(20) Segment Information

As of December 31, 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 (loss) income attributable to controlling interests and available to common shareholders to EBITDA, Adjusted EBITDA, and Adjusted EBITA:


	Year Ended
	December 31,
	2017		2016		2015
	(In thousands)

Net (loss) income attributable to controlling interests and available to common shareholders	$	(145,350)	$	87,991	$	67,080
Adjustments:
Interest expense, net		35,036		17,360		19,451
Amortization of deferred financing costs and note discount		12,574		11,529		11,363
Income tax (benefit) expense		(9,292)		26,622		39,342
Depreciation and accretion expense		122,036		90,953		85,030
Amortization of intangible assets		57,866		36,822		38,799
EBITDA	$	72,870	$	271,277	$	261,065
Add back:
Loss (gain) on disposal and impairment of assets		33,275		81		(14,010)
Other expense (1)		3,524		2,958		3,780
Noncontrolling interests (2)		(25)		(67)		(996)
Share-based compensation expense		14,395		21,430		19,421
Acquisition and divestiture-related expenses (3)		18,917		9,513		27,127
Goodwill and intangible asset impairment(4)		194,521		—		—
Redomicile-related expenses (5)		782		13,747		—
Restructuring expenses (6)		10,354		—		—
Adjusted EBITDA	$	348,613	$	318,939	$	296,387
Less:
Depreciation and accretion expense (7)		122,029		90,927		84,608
Adjusted EBITA	$	226,584	$	228,012	$	211,779

⁽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 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 and certain costs associated with exiting its Poland operations during the fourth 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:


	Year Ended
	December 31, 2017
	North America		Europe & Africa (1)		Australia & New Zealand (2)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	971,343	$	403,344	$	132,912	$	—	$	—	$	1,507,599
Intersegment revenues		9,043		1,488		—		—		(10,531)		—
Cost of revenues		658,153		250,120		96,474		1,146		(6,773)		999,120
Selling, general, and administrative expenses		71,603		37,992		9,244		55,398		—		174,237
Redomicile-related expenses		—		49		—		733		—		782
Restructuring expenses		3,668		2,942		—		3,744		—		10,354
Acquisition and divestiture-related expenses		2,210		2,261		3,132		11,314		—		18,917
Goodwill and intangible asset impairment		—		—		194,521		—		—		194,521
Loss on disposal and impairment of assets		10,432		1,299		21,496		48		—		33,275

Adjusted EBITDA		250,619		116,720		27,170		(42,137)		(3,759)		348,613

Depreciation and accretion expense		70,934		44,306		6,796		—		—		122,036
Adjusted EBITA		179,686		72,414		20,380		(42,137)		(3,759)		226,584

Capital expenditures (3)	$	61,742	$	61,651	$	6,310	$	14,437	$	—	$	144,140


	Year Ended
	December 31, 2016
	North America		Europe & Africa (1)		Australia & New Zealand (2)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	899,392	$	365,972	$	—	$	—	$	—	$	1,265,364
Intersegment revenues		9,006		1,437		—		—		(10,443)		—
Cost of revenues		592,187		231,465		—		878		(10,443)		814,087
Selling, general, and administrative expenses		63,672		34,138		—		55,972		—		153,782
Redomicile-related expenses		—		166		—		13,581		—		13,747
Acquisition and divestiture-related expenses		3,035		1,471		—		5,007		—		9,513
Loss (gain) on disposal and impairment of assets		1,975		(1,894)		—		—		—		81

Adjusted EBITDA		252,543		101,806		—		(35,489)		79		318,939

Depreciation and accretion expense		54,597		36,356		—		—		—		90,953
Adjusted EBITA		197,946		65,450		—		(35,463)		79		228,012

Capital expenditures (3)	$	64,028	$	51,294	$	—	$	10,560	$	—	$	125,882


	Year Ended
	December 31, 2015
	North America		Europe & Africa (1)		Australia & New Zealand (2)		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	824,075	$	376,226	$	—	$	—	$	—	$	1,200,301
Intersegment revenues		11,275		(1,140)		—		—		(10,135)		—
Cost of revenues		532,013		259,889		—		1,219		(10,184)		782,937
Selling, general, and administrative expenses		61,602		32,410		—		46,489		—		140,501
Acquisition and divestiture-related expenses		4,769		22,258		—		100		—		27,127
Loss (gain) on disposal of assets		2,089		(16,099)		—		—		—		(14,010)

Adjusted EBITDA		239,475		85,125		—		(28,280)		67		296,387

Depreciation and accretion expense		50,897		34,133		—		—		—		85,030
Adjusted EBITA		188,577		50,992		—		(28,280)		490		211,779

Capital expenditures (3)	$	90,499	$	51,850	$	—	$	—	$	—	$	142,349

⁽¹⁾

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

⁽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


	December 31, 2017		December 31, 2016
	(In thousands)
North America	$	1,175,154	$	956,807
Europe & Africa		579,879		363,857
Australia & New Zealand		75,095		—
Corporate		32,588		44,032
Total	$	1,862,716	$	1,364,696