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Table of Contents
billing operations and provisions for doubtful accounts. Segment income from operations excludes other income and expense items and certain
expenses over which segment managers do not have discretionary control. Costs excluded from segment income from operations include various
corporate expenses (consisting of certain costs such as corporate management, human resources, finance and legal), depreciation and
amortization, impairment of goodwill and intangible assets, restructuring and acquisition-related costs and stock-
based compensation expense, as
they are not considered in the measurement of segment performance.
The following table sets forth segment data for the years ended December 31, 2008, 2009 and 2010:
Year Ended December 31,
2009 vs. 2008
2010 vs. 2009
2008 2009 2010 $ Change % Change $ Change % Change
(dollars in thousands)
Consumer
Services
Revenues
$
779,876
$
575,412
$
461,448
$
(204,464
)
-
26
%
$
(113,964
)
-
20
%
Cost of
revenues
255,170
183,248
143,956
(71,922
)
-
28
%
(39,292
)
-
21
%
Gross margin
524,706
392,164
317,492
(132,542
)
-
25
%
(74,672
)
-
19
%
Direct
segment
operating
expenses
193,799
122,575
87,660
(71,224
)
-
37
%
(34,915
)
-
28
%
Segment
operating
income
$
330,907
$
269,589
$
229,832
$
(61,318
)
-
19
%
$
(39,757
)
-
15
%
Business
Services
Revenues
$
175,701
$
148,317
$
160,764
$
(27,384
)
-
16
%
$
12,447
8
%
Cost of
revenues
94,297
82,420
90,677
(11,877
)
-
13
%
8,257
10
%
Gross margin
81,404
65,897
70,087
(15,507
)
-
19
%
4,190
6
%
Direct
segment
operating
expenses
49,082
40,249
50,096
(8,833
)
-
18
%
9,847
24
%
Segment
operating
income
$
32,322
$
25,648
$
19,991
$
(6,674
)
-
21
%
$
(5,657
)
-
22
%
Consolidated
Revenues
$
955,577
$
723,729
$
622,212
$
(231,848
)
-
24
%
$
(101,517
)
-
14
%
Cost of
revenues
349,467
265,668
234,633
(83,799
)
-
24
%
(31,035
)
-
12
%
Gross margin
606,110
458,061
387,579
(148,049
)
-
24
%
(70,482
)
-
15
%
Direct
segment
operating
expenses
242,881
162,824
137,756
(80,057
)
-
33
%
(25,068
)
-
15
%
Segment
operating
income
363,229
295,237
249,823
(67,992
)
-
19
%
(45,414
)
-
15
%
Stock-based
compensation
expense
20,133
13,231
9,959
(6,902
)
-
34
%
(3,272
)
-
25
%
Impairment of
goodwill
and
intangible
assets
78,672
24,145
1,711
(54,527
)
-
69
%
(22,434
)
-
93
%
Depreciation
and
amortization
36,333
23,962
23,390
(12,371
)
-
34
%
(572
)
-
2
%
Restructuring
and
acquisition
-