Segments (Tables)

6 Months Ended

Jun. 30, 2019

Selected Financial Information by Reportable Operating Segment

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Revenues
U.S.	$	747,119		$	712,483		$	1,304,917		$	1,312,128
International		214,830			179,979			374,737			363,607
Eliminations		(4,193	)		(3,409	)		(7,175	)		(6,711	)
Total revenues	$	957,756		$	889,053		$	1,672,479		$	1,669,024

Adjusted EBITDA
U.S.	$	195,298		$	188,411		$	321,057		$	344,255
International		49,440			33,192		$	75,935			70,778
Total Adjusted EBITDA	$	244,738		$	221,603		$	396,992		$	415,033

Capital expenditures
U.S.	$	45,591		$	59,675		$	97,930		$	129,646
International		12,009			22,751			17,239			32,943
Total capital expenditures	$	57,600		$	82,426		$	115,169		$	162,589

Reconciliation of Net Income to Adjusted EBITDA

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net income	$	101,861		$	82,464		$	135,054		$	144,641
Add (deduct):
Income taxes		38,182			18,326			50,099			43,423
Interest expense ^{(1) (2)}		24,929			28,466			50,070			55,581
Other (income) expense ⁽³⁾		(6,774	)		836			(15,109	)		(6,437	)
Loss on debt amendments and refinancing		—			—			—			1,484
Other cash distributions from equity investees ⁽⁴⁾		5,323			3,932			19,665			16,255
Depreciation and amortization ⁽²⁾		64,573			64,290			129,035			128,685
Impairment of long-lived assets		12,494			2,788			18,078			3,379
Loss on disposal of assets and other		1,805			16,901			5,604			20,840
Non-cash rent expense ⁽⁵⁾		(1,331	)		—			(2,150	)		—
Deferred lease expenses ⁽²⁾		—			(449	)		—			(932	)
Amortization of long-term prepaid rents ⁽²⁾		—			597			—			1,236
Share based awards compensation expense		3,676			3,452			6,646			6,878
Adjusted EBITDA ⁽²⁾	$	244,738		$	221,603		$	396,992		$	415,033

(1)

Includes amortization of debt issue costs.

(2)

Amounts for the three and six months ended June 30, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases.

(3)

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

(4)

Includes cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Notes 8 and 9). These distributions are reported entirely within the U.S. operating segment.

(5)

The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives. Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases. See Note 3 for discussion of the impact of ASC Topic 842.

Selected Financial Information by Geographic Area

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Revenues	2019			2018			2019			2018
U.S.	$	747,119		$	712,483		$	1,304,917		$	1,312,128
Brazil		89,626			72,977			160,487			153,113
Other international countries		125,204			107,002			214,250			210,494
Eliminations		(4,193	)		(3,409	)		(7,175	)		(6,711	)
Total	$	957,756		$	889,053		$	1,672,479		$	1,669,024

	As of		As of
Theatre Properties and Equipment-net⁽¹⁾	June 30, 2019		December 31, 2018
U.S.	$	1,429,304	$	1,479,603
Brazil		121,158		140,570
Other international countries		166,185		212,960
Total	$	1,716,647	$	1,833,133

⁽¹⁾ See Note 3 for discussion of impact of ASC Topic 842 on capital lease assets.