1 7 . Segment Reporting The Company has two operating and reportable segments, Government Solutions and Commercial Services. Government Solutions delivers traffic law enforcement services and products to state and local governments. Commercial Services delivers tolling and violation management services to rental car companies, commercial fleet vehicle owners and violation issuing authorities. The Companys Chief Operating Decision Maker ( CODM ) function is comprised of the Companys CEO and certain defined representatives of the Companys executive management team. The Companys CODM function monitors operating performance, allocates resources and deploys capital based on these two operating and reportable segments. Segment performance is based on revenues and income (loss) from operations before depreciation, amortization, stock-based compensation, impairment and gain (loss) on disposal of assets and after other income, net. The table below refers to this measure as Segment profit (loss). Depreciation, amortization, stock-based compensation, impairment and gain (loss) on disposal of assets, interest expense, loss on extinguishment of debt and income taxes are not indicative of operating performance, and, as a result are not included in the measures that are reviewed by the CODM function for the operating and reportable segments. Other income, net consists primarily of credit card rebates earned on the prepayment of tolling violations and therefore included in Segment profit (loss). There are no significant non-cash items reported in Segment profit (loss). The Company allocates certain corporate expenses to the two operating and reportable segments. The corporate expenses are allocated using several different factors depending on the item being allocated. These factors range from specific identification to headcount based to split evenly between the two operating and reportable segments. Corporate expenses includes all of the items above that are not included in Segment profit plus, income taxes, transaction expenses, fees to Advisors and other items designated by the CODM function as corporate initiatives . The Company does not disaggregate assets by segment other than equipment installed at customer sites and automobiles, which had carrying values of $48.1 million and $0.8 million, respectively, at December 31, 2018 and carrying values of $46.8 million and $0.7 million, respectively, at December 31, 2017 all of which relate solely to the Government Solutions segment. See Note 6 for goodwill balances by segment. The following tables set forth financial information by segment for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016: Successor Government Commercial Corporate and For the year ended December 31, 2018 Solutions Services Other Total Service revenue $ 142,464,495 $ 222,611,440 $  $ 365,075,935 Product sales 5,069,785   5,069,785 Total revenue 147,534,280 222,611,440  370,145,720 Cost of service revenue 2,709,507 3,078,192  5,787,699 Cost of product sales 3,446,929   3,446,929 Operating expenses (a) 57,525,221 51,221,743  108,746,964 Selling, general and administrative expenses 27,826,583 55,369,275 50,737,559 133,933,417 Other (income) expense, net (116,927 ) (8,679,801 ) 2,132 (8,794,596 ) Segment Profit (Loss) $ 56,142,967 $ 121,622,031 $ (50,739,691 ) $ 127,025,307 Segment profit (loss) $ 56,142,967 $ 121,622,031 $ (50,739,691 ) $ 127,025,307 Depreciation, amortization, impairment, and (gain) loss on disposal of assets, net   103,352,668 103,352,668 Stock-based compensation   2,271,874 2,271,874 Interest expense   69,550,214 69,550,214 Loss on extinguishment of debt   26,486,179 26,486,179 Income (loss) before income taxes $ 56,142,967 $ 121,622,031 $ (252,400,626 ) $ (74,635,628 ) Successor Government Commercial Corporate and For the seven months ended December 31, 2017 Solutions Services Other Total Service revenue $ 79,781,405 $ 55,873,872 $  $ 135,655,277 Product sales 2,583,410   2,583,410 Total revenue $ 82,364,815 $ 55,873,872 $  $ 138,238,687 Cost of service revenue 1,509,923 426,140  1,936,063 Cost of product sales 1,590,018   1,590,018 Operating expenses 34,046,222 16,424,833  50,471,055 Selling, general and administrative expenses 11,766,377 14,784,038 18,331,725 44,882,140 Other (income) expense, net (62,799 ) (2,114,474 ) 5,012 (2,172,261 ) Segment Profit (Loss) $ 33,515,074 $ 26,353,335 $ (18,336,737 ) $ 41,531,672 Segment profit (loss) $ 33,515,074 $ 26,353,335 $ (18,336,737 ) $ 41,531,672 Depreciation, amortization, impairment, and (gain) loss on disposal of assets, net   33,112,553 33,112,553 Interest   20,857,920 20,857,920 Income (loss) before income taxes $ 33,515,074 $ 26,353,335 $ (72,307,210 ) $ (12,438,801 ) Predecessor Government Commercial Corporate and For the five months ended May 31, 2017 Solutions Services Other Total Service revenue $ 57,021,850 $ 35,509,089 $  $ 92,530,939 Product sales 1,340,191   1,340,191 Total revenue 58,362,041 35,509,089  93,871,130 Cost of service revenue 1,174,923 194,522  1,369,445 Cost of product sales 963,504   963,504 Operating expenses 24,702,104 11,265,560  35,967,664 Selling, general and administrative expenses 9,230,714 9,881,849 21,771,616 40,884,179 Other (income) expense, net (48,416 ) (1,243,281 ) (2,602 ) (1,294,299 ) Segment Profit (Loss) $ 22,339,212 $ 15,410,439 $ (21,769,014 ) $ 15,980,637 Segment profit (loss) $ 22,339,212 $ 15,410,439 $ (21,769,014 ) $ 15,980,637 Depreciation, amortization, impairment, and (gain) loss on disposal of assets, net   12,613,143 12,613,143 Interest   875,102 875,102 Income (loss) before income taxes $ 22,339,212 $ 15,410,439 $ (35,257,259 ) $ 2,492,392 Successor Government Commercial Corporate and For the year ended December 31, 2016 Solutions Services Other Total Service revenue $ 132,223,777 $ 80,290,935 $  $ 212,514,712 Product sales 18,234,874   18,234,874 Total revenue 150,458,651 80,290,935  230,749,586 Cost of service revenue 2,355,626 282,444  2,638,070 Cost of product sales 9,505,473   9,505,473 Operating expenses 55,805,204 27,957,195  83,762,399 Selling, general and administrative expenses 24,343,844 28,431,818 877,120 53,652,782 Other (income) expense, net (212,391 ) (2,252,874 ) (5,511 ) (2,470,776 ) Segment Profit (Loss) $ 58,660,895 $ 25,872,352 $ (871,609 ) $ 83,661,638 Segment profit (loss) $ 58,660,895 $ 25,872,352 $ (871,609 ) $ 83,661,638 Depreciation, amortization, impairment, and (gain) loss on disposal of assets, net   33,916,936 33,916,936 Stock-based compensation   (618,911 ) (618,911 ) Interest expense   2,706,499 2,706,499 Income (loss) before income taxes $ 58,660,895 $ 25,872,352 $ (36,876,133 ) $ 47,657,114 The Company operates in the United States, Canada and Europe. Revenues are attributable to countries based upon the location of the customer. During the year ended December 31, 2018 the Companys international revenues were $11.0 million. The Companys international revenues for the 2017 Successor period, the 2017 Predecessor period and the 2016 Predecessor period were zero. Substantially all of the Companys assets are in the United States.