Segment Information

3 Months Ended

Mar. 31, 2016

10. SEGMENT INFORMATION

Management evaluates the operating results of each of its reportable segments based upon several factors, of which the primary factors are revenue and “Segment EBITDA,” which the Company defines as income from operations before depreciation and amortization. The presentation of Segment EBITDA may not be comparable to similarly titled measures used by other companies. The segment information discussed below reflects our new business segments in effect as of January 1, 2016, as discussed in Note 1 to our unaudited condensed consolidated financial statements.

The Segment EBITDA of the Company’s four reportable segments does not include general corporate expenses. Corporate expenses include certain departmental service costs such as human resources, legal, corporate finance and accounting and unallocated portions of information technology, in addition to expenses previously recorded in corporate such as professional fees related to debt financing activities and stock compensation costs. General corporate expenses have been excluded from the presentation of the Segment EBITDA for the Company’s four reportable segments because they are not reported to the chief operating decision maker for purposes of allocating resources among operating segments or assessing operating segment performance. The accounting policies of the reportable segments are the same as those described in Note 2—Summary of Significant Accounting Policies in the Company’s Form 10-K for the year ended December 31, 2015.

Net Revenues
	For the Three Months Ended
	March 31,			March 31,
	2016			2015
	(in millions)
Global Loyalty	$	39.9		$	47.1
Global Customer Engagement		103.6			104.1
Insurance Solutions		57.4			59.7
Subtotal		200.9			210.9
Legacy Membership and Package		54.2			91.8
Eliminations		(0.2	)		(0.4	)
	$	254.9		$	302.3

Segment EBITDA
	For the Three Months Ended
	March 31,			March 31,
	2016			2015
	(in millions)

Global Loyalty	$	13.6		$	15.6
Global Customer Engagement		19.6			12.0
Insurance Solutions		21.7			18.8
Subtotal		54.9			46.4
Legacy Membership and Package		10.1			14.5
Corporate		(17.1	)		(13.4	)
	$	47.9		$	47.5

	For the Three Months Ended
	March 31,			March 31,
	2016			2015
	(in millions)
Segment EBITDA	$	47.9		$	47.5
Depreciation and amortization		(14.3	)		(24.2	)
Income from operations	$	33.6		$	23.3

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Affinion Group, Inc. 10-Q