(20) Segment Information

As of December 31, 2016, the Company’s operations consisted of its North America, Europe, and Corporate & Other segments. The Company’s ATM operations in the U.S., Canada, Mexico, and Puerto Rico are included in its North America segment. The Company’s ATM operations in the U.K., Ireland, Germany, Poland, Spain, and i-design are included in its Europe segment. The Company’s transaction processing operations, which service its North American and European operations, along with external customers, and the Company’s corporate general and administrative functions comprise the Corporate & Other segment. In the first quarter of 2016, the Company reorganized and created the Corporate & Other segment to separately present transaction processing operations from its primary ATM operations and to present the corporate general and administrative functions separately from the North America segment. Additionally, i-design was previously included within the North America segment and due to organizational changes, is now a part of the Europe segment. While both regional reporting segments provide similar kiosk-based and/or ATM-related services, each of the regional segments have been managed separately and require different marketing and business strategies. Similarly, the transaction processing and corporate general and administrative functions were also managed separately. Segment information presented for prior periods has been revised to reflect this change in segments.

Management uses Adjusted EBITDA and Adjusted EBITA, together with U.S. GAAP measures, to manage and measure the performance of its segments. Management believes Adjusted EBITDA and Adjusted EBITA are useful measures because they allow management to more effectively evaluate the performance of the business and compare its results of operations from period to period without regard to financing methods or capital structure. Adjusted EBITDA and Adjusted EBITA excludes amortization of intangible assets, share-based compensation expense, acquisition and divestiture-related expenses, certain non-operating expenses, certain costs not anticipated to occur in future periods (if applicable in a particular period), gains or losses on disposal of assets, the Company’s obligations for the payment of income taxes, interest expense, and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests. Additionally, Adjusted EBITDA excludes depreciation and accretion expense. Depreciation and accretion expense and amortization of intangible assets are excluded as these amounts can vary substantially from company to company within the Company’s industry depending upon accounting methods and book values of assets, capital structures, and the methods by which the assets were acquired.

Adjusted EBITDA and Adjusted EBITA, as defined by the Company, are non-GAAP financial measures provided as a complement to financial results prepared in accordance with U.S. GAAP and may not be comparable to similarly-titled measures reported by other companies. In evaluating the Company’s performance as measured by Adjusted EBITDA and Adjusted EBITA, management recognizes and considers the limitations of these measurements. Accordingly, Adjusted EBITDA and Adjusted EBITA are only two of the measurements that management utilizes. Therefore, Adjusted EBITDA and Adjusted EBITA should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow measures prepared in accordance with U.S. GAAP.

Below is a reconciliation of Net income attributable to controlling interests and available to common shareholders to EBITDA and Adjusted EBITA:


	Year Ended
	December 31,
	2016		2015		2014
	(In thousands)
Net income attributable to controlling interests and available to common shareholders	$	87,991	$	67,080	$	37,140
Adjustments:
Interest expense, net		17,360		19,451		20,776
Amortization of deferred financing costs and note discount		11,529		11,363		13,036
Redemption cost for early extinguishment of debt		—		—		9,075
Income tax expense		26,622		39,342		28,174
Depreciation and accretion expense		90,953		85,030		75,622
Amortization of intangible assets		36,822		38,799		35,768
EBITDA	$	271,277	$	261,065	$	219,591
Add back:
Loss (gain) on disposal of assets		81		(14,010)		3,224
Other expense (income) (1)		2,958		3,780		(1,616)
Noncontrolling interests (2)		(67)		(996)		(1,745)
Share-based compensation expense (3)		21,430		19,421		16,432
Acquisition and divestiture-related expenses (4)		9,513		27,127		18,050
Redomicile-related expenses (5)		13,747		—		—
Adjusted EBITDA	$	318,939	$	296,387	$	253,936
Less:
Depreciation and accretion expense (6)		90,927		84,608		74,314
Adjusted EBITA	$	228,012	$	211,779	$	179,622

⁽¹⁾

Includes foreign currency translation gains or losses and other non-operating costs.

⁽²⁾

Noncontrolling interest adjustment made such that Adjusted EBITDA includes only the Company’s ownership interest in the Adjusted EBITDA of its Mexico subsidiary. In December 2015, the Company increased its ownership interest in its Mexico subsidiary.

⁽³⁾

For the years ended December 31, 2015 and 2014, amounts exclude a portion of the expenses incurred by the Company’s Mexico subsidiary to account for the amounts allocable to the noncontrolling interest shareholders. The Company’s Mexico subsidiary recognized no share-based compensation expense for the year ended December 31, 2016.

⁽⁴⁾

Acquisition and divestiture-related expenses include costs incurred for professional and legal fees and certain other transition and integration-related costs.

⁽⁵⁾

Expenses associated with the Company’s redomicile of its parent company to the U.K., which was completed on July 1, 2016.

⁽⁶⁾

Amounts exclude a portion of the expenses incurred by the Company’s Mexico subsidiary to account for the amounts allocable to the noncontrolling interest shareholders. In December 2015, the Company increased its ownership interest in its Mexico subsidiary.

The following tables reflect certain financial information for each of the Company’s reporting segments for the periods indicated:


	Year Ended December 31, 2016
	North America		Europe		Corporate & Other		Eliminations		Total
	(In thousands)
Revenue from external customers	$	874,291	$	365,973	$	25,100	$	—	$	1,265,364
Intersegment revenues		—		1,437		23,520		(24,957)		—
Cost of revenues		572,842		231,464		34,738		(24,957)		814,087
Selling, general, and administrative expenses		59,222		34,139		60,421		—		153,782
Redomicile-related expenses		—		166		13,581		—		13,747
Acquisition and divestiture-related expenses		2,585		1,470		5,458		—		9,513
Loss (gain) on disposal of assets		1,975		(1,894)		—		—		81

Adjusted EBITDA		242,233		101,806		(25,105)		5		318,939

Depreciation and accretion expense		47,667		36,356		6,930		—		90,953
Adjusted EBITA		194,566		65,450		(32,035)		31		228,012

Capital expenditures (1)	$	73,491	$	51,294	$	1,097	$	—	$	125,882


	Year Ended December 31, 2015
	North America		Europe		Corporate & Other		Eliminations		Total
	(In thousands)
Revenue from external customers	$	813,146	$	376,226	$	10,929	$	—	$	1,200,301
Intersegment revenues		—		1,187		22,241		(23,428)		—
Cost of revenues		521,818		259,889		24,658		(23,428)		782,937
Selling, general, and administrative expenses		59,697		32,410		48,394		—		140,501
Acquisition and divestiture-related expenses		4,213		22,259		655		—		27,127
Loss (gain) on disposal of assets		2,089		(16,099)		—		—		(14,010)

Adjusted EBITDA		225,989		85,126		(14,795)		67		296,387

Depreciation and accretion expense		46,386		34,134		4,510		—		85,030
Adjusted EBITA		179,603		50,992		(19,306)		490		211,779

Capital expenditures (1)	$	83,369	$	51,857	$	7,123	$	—	$	142,349


	Year Ended December 31, 2014
	North America		Europe		Corporate & Other		Eliminations		Total
	(In thousands)
Revenue from external customers	$	762,664	$	292,157	$	—	$	—	$	1,054,821
Intersegment revenues		—		1,509		18,207		(19,716)		—
Cost of revenues		501,377		207,213		15,174		(19,716)		704,048
Selling, general, and administrative expenses		51,594		21,795		40,081		—		113,470
Acquisition and divestiture-related expenses		2,623		14,714		713		—		18,050
Loss on disposal of assets		2,138		1,086		—		—		3,224

Adjusted EBITDA		209,743		64,618		(20,603)		178		253,936

Depreciation and accretion expense		45,956		27,546		2,175		(55)		75,622
Adjusted EBITA		163,788		37,072		(22,778)		1,540		179,622

Capital expenditures (1)	$	56,999	$	46,252	$	6,678	$	(20)	$	109,909

⁽¹⁾

Capital expenditure amounts include payments made for exclusive license agreements, site acquisition costs, and other intangible assets. Additionally, capital expenditure amounts for Mexico (included in the North America segment) are reflected gross of any noncontrolling interest amounts.

Identifiable Assets



	December 31, 2016		December 31, 2015
	(In thousands)
North America	$	914,124	$	870,445
Europe		355,058		382,920
Corporate & Other		95,514		66,570
Total	$	1,364,696	$	1,319,935