Segment Information

12 Months Ended

Dec. 31, 2010

Segment Information

Segment Information

9. Segment Information

Beginning June 2011, as a result of the disposition of our Digital Business and our decision to sell the New Zealand Business as discussed in Note 14, we changed our reportable segments. The most significant of these changes is that the reportable segment previously referred to as the Worldwide Digital Business is no longer reported separately in our management reporting as the operations associated with the Domain Name Product Line and the Digital Business are reported as discontinued operations. Also, the intellectual property escrow services business, which we continue to own and operate and was previously reported in the Worldwide Digital Business segment, is now reported as a component of the North American Physical Business segment. Additionally, the International Physical Business segment no longer includes the New Zealand Business as these operations are reported as discontinued operations.

Our operating segments and Corporate are as follows:

· North American Physical Business—throughout the United States and Canada, the storage of paper documents, as well as all other media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers (“Hard Copy”); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection”); information destruction services (“Destruction”); the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers’ sites based on current and prospective customer orders (“Fulfillment”), and intellectual property escrow services that protect and manage source code.

· Europe—information management services throughout Europe, including Hard Copy, Data Protection and Destruction (in the U.K. and Ireland).

· Latin America—information management services throughout Mexico, Brazil, Chile, Argentina and Peru, including Hard Copy, Data Protection and Destruction.

· Asia Pacific—information management services throughout Australia, including Hard Copy, Data Protection and Destruction; and in certain cities in India, Singapore, Hong Kong-SAR and China, including Hard Copy and Data Protection.

· Corporate—consists of costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Corporate also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards.

The Latin America, Asia Pacific and Europe operating segments have been aggregated given their similar economic characteristics, products, customers and processes and reported as one reportable segment, “International Physical Business.”

An analysis of our business segment information and reconciliation to the consolidated financial statements is as follows:

	North American		International
	Physical		Physical					Total
	Business		Business		Corporate			Consolidated
2008
Total Revenues	$	2,093,723	$	756,833	$	—		$	2,850,556
Depreciation and Amortization	142,284		77,533		37,438			257,255
Depreciation	131,336		63,174		37,256			231,766
Amortization	10,948		14,359		182			25,489
Adjusted OIBDA	778,977		137,866		(158,006		)	758,837
Total Assets(1)	4,402,721		1,499,662		454,471			6,356,854
Expenditures for Segment Assets	225,985		170,826		27,784			424,595
Capital Expenditures	181,350		144,688		27,784			353,822
Cash Paid for Acquisitions, Net of Cash acquired	35,424		21,208		—			56,632
Additions to Customer Relationship and Acquisition Costs	9,211		4,930		—			14,141
2009
Total Revenues	2,129,777		674,888		—			2,804,665
Depreciation and Amortization	174,096		73,387		33,322			280,805
Depreciation	162,400		60,678		33,091			256,169
Amortization	11,696		12,709		231			24,636
Adjusted OIBDA	871,169		125,460		(164,259		)	832,370
Total Assets(1)	4,690,690		1,705,657		450,487			6,846,834
Expenditures for Segment Assets	160,784		114,171		28,768			303,723
Capital Expenditures	153,273		108,908		28,768			290,949
Cash Paid for Acquisitions, Net of Cash acquired	256		1,777		—			2,033
Additions to Customer Relationship and Acquisition Costs	7,255		3,486		—			10,741
2010
Total Revenues	2,199,487		717,169		—			2,916,656
Depreciation and Amortization	185,483		85,100		36,790			307,373
Depreciation	172,713		72,158		36,567			281,438
Amortization	12,770		12,942		223			25,935
Adjusted OIBDA	975,528		132,592		(173,798		)	934,322
Total Assets(1)	4,363,805		1,671,219		374,709			6,409,733
Expenditures for Segment Assets	135,825		121,366		34,571			291,762
Capital Expenditures	120,162		104,804		34,571			259,537
Cash Paid for Acquisitions, Net of Cash acquired	5,675		13,348		—			19,023
Additions to Customer Relationship and Acquisition Costs	9,988		3,214		—			13,202

(1) Excludes all intercompany receivables or payables and investment in subsidiary balances.

The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted OIBDA for each segment is defined as operating income before depreciation, amortization, goodwill impairment and (gain) loss on disposal/writedown of property, plant and equipment, net which are directly attributable to the segment. Internally, we use Adjusted OIBDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Adjusted OIBDA to income from continuing operations before provision for income taxes on a consolidated basis is as follows:

	Years Ended December 31,
	2008		2009			2010
Adjusted OIBDA	$	758,837	$	832,370		$	934,322
Less: Depreciation and Amortization	257,255		280,805			307,373
Goodwill Impairment (See Note 2.g. and Note 14)	—		—			85,909
Loss (Gain) on Disposal/Writedown of Property, Plant and Equipment, Net	7,522		168			(10,994		)
Interest Expense, Net	222,448		214,640			206,510
Other Expense (Income), Net	31,505		(12,486		)	9,035
Income from Continuing Operations before Provision for Income Taxes	$	240,107	$	349,243		$	336,489

Information as to our operations in different geographical areas is as follows:

	Years Ended December 31,
	2008		2009		2010
Revenues:
United States	$	1,892,972	$	1,930,237	$	1,964,843
United Kingdom	382,971		292,685		295,462
Canada	197,031		196,246		231,477
Other International	377,582		385,497		424,874
Total Revenues	$	2,850,556	$	2,804,665	$	2,916,656
Long-lived Assets:
United States	$	3,728,501	$	3,736,626	$	3,341,241
United Kingdom	596,631		617,141		552,309
Canada	355,878		425,838		448,485
Other International	699,452		855,804		861,896
Total Long-lived Assets	$	5,380,462	$	5,635,409	$	5,203,931

Information as to our revenues by product and service lines is as follows:

	Years Ended December 31,
	2008		2009		2010
Revenues:
Records Management(1)(2)	$	2,049,413	$	2,048,032	$	2,110,503
Data Protection & Recovery(1)(3)	505,665		507,183		527,513
Information Destruction(1)(4)	295,478		249,450		278,640
Total Revenues	$	2,850,556	$	2,804,665	$	2,916,656

(1) Each of the service offerings within our product and service lines has a component of revenue that is storage related and a component that is service revenues, except the Information Destruction service offering, which does not have a storage component.

(2) Includes Business Records Management, Compliant Records Management and Consulting Services, Hybrid Services, Fulfillment Services, Health Information Management Solutions, Film and Sound Archives and Energy Data Services.

(3) Includes Physical Data Protection & Recovery Services and Intellectual Property Management.

(4) Includes Physical Secure Shredding and Compliant Information Destruction.