(15) Segment Information

As of September 30, 2017, the Company’s operations consisted of its North America, Europe & Africa, and Australia & New Zealand segments. As the integration of DCPayments (acquired in January 2017) progressed throughout the second quarter of 2017, the Company separated the DCPayments operations into their respective geographical components, including them within the Company’s geographical segments and created a new Australia & New Zealand segment, which includes the DCPayments operations in Australia and New Zealand. The Company’s ATM operations in the U.S., Canada, Mexico, and Puerto Rico are included in its North America segment. The North America segment also includes the Company’s transaction processing operations, which service its internal ATM operations, along with external customers. The transaction processing operations were previously reported in the Company’s Corporate & Other segment. The Corporate segment solely includes the Company’s corporate general and administrative expenses. The Company’s operations in the U.K., Ireland, Germany, Poland, Spain, and South Africa are included in its Europe & Africa segment, along with i-design (the Company’s ATM advertising business based in the U.K.). While each of the reporting segments provides similar kiosk-based and/or ATM-related services, each segment is managed separately and requires different marketing and business strategies. Segment information presented for prior periods have been revised to reflect the changes in the Company’s 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, capital structure or non-recurring costs, as defined by the Company. Adjusted EBITDA and Adjusted EBITA exclude amortization of intangible assets, share-based compensation expense, acquisition and divestiture-related expenses, certain non-operating expenses, (if applicable in a particular period) certain costs not anticipated to occur in future periods, gains or losses on disposal and impairment 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, Adjusted EBITDA, and Adjusted EBITA:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	(In thousands)
Net (loss) income attributable to controlling interests and available to common shareholders	$	(175,561)	$	27,490	$	(161,304)	$	63,022
Adjustments:
Interest expense, net		9,743		4,269		25,760		13,227
Amortization of deferred financing costs and note discount		3,195		2,872		9,317		8,636
Income tax (benefit) expense		(4,053)		8,388		(2,335)		26,204
Depreciation and accretion expense		29,807		23,308		88,683		69,085
Amortization of intangible assets		14,996		9,175		45,423		28,129
EBITDA	$	(121,873)	$	75,502	$	5,544	$	208,303
Add back:
Loss (gain) on disposal and impairment of assets		22,307		469		26,170		(475)
Other (income) expense (1)		(2,095)		360		(1,730)		748
Noncontrolling interests (2)		(9)		(15)		(19)		(50)
Share-based compensation expense		4,151		6,642		9,971		15,780
Acquisition and divestiture-related expenses (3)		2,889		2,680		15,338		4,938
Goodwill and intangible asset impairment(4)		194,521		—		194,521		—
Redomicile-related expenses (5)		22		951		782		12,201
Restructuring expenses (6)		—		—		8,243		—
Adjusted EBITDA	$	99,913	$	86,589	$	258,820	$	241,445
Less:
Depreciation and accretion expense (7)		29,805		23,301		88,677		69,063
Adjusted EBITA	$	70,108	$	63,288	$	170,143	$	172,382

⁽¹⁾

Includes foreign currency translation gains/losses, the revaluation of the estimated acquisition-related contingent consideration payable, and other non-operating costs.

⁽²⁾

Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company’s ownership interest in the Adjusted EBITDA of one of its Mexican subsidiaries.

⁽³⁾

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

⁽⁴⁾

Goodwill and intangible asset impairments related to the Company’s Australia & New Zealand segment.

⁽⁵⁾

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

⁽⁶⁾

Expenses primarily related to employee severance costs associated with the Company’s Restructuring Plan implemented in the first quarter of 2017.

⁽⁷⁾

Amounts exclude a portion of the expenses incurred by one of the Company’s Mexican subsidiaries to account for the amounts allocable to the noncontrolling interest shareholders.

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


	Three Months Ended September 30, 2017
	North America		Europe & Africa (1)		Australia & New Zealand (2)		Corporate		Eliminations		Total

	(In thousands)
Revenue from external customers	$	257,258	$	109,259	$	35,433	$	—	$	—	$	401,950
Intersegment revenues		2,360		326		—		—		(2,686)		—
Cost of revenues		170,948		65,189		24,907		797		(1,785)		260,056
Selling, general, and administrative expenses		17,273		9,799		2,282		16,778		—		46,132
Redomicile-related expenses		—		13		—		9		—		22
Acquisition and divestiture-related expenses		95		(245)		442		2,597		—		2,889
Goodwill and intangible asset impairment		—		—		194,521		—		—		194,521
Loss on disposal and impairment of assets		479		160		21,668		—		—		22,307

Adjusted EBITDA		71,397		34,596		8,237		(13,423)		(894)		99,913

Depreciation and accretion expense		16,415		11,476		1,916		—		—		29,807
Adjusted EBITA		54,984		23,120		6,321		(13,423)		(894)		70,108

Capital expenditures (3)	$	20,658	$	19,604	$	1,294	$	—	$	—	$	41,556


	Three Months Ended September 30, 2016
	North America		Europe & Africa (1)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	233,149	$	95,185	$	—	$	—	$	328,334
Intersegment revenues		2,273		378		—		(2,651)		—
Cost of revenues		151,685		58,907		249		(2,651)		208,190
Selling, general, and administrative expenses		15,590		8,437		16,167		—		40,194
Redomicile-related expenses		—		77		874		—		951
Acquisition and divestiture-related expenses		590		378		1,712		—		2,680
Loss (gain) on disposal and impairment of assets		510		(41)		—		—		469

Adjusted EBITDA		68,131		28,219		(9,774)		13		86,589

Depreciation and accretion expense		14,160		9,148		—		—		23,308
Adjusted EBITA		53,978		19,071		(9,774)		13		63,288

Capital expenditures (3)	$	17,619	$	18,860	$	—	$	—	$	36,479


	Nine Months Ended September 30, 2017
	North America		Europe & Africa (1)		Australia & New Zealand (2)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	745,801	$	298,857	$	99,976	$	—	$	—	$	1,144,634
Intersegment revenues		6,731		1,129		—		—		(7,860)		—
Cost of revenues		506,956		188,889		72,400		937		(4,964)		764,218
Selling, general, and administrative expenses		53,300		29,516		6,633		42,102		—		131,551
Redomicile-related expenses		—		36		—		746		—		782
Restructuring expenses		3,668		831		—		3,744		—		8,243
Acquisition and divestiture-related expenses		2,243		1,748		2,153		9,194		—		15,338
Goodwill and intangible asset impairment		—		—		194,521		—		—		194,521
Loss on disposal and impairment of assets		4,275		369		21,478		48		—		26,170

Adjusted EBITDA		192,273		81,581		20,924		(33,069)		(2,889)		258,820

Depreciation and accretion expense		50,973		32,093		5,617		—		—		88,683
Adjusted EBITA		141,300		49,489		15,312		(33,069)		(2,889)		170,143

Capital expenditures (3)	$	60,161	$	45,814	$	5,449	$	—	$	—	$	111,424


	Nine Months Ended September 30, 2016
	North America		Europe & Africa (1)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	675,926	$	279,616	$	—	$	—	$	955,542
Intersegment revenues		6,942		1,042		—		(7,984)		—
Cost of revenues		443,185		178,556		636		(7,984)		614,393
Selling, general, and administrative expenses		48,073		26,542		40,890		—		115,505
Redomicile-related expenses		—		89		12,112		—		12,201
Acquisition and divestiture-related expenses		1,897		1,299		1,742		—		4,938
Loss (gain) on disposal and impairment of assets		1,266		(1,741)		—		—		(475)

Adjusted EBITDA		191,558		75,565		(25,746)		68		241,445

Depreciation and accretion expense		41,480		27,605		—		—		69,085
Adjusted EBITA		150,100		47,960		(25,746)		68		172,382

Capital expenditures (3)	$	38,518	$	37,532	$	—	$	—	$	76,050

⁽¹⁾

The Europe & Africa segment includes operations in South Africa, which were acquired on January 31, 2017 with the Spark acquisition.

⁽²⁾

The Australia & New Zealand segment includes operations in Australia and New Zealand, which were acquired on January 6, 2017 with the DCPayments acquisition.

⁽³⁾

Capital expenditure amounts include payments made for exclusive license agreements, site acquisition costs, and other intangible assets. Additionally, capital expenditure amounts for one of the Company’s Mexican subsidiaries, included in the North America segment, are reflected gross of any noncontrolling interest amounts.

Identifiable Assets


	September 30, 2017		December 31, 2016
	(In thousands)
North America	$	1,214,336	$	956,807
Europe & Africa		574,427		363,857
Australia & New Zealand		79,492		—
Corporate		21,026		44,032
Total	$	1,889,281	$	1,364,696