Segments

The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment.

The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments.

The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, Panama and Mexico. The Corporate-owned stores segment includes operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores.

The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues.

The tables below summarize the financial information for the Company’s reportable segments for the years ended December 31, 2018, 2017 and 2016. The “Corporate and other” column, as it relates to Segment EBITDA, primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.



	Year Ended December 31,
	2018		2017		2016
Revenue
Franchise segment revenue - U.S.	$	219,506	$	147,787	$	114,717
Franchise segment revenue - International	4,634		2,368		1,771
Franchise segment total	224,140		150,155		116,488
Corporate-owned stores segment - U.S.	134,174		107,712		100,541
Corporate-owned stores segment - International	4,425		4,402		4,180
Corporate-owned stores segment total	138,599		112,114		104,721
Equipment segment - U.S.	210,159		167,673		157,032
Equipment segment total	210,159		167,673		157,032
Total revenue	$	572,898	$	429,942	$	378,241

Franchise segment revenue includes franchise revenue, commission income and in 2018 includes NAF revenue, see Note 2 and Note 10.

Franchise revenue includes revenue generated from placement services of $11,502, $11,371, and $10,513 for the years ended December 31, 2018, 2017 and 2016, respectively.



	Year Ended December 31,
	2018			2017		2016
Segment EBITDA
Franchise	$	152,571		$	126,459	$	97,256
Corporate-owned stores	56,704			46,855		40,847
Equipment	47,607			38,539		36,439
Corporate and other	(43,753		)	284,372		(26,007		)
Total Segment EBITDA	$	213,129		$	496,225	$	148,535

The following table reconciles total Segment EBITDA to income before taxes:



	Year Ended December 31,
	2018			2017			2016
Total Segment EBITDA	$	213,129		$	496,225		$	148,535
Less:
Depreciation and amortization	35,260			31,761			31,502
Other income (expense)	(6,175		)	316,928			1,371
Income from operations	184,044			147,536			115,662
Interest expense, net	(46,065		)	(35,283		)	(27,125		)
Other income (expense)	(6,175		)	316,928			1,371
Income before income taxes	$	131,804		$	429,181		$	89,908

The following table summarizes the Company’s assets by reportable segment:



	December 31, 2018		December 31, 2017
Franchise	$	319,422	$	243,348
Corporate-owned stores	243,221		167,367
Equipment	210,462		206,632
Unallocated	580,311		475,118
Total consolidated assets	$	1,353,416	$	1,092,465

The table above includes $1,892 and $2,558 of long-lived assets located in the Company’s international corporate-owned stores as of December 31, 2018 and 2017, respectively.

The following table summarizes the Company’s goodwill by reportable segment:



	December 31, 2018		December 31, 2017
Franchise	$	16,938	$	16,938
Corporate-owned stores	89,909		67,377
Equipment	92,666		92,666
Total consolidated goodwill	$	199,513	$	176,981