Our business is conducted through two reportable segments: Terminix and ServiceMaster Brands.

In accordance with accounting standards for segments, our reportable segments are strategic business units that offer different services. The Terminix segment provides termite and pest control services to residential and commercial customers and distributes pest control products. The ServiceMaster Brands segment provides residential and commercial restoration and commercial cleaning services through franchises primarily under the ServiceMaster, ServiceMaster Restore and ServiceMaster Clean brand names, home cleaning services through franchises primarily under the Merry Maids brand name, cabinet and furniture repair primarily under the Furniture Medic brand name and home inspection services primarily under the AmeriSpec brand name. Corporate and Other Operations includes our European pest control operations, primarily under our Nomor brand, our financing subsidiary exclusively dedicated to providing financing to our franchisees and retail customers of our operating units and our headquarters operations (substantially all of which costs are allocated to our reportable segments), which provide various technology, marketing, finance, human resources, legal and other support services to the reportable segments.

Certain corporate expenses which were historically allocated to the American Home Shield segment are not permitted to be classified as discontinued operations under GAAP. Such corporate expenses amounted to $33 million and $44 million in 2018 and 2017, respectively, and are reflected in Corporate and Other Operations herein. The composition of our reportable segments is consistent with that used by our chief operating decision maker (the “CODM”) to evaluate performance and allocate resources.

Information regarding our accounting policies is described in Note 2 to the consolidated financial statements. We derive substantially all of our revenue from customers and franchisees in the United States with approximately three percent generated in foreign markets. Operating expenses of the business units consist primarily of direct costs and indirect costs allocated from Corporate and Other Operations. Identifiable assets are those used in carrying out the operations of the business unit and include intangible assets directly related to our operations.

We use Reportable Segment Adjusted EBITDA as our measure of segment profitability. Accordingly, the CODM evaluates performance and allocates resources based primarily on Reportable Segment Adjusted EBITDA. Reportable Segment Adjusted EBITDA is defined as net income (loss) before: unallocated corporate expenses; European pest control; costs historically allocated to American Home Shield; depreciation and amortization expense; acquisition-related costs; termite damage claims reserve adjustment; 401(k) Plan corrective contribution; fumigation related matters; non-cash stock-based compensation expense; restructuring and other charges; (gain) loss on investment in frontdoor, inc.; non-cash impairment of software and other costs; (loss) gain from discontinued operations, net of income taxes; provision (benefit) for income taxes; loss on extinguishment of debt; and interest expense. Our definition of Reportable Segment Adjusted EBITDA may not be calculated or comparable to similarly titled measures of other companies. We believe Reportable Segment Adjusted EBITDA is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring initiatives, acquisition activities and equity-based, long-term incentive plans.

During 2019, 2018 and 2017, no single customer exceeded 10 percent of global sales.

Information for continuing operations for each reportable segment and Corporate and Other Operations is presented below:



	Year Ended December 31,
(In millions)	2019		2018		2017
Revenue:
Terminix	$	1,798	$	1,655	$	1,541
ServiceMaster Brands		257		244		212
Reportable Segment Revenue	$	2,055	$	1,899	$	1,754
Corporate and Other Operations		22		1		2
Total Revenue	$	2,077	$	1,900	$	1,755

Reportable Segment Adjusted EBITDA:⁽¹⁾
Terminix	$	319	$	333	$	330
ServiceMaster Brands		92		89		87
Reportable Segment Adjusted EBITDA	$	410	$	422	$	417

Identifiable Assets:
Terminix	$	3,534	$	3,162	$	2,821
ServiceMaster Brands		508		491		489
Reportable Segment Identifiable Assets	$	4,042	$	3,653	$	3,310
Corporate and Other Operations		1,280		1,370		917
Total Identifiable Assets	$	5,322	$	5,023	$	4,228

Depreciation & Amortization Expense:
Terminix	$	73	$	59	$	58
ServiceMaster Brands		8		8		7
Reportable Segment Depreciation & Amortization Expense	$	81	$	67	$	65
Corporate and Other Operations		23		24		21
Total Depreciation & Amortization Expense⁽²⁾	$	104	$	91	$	86

Capital Expenditures:
Terminix	$	17	$	12	$	12
ServiceMaster Brands		4		2		2
Reportable Segment Capital Expenditures	$	21	$	14	$	15
Corporate and Other Operations		7		34		53
Total Capital Expenditures	$	28	$	49	$	68

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(1)

Presented below is a reconciliation of Net Income (Loss) to Reportable Segment Adjusted EBITDA:




	Year Ended December 31,
(In millions)	2019		2018		2017
Net Income (Loss)	$	128		(41)		510
Unallocated Corporate expenses		(6)		(9)		(1)
European pest control		(1)		—		—
Termite damage claims reserve adjustment		53		—		—
Costs historically allocated to American Home Shield		—		33		44
Depreciation and amortization expense		104		91		86
Acquisition-related costs		17		5		—
401(k) Plan corrective contribution		—		—		(3)
Fumigation related matters		—		3		4
Non-cash stock-based compensation expense		15		14		10
Restructuring and other charges		17		17		21
(Gain) loss on investment in frontdoor, inc.		(40)		249		—
Non-cash impairment of software and other related costs		—		—		2
Loss (gain) from discontinued operations, net of income taxes		1		(122)		(169)
Provision (benefit) for income taxes		27		37		(242)
Loss on extinguishment of debt		8		10		6
Interest expense		87		133		150
Reportable Segment Adjusted EBITDA	$	410	$	422	$	417