15.

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, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets 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,
	2018			2017			2018			2017
Revenues
U.S.	$	712,483		$	554,929		$	1,312,128		$	1,136,138
International		179,979			199,926			363,607			401,994
Eliminations		(3,409	)		(3,660	)		(6,711	)		(7,327	)
Total revenues	$	889,053		$	751,195		$	1,669,024		$	1,530,805

Adjusted EBITDA
U.S.	$	188,411		$	129,394		$	344,255		$	294,048
International		33,192			41,285			70,778			88,511
Total Adjusted EBITDA	$	221,603		$	170,679		$	415,033		$	382,559

Capital expenditures
U.S.	$	59,675		$	77,175		$	129,646		$	155,992
International		22,751			14,438			32,943			26,808
Total capital expenditures	$	82,426		$	91,613		$	162,589		$	182,800

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net income	$	82,464		$	51,810		$	144,641		$	132,004
Add (deduct):
Income taxes		18,326			29,445			43,423			73,845
Interest expense ⁽¹⁾		28,466			26,522			55,581			52,891
Other (income) expense ⁽²⁾		836			(7,030	)		(6,437	)		(20,012	)
Loss on debt amendments		—			246			1,484			246
Other cash distributions from equity investees ⁽³⁾		3,932			2,870			16,255			14,919
Depreciation and amortization		64,290			59,137			128,685			116,493
Impairment of long-lived assets		2,788			4,301			3,379			4,574
Loss on disposal of assets and other		16,901			54			20,840			888
Deferred lease expenses		(449	)		(375	)		(932	)		(722	)
Amortization of long-term prepaid rents		597			496			1,236			989
Share based awards compensation expense		3,452			3,203			6,878			6,444
Adjusted EBITDA ⁽⁴⁾	$	221,603		$	170,679		$	415,033		$	382,559

(1)

Includes amortization of debt issue costs.

(2)

Includes interest income, foreign currency exchange gain (loss), equity in income of affiliates and interest expense - NCM and excludes distributions from NCM.

(3)

Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Notes 7 and 8). These distributions are reported entirely within the U.S. operating segment.

(4)

The adoption of ASC Topic 606 impacted how the Company records certain revenues. See Note 3 for discussion of the impact of ASC Topic 606.

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	2018			2017			2018			2017
U.S.	$	712,483		$	554,929		$	1,312,128		$	1,136,138
Brazil		72,977			87,841			153,113			182,540
Other international countries		107,002			112,085			210,494			219,454
Eliminations		(3,409	)		(3,660	)		(6,711	)		(7,327	)
Total	$	889,053		$	751,195		$	1,669,024		$	1,530,805

	As of		As of
Theatre Properties and Equipment-net	June 30, 2018		December 31, 2017
U.S.	$	1,465,915	$	1,439,168
Brazil		146,467		179,669
Other international countries		205,355		209,217
Total	$	1,817,737	$	1,828,054