18. Segments

The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Mexico, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala. 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 March 31,
	2013			2012
Revenues
U.S.	$	366,363		$	411,225
International		184,193			169,875
Eliminations		(2,783	)		(2,282	)

Total revenues	$	547,773		$	578,818

Adjusted EBITDA
U.S.	$	80,078		$	104,293
International		36,178			36,035

Total Adjusted EBITDA	$	116,256		$	140,328

Capital expenditures
U.S.	$	6,156		$	19,694
International		30,733			27,290

Total capital expenditures	$	36,889		$	46,984

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


	Three Months Ended March 31,
	2013			2012
Net income	$	33,062		$	42,876
Add (deduct):
Income taxes		10,618			27,932
Interest expense ⁽¹⁾		32,606			32,133
Other income ⁽²⁾		(4,554	)		(5,422	)
Depreciation and amortization⁽³⁾		39,032			36,816
Impairment of long-lived assets		844			185
(Gain) loss on sale of assets and other		(342	)		836
Deferred lease expenses		890			1,123
Amortization of long-term prepaid rents		650			534
Share based awards compensation expense		3,450			3,315

Adjusted EBITDA	$	116,256		$	140,328

⁽¹⁾	Includes amortization of debt issue costs.

⁽²⁾	Includes interest income, foreign currency exchange gain and equity in income 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

Below is a breakdown of selected financial information by geographic area:


	Three Months Ended March 31,
Revenues	2013			2012
U.S.	$	366,363		$	411,225
Brazil		82,117			78,398
Other international countries		102,076			91,477
Eliminations		(2,783	)		(2,282	)

Total	$	547,773		$	578,818


Theatre Properties and Equipment-net	March 31, 2013		December 31, 2012
U.S.	$	925,482	$	940,922
Brazil		205,652		190,990
Other international countries		173,505		173,046

Total	$	1,304,639	$	1,304,958