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 total 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 June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues
U.S.	$	517,109		$	443,765		$	883,472		$	854,990
International		211,879			208,372			396,072			378,247
Eliminations		(3,366	)		(2,531	)		(6,149	)		(4,813	)

Total revenues	$	725,622		$	649,606		$	1,273,395		$	1,228,424

Adjusted EBITDA
U.S.	$	128,697		$	103,391		$	208,775		$	207,684
International		49,327			53,561			85,505			89,596

Total Adjusted EBITDA	$	178,024		$	156,952		$	294,280		$	297,280

Capital expenditures
U.S.	$	29,631		$	27,109		$	35,787		$	46,803
International		23,868			19,494			54,601			46,784

Total capital expenditures	$	53,499		$	46,603		$	90,388		$	93,587

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net income	$	20,837		$	52,139		$	53,899		$	95,015
Add (deduct):
Income taxes		8,722			30,844			19,340			58,776
Interest expense ⁽¹⁾		34,458			31,375			67,064			63,508
Loss on early retirement of debt		72,302			—			72,302			—
Other income ⁽²⁾		(609	)		(63	)		(5,163	)		(5,485	)
Depreciation and amortization ⁽³⁾		38,734			36,341			77,766			73,157
Impairment of long-lived assets		1,101			311			1,945			496
(Gain) loss on sale of assets and other		(2,801	)		469			(3,143	)		1,305
Deferred lease expenses		1,213			1,207			2,103			2,330
Amortization of long-term prepaid rents		729			776			1,379			1,310
Share based awards compensation expense		3,338			3,553			6,788			6,868

Adjusted EBITDA	$	178,024		$	156,952		$	294,280		$	297,280

⁽¹⁾	Includes amortization of debt issue costs.

⁽²⁾	Includes interest income, foreign currency exchange gain (loss) 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						Six Months Ended
	June 30,						June 30,
Revenues	2013			2012			2013			2012
U.S.	$	517,109		$	443,765		$	883,472		$	854,990
Brazil		82,686			83,632			164,803			162,030
Other international countries		129,193			124,740			231,269			216,217
Eliminations		(3,366	)		(2,531	)		(6,149	)		(4,813	)

Total	$	725,622		$	649,606		$	1,273,395		$	1,228,424


Theatre Properties and Equipment-net	June 30, 2013		December 31, 2012
U.S.	$	1,042,109	$	940,922
Brazil		178,562		190,990
Other international countries		175,240		173,046

Total	$	1,395,911	$	1,304,958