expenses are primarily directly recorded to each segment group based on products supported and sold.


•	General and administrative expenses are generally not allocated to the segments unless directly attributable.


•	Gains, losses and other items, net are not allocated to the segment groups.

We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment.

The following table presents information by business segment (dollars in thousands):



	2018		2017		2016
Revenues:
Marketing Services	$	379,047	$	410,840	$	449,772
Audience Solutions	327,358		322,065		297,846
Connectivity	211,001		147,342		102,470
Total segment revenues	$	917,406	$	880,247	$	850,088
Gross profit⁽¹⁾:
Marketing Services	$	139,185	$	140,647	$	152,258
Audience Solutions	202,235		198,186		167,715
Connectivity	140,885		88,251		61,199
Total segment gross profit	$	482,305	$	427,084	$	381,172
Income from operations⁽¹⁾:
Marketing Services	$	83,304	$	80,622	$	74,371
Audience Solutions	124,192		123,238		109,598
Connectivity	18,399		5,333		(3,298		)
Total segment income from operations	$	225,895	$	209,193	$	180,671
Depreciation and amortization:
Marketing Services	$	6,885	$	7,549	$	9,988
Audience Solutions	12,553		13,286		12,909
Connectivity	28,772		21,906		19,932
Total depreciation and amortization	$	48,210	$	42,741	$	42,829

⁽¹⁾

Gross profit and Income from operations reflect only the direct and allocable controllable costs of each segment and do not include allocations of corporate expenses (primarily general and administrative expenses) and gains, losses, and other items, net. Additionally, gross profit and income from operations do not include non-cash stock compensation expense and purchased intangible asset amortization.

The following table reconciles total segment gross profit to gross profit and total segment income from operations to income from operations (dollars in thousands):



	2018		2017		2016
Total segment gross profit	$	482,305	$	427,084	$	381,172
Less:
Purchased intangible asset amortization	23,920		18,644		15,466
Non-cash stock compensation	6,416		5,879		2,150
Accelerated amortization	999		—		1,850
Gross profit	$	450,970	$	402,561	$	361,706

Total segment income from operations	$	225,895	$	209,193	$	180,671
Less:
Corporate expenses (principally general and administrative)	120,770		117,342		125,994
Gains, losses and other items, net	6,373		8,373		12,132
Impairment of goodwill and other	—		—		6,829
Purchased intangible asset amortization	23,920		18,644		15,466
Non-cash stock compensation	63,234		49,145		31,463
Accelerated amortization	999		—		1,850
Income (loss) from operations	$	10,599	$	15,689	$	(13,063	)