OPERATING SEGMENTS

In the fourth quarter of fiscal year 2016, the Company revised its business segment disclosures to report results by segment in accordance with the “management approach.” The management approach designates the internal reporting used by our chief operating decision maker, who is our Chief Executive Officer, for making decisions and assessing performance of our reportable segments.

See Note 1 for a detailed discussion of our three segments. Each segment’s activities include the design, development, acquisition, manufacturing, marketing, distribution, installation and servicing of its product lines. We evaluate the performance of our operating segments based on revenues and segment adjusted EBITDA.

Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment adjusted EBITDA includes the revenues and operating expenses from each segment adjusted for depreciation, amortization, write-downs and other charges, accretion of placement fees, non-cash stock compensation expense, as well as other costs such as certain acquisitions and integration related costs including restructuring and severance charges; legal and litigation expenses including settlement payments; new jurisdictions and regulatory licensing costs; non-cash charges on capitalized installation and delivery; contract cancellation fees; and other adjustments primarily composed of professional fees incurred by the Company for projects, corporate and public filing compliance and other costs deemed to be non-operating in nature. Revenues in each segment are attributable to third parties and segment operating expenses are directly associated with the product lines included in each segment such as research and development, product approval costs, product-related litigation expenses, sales commissions and other directly-allocable sales expenses. Cost of gaming operations and cost of equipment sales primarily include the cost of products sold, service, manufacturing overhead, shipping and installation.

Segment adjusted EBITDA excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments.

The following provides financial information concerning our reportable segments for the years ended December 31:



	2018			2017			2016
Revenues by segment
EGM	$	271,025		$	199,931		$	156,407
Table Products	7,651			4,065			2,674
Interactive	6,623			7,959			7,725
Total Revenues	285,299			211,955			166,806
Adjusted EBITDA by segment
EGM	137,371			107,785			91,729
Table Products	942			(528		)	(1,663		)
Interactive	(2,107		)	(416		)	(4,727		)
Total Adjusted EBITDA by segment	136,206			106,841			85,339

Write-downs and other:
Loss on disposal of long lived assets	1,963			3,901			978
Impairment of long lived assets	6,089			1,214			5,295
Fair value adjustments to contingent consideration and other items	701			(630		)	(3,000		)
Acquisition costs	—			—			(11		)
Depreciation and amortization	77,535			71,649			80,181
Accretion of placement fees⁽¹⁾	4,552			4,680			4,702
Non-cash stock compensation	10,933			—			—
Acquisitions and integration related costs including restructuring and severance	3,644			2,936			5,411
Initial public offering costs	2,428			—			—
Legal and litigation expenses including settlement payments	992			523			1,565
New jurisdictions and regulatory licensing costs	—			2,062			1,315
Non-cash charge on capitalized installation and delivery	2,081			1,912			1,680
Non-cash charges and loss on disposition of assets	—			1,202			2,478
Other adjustments	(2		)	2,890			1,809
Interest expense	37,607			55,511			59,963
Interest income	(207		)	(108		)	(57		)
Loss on extinguishment and modification of debt	6,625			9,032			—
Other expense (income)	10,488			(2,938		)	7,404
Loss before income taxes	$	(29,223	)	$	(46,995	)	$	(84,374	)

(1) Non-cash expense related to the accretion of contract rights under development agreements and placement fees.

The Company’s Chief Operating Decision Maker (the “CODM”) does not receive a report with a measure of total assets or capital expenditures for each reportable segment as this information is not used for the evaluation of segment performance. The CODM assesses the performance of each segment based on adjusted EBITDA and not based on assets or capital expenditures due to the fact that two of the Company’s reportable segments, Table Products and Interactive, are not capital intensive. Any capital expenditure information is provided to the CODM on a consolidated basis. Therefore, the Company has not provided asset and capital expenditure information by reportable segment.

The following provides financial information concerning our operations by geographic area for the years ended December 31 (in thousands):



	Year ended December 31,
Revenue:	2018		2017		2016
United States	$	255,256	$	181,743	$	138,510
Other	30,043		30,212		28,296
	$	285,299	$	211,955	$	166,806

	Year ended December 31,
Long-lived assets, end of year:	2018		2017		2016
United States	$	80,617	$	79,301	$	70,208
Other	14,022		8,608		5,169
	$	94,639	$	87,909	$	75,377