9. Segment Information

As a result of a realignment in senior management reporting structure during the first quarter of 2015, we modified our internal financial reporting to better align internal reporting with how we manage our business. These modifications resulted in the separation of our former International Business segment into two unique reportable operating segments, which we refer to as (1) Western European Business segment and (2) Other International Business segment. Additionally, during the first quarter of 2015, we reassessed the nature of certain costs which were previously being allocated to the North American Records and Information Management Business and North American Data Management Business segments. As a result of this reassessment, we determined that certain product management functions, which were previously being performed to solely benefit our North American operating segments, are now being performed in a manner that benefits the enterprise as a whole. Accordingly, the costs associated with these product management functions are now included within the Corporate and Other Business segment. Previously reported segment information has been restated.

Our five reportable operating segments are described as follows:

North American Records and Information Management Business—storage and information management services throughout the United States and Canada, including the storage of paper documents, as well as 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 (“Records Management”); information destruction services (“Destruction”); DMS; Fulfillment Services; and Intellectual Property Management.

North American Data Management Business—storage and rotation of backup computer media as part of corporate disaster recovery plans throughout the United States and Canada, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; digital content repository systems to house, distribute, and archive key media assets; and storage, safeguarding and electronic or physical delivery of physical media of all types, primarily for entertainment and media industry clients.

Western European Business—Records Management, Data Protection & Recovery and DMS throughout the United Kingdom, Ireland, Norway, Austria, Belgium, France, Germany, Netherlands, Spain and Switzerland. Until December 2014, our Western European Business segment offered Destruction in the United Kingdom and Ireland.

Other International Business—storage and information management services throughout the remaining European countries in which we operate, Latin America and Asia Pacific, including Records Management, Data Protection & Recovery and DMS. Our European operations included within the Other International Business segment provide Records Management, Data Protection & Recovery and DMS. Our Latin America operations provide Records Management, Data Protection & Recovery, Destruction and DMS throughout Argentina, Brazil, Chile, Colombia, Mexico and Peru. Our Asia Pacific operations provide Records Management, Data Protection & Recovery and DMS throughout Australia, with Records Management and Data Protection & Recovery also provided in certain cities in India, Singapore, Hong Kong-SAR and China. Until December 2014, our Other International Business segment offered Destruction in Australia.

Corporate and Other Business —consists of our data center business in the United States, the primary product offering of our Emerging Businesses segment, as well as 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. Our Corporate and Other Business segment also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards.

An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows:


			North
	North American		American Data		Western		Other		Corporate and
	Records & Information		Management		European		International		Other		Total
	Management Business		Business		Business		Business		Business		Consolidated
2012
Total Revenues	$	1,780,299	$	404,253	$	454,347	$	352,345	$	12,711	$	3,003,955
Depreciation and Amortization	163,375		17,841		58,603		44,790		31,735		316,344
Depreciation	151,471		17,034		48,933		31,560		31,600		280,598
Amortization	11,904		807		9,670		13,230		135		35,746
Adjusted OIBDA	670,355		245,208		102,324		71,296		(178,266)		910,917
Total Assets(1)	3,543,166		644,952		1,079,972		774,078		316,171		6,358,339
Expenditures for Segment Assets	138,837		26,243		54,904		136,456		38,249		394,689
Capital Expenditures	98,169		13,106		34,341		56,818		38,249		240,683
Cash Paid for Acquisitions, Net of Cash Acquired	21,770		6,356		19,405		77,603		-		125,134
Additions to Customer Relationship and Acquisition Costs	18,898		6,781		1,158		2,035		-		28,872
2013
Total Revenues	1,769,233		396,519		448,542		397,057		13,272		3,024,623
Depreciation and Amortization	165,097		19,956		55,238		50,247		31,499		322,037
Depreciation	150,557		19,652		45,799		35,480		31,368		282,856
Amortization	14,540		304		9,439		14,767		131		39,181
Adjusted OIBDA	652,575		237,380		123,939		82,064		(201,377)		894,581
Total Assets(1)	3,687,865		690,507		1,093,105		922,307		259,221		6,653,005
Expenditures for Segment Assets	319,419		20,678		42,191		176,712		75,586		634,586
Capital Expenditures	96,545		12,929		32,478		69,757		75,586		287,295
Cash Paid for Acquisitions, Net of Cash Acquired	205,251		6,791		3,028		102,030		-		317,100
Additions to Customer Relationship and Acquisition Costs	17,623		958		6,685		4,925		-		30,191
2014
Total Revenues	1,795,361		390,207		460,535		458,010		13,580		3,117,693
Depreciation and Amortization	177,097		21,770		55,028		64,657		34,591		353,143
Depreciation	158,122		21,458		46,341		44,063		34,573		304,557
Amortization	18,975		312		8,687		20,594		18		48,586
Adjusted OIBDA	698,719		226,396		134,775		80,116		(214,209)		925,797
Total Assets(1)	3,657,366		653,275		988,084		1,001,558		270,059		6,570,342
Expenditures for Segment Assets	198,651		24,387		48,564		185,203		67,659		524,464
Capital Expenditures	145,199		18,076		39,915		92,553		66,181		361,924
Cash Paid for Acquisitions, Net of Cash Acquired	26,450		5,863		4,864		90,916		-		128,093
Additions to Customer Relationship and Acquisition Costs	27,002		448		3,785		1,734		1,478		34,447

(1)

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

The accounting policies of the reportable operating segments are the same as those described in Note 2. Adjusted OIBDA for each segment is defined as operating income before depreciation, amortization, intangible impairments, (gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate) and REIT Costs (defined below) 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 (loss) from continuing operations before provision (benefit) for income taxes and (gain) loss on sale of real estate on a consolidated basis is as follows:

	Year Ended December 31,
	2012	2013	2014
Adjusted OIBDA	$ 910,917	$ 894,581	$ 925,797
Less: Depreciation and Amortization	316,344	322,037	353,143
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), Net	4,661	430	1,065
REIT Costs(1)	34,446	82,867	22,312
Interest Expense, Net	242,599	254,174	260,717
Other Expense (Income), Net	16,062	75,202	65,187
Income (loss) from Continuing Operations before Provision (Benefit) for Income Taxes and (Gain) Loss on Sale of Real Estate	$ 296,805	$ 159,871	$ 223,373

(1)

Includes costs associated with our 2011 proxy contest, the previous work of the former Strategic Review Special Committee of the board of directors and costs associated with our conversion to a REIT, excluding REIT compliance costs beginning January 1, 2014 which we expect to recur in future periods (“REIT Costs”).

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

	Year Ended December 31,
	2012	2013	2014
Revenues:
United States	$ 1,948,679	$ 1,938,307	$ 1,967,169
United Kingdom	290,044	275,343	280,020
Canada	248,583	240,716	231,979
Other International	516,649	570,257	638,525
Total Revenues	$ 3,003,955	$ 3,024,623	$ 3,117,693
Long-lived Assets:
United States	$ 3,359,560	$ 3,645,211	$ 3,619,396
United Kingdom	529,336	520,255	474,748
Canada	445,699	413,821	409,278
Other International	999,652	1,140,111	1,149,201
Total Long-lived Assets	$ 5,334,247	$ 5,719,398	$ 5,652,623

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

	Year Ended December 31,
	2012	2013	2014
Revenues:
Records Management(1)(2)	$ 2,211,101	$ 2,244,494	$ 2,329,546
Data Management(1)(3)	524,627	527,091	531,516
Information Destruction(1)(4)	268,227	253,038	256,631
Total Revenues	$ 3,003,955	$ 3,024,623	$ 3,117,693

(1)

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

(2)

Includes Business Records Management, Compliant Records Management and Consulting Services, DMS, Fulfillment Services, Health Information Management Solutions, Energy Data Services, Dedicated Facilities Management and Technology Escrow Services.

(3)

Includes Data Protection & Recovery Services and Entertainment Services.

(4)

Includes Secure Shredding and Compliant Information Destruction.