Business Segments

Segment information is prepared on the same basis that the Company's Chief Executive Officer, who is its chief operating decision maker (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions. During the third quarter of 2018, the Company changed its reportable segments by disaggregating the Company's previously disclosed single International reportable segment into two separate reportable segments. The Company is now organized and managed by the CODM as three operating segments, which also represent the Company's reportable segments: North America, EMEA, and LATAM. The North America segment includes operations in the United States and Canada; the EMEA segment includes operations in the United Kingdom, continental Europe, the Middle East, Africa, and Asia; and the LATAM segment includes operations in 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. Prior period amounts have been restated to reflect this change.

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 2 and the product offerings within each reportable segment are consistent as outlined 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 other items as described below. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash, accounts receivable, inventory, goodwill and intangible assets. Shared service assets are primarily comprised of short-term investments, capitalized internal-use software and net property and equipment for the corporate headquarters.

The table below presents financial information for the Company's reportable operating segments and Other for the fiscal years noted (in thousands):



	North America		EMEA		LATAM		Other ⁽²⁾			Total
Fiscal 2018:
Revenue from third parties	$	777,426	$	260,950	$	83,175	$	—		$	1,121,551
Revenue from other segments	3,200		9,500		217		(12,917		)	—
Total revenue	780,626		270,450		83,392		(12,917		)	1,121,551
Adjusted EBITDA⁽¹⁾	61,780		6,410		3,082		(43,372		)	27,900
Fiscal 2017:
Revenue from third parties	780,511		265,669		92,181		—			1,138,361
Revenue from other segments	5,469		13,444		1,693		(20,606		)	—
Total revenue	785,980		279,113		93,874		(20,606		)	1,138,361
Adjusted EBITDA⁽¹⁾	74,230		15,242		4,278		(35,867		)	57,883
Fiscal 2016:
Revenue from third parties	736,140		267,168		91,094		—			1,094,402
Revenue from other segments	6,029		13,070		4,456		(23,555		)	—
Total revenue	742,169		280,238		95,550		(23,555		)	1,094,402
Adjusted EBITDA⁽¹⁾	68,434		14,752		6,818		(31,392		)	58,612

(1)

Adjusted EBITDA, which represents income from operations with the addition of depreciation and amortization, stock-based compensation expense, income/expense related to changes in the fair value of contingent consideration liabilities, goodwill and intangible asset impairment charges, restructuring charges, senior leadership transition and other employee-related costs, business development realignment, professional fees related to ASC 606 implementation, executive search costs, restatement-related professional fees, other professional fees, obsolete retail inventory charges, and Czech currency impact on procurement margin 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.


(2)	Other consists of intersegment eliminations, shared service activities and unallocated corporate expenses.

The table below reconciles Adjusted EBITDA and Income (loss) before income taxes in the Company's consolidated statement of operations (in thousands):



	Year Ended December 31,
	2018			2017			2016
Adjusted EBITDA	$	27,900		$	57,883		$	58,612
Depreciation and amortization	(12,988		)	(13,390		)	(17,916		)
Stock-based compensation expense	(5,302		)	(6,820		)	(5,572		)
Change in fair value of contingent consideration	—			(677		)	(10,417		)
Goodwill impairment	(46,319		)	—			—
Intangible and other asset impairments	(18,121		)	—			(70		)
Restructuring charges	(6,031		)	—			(5,615		)
Senior leadership transition and other employee-related costs	(1,410		)	—			—
Business development realignment	—			(715		)	—
Professional fees related to ASC 606 implementation	(1,092		)	(829		)	—
Executive search costs	(235		)	(454		)	—
Restatement-related professional fees	(2,430		)	—			—
Other professional fees	(507		)	—			—
Obsolete retail inventory	(950		)	—			—
Czech currency impact on procurement margin	—			(860		)	—
Total other expense	(9,147		)	(6,420		)	(4,239		)
(Loss) income before income taxes	$	(76,632	)	$	27,718		$	14,783

The table below presents total assets for the Company's reportable segments and Other as of December 31, 2018 and December 31, 2017.



	December 31,
	2018		2017
North America	$	399,288	$	401,415
EMEA	160,322		171,086
LATAM	43,028		57,235
Other	20,038		19,902
Total Assets	$	622,676	$	649,638

The Company had long-lived assets, consisting of net property and equipment, in the United States of $31.1 million and $21.8 million at December 31, 2018 and 2017, respectively. Long-lived assets in foreign countries were $51.8 million and $14.9 million at December 31, 2018 and 2017, respectively.

The Company does not record revenue for financial reporting purposes by product and service category and therefore, it is impracticable for the Company to report revenue in such manner.