Segments

6 Months Ended

Jun. 30, 2011

17. Segments

The Company manages its international market and its U.S. market as separate reportable operating segments. The international segment consists of operations in Brazil, Mexico, Chile, Colombia, Argentina, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. The U.S. segment includes U.S. and Canada operations (note that the Company’s only Canadian theatre was sold during November 2010.) Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues, primarily screen advertising. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, as defined in the reconciliation table below. The Company does not report asset information by segment because that information is not used to evaluate the performance of or allocate resources between segments.

Below is a breakdown of selected financial information by reportable operating segment:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Revenues
U.S.	$	444,479		$	410,964		$	775,345		$	799,579
International		178,720			129,641			333,191			258,912
Eliminations		(2,606	)		(1,236	)		(4,807	)		(2,491	)

Total revenues	$	620,593		$	539,369		$	1,103,729		$	1,056,000


Adjusted EBITDA
U.S.	$	110,015		$	96,548		$	178,806		$	185,953
International		39,776			28,568			73,691			60,944

Total Adjusted EBITDA	$	149,791		$	125,116		$	252,497		$	246,897


Capital expenditures
U.S.	$	27,977		$	23,508		$	39,445		$	36,008
International		21,556			13,935			45,857			20,952

Total capital expenditures	$	49,533		$	37,443		$	85,302		$	56,960

The following table sets forth a reconciliation of net income to Adjusted EBITDA:


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011			2010

Net income	$	41,009		$	40,759	$	66,331		$	77,470
Add (deduct):
Income taxes		23,272			10,211		32,309			30,041
Interest expense ⁽¹⁾		29,777			28,605		59,067			54,615
Loss on early retirement of debt		4,945			—		4,945			—
Other (income) expense⁽²⁾		(443	)		1,454		(5,473	)		642
Depreciation and amortization ⁽³⁾		39,897			34,915		79,037			69,006
Impairment of long-lived assets		1,594			4,688		2,609			5,035
Loss on sale of assets and other		5,694			1,191		6,166			4,358
Deferred lease expenses		870			914		1,650			1,697
Amortization of long-term prepaid rents		617			438		1,284			779
Share based awards compensation expense		2,559			1,941		4,572			3,254

Adjusted EBITDA	$	149,791		$	125,116	$	252,497		$	246,897


⁽¹⁾		Includes amortization of debt issue costs.

⁽²⁾		Includes interest income, foreign currency exchange gain and equity in income (loss) of affiliates and excludes distributions from NCM. Distributions from NCM are reported entirely within the U.S. operating segment.

⁽³⁾		Includes amortization of favorable/unfavorable leases.

Financial Information About Geographic Areas

The Company has operations in the U.S., Brazil, Mexico, Chile, Colombia, Argentina, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala, which are reflected in the condensed consolidated financial statements. Below is a breakdown of selected financial information by geographic area:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010

Revenues
U.S.	$	444,479		$	410,964		$	775,345		$	799,579
Brazil		91,602			69,999			178,443			139,217
Mexico		21,575			17,715			37,492			35,097
Other foreign countries		65,543			41,927			117,256			84,598
Eliminations		(2,606	)		(1,236	)		(4,807	)		(2,491	)

Total	$	620,593		$	539,369		$	1,103,729		$	1,056,000


	June 30,		December 31,
	2011		2010

Theatre Properties and Equipment-net
U.S.	$	948,118	$	972,358
Brazil		142,888		129,361
Mexico		48,335		43,127
Other foreign countries		78,880		70,600

Total	$	1,218,221	$	1,215,446