Segments

3 Months Ended

Mar. 31, 2014

Segments

17. 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, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala and Bolivia. 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,
	2014			2013
Revenues
U.S.	$	444,920		$	366,363
International		160,192			184,193
Eliminations		(2,832	)		(2,783	)
Total revenues	$	602,280		$	547,773
Adjusted EBITDA
U.S.	$	93,540		$	80,078
International		35,015			36,178
Total Adjusted EBITDA	$	128,555		$	116,256
Capital expenditures
U.S.	$	30,312		$	6,156
International		22,494			30,733
Total capital expenditures	$	52,806		$	36,889

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

	Three Months Ended
	March 31,
	2014			2013
Net income	$	35,696		$	33,062
Add (deduct):
Income taxes		20,862			10,618
Interest expense (1)		28,480			32,606
Other income (2)		(7,686	)		(4,554	)
Depreciation and amortization		42,496			39,032
Impairment of long-lived assets		354			844
(Gain) loss on sale of assets and other		2,853			(342	)
Deferred lease expenses		1,599			890
Amortization of long-term prepaid rents		378			650
Share based awards compensation expense		3,523			3,450
Adjusted EBITDA	$	128,555		$	116,256

⁽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.

Financial Information About Geographic Areas

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

	Three Months Ended
	March 31,
Revenues	2014			2013
U.S.	$	444,920		$	366,363
Brazil		75,399			82,117
Other international countries		84,793			102,076
Eliminations		(2,832	)		(2,783	)
Total	$	602,280		$	547,773
Theatre Properties and Equipment-net	March 31, 2014			December 31, 2013
U.S.	$	1,057,365		$	1,062,471
Brazil		221,082			201,492
Other international countries		156,654			163,227
Total	$	1,435,101		$	1,427,190