Business Segments

Segment information is prepared on the same basis that our Chief Executive Officer, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. The Company is organized and managed as two business segments: North America and International. The North America segment includes operations in the United States and Canada; the International segment includes all other operations across Europe, Asia, Mexico, Central America and South America; Other consists of intersegment eliminations, shared service activities and unallocated corporate expenses. All transactions between segments are presented at their gross amounts and eliminated through Other.

Management evaluates the performance of its operating segments based on revenues and Adjusted EBITDA, which is a non-GAAP financial measure. The accounting policies of each of the operating segments are the same as those described in the summary of significant accounting policies in Note 1. Adjusted EBITDA represents income from operations excluding depreciation and amortization, stock-based compensation expense, income/expense related to changes in the fair value of contingent consideration liabilities and restructuring and other charges. Management does not evaluate the performance of its operating segments using asset measures.

The table below presents financial information for the Company’s reportable segments and Other for the three month periods noted (in thousands):



	North America		International		Other			Total
Three Months Ended March 31, 2018:
Revenue from third parties	$	189,277	$	85,262	$	—		$	274,539
Revenue from other segments	1,420		2,776		(4,196		)	—
Total revenue	190,697		88,038		(4,196		)	274,539
Adjusted EBITDA⁽¹⁾	17,216		2,092		(11,958		)	7,350

Three Months Ended March 31, 2017 (as restated):
Revenue from third parties	$	182,498	$	81,907	$	—		$	264,405
Revenue from other segments	1,755		3,359		(5,114		)	—
Total revenue	184,253		85,266		(5,114		)	264,405
Adjusted EBITDA⁽¹⁾	18,681		2,871		(9,044		)	12,508

(1)

Adjusted EBITDA, which represents income from operations with the addition of depreciation and amortization, stock-based compensation expense, change in fair value of contingent consideration liabilities, and professional fees related to ASC 606 implementation, is considered a non-GAAP financial measure under SEC regulations. Income from operations is the most directly comparable financial measure calculated in accordance with GAAP. The Company presents this measure as supplemental information to help investors better understand trends in its business results over time. The Company’s management team uses Adjusted EBITDA to evaluate the performance of the business. Adjusted EBITDA is not equivalent to any measure of performance required to be reported under GAAP, nor should this data be considered an indicator of the Company’s overall financial performance and liquidity. Moreover, the Adjusted EBITDA definition the Company uses may not be comparable to similarly titled measures reported by other companies.

The table below reconciles the total of the reportable segments' Adjusted EBITDA and the Adjusted EBITDA included in Other to income before income taxes (in thousands):



	Three Months Ended March 31,
	2018			2017
				(as restated)
Adjusted EBITDA	7,350			12,508
Depreciation and amortization	(3,659		)	(2,904		)
Stock-based compensation expense	(1,417		)	(1,419		)
Change in fair value of contingent consideration	—			1,040
Professional fees related to ASC 606 implementation	(1,033		)	—
Income from operations	1,241			9,225
Interest income	62			34
Interest expense	(1,568		)	(1,003		)
Other, net	(846		)	(224		)
(Loss) income before income taxes	$	(1,111	)	$	8,032