Business Segments

12 Months Ended

Dec. 31, 2019

Segment information is prepared on the same basis that our Chief Executive Officer, who is our chief operating decision maker (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions. The Company is organized and managed by the CODM as three operating 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 corporate expenses which are not allocated to the operating segments as management does not consider them in evaluating segment performance.

Management evaluates the performance of its operating segments based on revenue and Adjusted EBITDA. 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, Summary of Significant Accounting Policies, and the product offerings within each reportable segment are consistent as outlined in Note 1, Description of the Business. 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 Company reports on a segment basis rather than by geography as the North America segment encompasses the Company’s country of domicile (United States) and Canada, of which revenue is principally generated within the United States. North America comprised 71.3% and 69.3% of the Company’s revenue for the years ended December 31, 2019 and 2018, respectively. Canadian operations were determined to be immaterial given the revenue generated from such operations as a percentage of total North America revenue was less than 2% for the year ended December 31, 2019 and 2018, as well as Canadian operations being substantially interconnected and integrated with U.S. operations. Accordingly, the Company deemed it unnecessary to break out revenue geographically thus leading to the disclosure of revenue at the segment level. Additionally, the Company does not disaggregate revenue by product and service revenue as service revenue has not been material to the Company's overall revenue to date.

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



	North America		EMEA		LATAM		Other			Total
Fiscal 2019:
Revenue from third parties	$	826,355	$	250,719	$	80,760	$	—		$	1,157,834
Revenue from other segments	4,463		9,302		22		(13,787		)	—
Total revenue	$	830,818	$	260,021	$	80,782	$	(13,787	)	$	1,157,834
Adjusted EBITDA	$	85,662	$	12,051	$	1,943	$	(50,611	)	$	49,045
Capital expenditures	$	10,525	$	2,815	$	38	$	—		$	13,378

Fiscal 2018:
Revenue from third parties	$	777,202	$	260,729	$	83,175	$	—		$	1,121,106
Revenue from other segments	3,200		9,500		217		(12,917		)	—
Total revenue	$	780,402	$	270,229	$	83,392	$	(12,917	)	$	1,121,106
Adjusted EBITDA	$	61,250	$	6,355	$	3,082	$	(43,372	)	$	27,315
Capital expenditures	$	8,649	$	2,609	$	5	$	—		$	11,263

Fiscal 2017:
Revenue from third parties	$	780,520	$	265,669	$	92,181	$	—		$	1,138,370
Revenue from other segments	5,469		13,444		1,693		(20,606		)	—
Total revenue	$	785,989	$	279,113	$	93,874	$	(20,606	)	$	1,138,370
Adjusted EBITDA	$	73,790	$	15,293	$	4,278	$	(35,867	)	$	57,494
Capital expenditures	$	8,610	$	3,873	$	—	$	—		$	12,483

The table below reconciles Adjusted EBITDA to Net (loss) income in the Company's consolidated statement of operations (in thousands):



	Year Ended December 31,
	2019			2018			2017
Adjusted EBITDA	$	49,045		$	27,315		$	57,494
Depreciation and amortization	(12,328		)	(12,988		)	(13,390		)
Stock-based compensation - equity classified awards	(5,533		)	(5,302		)	(6,820		)
Stock-based compensation - SARs market-to-market	(748		)	—			—
Restructuring charges	(15,918		)	(6,031		)	—
Executive search fees	(80		)	(235		)	(454		)
Professional fees related to control remediation	(1,130		)	(2,430		)	—
Sales and use tax audit	(25		)	(113		)	(203		)
Other professional fees	(2,241		)	(507		)	—
Goodwill impairment	—			(46,319		)	—
Intangible and long-lived asset impairment	—			(18,121		)	—
Senior leadership transition and other employee-related costs	—			(1,410		)	—
Obsolete retail inventory	—			(950		)	—
Professional fees related to ASC 606 implementation	—			(1,092		)	(829		)
Business development realignment	—			—			(715		)
Change in fair value of contingent consideration	—			—			(677		)
Czech currency impact on procurement margin	—			—			(860		)
Income (loss) from operations	11,042			(68,183		)	33,546
Interest income	366			218			97
Interest expense	(14,097		)	(7,749		)	(4,729		)
Other, net	(3,686		)	(1,616		)	(1,788		)
(Loss) income before income taxes	(6,375		)	(77,330		)	27,126
Provision (benefit) for income tax	(3,700		)	647			(11,257		)
Net (loss) income	$	(10,075	)	$	(76,683	)	$	15,869

The table below presents total assets for the Company's reportable segments and Other (in thousands):



	As of December 31,
	2019		2018
North America	$	424,775	$	398,432
EMEA	140,013		160,228
LATAM	46,822		43,031
Other	17,673		20,038
Total assets	$	629,283	$	621,729

The long-lived assets in the table below consist of net property and equipment (in thousands):



	As of December 31,
	2019		2018
North America	$	2,713	$	11,078
EMEA	12,675		51,131
LATAM	463		598
Other	21,373		20,126
Total long-lived assets	$	37,224	$	82,933

Refer to Note 8, Property and Equipment for additional discussion over the change in long-lived assets from 2019 to 2018.