(16) Segment Information

As of March 31, 2018, the Company’s operations consisted of its North America, Europe & Africa, and Australia & New Zealand segments. 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 Company’s operations in the U.K., Ireland, Germany, 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.). The Company exited its operations in Poland at the end of 2017, which had previously been included in the Europe & Africa segment in the three months ended March 31, 2017. The Company’s Australia & New Zealand segment includes Australia and New Zealand. The Corporate segment solely includes the Company’s corporate general and administrative expenses. 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
	March 31,
	2018		2017
		(In thousands)
Net loss attributable to controlling interests and available to common shareholders	$	(2,768)	$	(901)
Adjustments:
Interest expense, net		9,174		6,557
Amortization of deferred financing costs and note discount		3,308		2,976
Income tax benefit		(31)		(2,952)
Depreciation and accretion expense		31,042		29,121
Amortization of intangible assets		13,771		15,180
EBITDA	$	54,496	$	49,981
Add back:
Loss on disposal and impairment of assets		5,420		3,194
Other expense (income) (1)		2,160		(1,580)
Noncontrolling interests (2)		1		(4)
Share-based compensation expense		2,445		2,197
Acquisition and divestiture-related expenses (3)		1,720		8,456
Redomicile-related expenses (4)		—		760
Restructuring expenses (5)		2,413		8,243
Adjusted EBITDA	$	68,655	$	71,247
Less:
Depreciation and accretion expense (6)		31,041		29,118
Adjusted EBITA	$	37,614	$	42,129

⁽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. Expenses include employee severance costs and lease termination costs related to DCPayments in the three months ended March 31, 2018.

⁽⁴⁾

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

⁽⁵⁾

Employee severance and other costs incurred in conjunction with a corporate reorganization and cost reduction initiative.

⁽⁶⁾

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
	March 31, 2018
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	207,532	$	97,956	$	30,696	$	—	$	—	$	336,184
Intersegment revenues		2,228		489		—		—		(2,717)		—
Cost of revenues		145,386		61,534		22,941		84		(1,693)		228,252
Selling, general, and administrative expenses		16,628		9,242		2,537		13,333		—		41,740
Restructuring expenses		1,057		681		—		675		—		2,413
Acquisition and divestiture-related expenses		—		1,349		203		168		—		1,720
Loss (gain) on disposal and impairment of assets		2,022		3,410		(12)		—		—		5,420

Adjusted EBITDA		47,739		27,668		5,218		(10,971)		(999)		68,655

Depreciation and accretion expense		16,543		13,236		1,263		—		—		31,042
Adjusted EBITA		31,204		14,432		3,956		(10,983)		(995)		37,614

Capital expenditures (1)	$	5,533	$	9,400	$	1,866	$	3,940	$	—	$	20,739


	Three Months Ended
	March 31, 2017
	North America		Europe & Africa		Australia & New Zealand		Corporate		Eliminations		Total
	(In thousands)
Revenue from external customers	$	239,066	$	86,928	$	31,578	$	—	$	—	$	357,572
Intersegment revenues		1,991		319		—		—		(2,310)		—
Cost of revenues		165,852		58,638		23,380		(33)		(1,275)		246,562
Selling, general, and administrative expenses		18,252		9,633		1,850		12,214		—		41,949
Redomicile-related expenses		—		22		—		738		—		760
Restructuring expenses		3,727		787		—		3,729		—		8,243
Acquisition and divestiture-related expenses		1,512		517		1,020		5,407		—		8,456
Loss (gain) on disposal and impairment of assets		3,171		15		(40)		48		—		3,194

Adjusted EBITDA		56,954		18,976		6,349		(9,987)		(1,045)		71,247

Depreciation and accretion expense		17,155		9,834		2,132		—		—		29,121
Adjusted EBITA		39,802		9,141		4,218		(9,987)		(1,045)		42,129

Capital expenditures (1)	$	25,535	$	10,715	$	2,166	$	145	$	—	$	38,561

⁽¹⁾

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


	March 31, 2018		December 31, 2017
	(In thousands)
North America	$	1,208,694	$	1,175,154
Europe & Africa		591,678		579,879
Australia & New Zealand		70,261		75,095
Corporate		23,875		32,588
Total	$	1,894,508	$	1,862,716